Developers are building 230 new homes in the first phase of a major plan to revitalize the College Hill area of Chattanooga, Tennessee.
Ninety-two homes will be reserved for residents of College Hill Courts, and 138 homes will be offered to residents at different income levels, including households earning up to 60% and 80% of the area median income, according to developer Columbia Residential, which recently broke ground on the project along with the Chattanooga Housing Authority (CHA).
This initial phase will set the pattern for the larger mixed-use strategy offered by the One Westside master plan, which was developed by residents throughout Chattanooga’s oldest public housing neighborhood.
Fueled by a $50 million federal Choice Neighborhoods Initiative grant, the overall development calls for the development of 1,126 new homes by 2032.
“We were drawn to this project because of the commitment not only from the Chattanooga Housing Authority and their team, but also because of the strong commitment from the residents and funding partners from throughout the area,” said Carmen Chubb, president of Columbia Residential. “Phase I has strong financial support not only from existing partners but also from our new financial partner, Truist Bank. They will be providing significant funding that will lead to the neighborhood’s continued success.”
As part of the approximately $90 million first phase, Truist is providing $39.8 million through an equity investment in low-income housing tax credits and energy credits for the project. The bank is also providing $50 million in construction and bridge financing. The Tennessee Housing Development Agency allocated the tax credits and tax-exempt bonds.
The city has been involved in every aspect of the plan, providing direct and in-kind investment of over $100 million over the life of the initiative.
In addition, it is providing $9 million in direct capital financing to CHA and HOME program and bond issuance through Chattanooga Housing and the Education Facilities Board.
