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Chattanooga Neighborhood Enterprise says ARPA funds help advance Milltown and Highland Park missing‑middle housing
Summary
Martina Guilfoyle, outgoing executive director of Chattanooga Neighborhood Enterprise, updated council on an 82‑unit 'missing middle' development in Milltown and Highland Park that used ARPA, HOME and other layered financing; phase openings were scheduled for spring and September.
Martina Guilfoyle, executive director of Chattanooga Neighborhood Enterprise (CNE), briefed the City Council on an 82‑unit mixed‑income housing project in Milltown and Highland Park that CNE partly financed with ARPA dollars and other layered funding.
Guilfoyle said the development includes a 32‑unit Highland Park project (two 10‑plexes and a 12‑plex), a prototype duplex/triplex product and additional units on Wylerley and Bailey Avenues previously occupied by dilapidated housing. CNE said the mix will include three‑bedroom duplexes alongside smaller units designed to match market standards so affordable and market units look the same.
“We were able to negotiate on Bailey with the private property owner who basically operated slum housing,” Guilfoyle said, describing how CNE acquired and removed substandard structures. She said Phase 1 of the Milltown development would close imminently and 22 units would start construction soon, with other phases opening later in the year. Guilfoyle said about half of the 84 units across projects would be affordable at varying income bands (50%, 60% and 80% area median income were mentioned during questions).
Guilfoyle told council members the projects faced delays because of environmental contaminants on a lot the city had donated; she said the EPA returned to find additional contamination and would pay for cleanup, requiring the project to be split into phases. She credited ARPA dollars, HOME funds and foundation support for enabling acquisition and cleanup, and said CNE used layered financing to preserve affordability.
Guilfoyle also described an off‑site manufactured prototype (C and E Homes) the nonprofit plans to site in May after a March demonstration; she said the prototype aims to produce lower‑cost units without subsidy.
Council members thanked Guilfoyle and noted project visibility in their districts. Guilfoyle said she would leave CNE at month’s end and that a successor would meet with council members. The presentation was informational; no formal council vote or motion was recorded during the update.
