Board issues preliminary inducement for up to $25 million in bonds for DGA Ridgeview to build 84 affordable units

The Health Education Housing Facilities Board held a TEFRA hearing and approved a preliminary resolution authorizing up to $25 million in multifamily housing revenue bonds to support the proposed DGA Ridgeview LP development on Old Godsey Lane in Hixson.

Jay Moneyhund, bond counsel with Bassberry & Sims, explained the resolution is a preliminary step required to apply for low-income housing tax credits (LIHTC) and tax-exempt bond allocation from the Tennessee Housing Development Agency (THDA). Rob Talbot, the developer's representative, said the conceptual plan contemplates approximately 84 units.

Joe Kelly of the Chattanooga Housing Authority told the board the project is tied to CHA's Faircloth voucher authority and that HUD issued May guidance that could nullify vouchers unless the projects meet certain application timing requirements. Kelly said THDA has agreed to accept conditional letters if the board issues inducements now, which would satisfy HUD's timing needs and preserve the vouchers for these projects.

Board members asked about site context and traffic; counsel confirmed proper public notice had been published. After questions and a voice vote, the board approved the preliminary bond inducement so DGA Ridgeview may proceed with LIHTC and tax-exempt bond applications.

The board recorded the action as a preliminary inducement; final bond issuance, allocation and any voucher commitments will depend on subsequent underwriting, THDA approvals and further board or council actions.