Chattanooga will not receive any of the $2 billion in Neighborhood Stabilization Program funds awarded this month by the U.S. Department of Housing and Urban Development.
The city applied for $5 million, but all $30 million awarded in Tennessee went to the Metropolitan Development and Housing Agency in Nashville, according to HUD’s published list of recipients.
City officials had planned to use the money to rehab and purchase at least 100 foreclosed properties, according to their application. The draft application is published on the city’s Web site at www.chattanooga.gov and is listed under Neighborhood Services and Community Development.
Neighborhood Services Administrator Beverly Johnson could not be reached for comment Friday. Other Neighborhood Services officials said they could not comment but expected an official news release from the city to be sent out soon.
HUD deputy press secretary Andrea Mead said the city still could receive funds from other sources such as the state.
“If they’re not listed on the list, it means they didn’t get a direct grant, but some grantees are states or national nonprofits that could direct funds to some specific jurisdictions,” she said.
In December 2008, the city received $2.1 million in HUD funding for neighborhood stabilization. It was later awarded additional funding, bringing the total to $2.9 million for revitalization of neighborhoods with high foreclosure rates.
The city targeted the funds to neighborhoods in East and South Chattanooga and in Brainerd but stated in its implementation plan that it did not have enough money to make an impact on all local neighborhoods affected by high foreclosures.