Chattanooga’s HOPE VI project is complete and all money for the $35 million transformation of Alton Park has been spent, said Mike Sabin, Chattanooga Housing Authority’s manager of development.

“Our submission has gone to HUD with the final accounting, and we’ve given them documents of the official close out of the grant,” he said.

Staff Photo by Tim Barber -- CHA’s Mike Sabin, left, and Naveed A. Minhas, development officials for The Villages in Alton Park, walk in the neighborhood where $35 million of HOPE VI funding has been spent.

The declaration of completion comes about seven years after the money was awarded to CHA and it sets Chattanooga apart as being among only 80 HOPE VI projects that have been completed compared to 230 that have been approved, according to a recent HUD news release.

The Villages at Alton Park, the local HOPE VI project, includes 275 rental units and 42 homes, that have been built using HOPE VI funds.

Plans call for another 52 homes to be built in the next two years at $6.7 million. However, that housing will sell for market rate and will use no HOPE VI funds, said Mark Straub, Pennrose Properties development officer. Some HOME funds will be available to assist buyers with down payment costs.

Six years ago the 52-acre site was Spencer J. McCallie Homes, the largest public housing project in the city, plagued with crime and poverty.

CHA demolished the old housing site in December 2002 and made way for the mixed-income Villages in Alton Park.

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Mountain View Homes, the home ownership portion of the Villages, is made of three-bedroom homes with hardwood-floors.

The upcoming market rate homes are expected to be from 1,330 to 1,665 square feet and sell for between $140,000 and $170,000. They will be similar to the affordable housing already built with some minor adjustments resulting from lessons learned while building the first houses, Mr. Straub said.

Pennrose Properties, CHA’s development partner, will be responsible for future development and home sales. CHA will be responsible for doing income qualifications for buyers who will qualify for HOME funds assistance. HOME funds, from HUD be awarded to some families according to their income to help pay closing costs, officials said.