| Name | Martina |
|---|---|
| Last Name | Guilfoil |
| Home Address | 1500 Chestnut St #102 Suite 102 Chattanooga, TENNESSEE 37408 United States |
| Organization Name | Chattanooga Neighborhood Enterprise |
| Describe Your Role In The Organization | I serve as the CEO. I am responsible for ensuring CNE's fiscal, operations, fundraising, marketing, human resource, technology, and programmatic strategies are effectively implemented across all segments of the organization. I also support the board of directors in setting the vision and policies of the organization. |
| Organization Address | 1500 Chestnut St #102 Suite 102 Chattanooga, TENNESSEE 37408 United States |
| Website | https://www.cneinc.org |
| Best Phone Number To Reach You | 4237566224 |
| Alternate Phone Number | |
| Email Address | mguilfoil@cneinc.org |
| Alternate Email Address | msguilfoil@yahoo.com |
| Please Describe Your Project In Detail | CNE will create 80 new affordable and high-quality living units in two areas considered by the US Treasury Dept. to be disproportionately impacted by COVID. CNE will create 30 new affordable units in Highland Park and 50 units in the new Mill Town development in Oak Grove. CNE will apply for a PILOT and HOME funding for these projects but still face an equity gap of $1,571,451 on the project. We hope recovery funding can help fill this gap. Conversations are underway with Benwood Foundation as a potential funding partner to help fill this gap as well. The availability of affordable housing is a growing challenge in Chattanooga. The 2013 Chattanooga-Hamilton County’s Regional Planning Agency study on housing found that Chattanooga needed over 4,000 additional affordable rental units to meet the needs of residents. The situation has only gotten worse as the pandemic created supply chain issues leading to a 25% increase in labor and material costs making it more difficult to produce units that Chattanoogans earning lower wages can afford. Additionally, immigration into Chattanooga of high skill and high pay families has increased the demand while reducing the supply of housing. Data from CoStar Analytics as of November 2021 showed that the average rent in the overall Chattanooga Area is $1,176. The average rent in the downtown area is 18.53% higher at $1,394. A person needs an income of $26.80/hour ($55,760/year) for this rent to be considered affordable. Rents have increased 34.24% since 2014, but half of that price increase happened in the past two years. Projected rents are expected to increase another 23.9% over the next three years before flattening to more modest 2-3% increases. With the average rent for a one-bedroom apartment projecting to increase to as much as $1,650 by 2025, the creation and preservation of affordable housing is more critical than ever. CNE rental units target households earning $12-$18 per hour. We currently own 164 units of housing spread across 28 properties. CNE can provide lower rents by layering in tax abatement; grant funds provided by foundations and the city of Chattanooga, which reduces the debt service on projects; accessing bank financing using the state’s Community Investment Tax Credit to lower the interest rate on the loan, which reduces costs; and targeting a low return on equity of five (5%) percent on each project. Contrary to the rental increases in the overall Chattanooga market, CNE has not raised rents on any of the developments it has built since 2017. Note: due to increasing project costs, the funding formula requires updating to fill a growing gap needed to achieve affordable rents. CNE has three projects that are in development that can easily be completed by the expenditure of funds deadline. These projects reflect CNE’s approach of developing small format apartment buildings and missing middle prototypes that allow neighborhoods to seamlessly add units in multi-family buildings without substantially changing the feel or scale of the street. Missing middle buildings allow neighborhoods to keep their charm but grow their market. In addition, missing middle housing creates inclusive neighborhoods, with homes of all shapes and sizes for people of all incomes. We believe this is fundamental to building strong, urban neighborhoods. CNE acquired the land for these projects through financial support of the Benwood Foundation. Development Projects: 2003,2005,2007,2009 Bailey Ave: This development will create a small format, three-story walk-up apartment building with 30 units of housing. This project is on the main bus line, which runs from downtown to employment centers out at Hamilton Place. In addition, the project fronts the new bicycle lane going into downtown. This development continues CNE’s neighborhood market and confidence building work. Prior to purchase, four vacant houses in dilapidated and blighted condition occupied the properties. CNE purchased the properties from an absentee owner and moved quickly to demolish the houses. The EPA conducted environmental testing and cleaned up the soil contaminants. CNE submitted a rezone application that has received City Council approval. These buildings will provide a mix of one- and two-bedroom units. Seven of the units will be income restricted to households at 60% AMI and 23 units will be restricted at 80% AMI. CNE will seek a PILOT and HOME funding for this project. 17th and 18th St.: This development is in Mill Town, the new housing development by Ethan Collier. This is the first project to fulfill Collier’s commitment to create approximately 60 units of affordable housing in the development. These units will provide the opportunity for lower income households to live in a new neighborhood with access to all the amenities it will offer. The plans for these sites include building two six-plexes with 12 units and a two-story walk up with 22 units. These buildings will provide a mix of one- and two-bedroom units. Eight of the units will be income restricted to households at 60% AMI and 24 units will be restricted at 80% AMI. CNE will seek a PILOT and HOME funding for this project. 1805,1807,1809,1811 Lyerly: This project will create four quadplexes creating 16, two-bedroom units. The houses formerly on the property sat boarded up and vacant for many years, owned by a group of family members who lived elsewhere. Collier pursued getting the family to sell, and CNE was able to purchase and demolish the houses. The quad product will bring the right scale to the street and have an inviting appeal with front porches. The quads are across the street from the playfield being developed in Mill Town. 4 of the units will be restricted to households at 60% AMI and 12 at 80% AMI. CNE will seek a PILOT and HOME funding for this project. |
| Please explain how your project meets the requirements of the American Rescue Plan | In its interim final rule for the American Rescue Plan Act (ARPA), the United States Department of Treasury emphasizes the disproportionate negative impacts of the COVID-19 public health emergency on low-income communities and people of color. The US Treasury encourages cities to use ARPA funding to prioritize these communities. Directing funds to Qualified Census Tracts (QCTs) is one strategy Treasury identifies in its guidance to help remedy the negative impacts of COVID-19 on low-income communities and people of color and to advance equity. In addition, the rule restricts the construction of new affordable housing to QCT’s. These developments are all located within a QTC. |
| Where would your project take place? | 2003,2005,2007,2009 Bailey Ave,; 1805,1807,1809,1811 Lyerly; 2500 block of E. 17th and E. 18th Street |
| How much will your project cost in total? | 11873683 |
| 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. | $8,330,022 will be financed by bank partners. Conversations are ongoing with the Benwood Foundation to help fill some of the funding gap. The amount is not yet known. We will be requesting $1,140,000 in HOME funds and a PILOT |
| What portion of the project are you asking the city to fund? | $1,571,451. However, this might be reduced pending the outcome of Benwood's consideration of support for the project. |
| If funded, when would your project start? | January 9, 2023 |
| How long would your project take to complete? | Predevelopment will take six months to complete which includes design and permitting. Construction will begin on a rolling basis. We would start with Bailey Ave. in 1st quarter 2023. This will have an 18- month completion date of June 2024. 17th and 18th Street would also have an 18-month timeframe starting in April 2023 and finishing in October 2024. Lyerly will have a 12-month completion timeframe starting in June 2023 finishing in June 2024. |
| What milestones would you use to measure your project’s progress? | Completion of physical and legal diligence Completion of civil and architectural plans Obtaining building permit Adhering to construction timeframe in contract Certificate of occupancy |
| How would you ensure accountability and transparency throughout the project lifecycle? | CNE’s real estate development team has a standing meeting every Monday where the status of every project is reviewed, assignments are delegated, and timeframes/commitments are followed up on. This keeps the process transparent and holds people accountable. Staff provides status reports to CNE’s Real Estate Committee and Board of Directors, which is comprised of two experienced real estate developers, two real estate attorneys and an architect. |
| If successful, how would your project benefit the community? | First, Chattanooga is in desperate need of more affordable housing units and this project would add 82 units to the supply. Second, the Mill Town development will have a sports field and a greenway for easy recreational access. Mill Town’s developer has intentionally designed the neighborhood to include 20% of the units to be affordable to create and ensure a mixed income neighborhood. |
| How will you attract community buy-in for your project? | CNE has had a community engagement specialist conducting door to door outreach for more than a year in Oak Grove. The goal of the engagement is to create an Oak Grove resident council with resident leaders that can address issues and concerns in the neighborhood. The Mill Town development has been a major discussion point with the residents since Collier broke ground on his first phase. The residents have voiced overwhelming support for the overall development and feel that it has brought new life and investment to the neighborhood. |
| Name | Martina Guilfoil |
| Contact Information | mguilfoil@cneinc.org |
| Name | Jeff Pfitzer |
| Contact Information | jeff@benwood.org |
| Is there anything else you would like us to know about your project? | |