Chattanooga's PILOT Program Boosts Affordable Housing Without Direct Subsidies
Chattanooga, Tennessee, has implemented a Payment in Lieu of Taxes (PILOT) program to incentivize the development of affordable housing without direct subsidies. The program offers developers a 15-year property tax abatement in exchange for including affordable units in new housing projects. This initiative aims to increase housing supply and reduce costs in a rapidly growing city. The program has been recognized as an innovative approach, winning the Ivory Prize for housing innovation. Chattanooga's population growth and rising housing costs have driven the need for such a program, which allows developers to offer below-market rents while benefiting from tax breaks.