Chattanooga announces funding opportunities to boost affordable housing development

Staff photo by Olivia Ross / Mayor Tim Kelly holds one of the shovels used at the groundbreaking of The Reserve at Mountain Pass on April 12, 2022. This affordable housing complex will be located in the Alton Park area.

Beginning in July, almost $3 million in federal funds will be available to support the creation of affordable housing units in Chattanooga as part of three local programs managed by the city's division of housing and community investment.

According to a news release from Mayor Tim Kelly's office, the programs provide grants and forgivable loans to developers, landlords and nonprofit organizations for the development of new affordable units as well as the rapid repair and renovation of vacant units.

(READ MORE: Affordable housing could get boost from special tax financing in Chattanooga)

The city will host a workshop to discuss the funding opportunities from 2-4 p.m. Thursday at the Development Resource Center at 1250 Market St.

Two of the programs -- the Rapid Rental Repair Program and the Landlord Renovation Program -- provide Community Development Block Grant funds to landlords to assist with the costs of repairing and renovating vacant rental units.

Landlords are then required to re-rent the units to individuals and families who make no more than 60% of the Chattanooga-area median income, at a cost that does not exceed 30% of their monthly income.

The third program provides funding to developers through the Home Investment Partnership to support up to 50% of the construction costs for similarly affordable units, at a maximum of $40,000 per unit.

(READ MORE: Chattanooga housing board approves greater 'flexibility, latitude' for affordable-housing application standards)

Applications for block grant funding are due Feb. 28.

— Compiled by David Floyd