The Chattanooga City Council on Tuesday evening 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.”