In the same day that news broke about the Chattanooga area having the 28th most overvalued housing market in the nation, the City of Chattanooga announced funding to incentivize the development of affordable housing.
The fast facts:
- What | Nearly $3 million in federal funds available for the development and renovation of affordable housing units
- Who | For developers, landlords, and nonprofit organizations
- When | Funds available beginning in July
- Where | All units must be located within Chattanooga city limits
- Why | “We’re working hard to increase Chattanooga’s affordable housing supply in every neighborhood, and a huge part of that is making the market more attractive for builders and landlords to develop and rent affordable units.” — Mayor Tim Kelly
Funding will be available through three local programs funded by the US Department of Housing and Urban Development: the Rapid Rental Repair Program, Landlord Renovation Program, and HOME Investment Partnership.
Both the Rapid Rental Repair Program + Landlord Renovation Program will provide Community Development Block Grants. These funds are geared towards landlords to assist with the costs of repairing and renovating vacant rental units.
After using the funds for renovations, landlords are required to re-rent the units to individuals + families making no more than 60% of Chattanooga’s area median income, at a cost that does not exceed 30% of their monthly income. Applications for CDBG grants are due Tuesday, Feb. 28.
The HOME Investment Partnership provides funding to developers to support up to 50% of construction costs for affordable units, at a maximum of $40,000 per unit. Applications for HOME-funded projects will be available year-round.
The City is hosting a workshop to discuss these opportunities with interested parties today, Feb. 2, from 2-4 p.m. at the Development Resource Center.