Chattanooga Plans to Convert Hotel to Supportive Housing

Chattanooga Mayor Tim Kelly is urging his city to support a 70-unit permanent supportive housing project slated for a local hotel, reports David Floyd in the Times Free Press. The property would be purchased with $2.79 million in American Rescue Plan Act funds and requires rezoning to make way for converting it into housing.

“Kelly told council members during their regular meeting Tuesday evening that homelessness has jumped nearly 250% in Chattanooga in the last year. Over the last several years, the number of beds available for temporary shelter in the city has decreased, and resources available to deal with mental health and addiction issues haven't kept pace with demand.”

According to Kelly, the facility will not be a shelter, but rather “an apartment complex with services onsite that will help keep people housed.” The city will seek a non-profit partner through a Request for Proposals (RFP) process that will provide case management and manage operations of the property. “The city is still working internally and with local service providers to determine how the facility would operate on a day-to-day basis, [Chief of Staff Joda Thongnopnua] said, but functionally, it would be similar to an apartment building where tenants would have an ongoing lease that could be tied to, for example, a housing choice voucher.”