Can the city actually do anything to lower rent?
The City of Chattanooga has a few programs now that are supposed to help people buy houses and pay rent — today we’re talking about what can help out renters.
Graphic by Ian-Alijah Bey
By William Newlin
Most of the city’s programs are for building owners and developers. The basic arrangement is that the city provides incentives to landlords and builders, who in turn, are required to pass along various subsidies to renters.
Here are some of the programs available now, which should ultimately increase the number of affordable housing units in Chattanooga:
Landlords can apply for federal and city dollars to renovate rental units using grants and forgivable loans. Eligible projects range from lower-cost, fully funded renovations that must remain affordable for at least one year to more expensive remodels that receive a 50% reimbursement in return for seven years of affordability. Additional federal funds for renovation are available to landlords through Chattanooga’s HOME program.
Duplex owners can receive construction funds if they live in one of the units and keep the other unit affordable. The program also helps pay for closing costs to those leasing the other unit.
Developers have access to grants and tax breaks to build affordable rentals through the city’s highest-funded programs. For projects that cost a minimum of $5 million, a payment in lieu of taxes (PILOT) agreement provides developers with up to 14 years of reduced taxes as long as half of the units stay affordable over that period. The HOME program is a grant option for new developments as well.
Construction companies and nonprofits with a history of residential development may apply for no-limit assistance for certain projects. The period of affordability depends on the amount of funding received and the type of development. Renters can apply for emergency rental assistance through the program as well.
What is affordable?
Affordability is based on the yearly income of tenants. For example, depending on the program, units must be affordable to a family of four earning between $47,760 to $63,700 per year. That means monthly rents, including utilities, would be $1,194 to $1,592.
Household income levels and monthly rents that fit the definition of affordable scale up or down based on household size.
Email any questions or comments to william@chattamatters.com.
