Community Development

Community Development

Using grants from the U.S. Department of Housing and Urban Development (HUD), the State of Tennessee, and City General Funds, the Community Development Division is dedicated to the revitalization of low-to-moderate income neighborhoods and the economic improvement of its residents. The department funds affordable housing initiatives, employment and business assistance, public facility and infrastructure improvements, and social services to assist the community as a whole.

Annual Action Plan and Funding Recommendations

The City of Chattanooga will host a virtual public meeting via Zoom on Thursday, April 22, 2021, from 5:30 p.m. to 6:30 p.m., regarding the formulation of the 2021 Program Year Community Development Annual Action Plan using U.S. Department of
Housing and Urban Development (HUD) funds. The City is expected to receive: $1,533,938 Community Development Block Grant (CDBG), $818,418 HOME Investment (HOME), and $903,116 in program income. Following are proposed projects and activities to be undertaken during the fiscal year that begins July 1, 2021. Expected grant funds are estimates. Grant budgets and proposed recommendations are contingent upon actual allocations from HUD. If actual allocations exceed, or are less than estimates, budgets and funding recommendations will be increased/decreased for Admin and the ECD Housing Assistance, Preservation, and Production programs. 

The virtual public meeting can be accessed via computer through the Zoom link:
https://us02web.zoom.us/j/83329055160

The Draft Action Plan can be viewed below:

FY 2021-2022 Action Plan Draft

FY 2021-22 Action Plan Attachment 1

FY 2021-22 Action Plan Attachment 2

or in person. A 30-day comment period will begin April 9, 2021. Citizens wishing to make comments regarding the proposed activities and contents of the Action Plan may do so by contacting the office at 643-7300, Monday-Friday 8:00 a.m. to 4:30 p.m. or writing to:

Department of Economic and Community Development

City Hall, Suite 200, 101 E. 11th Street

Chattanooga, Tennessee 37402

All comments must be received by May 10, 2021.

The City of Chattanooga will provide reasonable accommodations in accordance with the Americans with Disabilities Act of 1990. If special accommodations are required, please call Lindsey Garland at (423) 643-7330, at least 5 days prior to the public meeting on April 22, 2021.

Funding Recommendations

Community Development Administration

CDBG: $382,070; HOME: $134,511
Administration, management, and monitoring

Community Development Debt Service

CDBG: $325,000
Section 108 loan debt service

City and ECD Housing and Community Development

CDBG: $390,263
This includes $265,263 for housing assistance and preservation of affordable rental and homeowner housing, $25,000 sewer assistance program (SLAP), and $100,000 for demolition

CCHDO Roofing Program

CDBG: $250,000
Roof replacements and repairs to qualified homeowners

Chattanooga Neighborhood Enterprise

CDBG $250,000
Low interest rehabilitation loans for low income homeowners

Chattanooga Regional Homeless Coalition

CDBG: $43,029
Homeless services, coordinated assessment, and outreach services

Family Promise

CDBG: $45,000
Support for centralized intake case manager

Habitat for Humanity Brushed With Kindness

CDBG: $50,000
Minor home rehabilitation for qualified homeowners

Rebuilding Together Chattanooga

CDBG: $75,000
Provide home repairs to LMI residents

United Way of Greater Chattanooga

CDBG: $99,992
211 Food Line support operations and referral service

CHOO Set Aside

HOME: $122,763
Required CHOO set aside to fund qualified CHOO development projects

ECD Affordable Housing Projects

HOME: $1,087,844
Development and rehabilitation of affordable rental and homeowner housing through ongoing RFP process

Grand Total ................................... $3,255,472 

COVID-19 Emergency Rent and Utility Assistance Program

The City of Chattanooga is offering assistance for those directly impacted by the Coronavirus (COVID-19). Qualifications for assistance are as follows:

• Must be a City of Chattanooga resident
• Must be a renter
• Rental unit must be within the city limits of Chattanooga
• Must have had your employment income directly impacted by COVID-19
• Household income must be at or below 120% area median income 

More specific information can be found on the website for COVID-19 Emergency Rent and Utility Assistance. 

Preservation and Production of Affordable Housing Programs

Through the following programs, the Department of Economic and Community Development (ECD) seeks partners to assist with the preservation and production of affordable rental and owner-occupied housing units in Chattanooga.

The City accepts applications from qualified entities to produce and or preserve affordable housing using funding the City receives from the U.S. Department of Housing and Urban Development (HUD), which includes: Community Development Block Grant (CDBG), HOME Investment Partnership Act (HOME), and Neighborhood Stabilization Program (NSP) grant funds.

Funding for a project can range from $12,000 to $40,000 per unit. All assisted projects must serve households meeting income eligibility guidelines and be located within the city limits of Chattanooga.

There is no application deadline. Applications for funding are accepted on a rolling basis and funds awarded on a first-come, first-served basis until all grant funds are allocated.

Interested entities or potential partners are encouraged to submit an Intent to Apply prior to submitting a full application. 

HOME Affordable Housing Program

This program is for for-profit and non-profit developers who wish to develop or preserve affordable housing. 

Learn more about the HOME Investment Partnership Act (HOME) 

Learn more about applying for funding under the HOME Program

Minor Home Repair Program

This program is designed to assist homeowners with minor home repairs who live inside the Chattanooga City limits. These repairs are completed through partnerships with selected non-profit organizations at no cost to the applicant. However, repairs are subject to approval by the City of Chattanooga, partnering agencies, and available funding.

This program is temporarily closed and not accepting applications. 

Learn more about the Minor Home Repair Program

Landlord Renovation Program

This program assists landlords with the renovation of vacant, substandard rental units. Landlords can receive a grant to cover 50% of renovation costs, up to $15,000. Actual amount depends upon the number of bedrooms and cost of renovation.

Learn more about the Landlord Renovation Program

Residential Payment in Lieu of Taxes (PILOT) Program

The Residential PILOT Program is a financial incentive, which is designed to encourage multi-family rental development by freezing property taxes at the predevelopment level for a predetermined period of time.

2018 PILOT Application

Review the Scoring for the PILOT Program Application

Chattanooga Affordable Housing Fund

The Chattanooga Affordable Housing Fund leverages Federal, State, and private dollars for the preservation and production of affordable housing for target households earning up to 80% of area median income. The application process is ongoing, and projects are presented to the Health, Educational and Housing Facilities Board (HEB) for consideration.

Chattanooga Affordable Housing Fund Guidelines and Application

Housing Resources

Fair Housing Program

Learn more about the Fair Housing Program, objectives and goals, activities, how to file a complaint, and contact info.

Uniform Residential Landlord and Tenant Act

Find out more about tenant and landlords laws in Tennessee.

RentWise (in English)

Rights and responsibilities of landlords and tenants in Hamilton County

Chattanooga Neighborhood Enterprise

CNE provides homebuyer down payment assistance, homeowner rehabilitation loans, and housing counseling.

Chattanooga Community Housing Development Organization (CCHDO)

CCHDO provides newly constructed affordable homes, affordable rental units, and roofing repair. Learn more about their roofing program.

Chattanooga Housing Authority

Chattanooga Housing Authority administers the Section 8 Program and maintains a list of affordable rental units.

Habitat for Humanity

Habitat provides newly constructed affordable homes and homeowner rehabilitation.