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Board approves $20 million in revenue bonds for 1 West Side Phase 2B
Summary
The Health Education Housing Facilities Board approved a final resolution authorizing up to $20 million in multifamily housing revenue bonds to finance 1 West Side Phase 2B, part of the Choice Neighborhoods redevelopment of College Hill Courts.
The Health Education Housing Facilities Board of the City of Chattanooga on Sept. 15 approved a final resolution authorizing issuance of up to $20,000,000 in multifamily housing revenue bonds for the 1 West Side Phase 2B project, part of the Choice Neighborhoods redevelopment of College Hill Courts.
The resolution cleared the board after a presentation by Columbia Residential representatives who said the project has secured bond and tax credit allocations and must close the bonds within 120 days of allocation — a deadline the presenters said requires closing by Oct. 15. Phil Lynn Brawley of Columbia Residential and Betsy McRae, the sponsor and borrower representatives, described the site plan, unit mix and phasing during the board meeting. Attorney Joe Kelly, who represents project partners, also answered board questions about timing and risk.
Board members heard that Phase 2B would be a five-story, structured-parking building on Boynton Street with a planned 144 apartments (mostly one- and two-bedroom units) and that the partnership intends to preserve housing options for current College Hill Courts residents. Presenters said 66 of the Phase 2 apartments are planned for residents moving from College Hill Courts and that the overall master plan replaces the 497 existing College Hill units across seven phases with a total of 1,126 new units. Columbia Residential said the financing package includes 4% and 9% federal low-income housing tax credits alongside the bond allocation.
Presenters described a “cash-forward” structure for the bonds: all $20 million would close and be held in Treasury securities until the full construction financing closes in January 2026. They told the board they have lined up permanent lenders and equity investors and anticipate a typical permanent loan term and amortization after construction; presenters said permanent financing would be an approximately 18-year loan with amortization assumptions that produce an earlier payoff of some debt despite a longer nominal bond term.
Board members asked about rents, affordability bands and relocation. Presenters said the development uses layered affordability: units restricted at 40% AMI (for many current public housing residents), 60% AMI and 80% AMI, plus a market-rate share to create a mixed-income neighborhood. The presenters also described options for current residents — a brand-new unit on site, a housing choice voucher to move elsewhere while retaining a right to return, or placement in the authority’s existing portfolio. Presenters said the project team has been tracking household characteristics and will provide relocation counseling; they said initial resident surveys indicated strong interest in the redevelopment.
After discussion, the board voted to approve the final resolution (recorded as BHEB 2025-08). The motion passed with affirmative votes and no recorded opposition.
Board members asked that the project team provide ongoing reporting on occupancy, affordability and compliance; Columbia Residential agreed to provide annual reports and additional updates as appropriate.
The board’s formal action allows the issuer to proceed with closing the financing under the conditions described by the presenters. The presenters emphasized the October closing requirement from the Tennessee Housing Development Agency and said they were working to meet that timeline.
