Special Called Meeting of the Health, Education, Housing Facilities Board – July 27, 2026

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.

Public Comments & Testimony

• Joe Kelly (General Counsel, Chattanooga Housing Authority) clarified that the TEFRA hearings are administrative steps required by federal tax law and THDA to preserve federal vouchers. He stressed that today's actions do not approve any project, commit funds, or authorize construction; they are placeholders. The $300 million in federal resources already allocated to Chattanooga would be at risk without this step. He noted that any future development would require separate rezoning, community input, site plan review, and approvals from HUD, THDA, and the city.
• A resident from 729 Cheer Cove Road (representing Councilman Chip Henderson) expressed appreciation for the clarification and noted that misinformation had circulated. He requested that the explanation be publicized to avoid confusion. He also mentioned that Horse Creek Farms (over 200 households) and Friends of Mountain Creek are directly affected and have great interest in the projects.
• Janice Gooden (District 8 resident) asked about how to address concerns about existing housing projects (e.g., Hatton Towers) and whether the board or city code enforcement handles issues. Board members explained that properties with 40-year leases (like Hatton Towers) are operated by separate entities; the board can relay concerns to the leaseholder. They also noted that older PILOT agreements may have different oversight.

Discussion Items

• RP Brainerd LP (7453 East Brainerd Road) – Resolution for up to $25 million
  • Presented by Jay Money Hun (bond counsel, Bass Beering Sims). RP Communities (Chattanooga) is the developer. The project would have approximately 131 units, two stories, with 100% of units reserved for households at or below 60% of Area Median Income (AMI). The resolution is a preliminary step to apply for tax-exempt bond authority and low-income housing tax credits by the August 10 deadline. Questions from board members included traffic studies (acceptable findings), entrance location (off Kinsey Drive), and number of handicapped accessible units (compliant with HUD regulations). No further discussion. Motion passed unanimously.
• RP Kensington LP (Kinsey Drive) – Resolution for up to $20 million
  • Similar presentation by Jay Money Hun. Approximately 95 units, two stories, 100% affordable at 60% AMI. Originally planned as for-sale townhomes, but shifted to affordable rental due to rising interest rates. Entrance already constructed. Motion passed unanimously.
• Clear Branch Townhomes (5211 Highway 58) – Resolution for up to $8 million
  • Presented by Charles Ramsey (Waypoint Housing Insights). Approximately 80 townhomes, two stories, targeted at households at 60% AMI or less. 10% of units set aside for mobility and audio/visual handicapped individuals. Location near Turkey Foot Trail. Motion passed unanimously.
• Matco North Shore – Resolution for up to $10 million
  • Presented by Abishek Mother (principal of Matco). 56 units, all affordable (no resident above 80% AMI), with 2- and 3-bedroom units for seniors. Community meeting scheduled for August 3. Motion passed unanimously.
• Matco Utawa (Old Lee Highway) – Resolution for up to $27 million
  • 200 units, all affordable (no resident above 80% AMI via income averaging), 2- and 3-bedroom units, between 3-5 stories. Very early design stage, no zoning applications submitted. Motion passed unanimously.
• Matco Jenkins (Intersection of Shallowford and Jenkins Road) – Resolution for up to $25 million
  • 225 units (corrected from 200), all affordable (income averaging below 60% AMI, with no resident above 80% AMI). Planned 4 stories. Part of the site is in the county; one parcel is within city limits. Church (Seventh Day Adventist) is selling the property. No environmental studies done yet; flood zone and wetland concerns noted. Board member expressed concern about density and traffic studies, and voted no. Motion passed with one dissenting vote.
• Northgate Phase 1 and Phase 2 (withdrawn) – The applicant withdrew these two items (each up to $20 million) before discussion. No further action taken.

Key Outcomes

• All six resolutions passed with the following votes:
  • RP Brainerd LP: Aye (unanimous)
  • RP Kensington LP: Aye (unanimous)
  • Clear Branch Townhomes: Aye (unanimous)
  • Matco North Shore: Aye (unanimous)
  • Matco Utawa: Aye (unanimous)
  • Matco Jenkins: Aye (7-1, one board member voted no citing density and traffic concerns)
• Board directed that future traffic studies for proposed projects should be thorough and not cursory, acknowledging resident concerns. CHA noted that extensive traffic studies are already required before groundbreaking.
• Next meeting: The board indicated it may not meet in August unless necessary, and noted that if Northgate items are resubmitted, they would need to be placed on a future agenda for consideration.