This voluntary program is designed to increase the overall number of attainable rental units created in Chattanooga by allowing more flexible, byright land use and zoning entitlements for qualifying developments.
Qualifying projects that provide at least 10% of housing units priced for Chattanoogans making 80% of the Area Median Income or below can access the following incentives:
- 30% Density Bonus: Allows more units within the same building.
- Reduced Parking Minimums: Lowers the minimum number of parking spots the developer must include in a project.
- 30% Height Bonus: Allows buildings in designated high opportunity neighborhoods near public transit to be 30% taller than in the base zoning code.
- Click here to learn more about the Voluntary Incentives Program
How To Qualify
- Consist of 5 or more attached or semi-attached rental units
- Be located in a zone that allows multi-family housing:
- Eligible zones: RN-2, RN-3, TRN-2, TRN-3, TRN-4, C-C, C-R, CMU-1, CMU-2, CNT, C-N, C-TMU, I-MU
- Eligible zones, form-based code: D-RA, D-RM, D-CX, D-SH, R-RF, R-RV, U-RM, U-CX, U-SH, U-IX, E-RM, E-CX, E-SH, E-IX, B-CX, B-R, W-N, C-CX
- Click here to check your property’s zoning (make sure to check “Zoning” on the Map Layers)
- Provide 10% of units at rents affordable to households earning 80% of the Area Median Income (AMI) or below
- Units must remain affordable for a period of at least 30 years.
- Chattanooga’s Area Median Income and rent limits are set annually by the Department of Housing and Urban Development (HUD). See below for the FY 2025 Income Limits and Rents.
| 1 Person | 2 Person | 3 Person | 4 Person | 5 Person | 6 Person | 7 Person | 8 Person | |
|---|---|---|---|---|---|---|---|---|
| 30% AMI | $20,100 | $22,950 | $26,650 | $32,150 | $37,650 | $43,150 | $48,650 | $54,150 |
| 40% AMI | $26,750 | $30,600 | $34,400 | $38,200 | $41,300 | $44,350 | $47,400 | $50,450 |
| 50% AMI | $33,450 | $38,200 | $43,000 | $47,750 | $51,600 | $55,400 | $59,250 | $63,050 |
| 60% AMI | $40,150 | $45,850 | $51,600 | $57,300 | $61,900 | $66,500 | $71,100 | $75,650 |
| 70% AMI | $46,800 | $53,500 | $60,200 | $66,850 | $72,200 | $77,550 | $82,900 | $88,250 |
| 80% AMI | $53,500 | $61,150 | $68,800 | $76,400 | $82,550 | $88,650 | $94,750 | $100,850 |
| 90% AMI | $60,200 | $68,800 | $77,400 | $85,950 | $92,850 | $99,750 | $106,600 | $113,500 |
| 100% AMI | $66,850 | $76,400 | $85,950 | $95,500 | $103,150 | $110,800 | $118,450 | $126,100 |
| 110% AMI | $73,550 | $84,050 | $94,550 | $105,050 | $113,500 | $121,900 | $130,300 | $138,700 |
| 120% AMI | $80,250 | $91,700 | $103,150 | $114,600 | $123,800 | $132,950 | $142,150 | $151,300 |
| Studio (1.0) | 1 BR (1.5) | 2 BR (3.0) | 3 BR (4.5) | 4 BR (6.0) | 5 BR (7.5) | |
|---|---|---|---|---|---|---|
| 30% AMI | $503 | $538 | $666 | $873 | $1,079 | $1,285 |
| 40% AMI | $669 | $717 | $860 | $994 | $1,109 | $1,223 |
| 50% AMI | $836 | $896 | $1,075 | $1,242 | $1,385 | $1,529 |
| 60% AMI | $1,004 | $1,075 | $1,290 | $1,490 | $1,663 | $1,834 |
| 70% AMI | $1,170 | $1,254 | $1,505 | $1,738 | $1,939 | $2,139 |
| 80% AMI | $1,338 | $1,433 | $1,720 | $1,987 | $2,216 | $2,445 |
| 90% AMI | $1,505 | $1,613 | $1,935 | $2,235 | $2,494 | $2,751 |
| 100% AMI | $1,671 | $1,791 | $2,149 | $2,483 | $2,770 | $3,057 |
| 110% AMI | $1,839 | $1,970 | $2,364 | $2,732 | $3,048 | $3,363 |
| 120% AMI | $2,006 | $2,149 | $2,579 | $2,980 | $3,324 | $3,668 |
- To qualify for the height bonus, projects must consist of 10 or more units and be located in a designated high opportunity neighborhood near transit.
How To Apply
Provide a written notice of interest for consideration under the program to the Office of Housing and Community Investment (HCI) within the Office of Economic Development and to the Regional Planning Agency (RPA). This can be done by submitting a written Notice of Interest to the Regional Planning Agency through the OpenGov portal.
Helpful Resources
- Link to Apply
- Presentation on the Voluntary Incentives Program
- VIP Qualifying Development Types
- VIP Program Guidelines
- Affordable Housing Compliance Guidelines
- VIP Development Standards by Zoning District
- Voluntary Incentives state enabling legislation: SB 2496 / HB 2623
- This legislation was amended in May 2025 to reduce the required period of affordability from 99 to 30 years
- The VIP incentives are found in the City’s Zoning Ordinance (Chapter 38 of City Code).
Frequently Asked Questions
What if I don’t meet zoning requirements?
Projects that do not have appropriate zoning must go through a rezoning process before applying for the Voluntary Incentives Program. Applicants who believe they need a rezoning should reach out to RPA before submitting a Letter of Interest. Learn more about the rezoning process here.
The VIP cannot supersede any zoning conditions that have been placed on the property. Applicants should check the zoning districts and call RPA to see if there are any conditions on the property that might prevent the use of zoning incentives.
What are the different qualifying development types?
What are the specific incentives offered?
What are compliance requirements?
All qualifying developments shall be deed restricted to ensure that the attainable housing requirements are maintained for a period of 30 years, in accordance with Tenn. Code Ann. § 13-3-603(f).
Applicant must submit annual rent and income verification to the City via a third party.
HCI staff will monitor rents and incomes on an annual basis for first 15 years of program. After 15 years, HCI will request rent and income verification periodically not less than every 5 years.
Properties found to be out of compliance with committed attainable rents and unit counts will be subject to a penalty fee of $5,000 per non-compliant unit per year of noncompliance, which shall be collected and placed in the Chattanooga Affordable Housing Fund.
Can the VIP be paired with other affordable housing incentives?
Yes, applicants are welcome to pair the VIP with other affordable housing resources.
For projects interested in applying for a PILOT, please note that VIP units will not count towards tax abatement.
Want to know more about the City’s Affordable Housing Programs? Check out these resources.