- Associated Press - Wednesday, September 21, 2016

CHATTANOOGA, Tenn. (AP) - Chattanooga officials have narrowly approved a new set of tax breaks to encourage developers to create more affordable housing across the city.

News outlets report the City Council voted 5-3 in favor of the new payment-in-lieu-of-taxes measure on Tuesday, with one abstention.

The program urges developers to set at least half of their rental units at rates affordable to those who make less than 80% of the average income. For a single-person household, that equates to a $34,300 salary and an $858 rental cap.

In return, developers are offered property tax freezes. New buildings will receive the tax freezes for 10 years, while revamped existing sites will go 14 years without higher taxes.

Larry Grohn, who voted against the plan, says the rates are “not truly affordable.”

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