Grant Overview
This program allows Chattanooga 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.
Application Instructions
Please read the instructions and review the application carefully before completing and submitting.
Application Deadline:
March 14, 2025
No Later Than 3:00 p.m.
Submit One (1) Electronic Version to:
hci@chattanooga.gov and copy rpartap@chattanooga.gov
A separate application must be completed for each different project/program/activity. Applications received after the deadline will not be considered for funding. Failure to submit complete, required documents may also result in the request being disqualified. If an item is not applicable, please indicate with “N/A.”
To be considered for funding, all required documents must be completed and one (1) electronic copy submitted no later than Friday, March 14, by 3:00 pm.
NO AGENCY IS GUARANTEED FUNDING. EACH YEAR’S REQUEST IS EVALUATED SOLELY ON ITS OWN MERIT. THE LEVEL OF AWARD IS SUBJECT TO THE AVAILABILITY OF FUNDS. Past funding is not a guarantee the City will fund a program or service in the future. The City reserves the right to propose increases or decreases to any or all funding requests to maximize effectiveness or to satisfy budget parameters.
Available Funding and Priorities
The City anticipates* having approximately $1,308,000 available for projects/programs as follows:
| 2025-2026 CDBG Allocation* | $1,535,000 |
| Program Income | $100,000 |
| Total | $1,635,000 |
| (Less) HCI Admin | ($327,000) |
| Estimated Funding Available | $1,308,000 |
*Amounts are estimates based on previous years’ data
All projects/activities must meet one of the three national objectives of the program
Benefit low- and moderate-income persons
Aid in the prevention or elimination of slums and blight.
Address needs having a particular urgency.
Priority Areas
Our Goals
HUD Rent and Income Limits
FY 2024 INCOME LIMITS
| 30% AMI | 50% AMI | 60% AMI | 80% AMI | |
|---|---|---|---|---|
| 1 Person | $18,400 | $30,650 | $36,750 | $49,000 |
| 2 Person | $21,000 | $35,000 | $42,000 | $56,000 |
| 3 Person | $25,800 | $39,400 | $47,250 | $63,000 |
| 4 Person | $31,200 | $43,750 | $52,500 | $70,000 |
| 5 Person | $36,580 | $47,250 | $56,700 | $75,600 |
| 6 Person | $41,960 | $50,750 | $60,900 | $81,200 |
| 7 Person | $47,340 | $54,250 | $65,100 | $86,800 |
| 8 Person | $52,720 | $57,750 | $69,300 | $92,400 |
2024 HOME + CDBG Rents
| Bedrooms | Fair Market Rent |
|---|---|
| Studio | $1,068 |
| 1 Bedroom | $1,085 |
| 2 Bedrooms | $1,232 |
| 3 Bedrooms | $1,569 |
| 4 Bedrooms | $1,784 |
| 5 Bedrooms | $2,052 |
| 6 Bedrooms | $2,319 |
CDBG Program History and Overview
The Community Development Block Grant (CDBG) Program is authorized under Title 1 of the Housing and Community Development Act (HCDA) of 1974, as amended. CDBG grew out of the consolidation of several categorical programs under which communities competed nationally for funds.
The primary objective of Title I of the HCDA, as amended, is the development of viable urban communities. These viable communities are achieved by providing the following, principally for persons of low- and moderate-income:
❖ Decent housing;
❖ A suitable living environment; and
❖ Expanded economic opportunities
At least seventy percent (70%) of CDBG funds must be utilized to support activities that benefit low- and moderate-income persons.
To achieve these goals, the CDBG regulations set forth eligible activities and the national objectives that each activity must meet. As a recipient of CDBG funds, the City of Chattanooga and its funding recipients are charged with ensuring that these requirements are met.