City and housing authority leaders gathered on March 23 in the historic College Hill neighborhood to break ground on Phase 2 of One Westside, a sweeping multi-phase effort to replace aging public housing and reinvigorate one of Chattanooga’s oldest communities.

“This project is more than just a development plan,” Mayor Tim Kelly told attendees. “It’s a future built for and alongside the folks who have called this neighborhood home.”

The Chattanooga Housing Authority, in partnership with the City of Chattanooga, is leading the seven-phase initiative, which secured a $50 million federal Choice Neighborhoods Initiative grant–ranking first in the nation in that funding cycle.

Phase 2 will deliver 144 new mixed-income apartments adjacent to Gateway Tower, with a portion of units reserved for current residents. Construction is underway, with completion expected by the end of 2027.

At its core, One Westside is designed to address a long-standing need: the one-for-one replacement of 629 aging public housing units at College Hill Courts and Gateway Tower.

College Hill Courts, built in 1940, is Chattanooga’s largest public housing development. Gateway Tower, constructed in 1974, provides 132 homes for seniors. Both sit within a 115-acre footprint that will anchor the entire redevelopment.

A “build first” strategy guides the project, ensuring new homes are constructed before older ones are demolished. Residents transition directly into new units, eliminating displacement–a point that was not lost on community leaders at Monday’s ceremony.

“This is about ensuring that longtime residents are not displaced, but that they are able to benefit from the progress happening around them, and through them,” said Chattanooga City Councilwoman Raquetta Dotley, who represents District 7. “A lot of times, in our communities, people come for our data, come and get all these things and then they push us out of the neighborhood. But this project has made sure that people can stay right here on the Westside.”

When fully built out, One Westside will produce 1,126 new apartment homes–40 percent of which will be market-rate–creating a genuinely mixed-income community. Units will include one-, two-, and three-bedroom apartments designed with walkability, connectivity, and access to supportive services in mind.

The development is financed through a combination of 9% and 4% Low-Income Housing Tax Credits administered by the Tennessee Housing Development Agency, alongside local public-private partnerships.

Beyond housing, the plan introduces new green spaces and improved connections to downtown Chattanooga and the riverfront. The historic James A. Henry School will be converted into a community hub offering education, career training, and social services–and Phase 1, which includes its reconstruction and more than one hundred Head Start seats, is expected to reach completion within months.

Two beloved neighborhood landmarks, a gathering spot known as “The Grace Tree” and a longstanding flagpole, will be memorialized as symbols of the community’s history.

Project leaders credited a network of financial backers for making steady progress possible.

“We couldn’t do this work without the strong support of financial partners who continue to invest in the future of One Westside,” they said in a statement. “Their excitement and ongoing commitment allow us to stay focused on the vision developed by the residents.”

Mayor Kelly echoed that gratitude, thanking “every single person who has advocated for One Westside” and describing the groundbreaking as evidence of what sustained community investment can accomplish.

With seven phases planned and two now underway, One Westside represents one of the most ambitious urban revitalization efforts in Chattanooga’s recent history–one its leaders say is designed not just to rebuild buildings, but to strengthen the neighborhood for generations to come.