In a groundbreaking move, Chattanooga Neighborhood Enterprise is spearheading a 32-unit housing project at 2003 Bailey Avenue. The city and county leaders recently greenlit a 20-year tax break crucial for the endeavor, ensuring that at least half of the apartments remain affordable for individuals earning around $45,000 per year, or 80% of the area median income. The tax break, approved by both the Chattanooga City Council and the Hamilton County Commission, exempts Chattanooga Neighborhood Enterprise from property taxes on land improvements, offering an annual savings of $53,000 and enabling the organization to uphold reasonable rental rates at $1,195 [one-bedroom units] and $1,434 [two bedrooms] per month.

Moreover, they have secured vouchers from the Chattanooga Housing Authority and federal funding which earmarks a portion of the units for individuals earning up to 60% of the area median income. The development is expected to cost $5.9 million, encompassing three buildings on a vacant half-acre, includes a mix of 20 one-bedroom and 12 two-bedroom apartments, catering to the city’s diverse needs. The success of this project could set a precedent for similar endeavors across the nation which will showcase the potential for collaborative efforts between public and private entities to create tangible solutions and boast a positive impact towards innovative approaches and community-focused initiatives.