Chattanooga Developers Receive Incentives for Affordable Housing Under New Law
A New Era of Housing Affordability in Chattanooga
In a significant move towards addressing the housing crisis in Chattanooga, Tennessee, developers are now set to receive incentives if they undertake the construction of affordable homes. This comes as a result of recent legislation that effectively overrides certain longstanding restrictions which had previously hindered cities from offering such incentives. The new legislation, signed into effect by Governor Bill Lee, seeks to boost the creation of affordable housing options throughout the state.
Empowered Local Government and Private Sector Collaboration
The novel legislation focuses on empowering local government entities and the private sector to collaborate through the issuance of bonds by Industrial Development Boards. These bonds are intended to finance affordable and workforce housing projects. The law introduces a range of incentives designed to ease restrictions surrounding land use and development. Notably, these include permissions to construct more homes per plot, reduced parking space per home regulations, and an innovative fast-tracking permitting process for participating developers.
An Equitable Future with Mixed Income Development
Sydney Shivers, Chattanooga’s Director of Housing Policy, shed light on the expected impact of these measures. “We anticipate the use of this tool will lead to an influx of affordable housings and new developments, especially in high opportunity neighborhoods. These are typically markets currently out of reach for low and moderate-income renters.”, said Shivers. “The aim is to foster equitable and mixed-income development accessible to all.”
Details Yet to Be Finalized
Shivers also indicated that although potential locations are being examined, no decision has been finalized as of yet. The new framework requires that each district submit a local ordinance outlining their specific goals in relation to this law. Developers and builders will then undergo a review process handled by the Regional Planning Commission before they are approved or denied.
Confronting Chattanooga’s Housing Shortage
Chattanooga Mayor Tim Kelly’s administration believes that these incentives could be the key to resolving the city’s housing shortage problem. Additionally, there is hope that this could lead to a reduction in homelessness. This law represents a progressive step towards ensuring housing affordability in Chattanooga and could very well chart the course for similar initiatives in other cities confronting housing affordability issues.
