Chattanooga Housing Authority board members agreed to sell 10 acres of the former Maurice Poss Homes property to a private developer for $1.2 million.
The developer plans to build 86 units of affordable housing on the site, said CHA’s vice president of development Naveed Minhas. Chattanooga Housing Authority officials call the offer a win-win situation for the housing authority and the community.
“We need more low-income housing in the city and we think this will offer great opportunity for people who need it,” said CHA Executive Director Betsy McCright.
However, the deal is contingent upon the North Carolina-based developer, Jim Sari of Landmark Asset Services Inc., being approved for low-income tax credits.
Sari will submit an application to the Tennessee Housing Development Association for the tax credits by Monday, said Minhas, but it will be August or September before housing officials know if the tax credits are approved.
Sari could not be reached for comment.
If his application is rejected, the land goes back to the housing authority, Minhas said.
At a special called meeting Friday, CHA board members unanimously voted to sell the land, despite opposition from local civil rights leader James Mapp, who spoke at the meeting.
Some Howard supporters also oppose the land sale.
Mapp said the Hamilton County government should have already purchased the land to build Howard a stadium and, if the community continues to be vocal and the land is available, there is still opportunity for the county to buy it.
Mapp said a new stadium would attract more white students to Howard and help the school become more desegregated.
McCright said CHA officials met with Howard track and stadium supporters this month and told them about the housing authority’s intention to sell the land. They offered the group an opportunity to purchase the land or propose a possible land swap, but the group could do neither, she said.
Gerald Mason, a Howard supporter, said building low-income housing in the South Chattanooga community is going to cause a stir.
“Everybody was so glad to see Poss Homes torn down,” Mason said. “Now you’re talking about building another one.”
The 20-acre site, located between Interstate 24 and Howard, was once home to 188 low-income families. The site has been cleared at least since May 2006.
Mason noted that more upscale housing has been built in the South Chattanooga community along Cowart and Long streets. Putting low-income housing near Howard “is not a good mix,” he said.
Housing officials said they benefit from the deal if it is approved because it gives CHA opportunity to make a profit. In 2008, the entire 20 acres appraised for $1.2 million. However, the new deal allows the housing agency to get $1.2 million for only 10 acres.
And 10 acres of the site is still available for other development opportunities, including a stadium and track for Howard School, McCright said.