Chattanooga to Donate 11 City Properties for Affordable Housing

Due to the high housing prices, which continue to rise faster than wages, Chattanooga officials are considering donating 11 city-owned properties to real estate developers interested in building affordable homes or apartments. This great initiative is part of a broader effort to address issues of housing access and high foreclosure rates in the city.

With plans to begin allocating the land next January, Nicole Heyman, Director of Housing, announced that the city will start accepting proposals from developers in October. She anticipates that the properties available for such developments are located in areas like Alton Park and East Chattanooga.

One of the main conditions for real estate developers is that the apartments built on these donated properties must be affordable for tenants earning 80% or less of the area’s median income. At the same time, these units must remain affordable for a decade, meaning developers who choose to participate in this initiative cannot sell them for more than $200,000. Additionally, construction must begin within a year.

Nicole Heyman also explains that they have been working diligently and that this marks the first batch of donated properties under a new land bank program. For this, city officials have started clearing the titles of properties foreclosed for taxes, having already identified about 50 properties suitable for development.

At an event held on Thursday, where Heyman was the keynote speaker, the city’s housing challenges were addressed. Among them, an important fact was highlighted: 14 new residents moved to Hamilton County daily, and approximately half of them settled in Chattanooga. In her speech, Heyman said, “We are attracting young professionals and retirees from major cities due to our low cost of living and the lack of state income tax.”

First Horizon Bank, the entity that organized the event, is promoting grants for homebuyers seeking mortgages. The bank offers down payment assistance, along with an $8,000 grant for homebuyers earning 80% or less of the area’s median income, which increases to $9,000 for educators, first responders, and healthcare workers.

Ken Crenshaw, Senior Vice President of First Horizon Bank, expressed, “Our diversity grant addresses these issues, and we are proud to make a difference in our markets by increasing homeownership.”

Heyman concluded her speech by saying that with this measure and the new tax incentives, they hope to receive some applications from real estate developers.

Available Foreclosures: 

Chattanooga: 50 houses available.

By Elías DaSilva | 28 de octubre de 2024.