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Board approves up to $15 million in bonds for Overlook Apartments renovation
Summary
The Health, Educational and Housing Facilities Board approved a resolution authorizing the issuance of up to $15 million in multifamily housing revenue bonds for Overlook Apartments at 1201 Boynton Drive; developer says no permanent displacement and a November bond closing is contemplated.
The Health, Educational and Housing Facilities Board of the City of Chattanooga voted to approve a resolution authorizing the issuance, sale and delivery of up to $15,000,000 in multifamily housing revenue bonds for Overlook Apartments, a 162-unit property at 1201 Boynton Drive.
The vote, taken by voice, was recorded as in favor with no members indicating opposition. The resolution authorizes the board to approve the documents and instruments necessary for the bond issuance in one or more series.
The project developer, Zain Mahmood of Pads Development (the affordable-housing development arm identified in the meeting as affiliated with Nuveen Real Estate), told the board the property received a Low-Income Housing Tax Credit (LIHTC) award from the Tennessee Housing Development Agency (THDA) in July 2025 and a contemplated bond closing is scheduled for November 2025. Mahmood said the property is an existing LIHTC property in its 15-year compliance period and that roughly 20% of units are covered by a Housing Assistance Payments (HAP) contract.
Mahmood described a renovation scope that he said totals about $12,000,000 and includes large-scale exterior repairs, roof replacement, repaving, mechanical-system upgrades and interior work such as new HVAC units, appliances, cabinets and flooring. He said the project will also include energy-efficiency upgrades including LED lighting, Energy Star windows and WaterSense fixtures.
Mahmood told the board the property manager and affiliated security and resident-services providers would be brought in. He said there would be no permanent displacement of residents: "The only temporary relocation that would happen would be for the ADA units because they often require structural repairs, and we would pay for the hotels, for meal vouchers, for moving into the hotels, and they would be moved back to the property as per the schedule." He added that the management team planned to provide free cable and internet and upgraded community amenities.
Board members asked about tenant notification and compliance. Mahmood said the team uses community meetings, flyers and in-unit notices, and that for units subject to federal requirements the project team will comply with the regulation requiring at least 48 hours' notice before entering a unit.
Why it matters: The bonds will provide tax-exempt financing to support a large rehabilitation of a property the developer characterized as previously left in disrepair by a prior owner. The LIHTC award and HAP contract mean a share of units will remain income-restricted through federal and program requirements, and the developer said project documents will preserve affordability tied to those funding layers.
The board took the bond-authorization vote after a presentation and public questions; no count of individual yes/no votes was recorded in the meeting minutes beyond the voice vote in favor. The board secretary presided as chair pro tem for the meeting.
