The City of Chattanooga hereby gives notice of a proposed application to the U.S. Department of Housing and Urban Development (HUD) for a Section 108 Loan Guarantee for $7,800,250. Through an intergovernmental agreement with the City, under which it will serve as a Dedicated Public Agency, the Chattanooga Housing Authority (CHA) will be the borrower of the loan directly through HUD. Required by federal regulations, the City will pledge current and future Community Development Block Grant (CDBG) allocations as backstop security for the guarantee.
CHA will use the loan proceeds as a financing mechanism in a loan pool to leverage the development of affordable housing projects in partnership with qualified development partners under its Faircloth authority, 1,287-unit limit. All funding will be used to benefit low- and moderate-income households within the city limits of Chattanooga.
Submittal of the application requires a substantial amendment to the City’s 2026-2027 Annual Action Plan to add the Section 108 activity described above, in accordance with 24 CFR 91.05(c)(2) and subpart B of the federal regulations.
Beginning July 1, 2026, and ending July 31, 2026, drafts of the proposed Section 108 Loan Guarantee Application and Substantial Amendment to the 2026 – 2027 Action Plan are available for public review online or at 101 E.11th Street, Suite 200, Chattanooga, TN 37402.
On Thursday, July 16, at 5:30 PM - 6:30 PM, a public hearing will be held by the City’s Housing and Community Investment Division to solicit comments on the proposed application and substantial amendment. The meeting will take place at the following location and will also be available virtually.
Chattanooga Housing Authority
801 N. Holtzclaw Avenue
Chattanooga, TN 37404
For those wishing to attend virtually, join the meeting via the following links:
Video call link: https://meet.google.com/muy-kgsq-dyy
Or dial: (US) +1 262-806-3358 PIN: 112 370 112#
More phone numbers: https://tel.meet/muy-kgsq-dyy?pin=9151949196178
Citizens wishing to submit comments outside of the public hearing may do so via e-mail to: Sgober@chattanooga.gov or by phone to: (423)643-7332 between the hours of 8:00 AM and 4:30 PM, Monday through Friday. Comments must be submitted by 4:30 PM on July 31, 2026.
All public comments made in person during the public hearing or submitted in writing will be taken into consideration before sending the Section 108 application to HUD.
Special Accommodations: Anyone requiring special accommodations to participate in the public hearing must contact the HCI Division at (423) 643-7332 at least five days before the hearing.