News Summary
Chattanooga, the first city in Tennessee to implement Voluntary Attainable Housing Incentives, aims to tackle housing shortages by allowing developers to gain zoning relief for affordable housing. The initiative, backed by state legislation, is set to stimulate development, particularly for lower-income residents. Key projects like The Bend will benefit, enhancing the city’s capacity to address affordability and homelessness while encouraging private-sector participation in housing solutions.
Chattanooga
Chattanooga has become the first city in Tennessee to introduce Voluntary Attainable Housing Incentives, approved by the city council to address the ongoing housing shortage and improve accessibility for lower-income residents. The initiative will allow developers to receive zoning relief when at least 10% of their housing units are set aside for households earning 80% or less of the Area Median Income (AMI). This new program aligns with a broader strategy to create affordable housing options while providing support to local developers.
The approval of these incentives follows a significant legislative change facilitated by state senator Todd Gardenhire, which has enabled local governments to implement similar housing benefits. In a strategic move, the city of Chattanooga led a coalition that successfully reverse prohibitions on these types of incentives, paving the way for the current program.
The incentives are part of the city’s efforts to stimulate development amid ongoing concerns about the affordability of housing. The Voluntary Incentives Program will begin this spring, and it is expected to attract new mixed-use projects, such as The Bend, a collaborative project between a North Carolina developer and Chattanooga, situated in the city’s Westside. This development is set to benefit from local tax incentives that are financially linked to the redevelopment of nearby low-income housing facilities.
According to officials, the initiative will not place a financial burden on taxpayers, as it is designed to encourage private-sector participation in creating attainable housing solutions. Chattanooga’s Housing Policy Director highlighted that the new incentives will afford developers with greater flexibility in building design and may lead to an increase in the total number of units constructed.
A household composed of two people earning 80% AMI in Chattanooga can expect an annual income of approximately $56,000, a figure comparable to the earnings of teachers, school bus drivers, and childcare workers combined. This insight reinforces the urgency of providing affordable housing options for workers in essential positions across the community.
In addition to the Voluntary Attainable Housing Incentives, Chattanooga is also seeing developments such as the East Ridge Shopping Center. This project aims to enhance local economic development and create additional opportunities for residents. A comprehensive framework established by new state laws will allow local governments, including Chattanooga, to issue bonds and collaborate with the private sector to develop affordable housing options.
As part of requirements stemming from these new laws, districts must submit local ordinances that clearly define their housing goals before developers can seek approvals for their projects. This process is designed to ensure that future developments align with the community’s housing needs and objectives.
Chattanooga officials anticipate that the introduction of voluntary housing incentives will not only address current housing shortages but also serve as a proactive measure in reducing homelessness in the area. The city aims to foster a collaborative environment that brings together public and private sectors in finding sustainable solutions to housing challenges faced by residents.
To learn more about the Voluntary Attainable Housing Incentives and the broader affordable housing programs available in Chattanooga, interested individuals can access a presentation on the City’s official website.
Deeper Dive: News & Info About This Topic
HERE Resources
Chattanooga Celebrates Independence Day with Indoor Picnic
Chattanooga City Council Approves Major Zoning Overhaul
Hamilton County Commissioners to Vote on Hamilton Plan
Chattanooga City Council Approves $345.2 Million Budget
University of Tennessee Proposes Tuition and Fee Increases
Mayor Tim Kelly Advocates for Change in Chattanooga Governance
Tennessee Expands Job Opportunities with New Summertown Metals Facility
Chattanooga City Council Approves Budget with Pay Raises
Hamilton County Faces Increasing Poverty Due to High Living Costs
Chattanooga Hosts Community Engagement Events for Recreation Plan
Additional Resources
- Chattanooga Pulse
- Wikipedia: Housing in the United States
- Times Free Press
- Google Search: Chattanooga affordable housing
- News Channel 9
- Encyclopedia Britannica: Housing
- Times Free Press – East Ridge Development
- Google News: Chattanooga housing incentives
Author: STAFF HERE CHATTANOOGA WRITER
The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
