Chattanooga Land Bank Authority

No. All homes developed through this RFP must be for-sale and sold to first-time homebuyers. Rental, rent-to-own, or lease-purchase models are not permitted.

Yes, where zoning allows. For example, parcels zoned R3 (such as those in Alton Park) may allow higher-density development such as townhomes or duplexes. Each unit may be sold individually, subject to affordability requirements.

No. There is no minimum or maximum square footage requirement. Smaller starter homes are encouraged. Sales prices will be reviewed for overall feasibility and cost reasonableness. 
 

No. Household size is used only for income qualification, not to determine the size or bedroom count of the home.

Applicants may submit proposals for multiple RFPs, but capacity will be closely evaluated. 
 

Yes. For RFPs that bundle multiple parcels (such as the four Alton Park parcels), proposals must include a plan to develop all parcels together. 
 

The scoring rubric can be found on the Land Bank website, here, and is also included in the RFP materials.

• Completion of at least two similar projects 
• Development pipeline 
• Financial capacity
• Team experience 
• Readiness to begin construction 

Yes. Out-of-state developers may apply, including through joint ventures with local licensed contractors.

All parcel addresses, zoning, and known information are included in each RFP document.  

The maximum sales price is $230,000 per unit. 
 

No. However, proposals with very low sales prices may be reviewed more closely to ensure feasibility and construction quality.

The Land Bank offers up to $25,000 per parcel as a development subsidy. 

• It is per parcel, not per unit.
• For multi-unit projects on a single parcel, the subsidy remains capped at $25,000 total for that parcel.
• For example, the four Alton Park parcels could receive up to $100,000 total.

The subsidy is evaluated through the sources and uses budget submitted with the application. Once a proposal is selected and the budget approved, the subsidy amount will be approved accordingly.

Applicants must provide evidence of financing for all listed sources, such as a bank letter of intent. A full commitment letter is not required at this stage. We are not evaluating specific sources of financing beyond confirming that it is available.

Yes. Additional funding sources, including nonprofit or grant-based funding, are encouraged and should be included in the sources and uses.

Homes must be sold to buyers earning at or below 120% of Area Median Income (AMI), based on HUD limits in effect at the time of sale. The maximum allowed sale price is $230,000. 
 

Income limits vary by household size and are updated annually by HUD. Current limits are included in the RFP, but final eligibility will be based on the limits in effect when the home is sold.

Homes must remain affordable for a minimum of 15 years.

Affordability is enforced through a deed restriction and a Declaration of Affordability Covenants, which will be provided by the Land Bank and recorded with the property.

The deed restriction runs with the property. The Land Bank provides the legal framework, and the restriction applies to future owners.

These details are outlined in the Declaration of Affordability Covenants that the Land Bank will provide along with the deed restriction. Buyers will be able to build equity, but there will be a restriction on the price of the home during the 15 year period. The Land Bank can work with developers to ensure that buyers understand the long-term affordability restrictions.

Yes. Buyers must be first-time homebuyers, defined using the FHA standard (not owning a home in the past three years). There are no race, family size, or demographic set-asides.

The developer/seller may select among qualified buyers. There are no additional Land Bank restrictions beyond income and first-time buyer eligibility.

Yes. The Land Bank is building partnerships with housing counseling agencies and will support developers with buyer pipelines.

Yes. All parcels have cleared, insurable title and were previously developed with residential structures that have since been demolished. 
 

Environmental reports have not been completed for all parcels. Any documentation the Land Bank has will be shared upon request. 

All parcel addresses, zoning, and known information are included in each RFP document. 

Developers should verify specifics as part of their due diligence. 

Yes, provided the construction method complies with zoning and residential building codes. Applicants are encouraged to verify zoning compliance with the Regional Planning Agency (RPA) and building code compliance with the Land Development Office (LDO). 
 

Zoning is governed by the Chattanooga–Hamilton County Regional Planning Agency (RPA), Chapter 38 of the City Code. Applicants are encouraged to contact RPA directly with questions about zoning. 
 

• Construction must begin within 12 months of property conveyance (building permits pulled).
• Projects must be substantially completed within 18 months, ideally with a certificate of occupancy.

Timeline requirements will be detailed in the Developer Agreement. The Land Bank will work with developers on delays caused by permitting, utilities, or other external factors. 

The Land Bank anticipates strong demand at this price point. In rare or catastrophic circumstances, the Land Bank would work with the developer to determine next steps.

Some local and regional programs (e.g., TVA) may be available. The Land Bank will share information where possible but does not currently offer additional sustainability subsidies beyond the $25,000 per parcel.

Land banks are not banks! They are public entities created for a single purpose: to acquire, manage, maintain, and repurpose vacant, abandoned, and foreclosed properties. State law grants land banks some unique powers to facilitate the redevelopment of these types of properties, which often sit unused and vacant for years due to legal problems like cloudy titles. Land banks are not the same as community land trusts (CLTs), although they can often work together.

Land banks can acquire vacant, tax-delinquent properties that have been passed over by the private market, hold them tax exempt, remove the structural, legal, and financial barriers to redevelopment, and then work closely with a range of public, nonprofit, and private partners to flexibly dispose of them in support of local and community goals.