A 24-unit apartment complex aimed at renters earning between $30,000 and $40,000 annually is underway in downtown Chattanooga to help provide more affordable housing.
Martina Guilfoil, president and chief executive of the nonprofit group Chattanooga Neighborhood Enterprise, said rents will range from mid-$600 a month to mid-$900 monthly in the project at 621 E. M.L. King Blvd.
She said in a telephone interview that some people are getting priced out of the rental market in the central city. Guilfoil said the average monthly rent downtown is about $1,300.
"Rents have risen dramatically," she said. "What I like about this project is that it's right downtown."
Guilfoil estimated the construction cost at about $2 million for the project near the University of Tennessee at Chattanooga. She said Chattanooga Neighborhood Enterprise received some money from the Affordable Housing Trust Fund in the city.
Emily Mack, president and CEO of the downtown nonprofit redevelopment group River City Co., told a Chattanooga Area Chamber of Commerce group recently that officials need to think of every city resident at every point of their lives when envisioning the future.
"We strongly believe that there should be a housing type for everyone who wants to live in downtown," she said.
River City acquired the property in 2016 from the University of Chattanooga Foundation through a grant from the Benwood Foundation.
A selection panel and project design review committee including members of the UC Foundation, Benwood, Chattanooga Design Studio and River City reviewed requests for qualifications and closed on the property with Chattanooga Neighborhood Enterprise in late August 2022, according to officials.
The UC Foundation and UTC provided additional assistance to the project for access, landscaping and construction easements to better accommodate and enhance the development, officials said.
Guilfoil said the apartment complex is slated for completion in early 2024.
Chattanooga Mayor Tim Kelly, who in March unveiled plans for a $100 million affordable housing initiative over five years, said the effort will take partnerships to make options available.
"This is exactly the kind of community collaboration we need to build a city where everyone has an opportunity to thrive and prosper," he said in a statement.
According to River City, it has invested over $1 million through property acquisitions, building improvements and new business signage grants on M.L. King.
The proceeds of the sale of the property on M.L. King are to be reinvested back into the corridor, the downtown group said.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.