The City of Chattanooga is considering reforms to its Payment In Lieu Of Taxes (PILOT) program to enhance affordable housing options. Chief Housing Officer Nicole Heyman has proposed changes to the current program which requires 50% of units in developments to be rented at or below 80% of the Area Median Income (AMI). This will include a per-unit tax incentive based on the difference between market rent and affordable rent, along with accountability measures such as inspections and penalties for non-compliance. These modifications aim to address the varying rent levels across the city and encourage smaller developers to participate in providing reasonable units.

If approved, it could have a significant impact on meeting the growing need for cheaper real estate and improve the overall quality of life. Residents are encouraged to participate in the discussion by attending weekly meetings and voicing their opinions on these recent proposals.