The Community Development Block Grant (CDBG)

The Community Development Block Grant (CDBG) is the largest, annual entitlement grant the City of Chattanooga receives from the U.S. Department of Housing and Urban Development (HUD). The City receives approximately $2.2 million in CDBG funding, annually.

The CDBG program gives Chattanooga the opportunity to develop viable communities by funding activities that provide decent housing; a suitable living environment; and expand economic opportunities, principally for low and moderate-income persons.

The grant is managed by the Department of Economic Development, Housing and Community Investment Division (HCI). Some eligible uses include administration, planning, housing, infrastructure, public improvements, blight elimination, economic development, and public services.

Funds are awarded to carry out a wide range of community development activities directed toward housing, neighborhood revitalization, economic development, and the provision of improved community facilities and services.

All projects/activities must meet one of the three national objectives of the program:

1. Benefit low- and moderate-income persons; or
2. Aid in the prevention or elimination of slums and blight; or
3. Address needs having a particular urgency.

The City's CDBG-funded projects are carried out through HCI, other City departments, and through partnerships with local non-profit entities.

The City of Chattanooga makes CDBG funds available through an annual application process for eligible activities which assist the City in addressing the needs and priorities outlined in the 2020-2024 Consolidated Plan. The priority areas include:

• Affordable Housing
• Expand Affordable Housing Opportunities
• Preserve Existing Affordable Housing Units
• Non-housing Community Development
• Blight Elimination
• Public Facility and Infrastructure Improvements
• Homeless Services
• Housing/Services for the Homeless/At-risk
• Non-Homeless Services
• Public Services
• Economic Development
• Reduce Poverty/Expand Economic Opportunity
• Planning and Administration

A range of goals, objectives, and outcomes were formulated under the priorities to address needs identified for homelessness, housing, non-housing community development, barriers to affordable housing, lead-based paint hazards, special needs, and economic development.

The City is targeting CDBG funding towards the following efforts:

• Increase access to and supply of affordable rental housing for the City’s low- and moderate-income households.
• Increase access to affordable homeownership opportunities for City residents.
• Increase the viability for potential homeownership opportunities.
• Increase the number and types of newly constructed, or renovated homes available on the affordable housing market.
• Improve the condition of housing for low-income renters and homeowners.
• Preserve existing affordable housing stock.
• Provide housing and services to special needs populations, including low-barrier housing for the homeless.
• Continue to collaborate with homeless providers to supply a continuum of services.
• Support services aimed at the prevention and elimination of homelessness.
• Provide funding for public/facility improvements, strategically coordinated with housing and community revitalization activities.
• Promote economic development activities by supporting businesses and individuals engaged in economic development activities.
• Improve access to information about affordable housing.
• Address zoning and other regulations that are counterintuitive to the preservation and production of affordable housing.
• Eliminate housing discrimination and bias toward affordable housing
• Address blight and disinvestment -help stabilize and restore the quality of life and housing conditions in low-income neighborhoods by alleviating danger from properties that are a threat to public health, substandard, and/or vacant.
• Convert blight to productive property.