Chattanooga Pulse

Chattanooga Mayor Ron Littlefield said today that after conferring with federal housing officials, he may have worked out a settlement with HUD and the Chattanooga Housing authority over the controversial Fairmount Avenue public housing development.

The CHA board last week threatened to take the mayor and the city to court over their actions in blocking the development.

At Littlefield’s request, the Planning Commission has tabled a proposal by the city to rezone the three-acre, an action that CHA says would have stopped their plans to use $4.8 million in federal stimulus funds to rebuild the complex for low-income residents.

While no specific details of the settlement were released, pending further discussions between the city and the various agencies, Littlefield did say the agreement would involve a number of changes to the site, design and population density.