Chattanooga Takes Big Steps Towards Affordable Housing
A New Initiative to Tackle the Housing Crisis
Exciting news for residents of Chattanooga! The city is teaming up with the Chattanooga Land Bank Authority to make a significant difference in the local housing market. Together, they are donating seven vacant properties owned by the city to pave the way for new affordable homeownership and rental options. This collaboration is part of a larger effort led by Mayor Tim Kelly to address the ongoing affordable housing crisis that is being felt across the nation.
What’s the Plan?
According to Mayor Kelly, Chattanooga is serious about using every available resource to combat the affordability challenges facing many families. “This donation of city-owned land for affordable housing developments is an important step,” he says. The new initiative builds on recent zoning reforms, a modernized Payment In Lieu Of Taxes (PILOT) policy, and an incoming affordable housing investment fund. With the help of local partners in both the philanthropic and development sectors, Chattanooga aims to become a leading example in the fight for affordable housing.
The First Step: Seven Properties Up for Grabs
The Chattanooga Land Bank Authority has officially released those seven properties for development into affordable housing. But there’s more! The bank plans to continue offering properties every so often through an open Request for Proposals (RFP) process. Developers interested in taking part in this exciting opportunity are being invited to submit creative, community-focused proposals that comply with affordability standards.
Affordability Standards: Who Will Benefit?
The goal is clear: to provide affordable options for renters and first-time homebuyers. Projects must ensure that rental units are affordable for individuals earning up to 80% of the area median income. For a two-person household, that’s roughly $56,000. On the other hand, first-time homebuyers should be looking to earn no more than 100% of the area median income, which translates to about $70,000.
To keep these homes affordable, there will be strict guidelines. Rental properties must remain affordable for at least 10 years, and home prices must be capped at $200,000 for a period of at least 15 years.
How Can Developers Get Involved?
Developers eager to make a difference in Chattanooga should jump on the opportunity! They must register with the City and can do so by checking out the City’s Supplier Portal, where they can also review the RFPs available on the City’s open solicitations page.
But that’s not all! The city has identified an additional 50 sites for future affordable housing development through the Land Bank. Local officials are already working to clear titles and address any hurdles that may prevent these properties from being transferred for development.
What is the Chattanooga Land Bank Authority?
For those curious about what exactly the Chattanooga Land Bank Authority does, they’re a public agency dedicated to taking control of, managing, and redeveloping vacant and underutilized properties. They hold special powers under state law that allow them to remove legal and regulatory obstacles, clean up messy titles, and work with local partners to achieve the housing goals essential for community development.
The Future Looks Bright!
As Chattanooga embarks on this new journey towards enhancing affordable housing options, residents have much to look forward to. With collaborative efforts like these, the city is poised to make a meaningful impact in the ongoing struggle for affordable living.
