Um call the July meeting of the health education housing facilities boards.

Staff confirm we have been advertised and can count enough to get a quorum, so we're good.

Election of officers.

You're the vice chair, right?

I'm vice chair.

He's vice chair.

Who's vice chair?

Richard.

That's what I thought.

Okay.

And are you are you secretary?

No.

Okay.

Okay.

Floor is open for nominations for one, two, three, or all.

So whatever you feel compelled to suggest, we'll go with Mr.

Chairman.

I would suggest just for the sake of consistency that the three board members that are currently serving continue for at least another year, in as much as we we've gotten a lot of um a lot of important matters, and we have some relatively new folks on the board as well.

Let me ask you this.

Is there anybody who is not an officer who would like to be one?

I couldn't give that one away for you.

You didn't ask for the reversal.

I think that you should ask for for compensation next.

Okay.

So uh you want to put that in form of a motion.

Yeah.

I might move that the current officers remain in place for another year.

Second the motion.

Okay, we have a motion and second discussion.

Only thing I would add is I think that is a learning curve, but I do think that some rotation might be good.

So don't be ashamed or uh reluctant to pay attention and step up as you do real well.

I think it would be good to alternate, and those of us who have been here longer are happy to mentor at times.

So I just think it'd be good to spread the wealth.

I'm happy to give it up too.

Okay.

The double pay helps.

Yes, yeah.

I haven't found the first time we pays, but it's all right.

Okay, so we have uh we have a motion and a second.

Any further discussion?

All in favor of the motion, which uh is the current officer's stay for one more year, please say aye.

Opposed like signed.

Seeing none, congratulations.

Uh we have the approval of the minutes of the June meeting, which are in your packet, and I think we're sent to you.

Uh Chair wouldn't entertain a motion for discussion.

Motion and second discussion, suggestions.

Brian, you said you had read them thoroughly, so did you notice anything that you wanted to point out?

Chair, I didn't see anything that um that was alarming.

I was absent at the last meeting, but I've caught up with the minutes.

Way to do it.

Okay.

Are we ready to vote then?

All in favor approving the June 15 minutes, please say aye.

Aye.

Aye.

Opposed, like sign.

Seeing none.

The motion carries, the minutes are approved.

Uh we have a full agenda today, but uh, is there anyone here who would like to address the board before we start?

Basically, after this point, um, it's more of a presentation and voting.

This is the public opportunity time.

I think they're afraid to say anybody.

We're elect them into an office.

Okay.

Seeing none, we thank those of you who are here.

Uh first item to look at is a the Heritage McClellan apartment.

This is a pilot project, a resolution to authorize the chairman or the chairman's design need enter into an assignment and assumption agreement, approving the assignment of the agreement for payment and that lieu of L or M taxes, which is a pilot, and the lease for McClellan apartment project, and to provide additional related authorization.

So I assume that there's something going on, but they're going to assign something to somebody other than what they have now.

Yes, sir.

Currently, this uh particular pilot is uh in the name of the heritage um uh McClellan group here.

Uh these apartments have been involved, I believe, since um I guess they were initially constructed and uh worked on in 2014-2015 time frame.

At this point in time, there is a still existing uh portion of the pilot before the step up period occurs for four years at the end of that, and that is what is being requested to be assigned at this point.

They're requesting the step up to start.

No, they're just requesting to be assigned the interest for the tax benefits until the end of the term of the pilot.

It's not a new new pilot.

So what to me, what you're saying, you know, they want to be assigned the interest.

So the ability to be able to have this body continue in the lease for uh, I guess probably another uh three or four years at this point.

And uh is anybody here from yes, sir.

Brooks brass field.

Sorry.

If you want to introduce yourself, thank you, Mr.

Chairman.

Brooks Brassfield.

I represent the Clear Blue Company, uh, the proposed assignee.

Um happy to answer questions, but um this we think it's a pretty straightforward request.

Um my clients have been under contract for about a month now, they're still working through kind of finalizing details.

Um, Vest Chattanooga will be partnering with them.

Um still finalizing the details of the letter intent for their financing on that, but um happy to answer any questions.

So I I have I have a question.

So are they the original people are there?

No, this isn't okay.

Okay, that's what I thought.

Okay.

And how long is the term continuing on the pilot?

I understand it expires in 2031 is is the date that I've got.

So they intend at some point to request a new pilot.

Um with the timeline, they weren't able to get that done initially when they close on this acquisition, but their plan at some point in the next five to ten years uh would be to get a new pilot with different terms.

Okay, and that particular uh case here, we're just trying to make sure you y'all are aware it can't be used for short-term vacation rentals, seemed like we got into it.

Yes, sir.

Yes, sir.

So the plan is uh is to have a significant amount of affordable uh component.

I believe there already is at the at the complex, but they'll be extending that as well.

Okay, sir.

And this just extends the term of the pilot with a new well, it doesn't extend the term, it's just an assignment.

That's correct, it's just the new party that'll be operating the the property, and then uh the term stays the same.

So I have a question.

Yes, for you then uh on a pilot, if it's can it be assigned?

Well, I know it can be assigned, but can it be extended?

Not unless this body uh would create a new new pilot on there.

So the current pilot would be what it is right now at the end of that term if there's uh substantial work that is done that y'all determine is uh uh just to re but just to extend without some substantiation as to why, but we've never done that, but I know it no I I bring up reason I bring it up is uh you know what you're doing, but I didn't I didn't I knew we had never allowed what I'd call a refinancing on an existing pilot, in other words, the extension of the the abatement the 10 years before the step up period, yes, sir.

So part of the part of the transaction, my client will be assuming the existing loan.

So Arbor private label they financed uh, I think they're the loan started in 2021.

Um thankfully because it was back then, there's a great interest rate, so they're you know interested in hanging on to that.

Um, but then eventually, you know, refinancing towards towards the end of the pilot term.

Okay, okay.

Yes.

Uh Chair, I have a question for attorney knoblett.

So I understand in this scenario that this is an assignment uh for the remainder of the term.

To my understanding, if if a property that is under pilot uh agreement sells, is that a transferable pilot at that time?

It versus subject to the approval of this body for that assignment to occur, and that's one of the terms of the pilot agreement.

It allows that to occur.

Okay, sir.

So it could be an assignment or a sale.

Well, it could be a sale if if that sale occurs, it still have to comply with the terms of the pilot on here.

But my point was they could if if the if the new owner wanted to refinance it, they could, but they'd have to stay within the number of years left.

Yes, or they could assign us it could be assigned, which means they're getting the terms of the original pilot.

Correct.

Correct.

And this is an assignment.

Okay, that's where I was going to make because there's a difference there.

Sure.

Your question.

Understand, thank you.

Okay.

Any other questions?

Yes, ma'am.

So is the project slated to uh still be completed under the new owners uh by the same time frame?

That's my understanding.

It's my understanding.

I've got Dan Tetzel from the ClearBlue Company, if he can speak to that as well.

But tell me the question one more time.

Since someone else is taking over, will you all be able to still have it completed by the same time frame?

So we're we're looking to acquire it.

We're getting ready to buy it.

So we'd like to step in and we will complete the work.

We're planning on on fixing some things that need to be done.

There was 2016, there was historic tax credits that kind of completely rehab the building.

We're looking to step in now, continue to have the rent restrictions, the affordable units there, and plan on making some additional improvements to the property.

So will all the changes, repairs and everything be completed still within the time frame.

Yes.

Okay, thank you.

I think that to help you is that um the term of the pilot.

Give me an example.

Let's say that was it was initiated in 2020 for a 10-year period.

Halfway through, they've made the initial changes they're gonna make, because that's a financing period, which is the 10 years.

Okay.

So what they're committing to is it is picking up the property with the existing finances and the condition it's in, which was what they did to make it what they use the money for on the front end.

If they want to come back to something different, they can, but we have to approve it.

So the the project, and I'm to try taking off on your word completed.

The initial project of what they were gonna do has been done.

Right.

So they don't have 10 years to do it.

Right.

I mean, so that it's it's the initial project been completed.

So they're picking it up as it is, which is a is a functioning pilot.

Well, it has been completed.

So they're just going in now making modifications and changes.

And they don't have to.

They they could it'd be like say you buy a house and you rehab the house, and then you rehab it, but then it'll have giving you 10 years to pay that out.

Right.

Okay.

So they're buying a rehabbed house in that example.

If they want to put additional money into it, they can, but they can buy it as is and let it stay that way.

Or they can make enhancements to it.

And if they come back to us and want a longer term or more more money, we're gonna ask them what they're doing to substantiate that, if that makes sense.

Right.

But the initial project from a rehab standpoint is completed, they're just running it as as a as a as a um lower moderate housing project.

And and the payment in lieu of taxes portion of all this means that they are paying taxes at the rate before all the renovations were made.

At this point in time, they are receiving that uh benefit here of a lower tax rate than they would otherwise because it's in the name of this board.

At the end of that term, it goes out of the name of this board and the property is conveyed back to the property owner, and they have a step up at that point in time in valuation.

The value they're getting is if you and I buy a house, we can't we can't be assigned the initial loan if we'll get a new one.

They're they're picking up this loan as it exists for the term of the loan.

Right.

I just didn't understand it if since they're picking it up, has everything been completed.

Yep.

Yeah.

So there's no additional time frame needed.

The time frame is on is the payback period, which allows them on the front end to not have to pay additional taxes when when the property is completed.

It well was completed, which makes it more valuable.

Right.

That's that's the value of the pilot.

Is it's it's a it's a project in lieu of taxes.

So you're you're starting with whatever was the initial tax rate, and let's say they tripled the value of it, they don't have to pay tax on that for 10 years.

Then they have four years to step it up.

So they're in that 10-year period.

Okay.

So I have something I want to ask.

So I get the part about the transfer with the financials and everything.

I think my concern is about the people, the residents that are there.

Uh, I guess I would like to know about uh are they protected against displacement?

Are we gonna make sure that we deliver on the agreements that we set for in the beginning?

Uh, how do we measure those things?

Yes, ma'am.

So it's part of all the original obligations.

My client will be taking over the lease as the landlord with those residents.

Um, so those have whatever the terms they are they have, you know, for a year, however long.

Um, but it's my understanding they plan on continuing to renew um all of those.

Um part of the part of what's been worked out with Invest Chattanooga is a higher commitment to um uh lower AMI.

I believe it's is it 20% of the units will be at 50% AMI?

20 yeah, 20% of the units will be at 50% AMI right now because of where all the residents that are there currently, that's not completely possible, but as there's turnover, the goal is to get it to 50%.

Um Joe Kelly with the Chattanooga Housing Authority also invests Chattanooga.

Uh with the money that Invest Chattanooga is putting in to the to the project, we will have separate and additional affordability requirements as part of our agreements.

Uh so the affordability will be preserved both under the original uh agreement with AEB, but then there'll be another layer of affordability on top of that that comes with the Invest Chattanooga money.

Thank you.

Any other questions?

Okay, we have a motion and a second.

Motion.

All right, we have a motion and a second.

Um further discussion.

You're supposed to throw orange or tangerine at me.

We don't get a motion.

I apologize.

Okay.

So now we have a motion and second.

Anything else to bring up?

All in favor of the resolution, please say aye.

Aye.

Aye.

Oppose, like sign.

Resolution's approved.

I'll get you a motion on this one, I promise.

Okay.

Uh a resolution of the Health Education Housing Facilities Board of the City of Chattanga, Tennessee, relating to the issuance of multifamily housing revenue bonds for an amount not to exceed 25 million to provide financing to DGA Ridge View LP for acquisition, construction, and equipping of a multifamily housing facility for low and moderate income citizens be located at 5026 old Godsea Lane in Hickson.

So this is a bond issue for up to 25 million for them to for them to uh uh acquire this facility, correct?

Yes, sir.

And we are conducting today, I believe, a TEFRA hearing on this particular project dealing with the uh uh DGA Ridge View uh LP, and uh it is a bond amount of up to 25 million dollars for new multifamily housing, and it says for low and moderate income citizens on Godse Lane.

So uh at this point in time we'll we'll conduct the initial TEFRA hearing and uh so that y'all can get into the preliminary bond resolution phase of this matter.

Jay, you want to tell us something about it, or do you want us to conduct a pair?

Anybody that wants to come up with okay, and you want to ask anybody if they're interested to come up and speak.

Is there anybody from the from the commune who would like to speak for or against or has questions?

That and a nickel get you nothing.

Okay.

So you want to tell us what this is?

That satisfies the TEFRA requirement, which is good.

Um my name is Jay Money Hun.

I'm an attorney with Bassbury and Sims, and we're serving as bond counsel for this project.

I have here Rob Talbot with Dominion DGA residential.

Um they've been a developer of of other affordable housing projects here in Chattanooga most recently, one on Shallford Road.

Um, they have two new uh projects today.

This first one that is on the agenda is for DGA Ridge View.

Um, this is the preliminary approval that we would need to get in order to apply for low-income housing tax credits and tax exempt bond allocation from THDA.

Um, it's also they're partnering with the Chattanooga Housing Authority for um for vouchers on this project and one of the reasons the the timing uh is pressing on this project and and the next one is um the vouchers are are slated to to go away.

It's a uh the the vouchers are called Faircloth vouchers and HUD is uh sent out some guidance that that's that puts in jeopardy these these vouchers unless we are able to file an application with CHDA to preserve those.

So this and a number of other projects you'll be considering at this meeting and and next week will they all we're trying to get in under the gun here, but this is this is the same type of resolution that you all approve for any new LITEC tax exempt bond housing transaction.

Um Rob's here if you have any project specific questions.

This will be a new new construction um of affordable.

How many units is it?

Uh currently we're contemplating 840 units.

It's conceptual plan at this time, but that's the the current uh plan now.

And is it this is the I'm trying to old Godsley Lane is it doesn't say a lot, but there's a parking lot next to it.

Uh at the corner kind of a Pamel Road.

Is that what we're looking for?

This slot actually lies in between.

There's some existing multifamily there, and then there's kind of some medical offices.

Right.

And then there's an empty lot.

There's was formerly a residence there, but it's it's vacant land now.

Spend a lot of time over there.

I don't I can't quite focus on where that's right next to the hospital, right?

It's close to it, yes.

Okay.

Okay.

What percentage will be affordable versus 100%.

100%.

So this allows them to apply for the bond issue, the tariff to hearing that have to come back for if they want to pile it or for their finances from that point on.

And I guess for the record as well, uh, we have in your packet here documentation from Basbury and Sims where this teffer notice was published in the paper here, giving you people an opportunity to speak today, and it told them what this was about and for the amount of um involved in here those 25 million dollar project.

Okay, we'll get Maria to attach that to the minutes.

Okay.

You're lousy at keeping me straight, you know that.

So um we need a motion to uh not for the TEFRA, but for the bond for the resolution here.

Resolution allowing them to do it, correct?

Yes, sir.

And it's the preliminary bond resolution that you need to have a motion on.

Okay.

I have a motion.

Is there a second?

Second.

Okay.

Uh so you're approved.

This is you're approving the resolution to uh condone what they're doing.

Simply up to 25 million, that's right.

Okay.

Further discussion or questions.

Seeing none, you're ready to vote.

All in favor of the resolution, please say aye.

Aye.

All right.

Opposed, like sign.

Okay.

I think you have an identical thing on the next one.

Uh this is for uh the one at Hamilton Place for 30 million.

A resolution of the health of a health education housing children's warranty of Chattanooga, Tennessee, relating to the issuance of multifamily housing revenue bonds for amount not to exceed 30 million to provide financing to DGA Hamilton Place LP for the acquisition construction equipping of multi-family housing facility for load and modern income to be located at 2460 Elam Road in Chattanooga.

We need to have an opportunity for the public to speak as well at this time if anyone's interested.

Couldn't give it away with a free lunch.

Okay, good.

Thank you.

Um, so we need a a motion to have discussion on the resolution.

So moved.

Motion's or second.

Motion second.

See, I can do this.

Okay.

You want to tell us the number of units and kind of the makeup since this is also gonna be a new construction, correct?

Yes, sir.

Yeah, it's similar situation, conceptual plan at this time.

It's it's roughly 96 units, is what we're uh we're contemplating.

So a little bit bigger.

So same thing, low to moderate, 100%.

Yes, sir, 100% affordable.

Okay.

When you say affordable, what are the ranges of housing?

Uh it's up to 80% AMI.

So we'll have some units at like a 40 to 50% AMI threshold up to 80.

It'll be a uh an average income project.

And then on the bond side, they're required to at least have 40% of the units at 60% AMI.

So at least 40% will be 60 or below, then the remainder could likely be 60, but could go up to 80.

Yeah, the weighted average of the project will be 60% or less.

I know that this is still conceptual of approximately what kind of makeup of the 96 units would it be.

Two bedroom, one bedroom, threes.

It's an even split between two and three bedrooms, is what we're current currently contemplating.

Got it.

And uh all single level or multi townhome style or just garden style walk-up product.

Got it.

Thank you.

Kind of three stories.

You mentioned something about uh the voucher system and with the government that this is kind of like in limbo at this time.

Did I understand that correctly?

Mr.

Kelly might be might be better to explain.

Yes, ma'am.

Uh so the the issue with all of the these projects that are gonna come before you today and next week is uh as you may have heard, uh CHA has what is called uh faircloth voucher authority, and without getting into the weeds of what all that means, it it equals out to uh we have the ability to build uh up to 1,287 new units of affordable housing.

Um that has been around for a while, but there's been no way to utilize that to uh uh start new construction until two years ago, HUD revised its uh procedures to allow for a way for us to in essence monetize those vouchers so that we could partner with private developers and build these units.

We've been working since then uh to uh start this process.

Uh we have awarded 1,225 vouchers uh spread across a I think a total of eight projects with 11 or 12 phases uh across the city.

Uh the reason for all of these projects coming before you now is that in on May 10th of this year, uh without really any warning, HUD issued new guidance regarding the Faircloth program and stated that in anticipation of the administration's 2027 budget, which is proposing to zero out fair cloth vouchers, that all fair cloth vouchers, one you had to have your initial application in before May 10th, the date of that memo, or you had lost them.

We had our applications in our last one went in May 11th.

So uh we uh met that deadline.

But then there were additional requirements in order to keep those vouchers alive, and one of those is that by August 10th, all of the projects have to show that they're under active consideration by uh the state uh authority, THDA for uh project.

We have been in continuous discussions with THDA since May regarding this and and where we have arrived as THDA has agreed that if this board issues inducements for all of these projects, it will then accept applications and issue conditional letters uh uh for all of these projects that will satisfy the HUD requirements so that we can then file those with HUD uh and then that would give us time to continue to develop these in the normal course of business.

Okay, because that was gonna be my second question.

What happens if we don't meet those deadlines and do other vouchers null and voided at that time?

Under the current guidance, if that holds, the the vouchers would be voided and lost forever.

Now in politics, all things are written in sand, and this is a 2027 budget proposal.

Uh and this is the administration's own guidance on how in anticipation of its budget being adopted as proposed.

Uh that is a big question mark whether that will actually happen.

Uh but from our standpoint, we have to act as if it is going to happen and do everything we can to preserve the vouchers.

And we've acted accordingly.

Yeah.

And the reason I asked, and I know you all know with the vouchers, it it makes a big difference of who will be able to afford the housing.

It increases.

So if we don't get the vouchers, if they are not approved, then those would those people will not even have an opportunity.

And if they're low-income housing, the vouchers do make a big difference and whether or not that can actually happen.

And that was my concern.

No, your your concern is shared by us because fundamentally uh with if the vouchers are pulled, a lot of these projects will not be financeable, and we won't be able to build them.

And so that's why we've been working around the clock since uh this May May uh memo.

And so we're we're knock on wood.

We're we're gonna get there.

Yeah, you all have been doing a good job.

We've been approving quite a bit of them.

And I pass by, and I'm not one of the kind of people who will approve something and then not later on go by and look at it, check it out and talk to the residents.

So I've been back and forth to the one on Shalifer Road across from uh the veterans hospital.

It's a very nice facility.

We're very happy with with our partnerships, uh what we're turning out and what we're providing for our folks.

Thank you.

And I'll say too, a lot of housing authorities are not being as proactive, and they they may lose them, but China New Housing Authority's been really on top of it.

Yeah, okay, I letting them do a good job.

Yeah.

Okay.

Do we know which um like will this entrance be off of Gum Barrel?

I know that we approved last month, another one further down Stanford Gap.

So has there been any sort of traffic study?

There are kind of approving projects.

The amount of volume that's going to be in there.

There is going to be increased volume there with these projects, and and that is actually uh by design.

Uh we uh and the city council approved this.

Our whole deployment plan for all of these vouchers was to provide housing in areas that traditionally have not had affordable housing available.

You know, for example, all of CHA's existing stock is in the central uh center city area, uh, and LITEC investment tends to go in other areas as well.

And so these vouchers are our way of putting our residents into what we consider high income, high opportunity zones, and this uh the area around Hamilton Place is one of those areas.

And the good news is all of these projects, it's the the infrastructure is already built out.

There is going to be housing built on these plots.

The question is whether it will be affordable or not.

Does it does that answer your question?

I mean, it's it's there's going to be housing there, it's just a matter of what kind.

Okay.

And uh once again, we have uh, I guess notification that was published by Bassbury and Sims of this meeting for a tougher hearing, and it was done in accordance with Tennessee law, and uh that is part of your minutes.

We'll keep that part of your minutes in case case.

Other questions.

I did good.

Okay.

We have a motion.

So uh we have a motion to uh approve the resolution.

So uh any further questions or comments?

If not, we're ready to vote.

All in favor of approving resolutions, please say aye.

Aye.

Signed.

Okay, resolution passes.

Okay, Paul Harvey would say, page two.

We have um three uh economic development items.

The first one is a resolution ratifying the chair's execution.

So this is something that you're ratifying, something the chair has executed.

The first amendment to independent contractor services standard form agreement with the Chattanega Regional Homeless Coalition to administer and exercise stewardship over a total sum of two million for the sole purpose of rental assistance to households at risk of eviction.

So you're um we're asking you to uh approve a resolution that I signed in the interim uh for up to two million dollars and a regional homeless coalition for the sole purpose of rental assistance to households at risk of eviction.

Do you want to explain why?

Yes, sir.

Uh this was imperative that it be done uh before uh actually this meeting occurred.

It occurred on the sixth day of July.

Uh Mr.

Belan uh with the city was making a request that it be done immediately at that point because otherwise it would have ended uh on the term of this agreement uh before now, and we were trying to extend the term uh of this independent contract services agreement for the new budget uh that was coming up.

So that that was the issue that was involved with the council, and it's a two million dollar for rental assistance to households at risk of eviction that occurred.

Richard, is there anything else I need to say in that regard?

Okay, and then I can also speak to this or uh I can take all three of these resolution that we're well once you at least do the first one.

That'll get us off of the dime rather than combine all three that way we do that.

Um to stand on.

I got my heels on.

I thought you looked taller today.

Not hard.

Um, hey everybody, Megan Miles, director of housing policy for the city of Chattanooga.

So this, what you're looking at under this first uh resolution ratifying that.

Um, this is an agreement that is an extension of a program that we began last year.

So if you recall, last year we had a number of new programs, new funding that we received through the city's general fund budget allocation that we brought to this body.

One of those was a brand new eviction prevention fund and a total of one million dollars.

And the purpose of that fund is in combination with services provided by legal aid of East Tennessee, which you'll see next, legal assistance and housing navigation that is being provided by the Office of Homelessness and Supportive Housing and our Office of Family Empowerment, works together as a system to prevent evictions and preserve housing stability.

This is an additional $1 million.

So it says $2 million, that's because there was one million from last year.

Another million was added in the FY26-27 budget year.

And so we've been able to add an additional one million dollars to this fund.

Um it has been extremely successful so far.

Um, we've helped approximately 350 households stay in their homes through the use of this fund.

I can talk a little bit more about how that's worked in combination with our legal services and housing navigation as well.

The reason we needed to move it so quickly was because we actually ran through our million dollars.

And so, in order to not have a gap or you know, a month of people who otherwise could have been served with the funding that we had available, um, we asked to move that through as as quickly as possible.

So then I'm gonna go back.

So the first one's on rental assistance, the second one's on is on eviction prevention, and the third one is to promote housing stability for low income.

So each of these is a is a program that you all would want to enter into that we're approving for that's correct.

Okay.

Everybody see connection between all that.

So I I have one question then to take you up on your offer.

Um how on promoting housing stability, is that a where you're uh helping them get to the next level or keeping them from losing, they have I understand the eviction prevention, but what's the third one?

How's it?

Yeah, and the the third one is actually a separate program that's being run by Habitat for Humanity.

That's a senior senior owner-occupied home repair program.

So that's a program in which we are able to work with seniors 60 years or older who earn 50% of the area median income or below.

Um we can make critical home repairs to homes that they already own so that they are able to stay in in that home and age in place.

So it's a we're a way that we're able to preserve kind of our existing housing stock because that's one of the things that we know can be an issue, those homes deteriorate.

Um, and it's also a way for us to support seniors often who may have owned the home, are now in a fixed income, they don't have the funds to maintain that home or to fix it up, but they also don't necessarily have the funds to move or um change their housing situation.

And so we have a great partnership with Habitat for Humanity.

That's what that program is.

I think to answer your question about housing stability for kind of the eviction prevention program, we conceived of that program in kind of three different parts.

So again, um, in partnership with Legal Aid of East Tennessee, they're a phenomenal organization.

We have been working with them for a number of years, so this is not brand new.

They provide those eviction um prevention services and legal services, both representing clients at court, working with landlords, negotiating with landlords, kind of making sure we know from studies, not just here, but across the country, that most tenants do not go to court when they're facing eviction with representation.

And so that tends to result in negative outcomes for tenants, and so legal aid is able to provide those services for them and have much better outcomes for those tenants.

The housing stability piece and the housing navigation, one of the things when we took a look at this program two years ago, what we learned and what we saw was that even though there are different programs happening, they weren't necessarily being connected.

And so legal aid has fantastic attorneys.

Their attorneys, they have a specific role that they're serving.

Um we had housing navigation, but they weren't necessarily connecting.

So we've really spent the last year building a referral process and referral um pipeline where if someone is kind of at risk of eviction, but maybe they don't have that eviction yet, um, which is what we're trying to avoid.

Once you get an eviction, that adds complication.

It also adds cost because then you're looking at attorney's fees and other court costs.

We're working with our housing navigators and case managers to send those households over to request funding and also to kind of do an analysis of what's going on, what's the situation, what other support services do you need?

And so that's been a pr uh a critical piece of infrastructure.

Most of the people that we're serving were are dealing with some sort of a temporary crisis, whether that's a medical event that's happened, whether that's a sudden job loss, whether it's a car has broken down and they simply have not been able to get to work.

And so that's partly what our case managers are helping them navigate and making sure they're connected to appropriate services.

How do we communicate the resources like this that we have?

We work with there's a um pretty strong coalition of of service providers.

Um we have our housing navigation team attend court every week as well.

So if someone hasn't heard about these services beforehand, we're we're physically present in the building to work with people as they come in.

I would say it's it's both through word of mouth and through kind of all of our service coordinators, um, not just those participating in the city, but those who work with people kind of across the city, um they can come to this.

This is Emily O'Donnell from Legal Aid, too.

I can I jump in and add to that.

Okay, I'm the managing attorney of the eviction prevention initiative at legal aid.

One of the standout parts of this program, and I'm a nerd, so it might not be as exciting to you, but every week we get a download of every address in Hamilton County where an eviction has been filed from the legal services corporation.

This is one of the only areas where a service provider knows exactly who their universe of clients is.

Um, and sometimes our postcard will be delivered to the house even before they're served with their unlawful detainer warrant.

So we know that we are reaching every household who has this um is going to face eviction and that would have all of our information on it and has really helped us contact those people in advance.

We're one of the only programs that's doing that.

Thank you.

Thanks.

Okay.

Yes, sir.

Uh if you have a question on any of the three, we can separately, but it's a bit general.

But um, Ms.

Miles, this is so I understand the um the approach of reaching out to tenants who have an eviction notice.

However, back to the information, the messaging of tenants who might be at risk of eviction.

Is this on the website?

Um, because I calculated at 350 uh tenants who have been uh recipients of the million dollars, that's about 2800.

So it's it's a strong number to catch up with their rents.

How I represent many landlords.

How do we get the messaging to the landlord who can provide it to a tenant?

Yeah, share it out.

We I believe it is on our website.

Um, do you know that, Ryan?

Sorry, I've got our program in.

Yeah, it should be on our website.

We can also connect you with the service coordinators who are working with that.

So if you want to have landlords reach out, we actually think it's a great opportunity to have those conversations with landlords because again, we're looking to get ahead of eviction filings.

And so working with landlords directly is a really great opportunity to do that.

Okay, thank you.

I have a question.

Just to clarify, these additional funds have they already been approved by the city council.

Yes, all of the funds for all of these resolutions are included in the FY2627 budget year specific allocations.

Question.

Uh I uh have this situation going on in my life.

Is there just a number that I can call that I can get started on the journey, just for just a number.

Sure.

Um it would be the kind of OSH phone number.

I can share that with you.

I don't have it off the top of my head, but I can certainly get that to you.

Okay.

That's probably the best place to start.

Would you get referred from 311?

Yes, yes.

And we work, so Maha United Way also works with legal aid to do referrals as well.

I will say we have a specific referral process built into this.

And I want to clarify that because the case management is very important.

One of the things that we learned when we received emergency rental assistance through the COVID funding in ARPA, is that having so much funding available actually created some negative incentives, both for landlords and also it meant that we weren't always we were in the business of writing a lot of checks, but we weren't necessarily in the business of working with each individual household to kind of the best of our abilities to stabilize them.

And so I do want to clarify we do have a specific referral process for accessing funding, which is through our Office of Home Services or through the Office of Financial Empowerment, both city departments.

Um and that's because we wanted to make sure that this funding came with case management opportunity.

And so instead of just uh sending checks out, which is what we've done in the past, we really want to pair that um with those services.

But yes, through either of those organizations, there's the opportunity to enter the program.

Any other questions?

Uh I'm lost.

I think we don't have any motions.

You're failing me three times in a row.

I tell her to be mean, but she already is.

Okay.

She does well.

I know she does.

Okay, so we don't have a motion.

So we need to go back to the very first one.

So chair would entertain a motion uh which is to ratify the um execution of the first amendment to an independent contract services.

We need a motion for that, which is the is a motion.

Is there a motion?

Second.

Okay, okay.

Have a motion and the second, you know, discussion or questions.

All in favor of the first resolution, please say aye.

Oppose like signed.

Okay.

I think you need to read the second one.

Yeah.

Now the second one is on uh the eviction prevent it with the legal aid of East Tennessee for the eviction prevention initiative.

Chair, we intend a motion to approve that resolution.

I'll move motions or second.

Second.

Have a motion, second discussion or questions.

Yes, question on that.

What was the uh budgeted amount last year?

I recall approval of that.

Yeah, it was also a 500,000.

That's why she's saying it's a meeting total.

Yeah, we're adding 500,000 to that.

Great question.

Hank?

Thank you.

See, I support you.

Okay, so uh questions on the second resolution.

All in favor of the second resolution, please say aye.

Aye.

Oppose like signed, approved as well.

The third one is uh with the habitat for humanity for the uh housing stability for low-income homeowners, up to four million questions, comments on that one.

Chair would entertain a motion, so moved, motion, second discussion, questions, follow-up.

Okay, all in favor of this resolution, please say aye.

I oppose like sign.

Motion a resolution passes.

Thank you, ma'am.

Great job.

Okay, we're rolling.

Yeah, uh we're under other business discussion.

So um the first one uh is on the rep report on debt obligation for bailer, uh 17.9 million.

It was we we passed the we did heard their presentations last time.

It's a total of uh 62 million on the first and second combined, if I'm not mistaken.

Yes, sir.

And these are reports that we have to file with the comptroller of the state of Tennessee every year on the outstanding uh debt obligations, and in this case, um we've reported that to them, sent the documentation to them, and they're proved.

So what do we what are they what's this group doing?

Um just reporting to y'all that we have done what we're supposed to do.

Okay, so no vote on those.

You snuck by so you didn't have to vote on that one.

Okay.

Now on the C notice of claim against a performance bond.

On one so is on one west side phases one A and one B, and Mr.

Kelly is here to tell you what they have done since we got a notice against the performance bonds on that contract.

Why don't you start by giving them 30 seconds on what a performance bond is?

Yes, essentially a performance bond uh in these types of projects are uh a developer contractors required to provide a performance bond, in essence guaranteeing the completion of the project in exchange for public money.

It's an in common financing instrument.

Yeah, and most insurance well uh lenders require building of a performance bond that if they don't do something, then there's an insurance policy that pays to go to where you're supposed to be.

Right.

There either has to be an uh a performance bond or some other type of security uh performance bond is the most common.

And in this case, uh this is one of the subcontractors uh uh on the project.

We've been in discussion with our development partner, Columbia, uh, and also then with the contractor uh block, and we understand that this uh issue will be resolved soon.

So we you're just giving us notice that there has been a claim against a performance bond.

So there was in someone's eyes an issue to start with.

That's correct.

It and it's between the subcontractor and the contractor, and our understanding is they're in discussions to resolve this, and they anticipate resolving it.

Because we're the one funding the west side.

That's why we're doing this and and we'll we'll uh as we we will continue to follow up and make sure this is taken care of.

Okay, and they did not send anything directly to this board.

That was the other confusing thing on this one, but we got copies of it.

They did uh notify the housing authority in the mayor's office, but they didn't send it directly to this board.

Yeah, I did you know what the individual lean followers do, we just can't control.

Uh I mean I can't, I don't really understand.

But you got every insurance agency in town providing these to some of them know where to send it, and some of them don't.

Yeah.

So what is the issue?

Uh got a performance bond for steel that was produced for the one west side project, and there's uh giving you a notice that they wanted to have a claim here on that.

So essentially they're saying somebody didn't do what they're supposed to do, and and if they don't do it, then the insurance has to pay to get it corrected to what it is.

In essence, there's an invoice that they're it's it's a it's an invoice that they're right.

They've got a dispute about that they're resolved.

Thank you.

I think we've got another board meeting scheduled for next week, but you probably won't know by then, will you?

Uh uh if I do, I will advise the board.

I'll advise the board one way or the other.

Okay, because I will be here for that meeting because you have other issues.

Yes, sir.

All right, so we want to so noted, thank you.

The next is on uh the lawsuit page tarrell versus Alco Management.

And this is another one we wanted to make sure we brought to the board's attention.

Uh because the board is involved in a pilot project here.

Uh this is a new lawsuit that uh we have assigned to folks in our office here where someone uh actually uh had an injury in connection with the matter, and because it is held in a um, I guess a ownership capacity by the Health Education and Housing Facilities Board during the term of that pilot, they've included us as well.

And this is an injury that occurred to someone at the Bay Berry Apartments complex here in Chattanooga.

They have sued Alco um management here, and ALCO is going to be handling that claim, I believe, but we need to be present in connection with this on behalf of the interest of this body, and I'll keep you informed about what happens.

Okay, that soon was just filed uh within uh let's see what's my date on here.

Looks like we got served on this document on June the 17th.

The last thing is notice of violation of patent towers.

And that uh let me get my yeah.

I believe that is another injury where someone has at least asserted they had an injury at Patent Towers, and we um have actually sent notification on to them here for the notice of violation.

Sandra is here today, and uh I believe we forwarded it directly on to Sandra Cobra.

Is there anything more on that one, Sandra?

No, there's nothing is that because we what's role of the city in that?

Uh once again, it's another pilot.

So you have title to the property.

There is no that that is a lengthy pilot.

I was gonna say that one like a 40-year type pilot.

Yeah, yes.

Okay, okay.

I'd forgotten about that one.

Okay, there's another inch of space on my paper.

Surely we can find something.

What was the nature of the violation?

I believe it's an injury.

You got there, Sandra.

I think on that one, um the tenants about the air conditioning of being out for a while.

And they were working on getting that to um choice.

So you think it's been resolved then?

Yes.

Okay.

I saw something about that on the on social community.

It was going viral with the community about the uh air and also about crash not being taken out just in the hallways, just there for long periods of time.

Uh but not the trash.

Would you do me a favor and see if there was an issue with the trash and make sure that we get that addressed or if we need to do something, we will.

Yep.

Okay, okay.

I can imagine any shortage of air conditioning leave recently would have been would have been rough.

Okay.

That'd be great.

Thank you.

Okay.

Anything else?

No, sir.

I think that's a record number of items.

Yes, sir.

Okay.

Um the enforcement news is we do need the meeting next um Monday.

Monday the 27th, 27th.

So we'll do uh 1230 again.

Okay.

Anything else to come before the board?

We do we have any number about how many more cases will be coming next week.

I believe next week there should be I want to say six.

Okay.

And all of those are TEFRA hearings.

These will all be TEFRA combined with uh the actual resolution.

Okay.

It'll and and they're they're all similar to the so that's it's because of the it is because of bait.

And uh again, I apologize and I appreciate you all coming in for the special meeting for this.

Okay.

And if it'll be noted that we'll be glad to go back against you.

These are all preliminary resolutions for TEFRA hearings.

That's that's correct.

Okay.

All righty, thank you.

All right.

Seeing no other business chair, we're entertaining a motion to adjourn.

Motion and second.

Second.

All there, please say aye.

Have a good week.

Thank you very much.