$38 million bond sought by Californian developer for 200 unit low-income housing complex

CHATTANOOGA, Tenn. (WDEF)- A new low-income apartment complex could soon be built right off of Signal Mountain Boulevard.

The proposed complex would provide two hundred new units to seniors over the age of 62, also for older adults with disabilities on a 38 million dollar bond from the city.

It would be located at 819 Runyan Drive, which is currently an uncleared forest.

The units would be for those demographic groups who make at or below 60 percent of the area’s median income.

The plan was presented at Monday’s Health, Educational, and Housing Facility Board meeting in Chattanooga.

The company that is asking for this $38 million dollar bond is not headquartered here in Chattanooga. 

Standard Communities is based in Los Angeles and has over 27,000 apartment units in 21 states, with nearly eleven thousand of those units are Section 8 housing.

Bond lawyer Mark Mamantov explained to the board that, “What they do to make these projects financeable is the seek low-income tax credits from the state of Tennessee.”

Thomas Atlee with Standard Communities told the board, “The reason we are proceeding with a project of this style is because of conversation with folks at the city, we’ve learned that Chattanooga has a lack of one and two bedroom units and a lack of affordable housing options for older people.”

Atlee says that they would be using a management company to operate the complex, who would sign tenants on a first come, first serve basis.

This led to some questioning on if some demographic groups would be unaware and miss the chance to apply for the low-income housing.

One board member said, “Ultimately, they can rent to whoever meets their requirements, not to who meets the need.”

The board did approve the preliminary bond, but it still has to go to the Chattanooga City Council.

Atlee said he hopes to begin construction by the end of the year.