Hamilton County OKs Step Toward 76 Staff Homes in St. Elmo

Hamilton County school board members voted 6-4 on Thursday, Aug. 13, 2026 to approve an option-to-lease agreement that lets a nonprofit housing developer keep exploring a partnership to build about 76 housing units for district teachers and staff on district-owned land in the St. Elmo area.

What exactly did the school board approve?

An option, not a lease. The agreement allows Chattanooga Neighborhood Enterprise, a nonprofit housing development organization, to begin fundraising and work through the legal structure of the project. It does not require the district to sign a final lease. Moving forward would take a second vote giving permission to lease the land; the nonprofit would then build and manage the units, with no financial contribution from the district. Board members Ben Daugherty, Jodi Schaffer, Steve Slater and Joe Smith voted no; Felice Hadden was absent. The site is the former Lookout Junior High property on West 40th Street.

Who would the housing serve?

Households earning below the area median income — $68,200 for a single person or $97,400 for a family of four under U.S. Department of Housing and Urban Development guidelines. Teacher salaries in Hamilton County start at $50,000. Superintendent Justin Robertson has framed the project as a recruiting and retention tool the district can offer beyond pay increases.

What are Chattanooga homes selling for right now?

Prices are up modestly and inventory is up sharply. The Greater Chattanooga REALTORS July report put the median sale price at $360,000, up 2.9% year over year, with inventory at 4,099 homes, up 21.3%, and homes averaging 48 days on market.

What this means if you own or buy here

• St. Elmo owners: 76 units on the West 40th Street property is a meaningful change to a small neighborhood. The second vote is where the details — density, parking, site design — get decided.
• Buyers: inventory up 21.3% with the median at $360,000 is the friendliest Chattanooga setup in four years. Ask for repairs.
• Sellers: 48 days on market with a fifth more competition than last year means condition and price discipline decide your outcome, not the calendar.
• Move-up sellers: more inventory helps you buy and hurts you sell. Settling the sale side first* is how you keep both halves from fighting each other.

What's happening in Chattanooga this week

• Rivers and Realms (adults only) — Aug. 21, 6-9 p.m. · Tennessee Aquarium, 1 Broad St., Chattanooga
• Riverfront Nights — Aug. 22, 6-10 p.m. · Ross's Landing, Chattanooga
• Watermelon Festival — Aug. 22-23 · McDonald Farm, Sale Creek

Moving to Chattanooga? Ross's Landing on a Saturday night is the city's best free introduction.

Sources: Chattanooga Times Free Press, Aug. 17, 2026 (school board 6-4 vote); NewsChannel 9 (project background); Greater Chattanooga REALTORS July 2026 market report via Chattanoogan.com, Aug. 12, 2026; U.S. Department of Housing and Urban Development income guidelines; Freddie Mac Primary Mortgage Market Survey, Aug. 13, 2026; Chattanooga Pulse; choosechatt.com.

*Tracy and seller must agree on price and possession date