Hamilton County signals intent to divert $75,000 from multicultural chamber

Hamilton County Commission will likely direct $75,000 originally budgeted for the Tennessee Multicultural Chamber of Commerce to the Chattanooga Area Chamber of Commerce for diversity efforts.

The Multicultural Chamber of Commerce came under scrutiny over the summer after the Chattanooga Times Free Press reported about inconsistencies between Chattanooga and Hamilton County budget documents.

A city audit also questioned the chamber's use of city, state and federal money. The FBI and HUD later began to investigate the use of a $545,000 HUD grant and $579,000 loan from the Chattanooga Community Development Financial Institution.

The chamber bought two properties on M.L. King Boulevard with money from the Community Development Financial Institution. The institution later foreclosed on the property.

Though commissioners did not vote on the proposed redirection of funds today, their discussion signaled a consensus on a transfer of the diversity marketing and recruitment functions to the Chattanooga Area Chamber of Commerce.

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