The NTHS real estate holding company is planning a multi-family development with 12 units in East Chattanooga on Stuart Street at Curtis Street.
The project is to include three residential buildings with four units each built over parking.
The location is near Wilder Street and railroad yards.
Officials said, "The purpose of requesting the rezone of one lot from R1 and the other M1 to TRN3 is to create more workforce housing and better recognize the highest and best uses of these lots.
"This property is in a HUB Zone and a city of Chattanooga defined Opportunity Zone and lends itself to being developed for multi-family housing to help address the shortage of housing for the city of Chattanooga.
"The surrounding residential is in a slow improvement cycle with some house inventors
refurbishing and re-selling homes in the neighborhood. The addition of these townhouse can be a resurgence for more new housing development and renovation of existing housing. Its close proximity makes it ideal for commuting to downtown for work, UTC or Chattanooga State College for classes.
"This location has quick and easy access to Amnicola and Highway 153. located in an industrial neighborhood along the southern bank of the Tennessee River, less than five miles east of the Chattanooga CBD. General development within the neighborhood consists of industrial and office properties concentrated on Amnicola Highway and the surrounding collector streets, some scattered commercial along the primary arterial streets, and residential on the outlying collector streets.
"The majority of properties are light industrial, residential and warehouse distribution facilities. There are a significant number of general office facilities located along Amnicola Highway, where traffic counts are high and access to the downtown and outlying
Chattanooga markets is readily available.
"Commercial use properties are primarily located on either side of Amnicola Highway and feature fast food restaurants, convenience stores, one hotel, and one sit down restaurant. Amnicola Highway is the main arterial street in the subject neighborhood, running east to west from Highway 153 to Riverside Drive and the Chattanooga CBD.
"All of the residential development is located on secondary collector streets south and east of Amnicola Highway. Chattanooga State Community College is located at the north end of Amnicola Highway, just south of Highway 153."