Chattanooga council approves voluntary attainable housing incentives and $20 million transfer to Invest Chattanooga

The Chattanooga City Council on Tuesday approved an ordinance establishing a voluntary attainable housing incentive program and separately authorized a $20,000,000 transfer from funds set aside in FY23 to the housing production fund administered by Invest Chattanooga, council records show.

The ordinance (item 7a) creates a voluntary attainable housing incentive program authorizing certain incentives to be provided to property owners who build multiunit attainable and mixed-income housing in Chattanooga, citing Tennessee Code Annotated § 13‑36‑01(a) as authority. The council voted to approve the ordinance during the Jan. 21 meeting; the motion carried after a second and a voice vote.

In a separate economic-development package the council authorized the mayor to enter an intergovernmental housing cooperation agreement to transfer $20 million to the housing production fund administered by Invest Chattanooga (item 9d). Councilwoman Hill moved approval of the package; the motion carried on a unanimous voice vote. The package also included a resolution confirming the surplus and donation of a small Oak Street parcel (tax map number referenced in the resolution) to the Chamberless Center For Children for use as parking, with a reverter clause if the property ceases to be used for parking (item 9c).

Why it matters: the ordinance and the transfer expand tools and funding the city will use to incentivize privately developed, multiunit projects described as “attainable” housing. The $20 million transfer directs existing local funds to a housing production vehicle managed by Invest Chattanooga…