The City Council has given the go-ahead for 29 new single-family homes on narrow Meroney Street in North Chattanooga.
John Bridger, director of the Regional Planning Agency, said the density will be high on the 5.8-acre site.
Developer Joseph Ingram is being required to provide a 40-foot wide access to the project.
Councilman Jerry Mitchell said earlier he was undecided on the project, noting that a number of new housing projects are digging into the scenic hill sides of North Chattanooga.
However, he was among those voting in support in the unanimous vote.
Meroney Street is to the left of Dallas Road shortly past the turn from North Market Street.