Agenda Items & Discussion

• Call to Order & Quorum: The Health, Education, and Housing Facilities Board of the City of Chattanooga was called to order. A quorum was confirmed and the meeting was verified to have been properly advertised.
• Approval of May 18th Minutes: The board reviewed and voted on the minutes from the previous May 18th meeting.
• Public Comment Opportunity: Members of the public were invited to address the board, with a three-minute limit per speaker.
• Affordable Housing Development Presentation — LDG Development: The majority of the meeting was devoted to a presentation and Q&A session with a developer (LDG Development) proposing an affordable housing project in Chattanooga. The project is located near Hamilton Place Mall and the Volkswagen facility, considered a strong submarket. Key financing details included:
  • Utilization of Low-Income Housing Tax Credits (LIHTCs) and tax-exempt bonds administered through the Tennessee Housing Development Agency (THDA).
  • An “income averaging” financing model designed to serve a broad spectrum of income levels, accommodating tenants such as teachers, retail workers, and others across varied income brackets.
  • A bank purchases the tax credits, which becomes the equity in the transaction — the bank effectively holds 99.99% of the deal for 10 years in exchange for annual tax credit benefits.
• Multi-Phase Development Discussion: Board members asked about the phasing of the project. The developer confirmed that Phase 2 will not begin until Phase 1 is fully complete. The developer expressed confidence in leasing demand based on observed market conditions, though noted that elevated interest rates and broader economic factors remain variables to monitor.
• Board Q&A: Board members asked detailed questions about the developer’s prior experience in the Chattanooga market, project financial structure, and contingency plans if leasing targets are not met in Phase 1.

Key Decisions & Votes

• May 18th Minutes: Motion to approve the minutes of the May 18th board meeting. Approved unanimously.
• Affordable Housing Project: The board considered the LDG Development affordable housing proposal. Detailed discussion and Q&A occurred; formal vote details were discussed as part of the bond/tax credit approval process for the project.