Mar. 31--The Chattanooga Housing Authority will receive $6.35 million in federal stimulus money, but it can't be used to pay back the authority's $4.5 million debt, CHA officials said.

The money, given under the American Recovery & Reinvestment Act of 2009, is expected to be available to the housing authority next month, officials said.

CHA is one of thousands of housing agencies across the country to receive the funding. Under federal guidelines, it must be used on projects that can be shovel ready within 120 days, to rehabilitate vacant rental units and to assist in improvement projects already under way or included in the housing authority's five-year plan.

On Tuesday, CHA board members also approved a contract that may lead to the sale of Gurley Street Apartments. The contract is for the sale of the housing authority's 24-unit apartment complex in North Chattanooga for $400,000. The potential buyer is Gurley Properties LLC.

The contract is contingent on HUD approval, CHA officials said.

For complete details, see tomorrow's Times Free Press.

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