CITY OF CHATTANOOGA

DEPARTMENT OF ECONOMIC AND

COMMUNITY DEVELOPMENT

2017 – 2018

ACTION PLAN

FOR

CDBG, ESG & HOME ENTITLEMENTS

Present funding recommendations and

highlights of

2017 – 2018 Action Plan

Present process and calendar

PURPOSE

SOURCES:

ENTITLEMENT GRANTS

Community Development Block Grant (CDBG)

Develop viable urban communities through

Decent housing

Suitable living environment

Expanded economic opportunities

HOME Investment Partnerships Program (HOME)

Provide decent, safe, and sanitary affordable housing to lower-

income households

Leverage private sector participation

Emergency Solutions Grant (ESG)

Support operations and services of homeless shelters

Prevent families and individuals from becoming homeless

Rapidly re-house homeless individuals and families

HUD’S NATIONAL OBJECTIVES

Benefit low to moderate income

persons;

Aid in the prevention of slums

and blight;

Address needs having a

particular urgency

2015 -2019 CONSOLIDATED PLAN

CITY’S GOALS TO ADDRESS HOUSING & COMMUNITY DEVELOPMENT NEEDS

Increase supply of affordable rental housing and

housing for homeownership available to the City’s low-

to-moderate income households;

Preserve existing affordable housing stock;

Provide housing and services to special needs

populations;

Improve/increase opportunities for citizens to

access/retain affordable;

Support neighborhood stabilization and development

through public improvements in strategic coordination

with housing activities, and;

Promote economic development activities in the City.

2017 – 2018 ENTITLEMENT FUNDING & PROGRAM

INCOME (ESTIMATES)*

CDBG HOME ESG TOTAL

Grant $1,650,000 $694,800 $148,900 $2,493,700 Program

Income $210,700 $513,996 $0 $724,696

Total $1,860,700 $1,208,796 $148,900 $3,218,396

*Funding budgets and proposed recommendations are contingent upon actual

allocations from HUD. Budgets and funding recommendations will be

proportionally decreased or increased (if necessary) from the estimated levels to

match actual allocation amounts.

FY 2017 – 2018 - ESG

FUNDING RECOMMENDATIONS

EMERGENCY SOLUTIONS GRANT Recommd Request

CHATTANOOGA HAMILTON COUNTY HEALTH DEPARTMENT 40,000 40,000

CHATTANOOGA COMMUNITY KITCHEN 14,400 30,000

CHATTANOOGA ROOM IN THE INN 18,132 27,200

FAMILY PROMISE 30,000 30,000

PARTNERSHIP/FAMILY, CHILDREN & ADULTS 35,000 35,000

Funds for Stable Housing and Homeless Prevention to include emergency shelter, housing stabilization and rapid re-

housing.

CD Admin 11,168 11,168

CATEGORY TOTAL 148,700 173,368

For homeless prevention and rapid re-housing.

Funds will be used to cover Emergency Shelter Utilities (electricity, water, and gas), Day Center Triage, and HMIS Service

Point License and User Fees.

To assist women in budgeting for and finding safe, affordable housing (rapid re-housing) and rental assistance & utilities.

Rental Assistance and Housing Stabilization and Rapid Re-housing.

FY 2017 – 2018 CDBG FUNDING RECOMMENDATIONS

HOUSING & HOUSING SERVICES Recommd Request

CHATTANOOGA COMMUNITY HOUSING DEVELOPMENT (CCHDO) 200,000 200,000

To provide roofing replacements through forgivable loans (over 5 years) to approximately 30 qualified LMI homeowners who

reside within the city limits of Chattanooga. (CDBG)

CHATTANOOGA ROOM IN THE INN (CDBG) - 38,000

Fund for the position of Permanent Housing Coordinator who will work with residents to locate housing quicker and opening

much needed emergency shelter beds faster.

CHATTANOOGA NEIGHBORHOOD ENTERPRISE, INC CDBG 150,000 250,000

Funds requested to provide low interest loans to appx. 9 homeowners for home improvements and to cover related program

delivery costs.

FAMILY PROMISE (CDBG) 25,000 50,000

Funds to cover Case Management and Rapid Re-housing through the Coordinated Assessment Program.

HABITAT FOR HUMANITY OF GREATER CHATTANOOGA (CDBG) 50,000 100,000

Funds will be used to assist homeowners with exterior, weatherization, and/or critical repairs of 28 homes in the Avondale, Alton

Park, Glass Farms, and other surrounding communities.

CHATTANOOGA REGIONAL HOMELESS COALITION 1 (CDBG) 25,000 25,000

Funds will be used for staff salaries to complete the Continuum of Care planning and application process, which typically secures

over $2.8 million in HUD McKinney-Vento funding.

CHATTANOOGA REGIONAL HOMELESS COALITION 2 (CDBG) 34,000 34,000

For the required 25% match for HMIS and Centralized Intake. HMIS and Centralized Intake are used to coordinate services

provided to the homeless.

FY 2017 – 2018 CDBG FUNDING

RECOMMENDATIONS – CONT.

Recommd Request

CHATTANOOGA REGIONAL HOMELESS COALITION 2 (CDBG) 34,000 34,000

For the required 25% match for HMIS and Centralized Intake. HMIS and Centralized Intake are used to coordinate services provided

to the homeless.

CHATTANOOGA REGIONAL HOMELESS COALITION 3 (CDBG) - 40,000

Program will fund a Housing Navigator who will work with homeless individuals and families.

CHATTANOOGA REGIONAL HOMELESS COALITION 4 (CDBG) - 40,000

Funds for one staff position of HMIS Data Entry Specialist.

WELCOME HOME CHATTANOOGA (CDBG) 30,000 30,000

Staff to provide housing and support services to terminally ill low income and homeless individuals with end of life care.

CATHOLIC CHARITIES (CDBG) - 20,000

Funds to enhance the current Housing Counseling Program.

CD Admin - CDBG 372,000 372,000

Section 108 Debt Service 351,000 351,000

CD Rental Rehab 200,000 200,000

Transportation - Sidewalks 200,000 200,000

Public Works - SLAP - 72,000

Demolitions Blighted Structures - ECD 100,000 100,000

Preservation/Production Homeowner Housing 123,700 123,700

CATEGORY TOTAL 1,860,700 2,245,700

FY 2017 – 2018 HOME FUNDING

RECOMMENDATIONS

Affordable Housing Preservation/Production 983,696

CHDO Set-Aside 104,220

Admin. 120,880

Total 1,208,796

TARGET POPULATION

The following income categories are used throughout the Plan:

Extremely low – households with income less than 30 percent of area median

income (AMI)

Very low – households with income between 30 and 50 percent of AMI

Low – households with income between 51 and 80 percent of AMI

Moderate – households with income between 81 and 120 percent of AMI

Above moderate – households with income above 120 percent of AMI

2016 Income Limits (Median Family Income: $61,300)

Family Size

Low Income

80% AMI

Very Low

50% AMI

Extremely Low

30% AMI

1 Person $34,300 $21,450 $12,850

2 Person $39,200 $24,500 $16,020

3 Person $44,100 $27,550 $20,160

4 Person $48,950 $30,600 $24,300

5 Person $52,900 $33,050 $28,440

2016 Fair Market Rents

0 BR 1 BR 2 BR 3 BR 4 BR

$515 $616 $767 $1,019 $1,247

GEOGRAPHIC TARGET

LOW/MODERATE INCOME CENSUS TRACTS

CITY OF CHATTANOOGA

LOW- MODERATE INCOME CENSUS TRACTSCensus Percentage

Area Tract L/M White Black Hispanic Am. Indian Asian

Orchard Knob, Avondale 4 68.45% 6.8% 89.2% 2.4% 0.6% 0.0%

Hill City 8 68.31% 64.7% 32.8% 1.1% 1.6% 0.0%

Fortwood 11 62.87% 29.5% 50.2% 23.3% 0.0% 0.0%

Glenwood 12 61.11% 13.6% 84.8% 0.7% 1.2% 0.0%

East Lake, Ridgedale 13 74.25% 38.6% 50.5% 18.5% 0.4% 0.0%

Highland Park 14 66.42% 56.1% 42.2% 9.7% 0.0% 0.2%

Westside 16 100.00% 18.3% 80.0% 0.0% 0.9% 0.8%

South Chattanooga, Alton Park, Piney Woods 19 85.83% 2.8% 94.7% 1.3% 0.3% 0.0%

Southside 20 85.02% 21.0% 65.1% 11.5% 2.4% 0.0%

Clifton Hills, 23 68.56% 43.4% 29.3% 26.5% 0.9% 0.0%

Cedar Hill, East Lake 24 78.12% 72.9% 13.0% 28.3% 2.0% 3.7%

East Lake 25 80.76% 35.7% 55.1% 11.4% 2.1% 0.0%

Oak Grove 26 75.76% 34.5% 49.4% 24.3% 0.0% 0.0%

Downtown 31 60.53% 64.2% 34.7% 3.3% 0.0% 0.0%

Foxwood Heights 32 61.81% 15.5% 75.6% 5.2% 3.9% 0.0%

Signal Mt. Blvd. 109.02 70.31% 100.0% 0.0% 0.0% 0.0% 0.0%

Eastdale 114.44 59.59% 17.3% 80.8% 2.4% 0.0% 0.0%

Shepherd 114.45 51.24% 55.2% 39.5% 10.2% 0.0% 1.1%

Avondale, East Chattanooga 122 86.55% 5.7% 92.9% 2.0% 0.0% 0.0%

Amnicola, East Chatt, Glass Farm 123 66.32% 30.5% 63.9% 0.8% 2.0% 1.2%

ML King, Fortwood 124 68.17% 64.1% 28.5% 2.1% 0.1% 6.6%

Race/Ethnicity

Data Source: 2007-2011 ACS

NEXT STEPS - CALENDAR

Prepare plan and make available for

30-day public comment period

April 7 – May 7

Public Meeting – April 20

City Council Approval – May 9

Submit Plan to HUD – May 12

Prepare Agreements – June

Program Year Starts – July 1

Questions?

Comments?

Until May 7, 2017

ECD (423)643-3700; 643-7332

101 East 11th Street, Suite 200

Chattanooga, TN 37402