Preservation of Campbell Ridge with Alco

Project Overview

FHA Financing and Moving Section 8 Facilitate Disaster Recovery in Tennessee

Campbell Ridge is a 144-unit multifamily property located in Chattanooga, Tennessee that was constructed in 1970.  It was a prime candidate for a major renovation and modernization when Alco commenced that work in 2021 with funding from an FHA-insured loan and low income housing tax credits. At that time the project received rental subsidy under a Section 8 contract providing assistance to 88 of the project’s households.

Several weeks after construction began on Campbell Ridge, another Section 8 property owned by Alco in nearby Waverly, Tennessee with a Section 8 contract experienced a catastrophic flooding event, making the property uninhabitable.  Residents were relocated to other Alco properties, including Campbell Ridge, as well as other affordable properties in the area.

Given the challenges of reconstruction at the damaged site, to avoid the loss of the Section 8 subsidy we worked with Alco and HUD to move all of the subsidy under Section 8(bb) from the damaged project to Campbell Ridge in order to increase the number of Section 8 units at Campbell Ridge from 88 to 115.  As a result, the Section 8 subsidy from the damaged property was preserved and a number of new households are eligible for Section 8 rental assistance at the newly renovated Campbell Ridge.