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Board approves $250,000 UDAG loan to complete workforce‑housing project
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Summary
The board approved Resolution 2040 authorizing a $250,000 UDAG revolving‑loan to support completion of three apartment buildings at The Reserve at Caywood, aimed at housing households earning roughly 80–120% of area median income; the motion passed 4–2.
The Tullahoma Board of Mayor and Aldermen approved Resolution 2040 to provide a $250,000 UDAG revolving loan to The Reserve at Caywood to help complete three apartment buildings on Cedar Lane. Staff and a Small Business Loan Committee representative described the loan as bridging a financing gap so the project can move forward and produce workforce housing.
City staff said the UDAG fund is a revolving program intended to catalyze private investment and generate measurable public benefits; repayments to the fund would be available for future projects. The board discussed whether revolving funds should prioritize job‑creating economic development versus residential projects; proponents said the project would support workforce pipelines by creating attainable housing for households earning about 80–120% of area median income and would generate property tax revenue (staff estimated an initial $50,000 in additional property taxes attributable to the project).
After discussion, the resolution passed 4–2. Staff noted the loan is intended to bridge current market financing gaps and that the Small Business Loan Committee recommended participation to keep the project on schedule.
