Proposed Substantial Amendment to Allocate Community Development Block Grant (CDBG) Disaster Relief (DR) Funds

Background
Public Notice is hereby given that the City of Chattanooga will consider an amendment to the City’s
2020-2021 Action Plan to allocate Community Development Block Grant (CDBG) Disaster Relief (DR)
Funds received from U.S. Department of Housing and Urban Development (HUD). In September 2020, the City received a special allocation of $721,031.00 to address emergency community development
needs resulting from the flooding that impacted multiple communities in Chattanooga in the April 2020
storm. Funds are made available to metropolitan cities and urban counties in areas affected by such
disasters to meet emergency community development needs not met with other sources of assistance.
The funds are required to be used to address unmet disaster-related needs, particularly in housing,
economic revitalization, and infrastructure restoration primarily to benefit low and moderate-income
income (LMI) persons/households/areas.
Though some areas did not experience the devastating destruction as others, the effect was community-
wide, particularly impacting affordable housing. The April 2020 storm along with the COVID pandemic,
disproportionately impacted affordable housing, leading to displacement, increased costs, and a
squeeze on the already limited supply of affordable units, especially for low-income households.
Like most cities across the nation, even prior to the pandemic and the storm, the City of Chattanooga
was suffering a severe shortage of affordable housing. The disaster further exacerbated this crisis.
Continued challenges with supply chains and increasing prices are hindering progress toward addressing
the issue.
As affordable housing is the most critical need across the community, particularly for LMI households,
the City is proposing to allocate the CDBG-DR funding to non-profit entities positioned to expeditiously
expend the funds to increase or preserve the inventory of affordable housing. The City is proposing to
allocate the total funding as outlined. (Funding adjustments between budgets may be required to
expedite expenditure of funds).
Habitat for Humanity of Greater Chattanooga: $511,000.00. To construct affordable
homeowner housing units.
Chattanooga Community Housing Development Organization: $70,000.00. To replace
deteriorated/damaged roofs on owner-occupied homes of LMI households.
Grant Admin: $140,031.00

Amendments to Plans
To accommodate this change, the City is amending its FY 2020 -2021 Action Plan in accordance with 24
CFR 91.05(c)(2) and subpart B of the federal regulations.
Citizen Participation and Opportunity to Comment
To expedite the completion of the action plan amendment HUD provided a waiver for a reduction in the
required 30-day public comment to reduce the period to five days. The City is accepting comments on
this proposed amendment for a 5-day period beginning Tuesday, March 25, 2025, and ending at 4:30
p.m. on Monday, March 31, 2025.