A tax deal with the city of Chattanooga could allow a new North Shore apartment complex to include some units rented at rates affordable to lower-income tenants.
Plans at 702 Manufacturers Road call for five residential buildings with a total of 278 units, 42 of them rented at lower rates.
The project is the first to apply for the city’s revamped PILOT, or payment in lieu of taxes, program after it rolled out last year, officials said.
“I have to say, this application is exactly who we were thinking of,” Chattanooga Housing Finance Director Hanneke van Deursen said at Tuesday’s Chattanooga City Council meeting. “It’s … in a neighborhood that does not yet have any affordable units, on the North Shore right on the river.”
Under the tax incentive deal, rents for 15% of the 278 planned units will be capped based on income and subsidized by the development’s tax savings.