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Board approves inducement for $18 million rehab of Eastwood Manor on Wilcox Boulevard
Summary
The Health, Education and Housing Facilities Board approved a preliminary bond inducement allowing up to $18 million in multifamily housing revenue bonds to support acquisition and rehabilitation of Eastwood Manor at 3831 Wilcox Boulevard, a 98‑unit project currently 100% project‑based Section 8.
The Health, Education and Housing Facilities Board of the City of Chattanooga approved a preliminary inducement resolution to authorize up to $18,000,000 in multifamily housing revenue bonds to finance acquisition and rehabilitation of Eastwood Manor at 3831 Wilcox Boulevard.
The board’s action on the TEFRA hearing authorizes the initial step needed for the developer to apply to the Tennessee Housing Development Agency for tax‑exempt bonds and low‑income housing tax credits. Jay Moneyhunt of Bass, Berry & Sims, serving as bond counsel, said the inducement and the required public hearing are prerequisites to the THDA application. The motion to approve the preliminary bond resolution passed by unanimous voice vote.
Developer representatives said Eastwood Manor is an existing 1977 property with 98 units made up of studios, one‑bedrooms and two‑bedrooms and currently has 100% project‑based Section 8. Joe Engel, a developer representative, said the property serves households where the head of household is either disabled or age 62 and older, and that the team plans a complete interior and exterior rehabilitation with about $7.5 million in hard‑cost renovation.
Engel said the project team will provide temporary relocation and support for residents during unit rehab work. He described a relocation plan that typically moves residents for roughly 30 to 45 days into extended‑stay hotels at the developer’s expense, including movers, packing and follow‑up checks, and then returns residents to renovated units.
The developer said it intends to apply in THDA’s first round (the application window expected between February and March) and, if awarded, would close financing in 2025 and complete rehab in 2026. Board members asked about unit mix and timelines; Engel answered that the property contains about 30 studios, 54 one‑bedroom units and 14 two‑bedroom units and reiterated occupancy and relocation plans.
No public commenters spoke during the hearing. The resolution approved is a preliminary inducement only; further approvals and THDA awards must occur before bond issuance or construction begins.
