| 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 | 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 (most recent study) that Chattanooga has a deficit of roughly 4,000 units of affordable housing. Accessory Dwelling Units (ADUs), multiplex housing, and owner-occupied duplexes present unique opportunities to meet the demand for housing as Chattanooga’s population continues to grow. Each can be used as a tool for enhancing existing neighborhoods by introducing a greater diversity among residents across age, ability-level, and income. They provide a viable option to promote aging-in-place and they offer a compromise solution for higher density residency in single-family home neighborhoods with less push-back than most other affordable housing solutions. ADUs, affectionally called “backyard cottages”, are currently not permitted in most residential areas of Chattanooga, but that might change. Habitat Chattanooga will demonstrate, via a pilot project with the city, that it can efficiently construct a Habitat home with a detached ADU in the backyard. The goal will be to house a Habitat partner family in the primary residence while the partner family supplements their income by renting the ADU as affordable housing, a win-win for owners and tenants. Multiplex housing can fit seamlessly into existing residential neighborhoods, particularly in the urban core and support walkability, access to and support for local businesses and often with good access to public transportation options. Much like the ADU option, Habitat would build owner-occupied duplexes to provide an affordable housing option to a Habitat family with a way to supplement their income by renting the second residence, creating affordable housing for both homeowners and renters. Additionally, we would like to explore a pilot unit for townhomes to encourage ownership and density. These options provide attractive alternatives which can address the deficit of affordable housing stock in the City by providing affordable housing options which can be built on in fill lots in existing neighborhoods, increasing density without expanding absentee landlord ownership (historically a challenge in low to moderate income neighborhoods). Expanding housing options in neighborhoods is an important step towards increasing and accelerating the creation of a diverse range and mix of housing options to accommodate people at all stages of life, and to accommodate the needs of all household sizes and incomes. Broadening the types and sizes of units available in traditional neighborhoods makes them more accessible to a diverse range of people and needs, leading to a more equitable and inclusive community. This pilot project will demonstrate the need for new zoning regulations that promote responsible development in key city neighborhoods. Ultimately, by making it easier and more affordable for middle- and low-income homeowners to take advantage of more housing options, the homeowners will increase their equity and assets while the city grows its tax base and positively impacts the demand for housing. Habitat also could leverage new zoning regulations to supplement its “aging in place” home repair program. ADUs allow seniors to downsize on their own properties and remain in their own neighborhoods. A 2010 AARP survey found that 88 percent of respondents over age 65 wanted to remain in their homes for as long as possible, and 92 percent said they wanted to remain in their communities. ADUs help make these options viable. They can be used to house aging parents or neighbors. Similarly, ADUs can be used for housing caregivers who may be supporting the residents of the primary home, or allow senior homeowners to downsize to an ADU, leaving the house available for family occupancy. The Habitat pilot project will demonstrate that low-income families can be a good homeowners, landlords, and taxpayers. Habitat families understand the need to help others achieve decent, affordable housing. We are confident in its success. With over 290 Habitat homes completed in Chattanooga, Habitat has proven its ability to significantly improve neglected urban neighborhoods. This is done by offering a “hand-up” to low-income families trying to escape poverty. The “Habitat Way” provides one of the very few proven methods that allow families to truly break the poverty cycle. To this end, and for this project, we would like to build one home with an ADU, one owner/occupied duplex and one quad or similar unit townhome structure. From those pilots, we would then want to partner with the city to scale any or all of those options according to relative success and achievability. |
| 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 Affordable Housing Options Pilot 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? | 200000 |
| 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. | Depending on the options chosen, the pilot project could range from $200,000 up to $1,000,000. If the pilot is successful, then additional funding over the life of the project could range from $1 - $5 million. We supplement all build projects with public support and we have funds from individuals, foundations and private entities. |
| 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? | March 1, 2022 |
| How long would your project take to complete? | 3 years |
| What milestones would you use to measure your project’s progress? | We are prepared to begin the process immediately. To act on the Affordable Housing Options pilot project Habitat needs the City of Chattanooga to make suitable land available in the Form-based code area that is (or can be) zoned R-3 (i.e., allows for multiple structures on one lot, two family and multiple family dwellings) or in an area that can be appropriately zoned. The land must be of a size to support a standard Habitat home with a detached ADU or sufficient for a duplex or multiplex. Identifying ideal neighborhoods for development with regard to parcel size, zoning potential and City-owned properties should be part of this process. The milestones for measuring progress would be Hiring of additional construction staff. Building a successful pilot dwelling on a suitable property for the pilot or adding an ADU to an existing property if a suitable lot and qualified low income homeowner can be identified. Establishment of partnerships and processes. Marketing and sharing of the ADU process and availability. Execution and delivery of a pilot |
| 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? | Experience has shown that a standard Habitat home costs $120,000 to construct. It is estimated that a detached ADU in the backyard will cost $65,000 to complete. Duplexes can be built for approximately $220,000 lowering the per unit cost of a new home to $110,000 and affordable four-unit multiplexes are in the range of $400,000 or $100,000 per unit. Accessory Dwelling Units (ADUs), multiplex housing, and owner-occupied duplexes present unique opportunities to meet the demand for housing as Chattanooga’s population continues to grow. Each can be used as a tool for enhancing existing neighborhoods by introducing a greater diversity among residents across age, ability-level, and income. They provide a viable option to promote aging-in-place and they offer a compromise solution for higher density residency in single-family home neighborhoods with less push-back than most other affordable housing solutions |
| How will you attract community buy-in for your project? | The process would include community input and would be open to interested and engaged partners. We would work directly with neighborhood leaders to explain the benefits of these alternative designs. In addition, we would partner with the City in efforts to promote reasonable zoning changes. |
| 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 is currently working with experts in the community to expand educational offerings. A course is being developed that will empower families to be good landlords. Training of this nature will be mandatory for all future Habitat homeowners having an ADU on their property. Habitat families understand the need for affordable housing better than most Chattanoogans. If the City of Chattanooga makes funding for ADU construction available to empowered, Habitat families, it will have a ready resource creating affordable, housing solutions. Funding sources such as HOME, CDBG, Affordable Housing Funds, Rental Improvement Funds, or even General Funds could be used to make this project possible. Outcomes • Model ADU, Owner Occupied Duplex or Multiplex: Construction of a cost effective, good quality detached ADU, owner-occupied duplex or multiplex for affordable housing using construction design compatible with the neighborhood. • Landlord Training: A standardized training course that educates homeowners on the essentials of being a good landlord, tested on one low-income family ready to manage an ADU as a rental unit. • Financial Stability: Supplemental income generated for a low-income primary homeowner as a proven example that demonstrates an ADU, owner occupied duplex or multiplex is profitable regardless of the renter’s income level. • Neighborhood Prospects: An agreed upon list of neighborhoods ideally suited for ADU, owner occupied duplex or multiplex construction and support from the zoning board. |