Chattanooga does not impose a dedicated ADU impact fee. Standard building permit fees through the Land Development Office apply based on construction valuation. Tennessee American Water Company (water) and Chattanooga Wastewater (sewer) charge tap or capacity fees only if a new connection is required. Hamilton County does not levy school impact fees; sales tax-funded school construction applies generally.
Chattanooga has no ADU-specific impact fee. The Land Development Office charges standard building permit fees calculated from construction valuation, plus separate plumbing, electrical, and mechanical permit fees. Water connections come through Tennessee American Water (a private utility serving Chattanooga); tap fees apply only when a new water service is required, which most ADUs avoid by using the existing service. Sanitary sewer is provided by the City of Chattanooga's Wastewater Department; sewer capacity fees apply on new connections per the published fee schedule and are typically several hundred to several thousand dollars based on fixture count. Hamilton County does not impose adequate facilities or school impact fees on residential construction; school capital is funded through county sales tax. Stormwater fees through Chattanooga Public Works apply based on impervious surface added. Property taxes are reassessed by the Hamilton County Assessor of Property after construction. Form-based code districts use the same fee structure.
Building without paying required permit fees prevents issuance and triggers stop-work orders. Failure to pay sewer capacity fees prevents service connection. Unpermitted construction is assessed back-permit fees and may carry doubled penalties under the Chattanooga construction code.
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See how Chattanooga's adu impact fees rules stack up against other locations.
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