A development partnership is planning to convert the city-owned former Airport Inn at 7725 Lee Highway into 75 units of permanent supportive housing.
The team consists of a partnership between Woodbine Community Organization and Nelson Community Partners.
The city's Housing, Educational and Housing Facility Board on Monday approved up to $10 million in tax-exempt bonds for the Airport Landing project.
The city, which earlier bought the run-down motel for $2,785,000, is being asked to donate the property. The donation is on the City Council's agenda for next Tuesday.
Richard Beeland, deputy director of city Economic and Community Development, said a community meeting is set Friday on the project.
City Councilman Darrin Ledford said, "There was a community process before and it was not pretty."
He and Chairman Chip Henderson questioned why the council has to act before getting full information from the public.
Mr. Beeland said there is a July 31 deadline to apply for low income housing tax credits. He said the project just now came together. He said he would provide the council with a summary of the public meeting.
He said final approval on the bonds would come later when it is determined more precisely how much is needed for the project.
The city earlier considered fixing up the building and hiring out the management.
Officials earlier said no city money would be involved in the purchase. It was made with proceeds of the American Rescue Plan (federal stimulus funds). However, officials earlier had said city funds would be involved in ongoing operation of the motel.
Officials said of the new project, "Through a complete renovation of the building and site, the project will provide approximately 75 units of permanent supportive housing, onsite amenities space, and space for community partners and service providers.
"One hundred percent of the units are intended to be supported by project based vouchers and leased through Chattanooga's Coordinated Entry System. Woodbine Community Organization and our property management partner, Emerald Housing Management, will collaborate with local service providers to bring wrap-around supportive services to the site.
"The project will be primarily funding through up to $10 million of tax-exempt bonds and low income housing tax credits, and additionally supported through available affordable housing grant funds.
"The project will incorporate many of the best practices in trauma-informed design (TID), guided by industry-leading experts at Shopworks Architecture. TId centers dignity, hope and self-esteem; empowerment and personal control; safety, security and privacy; peace of mind; community and connection; and joy, beauty and mean.
"This will include reorienting the ground floor unit entrances to a central corridor and main lobby for better access control and safety, incorporating natural finishes and daylighting, and ensuring resident control over their environment including light, temperature and sound.
"The project will also pursue sustainability and energy-efficiency measures including low-flow plumbing fixtures, LED lighting, EnergyStar windows, and rooftop solar panels. Additionally, we will create outdoor amenity spaces for residents and support better stormwater management.
"Ultimately, the project will transform a blighted, abandoned property into a community asset and permanent home for approximately 75 households in need of deeply affordable and supportive housing.
"The development team consists of a partnership between Woodbine Community Organization and Nelson Community Partners. Woodbine Community Organization has decades of experience in developing, owning, managing and providing services for affordable housing developments. For this reason, WCO will own the general partner in the project. Nelson Community Partners will act as lead developer in the project as well as asset manager. In addition to its extensive community development and affordable housing experience, NCP has partnered with the leading providers of permanent supportive housing across Tennessee to develop over 150 units across three projects since 2020."