Chattanooga's efforts to develop affordable housing.
Chattanooga is taking substantial steps towards addressing the affordable housing crisis by donating seven properties for development. The initiative, led by Chattanooga Neighborhood Enterprise, aims to ensure rental properties remain affordable at under $1,300 a month. With over a quarter of Hamilton County households cost-burdened, this initiative promises to provide significant relief. Developers have until January 15, 2025, to submit proposals, while the city launches a PILOT program to support affordable housing projects, paving the way for mixed-income developments that benefit the community.
In an exciting move aimed at tackling the growing issue of affordable housing, Chattanooga is stepping up to donate several properties for the development of affordable housing solutions. For more than two decades, Chattanooga Neighborhood Enterprise (CNE) has been dedicated to preserving and providing affordable housing for working families. Now, the city aims to play a significant role in tackling this pressing challenge.
The City of Chattanooga is set to donate a total of seven properties! This generous offer includes five locations tucked away on West Avenue in the charming Alton Park neighborhood and two in East Chattanooga. Developers are welcomed with open arms to submit their proposals to utilize these properties, which need to meet specific affordability standards to promote housing accessibility for everyone.
When it comes to these donated properties, the city has some clear expectations. The requirement for rental properties is that they must keep their rental costs under $1,300 a month for a two-bedroom unit. This price tag fits snugly within the guidelines set by HUD, making it achievable for families earning around $56,000 a year—a significant benchmark for many working households in the area.
For those looking to get involved, the deadline is closing in fast! Developers interested in these properties must submit their Request for Proposals by January 15, 2025. So, put on your thinking caps and gear up to make a positive impact in the community!
What’s more exciting? The City of Chattanooga has rolled out the Payment in Lieu of Taxes (PILOT) program! This shiny new program aims to provide extra support for developers looking to build affordable housing. The idea is to connect tax reductions with monthly rent costs. This way, it allows for a more balanced approach to the local housing market, encouraging the creation of mixed-income developments that benefit various income levels.
Did you know that a significant chunk of the rental community in Chattanooga—about 56 percent—earns less than 80 percent of the Area Median Income (AMI)? Keeping these insights in mind, the proposed rent schedule for 2024 clearly outlines affordability, setting monthly rents for a three-bedroom unit at $1,138 for households making 50 percent of AMI and $1,820 for those at 80 percent. This is a step in the right direction!
City officials are working tirelessly to clear titles for tax-foreclosed properties identified for development. It’s quite something—around 50 properties have already been marked as prime candidates for affordable housing! With a new state law in place, the city is allowed to adopt voluntary affordable housing incentives that developers can leverage. This means builders can potentially reap benefits by adding affordable units to their projects.
While this initiative marks an important chapter in Chattanooga’s quest for affordable housing solutions, it’s essential to remember that the journey ahead is still long. Mayor Kelly acknowledged that while strides have been made, the need for ongoing action to combat the national housing crisis remains critical. But with initiatives like this one in place, there’s a sense of hope that Chattanooga is moving in the right direction!
For anyone seeking more information regarding the PILOT program and eligibility, checking the city’s official website will be a great first step. Let’s come together to support our community and ensure everyone has a place to call home!
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