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Subcontractor for Chattanooga affordable housing project files lawsuit

Staff photo by Abby White / Espero, a permanent supportive housing facility on East Main Street, is seen under construction Sept. 16, 2025.
Staff photo by Abby White / Espero, a permanent supportive housing facility on East Main Street, is seen under construction Sept. 16, 2025. Staff photo by Abby White / Espero, a permanent supportive housing facility on East Main Street, is seen under construction Sept. 16, 2025.

A company that abated asbestos for a long-awaited affordable housing project in Chattanooga is suing the primary contractor for the renovation, alleging the business didn’t receive more than $95,000 it was owed for the job.

Demolition & Environmental Companies, a South Carolina business, sued Community Construction Group, a Georgia-based general contractor, on Aug. 25 in Hamilton County Chancery Court.

The AIM Center, a Chattanooga nonprofit that supports people with serious mental illnesses, and the city’s Health, Educational and Housing Facility board are also among the defendants.

Subcontractor for Chattanooga affordable housing project files lawsuit

Demolition & Environmental Companies was a subcontractor on the AIM Center’s Espero project, a 60-unit affordable development at 1815 E. Main St. that will offer permanent supportive housing for homeless Chattanoogans. The lawsuit said Demolition & Environmental Companies has recorded notices of liens on the property.

(READ MORE: Crime, overdoses fall, homelessness rises in Hamilton County)