The City Council is being asked to hold a vote on whether a firm should get a tax break after applying for a PILOT, then withdrawing, then reapplying.
ALCO Management, which is fixing up the former Woodlawn Apartments and the Windsor Terrace, has already started its major rehab.
Berkeley Burbank said if it is granted the PILOT (payment in lieu of taxes) it would be able to provide more security at the facility as well as a community activities director.
He said the PILOT at what is now called the Bayberry would save the company $45,000 a year for 10 years.
Work has begun on rehabbing the units, including new kitchens and bathrooms, providing new siding and replacing old baseboard heat and window air conditions with modern heat and air units.
There will also be a playground added.
The facility will remain 100 percent Section 8, it was stated.
ALCO is headquartered in Memphis and specializes in low income housing. This is its first Chattanooga project, though it has facilities nearby in Cleveland, Tn., and LaFayette, Ga.
Donna Williams, city director of community and economic development, called it "a terrific project," though she said she would leave the issue of the PILOT withdrawal and then refiling up to the council.
Councilman Erskine Oglesby said a decision would not be made "today or next week."