The planned $11 million Walnut Commons apartment complex has hit one more snag.
Tom Smith told members of the city Health, Educational and Housing Facility Board on Monday that a closing had been set for Thursday with HUD officials.
However, a late construction increase of $125,000 on the electrical portion brought changes that caused a delay on the loan approval.
It will now be the first or second week of August before developers will be able to reschedule the closing in Knoxville with officials of HUD, the federal agency insuring the loan by Wells Fargo.
The project at Walnut, Aquarium Plaza (Second Street) and Riverfront Parkway will include 100 apartment units.
They will be built over a new facility for the nearby Little Miss Mag child center.
Smith said, "We are cautiously optimistic that we are almost there."