| Name | Jens |
|---|---|
| Last Name | Christensen |
| Home Address | 1 Ozark Place Chattanooga, TN 37415 United States |
| Organization Name | Habitat for Humanity of Greater Chattanooga |
| Describe Your Role In The Organization | I am the Chief Executive Officer, responsible for all aspects of oversight and development. |
| Organization Address | 1201 East Main Street Chattanooga, TN 37408 United States |
| Website | https://habichatt.org |
| Best Phone Number To Reach You | 4237560507 |
| Alternate Phone Number | 4234907317 |
| Email Address | jchristensen@habichatt.org |
| Alternate Email Address | jchristensen@habichatt.org |
| Please Describe Your Project In Detail | Homeownership is a game-changer for social change in a community. Not only does ownership offer households a safe, stable place to live, but folks also gain equity and establish wealth through the process of paying for their housing. These important factors allow home ownership to pave a path to eliminating generational poverty. A 2018 technical bulletin published by the Chattanooga Hamilton County Regional Planning Agency states that in 2017, 86% of renters with annual income less than $20,000 and 71% of renters with annual incomes between $20,000 and $35,000 were housing-cost burdened. Further, the same agency stated in a 2013 housing study that Chattanooga has a deficit of roughly 4,000 units of affordable housing. Subsidies are a key element of all efforts for affordable housing. And, while there are many types of housing that require and deserve active subsidies, one noted issue with subsidizing ownership has historically been the “one and done” approach of a subsidy. In 2020, CALEB embarked upon a study of a model that allows subsidies to be preserved to create permanent affordability around properties. Ultimately, the city-funded, published report lays out a framework for the establishment of a Community Land Trust model in Chattanooga. We propose the creation of this model, following the study’s recommendations to establish a buyer-directed land trust model in Chattanooga. While many details will need to be worked out, the overall framework is already in place. In order to execute this model, we will quickly need to fund a staff position and administrative expenses to form the trust, establish the protocols and operational details of the program, create the appropriate programming and guidelines, and to create the required partnerships for purchasing homes, recording mortgage instruments and securing residents for participation. Over the past year, Habitat for Humanity of Greater Chattanooga has created a board committee to explore the Community Land Trust model; we have also participated in and organized conversations surrounding the model, forging potential partnerships with organizations and lenders such as CALEB, CNE, SmartBank and others. We are poised to take on this challenge, if properly funded with an ongoing commitment from the City, and would foresee a process wherein we would forge partnerships for execution. While many details (subsidy amount, equity sharing model, timelines, program/participant requirements, etc) would need to be finalized, particularly in light of the increased purchase prices we are seeing in recent months, the plan published by CALEB is thoroughly written and offers significant insight into the model, allowing us to follow that guidance as a foundation for meeting the narrative and application needs of our community. Habitat for Humanity of Greater Chattanooga is uniquely poised to take the lead in managing the CLT project. With more than 35 years of affordable housing management, with the construction of nearly 300 homes and the fulfillment of hundreds of home repairs, we have extensive management, development and partnership experience. In addition, our relationship with community leaders positions us to establish trust within neighborhoods. By leveraging partnerships and forging new ones, such as a potential direct partnership with CNE, we believe the project would be successful and powerful. |
| Please explain how your project meets the requirements of the American Rescue Plan | Housing and infrastructure are both direct, allowable costs of the American Rescue Plan per legislation as written. Specifically, the Interim Final Rule addresses projects such as this through the section on Responding to Negative Economic Impacts as outlined on pages 26793-26796. Below is a brief quote: Building Stronger Communities through Investments in Housing and Neighborhoods. The economic impacts of COVID–19 have likely been most acute in lower-income neighborhoods, including concentrated areas of high unemployment, limited economic opportunity, and housing insecurity. Services in this category alleviate the immediate economic impacts of the COVID–19 pandemic on housing insecurity, while addressing conditions that contributed to poor public health and economic outcomes during the pandemic, namely concentrated areas with limited economic opportunity and inadequate or poor-quality housing. Eligible services include: • Services to address homelessness such as supportive housing, and to improve access to stable, affordable housing among unhoused individuals • Affordable housing development to increase supply of affordable and high-quality living units • Housing vouchers, residential counseling, or housing navigation assistance to facilitate household moves to neighborhoods with high levels of economic opportunity and mobility for low-income residents, to help residents increase their economic opportunity and reduce concentrated areas of low economic opportunity • The Community Land Trust model directly impacts affordable housing in underserved communities and neighborhoods. By partnering with households that could not otherwise adequately achieve housing stability, not only do we meet the above criteria, but we also will improve health outcomes as described in the Affordable Rescue Plan’s Public Health Needs Section as described on page 26791. Specifically, we would be addressing the need for “Housing services to support healthy living environments and neighborhoods conducive to mental and physical wellness.” |
| Where would your project take place? | Chattanooga, TN |
| How much will your project cost in total? | 7000000 |
| Do you have any matching funding sources from other local governments, private entities, non-profits, or philanthropic entities for your project? | Yes |
| Please describe the source and list amounts of any other funding. | Foundational and operational funding sources would assist with functional dollars and administration. |
| What portion of the project are you asking the city to fund? | The city would need to provide the lion share of the capital for subsidies to enable the model to scale. An ongoing municipal commitment to CLT success would be required. |
| If funded, when would your project start? | June 1, 2022 |
| How long would your project take to complete? | Up to Three Years |
| What milestones would you use to measure your project’s progress? | Creation of advisory and/or oversight board. Hiring of a person to manage the land trust. Standing up the land trust as an entity with clearly defined operational and equity sharing procedures. Establishment of partnerships and processes. Marketing and sharing of the trust process and availability. Execution and delivery. |
| How would you ensure accountability and transparency throughout the project lifecycle? | Open data regarding numbers and expenses (protected consumer data would be redacted). The Community Land Trust would operate with a board structure that includes representation from CLT homeowners as well as residents in the broader community and technical experts. Open communication and partnerships. The process would include community input and would be open to interested and engaged partners. |
| If successful, how would your project benefit the community? | A community land trust means that there is a new program in the city with a primary mission of real estate stewardship for public purpose - in this case, the purpose is permanent affordability. Using this model, the city can more effectively meet goals for increasing homeownership, and the long-term nature of CLT lease agreements offer the biggest 'bang for the buck' in the use of housing subsidies. An existing CLT offers the best opportunity to anchor prices in areas of heavy investment, ensuring balanced growth that remains accessible for a majority of local residents. The current lack of a shared equity model in the Chattanooga area limits the long-term impact of subsidy investment. The Community Land Trust model creates what is referred to as “permanent affordability.” Rather than creating a culture of rental, home-ownership assists families in establishing wealth. Longitudinal studies demonstrate that children raised in stable households experience longer, happier, healthier and more successful lives. In addition, neighborhoods with higher rates of ownership have lower crime rates, higher employment rates and overall better health than neighborhoods primarily mode up of rental homes, particularly when absentee landlords are part of the picture, In the CLT model, a potential homeowner would choose a home in which to live. The homeowner would pay what the household could afford. The CLT would then subsidize any difference (up to a policy maximum). The homeowner would have all of the benefits of ownership, including wealth building and the proven wellbeing improvements that come with housing stability. However, when the homeowner decided to sell, the original subsidy would be preserved and retained by the land trust, including any appreciation as a result of that subsidy or from the overall community, and could be reused to assist another qualifying family. The community benefits through ownership; the household benefits; AND the subsidy is reused to create permanent affordability, which means subsidies are leveraged significantly and for years to come. |
| How will you attract community buy-in for your project? | CALEB began the process of establishing buy-in more than a year ago. Political, public and general support exist already. We would include the community in the decision making process and would continue to seek good will and partnership around this effort. We would also work to leverage Habitat’s existing, positive community and neighborhood relationships to facilitate conversations around the land trust concept and work to create buy-in before we begin executing sales. |
| Name | Jens Christensen |
| Contact Information | jchristensen@habichatt.org |
| Name | Michael Gilliland, CALEB |
| Contact Information | michael@calebcha.org |
| Name | Martina Guilfoil, CNE |
| Contact Information | mguilfoil@cneinc.org |
| Is there anything else you would like us to know about your project? | During the previous administration the City of Chattanooga hired the consultancy firm Enterprise Community Partners to craft a report on housing and workforce development. The resulting 2016 report, entitled "Bridging the Gap," cited the CLT model as one of the key recommendations for the city. Since that time the gap between affordability and average income has expanded at a shocking rate, The longer that the community waits to invest in long-term outcomes, the more expensive and difficult it will be. ARP funds offer the city the opportunity to invest in a proven model that offers a new "tool in the toolbox" to address equity and housing access. |