At an open house for an affordable housing complex in Highland Park on Friday, Chattanooga Mayor Tim Kelly spoke about the importance of increasing the number of affordable units in the city.
"It's a critically important topic, and we hear it over and over again from residents," Kelly said to a group of reporters, city staff and representatives with the Chattanooga Neighborhood Enterprise, a local nonprofit operating the complex.
The enterprise offers below market rents to households earning less than the area's median income. The complex, called Mai Bell II, is at 1716 Union Ave.
Martina Guilfoil, the enterprise's president and CEO, said in an interview the group is targeting those making 60% to 80% of the area median income for the 47-unit complex.
"Our goal was to go in and create a diversity of housing types as an infill project in the neighborhood and in the process create affordable units," Guilfoil said.
She said those who will live in the complex will likely earn household incomes ranging from $15,000 annually to about $55,000. Rents are determined by level of income. The complex is made up of one-bedroom and two-bedroom apartments.
Median incomes
Chattanooga area median income by household size:
— 1-person: $55,800.
— 2-person: $63,700.
— 3-person: $71,700.
— 4-person: $79,600.
— 5-person: $86,000.
Source: Chattanooga Neighborhood Enterprise
City spokesperson Liam Collins said in an interview the project was subsidized with $360,000 in federal funds.
The complex is open for potential tenants to apply online at cneinc.org.
(READ MORE: With some tools limited, Chattanooga looks to boost funding for affordable housing)
Housing shortage
In August, the Kelly administration released an affordable housing plan that outlined the city's need for affordable housing. According to the plan, the city is expected to see a shortfall of 7,000 affordable units by 2030.
Guilfoil said it will take government subsidies to fill that gap.
"The criticism is, 'Why aren't we building more affordable housing?' Well, it costs what it costs," Guilfoil said. "Everything is skyrocketed. You can't build a unit and then charge $500 a month in rent because it doesn't pencil."
Kelly said in an interview the city is working with state Sen. Todd Gardenhire, R-Chattanooga, in proposing state legislation to make the creation of more affordable housing easier for municipalities in Tennessee.
"That will give us another tool, being able to generate affordable housing by offering selling variances to developers, which we currently can't do under state law," Kelly said.
The mayor said he's confident the city will overcome the shortage of affordable housing.
"We've got the tools in place to be able to meet the demand," Kelly said.
Contact Ben Sessoms at bsessoms@timesfreepress.com or 423-757-6354.