However, firefighters evacuated all 241 residents of Patten Towers late Tuesday night because electrical power had to be shut down.
Chattanooga Fire Department spokesman Bruce Garner said early Wednesday that the Red Cross was opening a second shelter to accommodate the residents, many of whom have special needs.
Fire Captain David Thompson Jr. said arriving firefighters found the fire was located around some electrical conduits in the basement of the towers. It was extinguished with dry chemicals, but power had to be disconnected.
Patten Towers is an 11-story former hotel that has been converted to government subsidized housing.