CHATTANOOGA, TN (July 22, 2025) - Today, Chattanooga City Council voted to
amend the city’s zoning ordinance to add the Voluntary Incentives Program
(VIP), no-cost voluntary zoning incentives for developers who build housing
that’s attainable to working Chattanoogans.
This program was made possible by state legislation championed by Senator
Todd Gardenhire, who worked with the Mayor’s Office to update state law to
allow local governments to offer incentives to housing developments that
include dedicated attainable housing units. Chattanooga is the first city
in Tennessee to take advantage of this new law.
Legislation creating Chattanooga’s program was passed in January 2025, but
it required this change to the zoning ordinance before developers could use
the program. The program will begin accepting applications on August 6.
“We are thrilled by this monumental step forward in making Chattanooga’s
housing more affordable,” said Mayor Tim Kelly. “This program reinforces
our commitment to fostering a city where individuals from all economic
backgrounds can find a place to call home.”
The VIP waives certain zoning and land use requirements for multi-unit
developments that price at least 10% of their units at 80% of the median
income or lower. These new incentives will afford developers greater
flexibility in building design and the opportunity to add additional
affordable units that would not otherwise exist .
Megan Miles, Chattanooga Director of Housing Policy, is excited to move
forward with the program following the vote.
“Chattanooga is taking advantage of every opportunity to address our
housing crisis,” Miles said. “The VIP adds another powerful tool to our
housing toolbox and will help create the affordable options our residents
need.”