Chattanooga Secures $787,500 for Transit-Oriented Development to Boost Affordable Housing and Transit Access

Chattanooga Receives Major Funding for Transit-Oriented Development

Chattanooga residents have a lot to feel excited about as the City gears up for some promising changes along the Brainerd Road/Lee Highway corridor. Thanks to a generous grant of $630,000 from the Federal Transit Administration (FTA), along with an additional $157,500 in local matching funds from the city, a total of $787,500 has been secured for a new transit-oriented development initiative. This project aims to foster affordable housing and enhance access to public transit in the community.

This new initiative, part of the city’s “Plan Chattanooga” vision, is all about exploring smart, sustainable development options along a planned high-capacity transit line. The idea is to make the area more welcoming—both to residents and businesses—while ensuring that everyone has equitable access to the transit system.

Making Transit More Accessible

Charles D. Frazier, CEO of the Chattanooga Area Regional Transportation Authority (CARTA), shared his enthusiasm for the project, stating, “This grant represents a major milestone for CARTA and the City as we work to expand transit access and create economic opportunity for all Chattanoogans.” He emphasized the importance of building a brighter, more sustainable, and inclusive future for the city.

The funding will allow CARTA and the City of Chattanooga to delve into Transit-Oriented Development (TOD) opportunities along the Brainerd Road/Lee Highway corridor. This area has been marked as a priority for establishing a Bus Rapid Transit line—which aims to connect neighborhoods seamlessly to affordable public transit options. Improved public transport is hoped to play a key role in promoting economic development while also cutting commuting costs for residents.

A Boost for Economic Opportunities

Chattanooga’s Mayor Tim Kelly also vocalized his support for the initiative, saying, “This funding will help us make progress on nearly every goal of the One Chattanooga plan.” He highlighted how this initiative would assist in building more affordable housing units and increasing access to jobs, which ultimately contributes to an improved quality of life for residents.

City Councilwoman Carol Berz, who represents District 6—where the corridor is located—also pointed out that this new project will make essential housing and public transit options easily accessible. “By creating a well-planned, transit-oriented corridor, we will not only reduce transit costs and enhance connectivity, but we will also foster economic growth in Chattanooga and the surrounding community,” she noted. This collaborative effort is intended to make the city a more vibrant and inclusive place to live and work.

Looking Towards a Sustainable Future

Dan Reuter, the City Planning Administrator and Executive Director of the Regional Planning Agency, spoke about the significance of this endeavor. He referred to it as a “visionary opportunity” for shaping Chattanooga’s future, aligning with goals of equity, accessibility, and environmental stewardship. Excitingly, they look forward to collaborating with community stakeholders to turn this vision into reality.

The FTA’s TOD Planning Program, which is part of the Administration’s Housing Supply Action Plan, prioritizes projects that promote affordable housing near transit hubs, as a way to alleviate both household transportation and housing costs.

What’s Next?

With a solid funding foundation, CARTA and the City of Chattanooga are set to work on creating walkable, transit-oriented neighborhoods that embrace sustainability and inclusivity. The TOD planning study is slated to kick off in early 2025, with both entities ensuring active community engagement as they embark on this transformational journey.

As Chattanooga looks ahead, this funding is not just about improving public transit; it’s about creating a more connected and vibrant future for everyone in the community. Let’s look forward to seeing how this initiative unfolds!