| Name | Phil |
|---|---|
| Last Name | Trammell |
| Home Address | 7446 Allemande Way Apt. 212 Chattanooga, TN 37421 United States |
| Organization Name | Habitat for Humanity of Greater Chattanooga |
| Describe Your Role In The Organization | Vice President of Development, responsible for raising funds, marketing and communications, community engagement and volunteer activities. |
| Organization Address | 1201 East. Main St. Chattanooga, TN 37408 United States |
| Website | https://www.habichatt.org |
| Best Phone Number To Reach You | 423-490-7319 |
| Alternate Phone Number | 423-756-0507 |
| Email Address | ptrammell@habichatt.org |
| Alternate Email Address | jchristensen@habichatt.org |
| Please Describe Your Project In Detail | Founded in 1986, Habitat for Humanity of Greater Chattanooga Area, Inc. (Habitat) has developed nearly 300 affordable, single-family homes and repaired over 100 homes for low-income families and individuals through our Affordable Housing Programs. The benefits of affordable housing are well known, but when we create a model that enables people to establish and maintain ownership, we alter the trend of multi-generational poverty and allow for the creation of stability and wealth. Within the Homeownership program, we partner with qualifying families, known as future homeowners, whose total income is 30%-80% of the Area Median Income. Our future homeowners receive a 30-year zero-interest mortgage based on their ability to pay, as well as a silent, forgivable second mortgage between $10,000 and $60,000, with overall housing costs set at no more than 30% of income. Monthly mortgages average $478 (including taxes and insurance), compared to the average monthly apartment rent within Chattanooga being $1,193 for a one bedroom and $1,250 for a two bedroom (reported as of January 2022). As more people pour into the City of Chattanooga, the rapid development taking place will continue to leave low-income families behind. Current income data published by HUD states that a four-person family at 80% of the Area Median Income earns $58,100 per year. According to a recent Regional Planning Agency market study, the largest category of new homes being built in Hamilton County is expected to be priced between $350,000 and $500,000. The goal of Habitat Chattanooga’s Homeownership Program is to rapidly increase the stock of affordable housing in Chattanooga while utilizing responsible development practices and empowering historically underserved populations. As the urgency of available, affordable housing units has increased throughout the pandemic, we have restructured our internal operations to respond to this need. We are planning to more than double our new construction output in FY23 and sustain the increased development throughout FY24 and FY25. Currently, the Homeownership program is focused in The Villages at Alton Park. We have 13 lots available in our Alton Park landbank. Our Homeownership Program is at a critical transition point as we seek funding to finish our work in Alton Park and secure new lots throughout the city. The current housing market makes lot acquisition incredibly challenging. To promise a future of affordable new construction housing options, it is essential that we begin building a new landbank as soon as possible to offer to future homeowners. With the support of ARP Funds, we will accelerate the completion of building Habitat Homes on all remaining lots in Alton Park, secure 13 new lots in Chattanooga, and strategically transition our Homeownership Program to new areas of the City as we complete our work in Alton Park. |
| 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 Accelerating Affordable Housing Project 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 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 |
| How much will your project cost in total? | 1950000 |
| 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. | We have funds from individuals, foundations and private entities and would anticipate raising more from those sources if necessary if this project is approved |
| What portion of the project are you asking the city to fund? | We would look to the CIty to be the primary funder of this project and bring in those listed above to provide funding necessary to supplement the CIty's funding. |
| If funded, when would your project start? | July 1, 2022 |
| How long would your project take to complete? | 3 years |
| What milestones would you use to measure your project’s progress? | Habitat has an extensive waiting list of new homeowners so selection of homeowners can begin immediately for the 13 remaining lots in Alton Park. Begin construction of homes in Alton Park Select and purchase 13 additional lots Complete construction in the Villages Select homeowners for new lots Begin construction of homes on the new lots |
| How would you ensure accountability and transparency throughout the project lifecycle? | Open data regarding numbers and expenses (protected consumer data would be redacted). Board oversight. 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? | Arguably the most challenging issue facing Chattanooga today, housing instability is a root cause of most social issues we face. Not only does housing instability affect the ability of household members to succeed at work, in school, in life, but the extreme increases in rent along with the reality of rental dollars leaving the household, often to an absentee landlord, creates a perfect storm to foster generational poverty. Studies consistently show that homeownership is one of the most effective ways to close the wealth gap creating equity in the community and establishing generational wealth. Further, the consensus finding from a range of studies of the relationship between housing tenure and education points to positive educational outcomes such as high school completion and college attendance for children who reside in owner-occupied housing. This positive association is stronger for low- and middle-income households, where homeownership may offset other negative neighborhood impacts by providing stable housing tenure, as well as serving as a source of wealth to draw on to pay for post-secondary education. While there are fewer studies connecting home ownership to a direct reduction in crime rates, we know without doubt that communities with higher rates of ownership vs rentals have lower crime rates. When residents of an area are invested in their communities, criminal behavior is less likely. Accelerating the number of Habitat families that can reach homeownership will bring these benefits to Chattanooga for generations to come. |
| How will you attract community buy-in for your project? | The Villages in Alton Park already enjoy community buy-in for the quality of Habitat homes and their homeowners. As we build on lots secured in partnership with the City, the process would include community input and would be open to interested and engaged partners. |
| Is there anything else you would like us to know about your project? | Often, Habitat is simply viewed as a non-profit construction company that builds and repairs homes in low-income neighborhoods. The organization does much more than this. Before construction ever starts, potential Habitat homeowners must successfully complete a series of twenty education classes covering topics like financial management, mortgage basics, home maintenance and being a good neighbor. Habitat staff along with experts in the community teach these classes with the sole goal of empowering families to become knowledgeable and successful homeowners. It is only after completing these classes, investing 300 hours of labor or “sweat equity” into building their own home or the homes of their neighbors, and saving towards closing costs that Habitat partner families can take ownership of their new home. This education process along with the sweat equity component set Habitat apart from other affordable housing providers. It is the reason that Habitat families are so effective at improving their lives. The time spent attending classes, constructing homes, and working alongside other partner families and community volunteers creates a sense of community, pride, and ownership. This process teaches new homeowners key skills essential for success. It goes far beyond a mere financial investment in the homeowner’s own property. Habitat homeowners truly gain a sense of self-worth and become more personally invested in their community. Habitat families understand the need for affordable housing better than most Chattanoogans. If the City of Chattanooga makes funding available so that we can accelerate home ownership for more Habitat families, it will accelerate the outcomes we know result from that. Funding sources such as HOME, CDBG, Affordable Housing Funds, Rental Improvement Funds, or even General Funds could be used to make this project possible. |