The Chattanooga-Hamilton County Regional Planning Agency recommended today that the Fairmount Apartments be downzoned to townhomes.

If the planning commission approves the recommendation and it passes the City Council, the Chattanooga Housing Authority’s $4.2 million project for new environmentally friendly public housing will be “dead in the water,” CHA’s executive director Betsy McCright said earlier.

The housing authority said it may have to return the $4.2 million it was awarded by the U.S. Department of Housing and Urban Development for the work.

Nevertheless, Chattanooga Mayor Ron Littlefield said receiving grant money is not reason to make a bad decision that could impact residents for a lifetime.

Mr. Littlefield asked the planning commission to wait 30 days before voting on whether or not it accepts the recommendation. He said that would allow an opportunity for HUD, the housing authority and the apartment residents to come to an agreement about what could be done on the site.

For complete details, see tomorrow’s Chattanooga Times Free Press.