On July 27, 2026, the Health, Education, Housing Facilities Board (HEB) of Chattanooga, Tennessee, held a special called meeting to conduct required TEFRA (Tax Equity and Fiscal Responsibility Act) public hearings. The hearings were a preliminary procedural step to preserve federal rental assistance resources (project-based vouchers) awarded to the Chattanooga Housing Authority (CHA), which had a net present value of approximately $300 million. The August 10, 2026 deadline set by HUD prompted the meeting. Board members emphasized that the actions taken were placeholders to preserve options, not approvals of any development, bond issuance, or construction. The meeting included public comments, presentations on six proposed affordable housing projects, and votes on separate resolutions.
The uh July twenty seventh meeting of the health education housing facilities board and speech hadn't got order. This is a special called meeting. Some of motions are a second. Second discussion on the minutes. Oh, then move that we uh just dispense with the minutes and bring that to the next meeting. Is that all right? Can I do that without a vote? Okay. Yes, sir. You act like you know what you're telling me. I can do. I'm glad you can't see her face. Okay. So then that we will hold the minutes of the July regular meeting till the next meeting. Okay. Okay. Uh we always allow persons who want to address the board to speak before the board meeting. Once the board gets into its agenda, the discussion is between the person presenting and the board. Is there anyone that would like to address the board or the community before we start? Yes, sir. Thank you. Good afternoon, board members. Uh, my name's Joe Kelly. I'm the general counsel for the Chattanooga Housing Authority. Uh, because a number of questions have arisen this morning uh regarding some of the projects on today's agenda. CHA would like to clarify uh what is and what is not being requested today. Uh the Chattanooga Housing Authority related items on today's HEB agenda are preliminary procedural steps that are required by federal tax law and the Tennessee Housing Development Agency. There was federal guidance issued by HUD in May that established an August 10th deadline for housing authorities nationwide to preserve eligibility for federal rental assistance resources that were already awarded to them. Today's public hearing and the related resolutions exist solely uh to meet the federal deadline and keep those resources available to Chattanooga. They are placeholders that preserve options, not approvals of any project. Uh today's actions do not approve any development, issue any bonds, commit any funds, or authorize any construction. Uh the dollar amounts referenced are not uh to exceed ceilings required uh by federal notice rules. They are not budgets, financing commitments, or indications of project scale. Uh before any proposed development uh could move forward, it would be required to complete its own full review process, including rezoning and land use approvals uh where applicable, uh community and neighborhood input and site plan review and separate approvals and competitive financing awards from HUD and THDA from the city of Chattanooga and other uh local agencies. None of those steps have occurred, uh, and nothing on today's agenda changes that uh this is again merely to preserve uh the debill uh the ability to deploy these federal resources in the future, which a net present value of them is somewhere around the neighborhood of 300 million. So we are very keen on preserving uh those benefits for the city. Uh CHA's uh committed to transparency and to engaging uh residents and neighborhood stakeholders before any specific development advances, and we welcome questions from the community and and media uh throughout the process. Uh um I'm gonna say this, and uh Joe, thank you for that, and you keep me straight. TEFA hearing is basically a public hearing, let the public know what is being thought about being done. It is not an approval process. So today we have I believe eight, if I could count it correctly, such projects that are being um brought to our attention that may get done at some point in time if they get through the approval process, but this is not it's only that to let the public know what is being thought about being done. Is that a that's that's correct? And uh the only thing. You gave all the legal stuff. I'm just giving the layman that's right, and the only reason we're proceeding now is that HUD at the federal level has given us a deadline to make to check a certain box, yeah, and this is the box that we have to to check, and it's really an administrative step, not anything indicating that any particular project going forward. Other thing, and you help me with this, yes, sir, is that this is more of a the the process they hope to go through is to acquire federal funds is not a commitment on this on the city of this amount of money to for a project, no sir, not on the city. Okay, all right. That I want you to understand that because if when you hear 300 million, then people go, okay, what's that? How's that gonna affect me as a taxpayer? It doesn't affect us.