The city's Health, Educational and Housing Facility Board on Monday approved a 30-year PILOT tax break for a long-planned 60-unit affordable supportive housing project on Main Street.
Officials said all units in the project at 1815 E. Main will be affordable.
Nineteen of the units are set aside for those who are chronically homeless.
The city is donating the land for the project.
Mayor Tim Kelly wrote a letter of supporting endorsing the tax break.
Officials said the PILOT is for 30 years in order to help make the project financially feasible.
Back in 2021, a $500,000 National Housing Trust Fund grant was awarded for the project.
Officials said that funding would assist in the construction of the Espero Chattanooga project.
Tennessee Housing Development Authority Executive Director Ralph M. Perrey said at the time, “This grant plays an important role in spurring the construction of new affordable housing units. Having access to safe, decent and affordable housing is more important than ever and projects like Espero will ensure that more Chattanoogans have access to just that.”
Donna Maddox, who was AIM Center's executive director, said at the time of the grante that the Espero property would help address the growing need for more affordable housing options in the Chattanooga area.
“We are currently in a housing crisis across our country,” Ms. Maddox said. “Every community needs more affordable housing. It is through a collaborative partnership with THDA, the City of Chattanooga, the Vecino Group and the Chattanooga Housing Authority that AIM Center was position to compete and be awarded its first funding for Espero Chattanooga.
“Affordable housing offers the opportunity for people to start a path toward their life goals. Without housing, people are unable to work, be healthy, or live with hope for a better day. Espero Chattanooga offers a path filled with opportunity and hope.”
When finished, Espero – which means hope in Spanish – will feature a total of 52 one-bedroom and eight two-bedroom units. Some units are set aside for those with mental health issues.
Rent will be income-based and residents will have access to housing vouchers made available by the Chattanooga Housing Authority.
Officials earlier said the AIM Center will also offer residents supportive and housing services. Apartment units will be American’s with Disabilities Act accessible and feature increased energy efficiency. Plans also call for a community room for residents and a small community garden.