City of Chattanooga's Affordable Housing PILOT named winner of 2026 Ivory Prize for Housing Affordability in policy. CHATTANOOGA, Tenn. (May 12, 2026) - The City of Chattanooga has been named a co-winner of the 2026 Ivory Prize for Housing Affordability in the Policy category by Ivory Innovations, an operating foundation and research center based at the University of Utah. The Ivory Prize is an annual award recognizing innovative, feasible and scalable solutions that advance housing affordability across the United States. The Chattanooga Affordable Housing PILOT (Payment in Lieu of Taxes) is a per-unit tax abatement program that incentivizes mixed-income affordable housing production without direct public subsidy. In March 2024, the City of Chattanooga made a first-of-its-kind change to its long-standing PILOT program by directly tying the amount of tax abatement to the cost of providing affordable units, a fundamentally new way of using tax incentives to fund mixed-income housing development. "This award underscores a simple idea: better policy design can unlock affordable housing, even with limited resources," said Nicole Heyman, Chief Policy Officer for the city. "By pricing affordability clearly, Chattanooga is incentivizing mixed-income housing in places it wasn't possible before." The redesigned program right-sizes the tax abatement on a per-unit basis, transforming what was once a gap-filler for federally subsidized projects into a standalone, local incentive for mixed-income housing that does not rely on oversubscribed federal housing resources. The city's publicly available PILOT calculator makes the exchange of tax abatement for affordable units clear and transparent for every applicant. "Chattanooga has demonstrated that cities don't have to wait for federal dollars to produce affordable housing, they can unlock it through smarter local policy design," said Chris Herbert, Managing Director of the Harvard Joint Center for Housing Studies and Ivory Innovations Advisory Board Member. "By directly linking tax abatement to the true cost of providing affordable units, the Chattanooga PILOT program has created a very innovative tool that any city with tax abatement authority can replicate." The redesigned PILOT replaces a one-size-fits-all incentive with a simpler, more precise approach. The amount of tax abatement is d rectly tied to the cost of affordable housing. That means public investment is clearly connected to public benefit. A publicly available calculator makes the process transparent, so anyone can see how the numbers work. Early results show the program is doing what it was designed to do. It's an incentive for any developer to include a share of affordable units, expanding housing choice throughout Chattanooga. As the program grows, it offers a practical model for other cities looking to expand housing options using the tools they already have. The Ivory Prize evaluates submissions across three categories: Construction & Design, Policy, and Finance, selecting winners whose innovations demonstrate the greatest potential to scale and make lasting impact on housing affordability nationwide. Winners are selected from a competitive pool of applicants and evaluated by panels of industry experts and luminaries. About Ivory Innovations Ivory Innovations is an academic center based at the University of Utah dedicated to catalyzing innovation in housing affordability. The organization works with students, entrepreneurs and experts to source, support, and scale the most promising housing solutions natio wide. Ivory Innovations also puts innovation into practice through its foundation arm, which has more than 1,500 affordable housing units under development in Utah. To learn more, visit ivoryinnovations.org. Contact Chattanooga Neighborhood Enterprise. (423) 643-7800

Chattanooga's $1.8M small business center signals shift in office real estate strategy. March 26, 2026 Key takeaways. * - Chattanooga opens $1.8M small business center using pandemic relief funds * - Multi-year planning process demonstrates long-term commitment to entrepreneurship support * - Mixed-use model combines office functions with educational and community services Chattanooga reimagines office space with small business focus. Chattanooga is taking a distinctive approach to commercial real estate development with the opening of a new small business center, funded by $1.8 million in pandemic relief funds. The project represents a strategic shift toward supporting entrepreneurship rather than pursuing traditional large-scale office developments. According to local reports, "Chattanooga has been working for several years to open it after allocating $1.8 million in pandemic relief funds to its purchase and renovation." This multi-year planning process demonstrates the city's commitment to creating sustainable small business infrastructure. Beyond traditional office development. The small business center will provide workshops and resource navigation services, indicating a move toward mixed-use facilities that combine traditional office functions with educational and support services. This model reflects broader changes in how commercial real estate is being utilized in the post-pandemic economy. For commercial real estate professionals, this development highlights several important trends: - Growing demand for flexible, multi-purpose commercial spaces - Increased focus on community-oriented business facilities - Public investment in small-scale commercial infrastructure Regional context: stability amid uncertainty. While individual workplace disputes continue to make headlines - including recent litigation involving Volkswagen's Chattanooga plant - the city's investment in small business infrastructure suggests confidence in long-term economic stability. The timing of this opening coincides with broader Tennessee trends showing resilience in the face of national white-collar job market volatility. Rather than experiencing widespread office space contractions, the region appears to be adapting its commercial real estate strategy to support emerging business needs. Implications for commercial real estate investors. The small business center model could influence future commercial real estate development patterns in Chattanooga and similar markets. Key considerations include: **Flexible Space Design**: Properties that can accommodate multiple functions - from traditional office work to workshops and community events - may become increasingly valuable. **Community Integration**: Commercial developments that serve broader community needs beyond individual tenants could attract public-private partnership opportunities. **Scalable Solutions**: As small businesses supported by such centers grow, they may create demand for additional office and retail space throughout the market. Looking ahead. Chattanooga's approach to commercial real estate development - emphasizing community support over speculative building - could serve as a model for other secondary markets navigating economic uncertainty. The success of this $1.8 million investment will likely influence future public funding decisions for commercial real estate projects and could encourage private developers to consider similar mixed-use, community-focused approaches. For commercial real estate professionals in the Chattanooga market, the small business center represents both a new type of competition for traditional office space and a potential source of future tenants as supported businesses expand their operations. #Chattanooga #Small Business #Development #Public Investment #Mixed-Use

Chattanooga Parks and Outdoors launches adaptive hiking program with all-terrain wheelchairs. Chattanooga Parks and Outdoors has launched a new adaptive hiking program for youth. Through the department's therapeutic recreation division, the program utilizes Grit junior freedom chairs to open access to trails to children with mobility challenges, a Parks and Outdoors press release said. The all-terrain, manual wheelchairs are designed "to conquer outdoor environments that standard wheelchairs cannot handle." The chairs are built from mountain bike parts, making the chairs capable of covering dirt, gravel, sand, mud and grass terrains, the press release said. The therapeutic recreation team has also received four specialized kayaks and adaptive gear to enable water access for people with paralysis or other disabilities, according to the press release. Funding for the equipment comes from a quality of life grant through the Christopher and Dana Reeve Foundation, the press release said. The grants "support nonprofit organizations and municipal governments that mirror the foundation's mission to foster inclusion and community engagement for those affected by paralysis." Adaptive kayaking programs will continue in the summer, the press release said. Hikes are planned for spring through fall, taking place twice a month at different locations. Those interested in the adaptive hiking program or the junior freedom chairs should contact the therapeutic recreation division. For more information, contact Nate Sirmans at [email protected].