Several of Chattanooga’s special tax agreements for affordable housing were greenlit without notifying Hamilton County, according to county officials.
During a County Commission meeting Wednesday, County Trustee Bill Hullander and Property Assessor Marty Haynes told commissioners that the city has approved agreements with developers that abate county taxes on top of city taxes — without flagging county staff. Those agreements may result in hundreds of thousands of tax dollars removed from the county’s budget.
The agreements, colloquially known as PILOTs, allow tax breaks on residential properties where a developer agrees to set aside a certain percentage of apartments to be rented at affordable rates — which are determined by the area’s median income level. Chattanooga’s program requires developers to commit to affordable housing for at least 15 years to enter into an agreement.
“The savings from reduced operating costs help offset the financial impact of charging lower rents,” the city’s website says.