4/2/2008

Chattanooga, Tennessee – The Department of Neighborhood Services and Community Development (NSCD) proudly announces a Rental Renovation Grant Program for private landlords. NSCD will award a grant (in the form of a forgivable loan*) to selected property owners for each unit renovated. No more than five (5) units will be considered per property owner. Upon completion of renovation work, property owners will receive fifty (50) percent of renovation costs up to $8,000 for a one bedroom unit, $10,000 for a two bedroom unit, and $12,000 for a three or more bedroom unit. Selected property owners must keep assisted rental units affordable to families at or below eighty percent (80%) of Chattanooga’s median income for a five (5) year period. Rental property owners must submit a completed application package, be selected for participation, and perform all renovation work under the supervision of the NSCD construction manager. Also, selected property owners must use a licensed general contractor, obtain necessary permits through the City of Chattanooga’s Building Inspection Department, and comply with the Lead Safe Housing Rule. Completed units must meet all local building codes and federal Housing Quality Standards (HQS). Only unoccupied units that need significant renovation will be considered.

To request a packet containing an application and additional details through the mail, please call Doug Smith at (423) 757-5127. Application packets may also be picked up at the Neighborhood Services and Community Development office located in Suite 200, City Hall, 101 East 11th Street, Chattanooga, Tennessee, 37402. Application materials may also be found on the following web page: http://www.chattanooga.gov/RentalPropRenovation.pdf.

Completed applications should be mailed or hand delivered to the same location. The deadline for applications is Friday, May 2, 2008.

*Once renovation is complete and the rental units are occupied, the grant funds will be issued to the property owner. The amount issued will be forgiven at a rate of twenty (20) percent per year. Upon successful completion of the 5-year affordability period, the entire amount will be forgiven.