With about 40 percent of the Jaycee Tower apartments uninhabitable, a Hamilton County panel agreed Tuesday to move forward with a planned $10.5 million revamp to start this summer.
Work to refurbish the 18-story apartment building located on the west side of downtown should take about a year, said attorney Louann Smith, who represents a group taking on the project.
"It has housed elderly low-income residents for over 40 years," she said about the West M.L. King Boulevard tower. "This project will remain elderly low-income housing for the next 41 years."
The Hamilton County Industrial Development Board agreed to authorize the $10.5 million in bonds to finance the acquisition and renovation of the building.
"As we see, rents are skyrocketing all over Chattanooga and Hamilton County. This is some place where these people can have a nice, decent place to live," said Dan Mayfield, the board's chairman.
In the past, the building has been described as having a leaking roof and windows with ceilings in some units literally falling in.
Smith said the made-over building will hold 161 apartments, which is less than the 174 originally envisioned last year when the effort was unveiled.
She said that while almost all of the building houses efficiency units now, most people prefer one bedroom apartments. The structure will have 68 one-bedroom units and another 43 holding one bedroom and a den or office, Smith said. The remainder will be efficiencies, she said.
The group behind the project is River View Housing Associates LLC, a for-profit entity with the nonprofit National Housing Trust serving as the general partner, Smith said. Wishrock Housing Partners of Portland, Maine, will be a limited partner, she said.
Smith said that because Chattanooga and Hamilton County agreed to exempt some of the property taxes that would otherwise be due for the project, the group is setting aside 100 percent of the units for residents making 80 percent of the area medium income. Also, she said, 80 percent of those units will be for people who make 60 percent or less of the area medium income.
Smith said current residents will be moved around the building to permit construction floor by floor.
Mayfield said he goes to church near the project with several members who live at Jaycee Tower who are handicapped.
"It's a very nice, wonderful project that we can maintain this type of housing in town," he said.
The Jaycees, or the Junior Chamber, launched the initial construction of the tower as a project to provide low-income housing for the elderly. It was originally financed through a federal loan.
Contact Mike Pare at mpare@times freepress.com or 423-757-6318.