The Chattanooga Housing Authority is set to approve a contract for new townhomes on Fairmount Avenue in North Chattanooga at a meeting Tuesday.
The board is to consider a resolution to approve a contract with Lee Adcock Construction Company for demolition of the existing apartments and redevelopment of the site.
The contract is for $3,364,300 with a contingency amount of $232,484.
The board is also to consider amending the contract with architect Craig Kronenberg by $32,191. That brings his total fee on the project to $400,900.
The controversial project started out as 48 new apartment units and then went to 36 apartment units before winding up as 18 townhome units.
The CHA will use a $4.8 million federal stimulus grant for the project.
The site is off Mississippi Avenue.