One Westside Breaks Ground on Phase 2 - A $57 Million Mixed-Income Development

March 23, 2026

By Raymon Troncoso (Original Article)

Edited by Lauren Wells

EJP celebrated the groundbreaking of the One Westside Phase II housing development at the vacant lot next to Gateway Towers near Downtown Chattanooga. As long-time partners of the Chattanooga Housing Authority and the City of Chattanooga, EJP has played a pivotal role in both the master planning process (Westside Evolves) and now the Choice Neighborhoods Implementation process (One Westside). Phase 1 (230 units) is currently under construction and is expected to deliver the first buildings in December 2026. Phase 2 will deliver 144 mixed-income apartments including replacement units for residents at College Hill Courts.

© Photos by EJP Consulting Group, LLC

One Westside, a major project lead by the Chattanooga Housing Authority and the City of Chattanooga to revitalize the Westside neighborhood and replace 497 aging public housing units, started construction on the second phase of its seven-phase plan on Monday.

The new development consists of 144 apartments in the Westside neighborhood at 1150 Boynton Drive, and is scheduled to be completed by the end of 2027. The 230 units under construction at 501 W. 12th St. as part of Phase 1 are set to be finished later this year.

"The pig keeps on flying, and it's going to keep on flying," Chattanooga Mayor Tim Kelly said during the groundbreaking ceremony, in reference to the early skepticism around the feasibility of the project due to its scale and novelty.

The One Westside plan includes a $50 million grant from the U.S. Department of Housing and Urban Development, significant private investment, tax-exempt bonds and low-income loans from the Tennessee Housing Development Agency, funds from major Chattanooga nonprofits such as the Benwood and Lyndhurst foundations, and prospective funds from a special tax district (TIF) on the Chattanooga riverfront known as The Bend.

Several state and federal officials attended. U.S. Rep. Chuck Fleischmann's deputy chief of staff, Steve Howell, shared prepared remarks during the ceremony.

"This is an investment not only in Chattanooga's oldest public housing community, but also in a community that is changing to meet the needs of residents seeking affordable and moderately priced housing in downtown Chattanooga," Howell said.

PHASE 2 DETAILS

Phase 2's finished development will include 66 public housing units to replace current public housing at College Hill Courts that is over 85 years old. Residents in the outdated public housing have units reserved at the new building and will move in once it's complete.

This strategy, known as Build First, builds a new development on an empty lot, moves the first phase of residents in, tears down their old building(s), constructs new apartments on the demolished site, then moves the next phase of public housing residents into that new building. Through this method, the housing authority plans to construct 1,126 new rental units without displacing any residents of College Hill Courts.

Before her election to the council in 2021, Raquetta Dotley of East Lake, a Chattanooga City Council member, worked on the Westside planning process as a community activist, back when it was referred to as Westside Evolves, pushing for neighborhood involvement and a commitment to equity in the planning phases.

"It's about ensuring that long-time residents are not displaced, but instead are able to benefit from the progress happening around them, and for them, and through them," she said.

The 78 units at the Boynton Drive development that are not deeply affordable housing will be split between market-rate housing and units reserved for households at different income levels tied to federal area median income measurement, according to Columbia Residential CEO Jim Grauley.

Five units will be earmarked for residents at 60% of the median income or lower — around $40,000 for a one-person household, $57,000 for a four-person household — and 17 units for residents at or below 80% of the area median income — around $54,000 for a one-person household, $76,000 for a four-person household. The remaining 56 units will be sold at market rate for the area.

"When this is complete, what you'll see here is ... a true mixed-income community where you can't tell who lives in public housing and who doesn't," said Jim Levine, the housing authority's board chair.

The cost of the new development is $57.1 million, according to Grauley.

Truist Bank provided $24.7 million in equity and $14.2 million in construction financing. About $7 million of a federal Choice Neighborhood Initiative grant was used, along with $6.5 million from a mixed city, foundation and federal earmark fund. The state housing agency provided $1.5 million in tax-exempt bonds and low-income housing loans, and the developer provided a $3.2 million fee deferral.

The developer, Columbia Residential, will construct and manage all seven properties tied to the One Westside phases.

ONE WESTSIDE

Both the housing board chair and the mayor pointed to the James A. Henry Hub, a soon-to-be-completed community center offering early education, a health clinic, and art gallery, as the center of the new Westside.

"Ultimately, this is not just about housing," Levine said. "It's about people. It's about families. It's about the future of the community."

According to Kelly, around 100 children will be enrolled in the early education Head Start program at the community hub starting in August. Participants in the program, tailored to serving low-income families, range from 8 weeks to 5 years old. The Hamilton County school district has previously released data showing that students who attended pre-K in the district outperformed their peers who did not, regardless of economic status.

The One Westside redevelopment is projected to cost about $1 billion, including all seven phases and the community center. The final phase is set to begin construction in the final quarter of 2030. According to officials, more than $500 million has been invested in the plan so far in public, private, and philanthropic funds.

Read the original article at: https://www.timesfreepress.com/news/2026/mar/23/one-westside-breaks-ground-on-57-million-mixed/ (words and phrasing have been altered for accuracy and clarity)