Nashville Approves Milestone Affordable Housing Initiatives

NASHVILLE, TN — Offering carrots rather than sticks, the Metro Council approved two pieces of landmark affordable housing legislation Tuesday.

One bill creates a three-year pilot program under which developers would be eligible to compete for incentives and grants totaling $2 million. The grants, which would be capped at 50 percent of the increase in property taxes, are aimed at encouraging developers to charge under-market-rate rents on new affordable and work force housing by offsetting the loss. The mayor's office and Metro Council will review and approve the applications. Only at-large councilmember John Cooper voted against that proposal, saying he was worried it would end up as only available to "insiders."

The inclusionary zoning proposal would require any developer seeking a variance — for example, for height or density — for a new multi-family project of more than five units include a certain percentage of affordable units. That proposal cleared the council unanimously, though it is the one that has drawn the threat of a lawsuit.

The Beacon Center, a think tank that "supports policies that promote personal freedom and limited government," says the inclusionary zoning proposal runs counter to a state law passed this year which prohibits local governments from mandating affordable housing.