Housing makeover sought for CHA units

A home makeover may be on the way late next year for some Chattanooga Housing Authority tenants.

It’s not certain — in fact, it’s CHA’s third attempt since 2016 to land tax credits that will help finance a $12 million upgrade at Missionary Heights, Glenwood Heights East and North, and the Northside Apartments.

All told, the “scattered site” housing provides 111 residence units for low- to moderate-income residents, said Betsy McCright, CHA executive director.

“The housing authority sees a need to enhance its existing affordable housing opportunities,” McCright said Monday. She said the four housing sites are reserved for people whose income is no more than 60 percent of the area median income.

She said CHA has applied twice for a 9 percent low income housing tax credit for the project but hasn’t landed one in the competitive awards process through the Tennessee Housing Development Agency.

So early next year, she said, CHA plans to apply for a 4 percent tax credit that the THDA may award to any qualifying project as long as funds are available.

The authority has formed a wholly owned limited-liability company called Emerald Villages LLC that can qualify for the tax credit and will issue $12 million in bonds to pay for the renovations.

“This is nothing unusual. We do it all the time,” McCright said. “It’s a financial tool to help us rehabilitate public housing and maintain the units as affordable.”

The Tennessee Housing Development Agency website has a map showing more than a dozen properties in the downtown and close-in areas participating in the low-income tax

credit program this year. The agency was closed Monday for the statewide Veterans Day observance, but its website said part of the qualification to receive the tax credit is that properties must remain in low-income use for at least 30 years.

McCright said the tax credit application will be submitted sometime in January and the agency plans to begin meeting with residents at the sites sometime next month about the renovation plans.

If the tax credit comes through, construction might start in mid-2019 or later, she said.