Chattanooga To Reallocate $1.45M In COVID Relief Funds In Effort To Combat Homelessness

Image Credit: Chattanooga City Council / YouTube

The Tennessee Conservative [By Jason Vaughn] –

The Chattanooga City Council approved reallocation of $1.45 million worth of federal COVID relief funding in their Tuesday meeting.

The funds were originally set aside for the purchase of a hotel that would be converted into an emergency shelter to allow for control of the spread of COVID-19, according to Jermaine Freeman, Mayor Tim Kelly’s senior adviser for economic opportunity.

The revised plan is to look into utilizing those funds to create other “affordable housing options” in the city.

“We realized that we had an opportunity to do a lot more for affordable housing if we reallocated the funding,” said Chief Housing Officer Nicole Heyman in an interview with the Times Free Press.

New Creations Construction

Mayor Tim Kelly’s office has already used more than $3 million from federal stimulus money to help develop low-barrier shelters for the homeless in the city. City council members will also make a decision in May as to how to use nearly $3.2 million that will be received from the U.S. Department of Housing and Urban Development.

The city also received $1.8 million in Community Development Block Grant funds. A portion of that money is already allocated to the following projects:

• $84,000 to Consumer Credit Counseling Services for the funding of a case manager to provide resources to homeless families with children

• $150,000 to Good Neighbors to fund renovations of Whiteside’s Faith Manor

• $300,000 to Chattanooga Community Housing Development to allow for roof repair and replacements for approximately 30 low-to-middle income households

• $400,000 to Chattanooga Neighborhood Enterprise to provide major home improvements for 12 homeowners


Sandra Gober, manager of the city’s Housing and Community Investment Division, says the money can also be used to help housed families cover utilities or find other resources needed to address the problem of homelessness.

“It can assist and provide opportunities and access to affordable housing across the spectrum,” said Gober.

Applications are expected to be available within the next 10 days or so for people to request funding.

Councilman Chip Henderson told Local 3 News, “We are always looking for ways to help the citizens of Chattanooga. That’s what a city does, is provide services to its citizens and that’s what we’re always looking to do.”

About the Author: Jason Vaughn, Media Coordinator for The Tennessee Conservative  ~ Jason previously worked for a legacy publishing company based in Crossville, TN in a variety of roles through his career.  Most recently, he served as Deputy Director for their flagship publication. Prior, he was a freelance journalist writing articles that appeared in the Herald Citizen, the Crossville Chronicle and The Oracle among others.  He graduated from Tennessee Technological University with a Bachelor’s in English-Journalism, with minors in Broadcast Journalism and History.  Contact Jason at

3 thoughts on “Chattanooga To Reallocate $1.45M In COVID Relief Funds In Effort To Combat Homelessness

  • April 27, 2023 at 4:04 pm

    Yet again…misuse of taxpayer funds. If U did not use it yet U should have given it back. Or paid the medical bills incurred by people who have long term damage to their bodies from the disgusting shot we were forced to take!

  • May 2, 2023 at 10:34 pm

    how about start fixing some of these messed up roads around here


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