Chattanooga Housing Authority officials will begin demolition of Edward Steiner Apartments, located at 1900 N. Chamberlain Ave., on Wednesday to prepare for the development of a new $8.8 million, 48-unit family housing community.

The demolition is being funded with a grant from the city of Chattanooga’s Neighborhood Services and Community Development’s Neighborhood Stabilization Program under Mayor Ron Littlefield and CHA’s Replacement Housing Factor funds. RHF funds are capital fund grants from the U.S. Department of Housing and Urban Development that are awarded to public housing authorities that have removed units from inventory for the sole purpose of developing new public housing units.

CHA’s development partner is Pennrose Properties LLC, which also successfully secured financial assistance for the Steiner project. CHA will also leverage its RHF funds with tax credits obtained from the Tennessee Housing Development Agency’s Low Income Housing Tax Credits initiative.

CHA officials said, "Built in 1972, the outdated public housing complex will be transformed into a modern, energy-efficient housing community featuring 35 two-bedroom units and 12 three-bedroom units. The apartments will have a full-amenities package that includes a microwave, dishwasher, washer and dryer connection, refrigerator and security system. The units will also include a wide variety of energy efficient components, including R-38 attic insulation and Energy Star appliances. With support from Chattanooga’s green|spaces, Steiner will obtain a Leadership in Energy and Environmental Design (LEED) designation as well."

“The demolition and redevelopment of Steiner will help bring new vitality to the Avondale neighborhood, which has lagged in development over recent years,” said Mark Straub, senior development officer with Pennrose Properties. “Design and construction details will assure quality and durability to maximize building lifetime and minimize maintenance. The new development will also include a leasing center with a small office, maintenance area and community space.”

CHA officials say the new site will also promote the agency’s upward mobility efforts.

“We plan to encourage the families moving into the new site to participate in our longstanding Family Self-Sufficiency Program – with the exception of our elderly and disabled residents,” said CHA Executive Director Betsy McCright. “Through FSS, our staff will assist families with finding and maintaining employment and continuing education opportunities. We’ll also connect them with other services they might need to become free of welfare assistance over time.”

In addition to Pennrose Properties as the site developer, CHA’s development team includes Kitchen & Associates Architectural Services, architect; Barge, Waggoner, Sumner, Cannon, engineer; Capstone Building Corp., general contractor; Global Infrastructure Inc., demolition contractor; and Pennrose Management Co., management agent.

Officials anticipate the new development will open in 2012.