City officials said they plan to secure up to 100 rooms at an East Ridge hotel to house some of the surge in the local homeless population.
Tyler Yount of the mayor's office said for 90 days FEMA has agreed to reimburse the city's costs at 100 percent.
Mr. Yount said it is expected the city will spend up to $400,000 on the effort.
He said the Budgetel at I-75 Exit 1 had the best proposal when the item was put out to local hotels.
Mr. Yount said, "There has been a giant jump in unsheltered homelessness in Chattanooga."
He said many homeless are gathering in large "Tent Cities" that are putting the residents at risk for COVID infection as well as many other health and safety issues.
He stated, "It also makes it very difficult for us to work with the homeless."
As a result, he said, "There is a concerted effort now "to get people out of the camps and off the streets."
He said it was decided that the hotel idea was the most cost effective solution.
Mr. Yount said the federal government is also funding various agencies that will be working at the hotel directly with the homeless to seek to find them permanent shelter elsewhere as well as other services.
Also, the hotel will provide a shuttle to take the homeless for certain needed trips.
He said having the homeless together in the hotel "will make it easy for us to get them vaccinated."
There will also be a security component, it was stated.
Mr. Yount said the city is still moving forward on a project to buy a hotel and house homeless there. He said several properties have been checked out and the city is doing environmental studies.
That will have to go through the Planning Commission, then to the City Council for final approval.