1. HOUSING PROGRAMS IN NASHVILLE
Adriane Harris
Morgan Mansa
Office of Mayor David Briley
Tennessee Housing Development Agency

2. MAYOR’S OFFICE OF HOUSING
BUILD
FUND
PRESERVE
RETAIN
Basic role of our office is to create policy and tools that will assist Nashville’s efforts to Build, Fund, Preserve housing units, while retaining residents from displacement and gentrification. The role of our office also includes convening, facilitating, and leading Metro departments, organizations, developers, and the community towards these goals in hopes of increasing affordable/workforce housing units.
Since September 2015, Metro has committed to over $70M toward housing affordability, creating and preserving over 2,000 affordable and workforce housing units.

3. HOUSING DEFINITIONS Housing Affordability: Affordable Housing*:
Housing is considered affordable for a particular family or individual if it costs equal or less than 30% of their income.
Area Median Income
$74,900
Affordable Housing
(0-60% of AMI)
$0-$50K
Workforce Housing
(60%-120% MHI)
Housing Affordability:
Housing is considered affordable for a particular family or individual if it costs equal or less than 30% of their income.
Affordable Housing*:
Housing for households at 0-60% Median Household Income (MHI)
($0-$44k for Family of Four/$1,100 or less monthly)
Workforce Housing*:
Housing for households at % MHI
($44k-$88k for Family of Four/$2,200 or less monthly)
Cost Burdened:
Paying above 30% of income on housing expenses
Median Household Income: $
Davidson County Median Income
Area Median Income:
Metro Statistical Area (includes 13 other counties)

4. NASHVILLE’S HOUSING TOOLKIT
Barnes Housing Trust Fund
Teacher Housing
Inclusionary Housing Ordinance/Housing Incentives Pilot Program
Pay In-Lieu of Taxes PILOT for LIHTC
Federally Funded Programs
Nonprofit Capacity Building
Public Land for Public Benefit
Community Land Trust
General Obligation Bonds
There is no silver bullet to creating mixed income communities, there are many tools that create them and Nashville has a pretty heavy box right now. Beginning with conversations around mixed income developments, increasing the financial commitment to our housing trust fund to $10MM, the Barnes Fund for Affordable Housing is a housing trust fund available. Metro has increased the cap of the PILOT program for Low Income Housing Tax Credit developments from $2M to $2.5M,
Barnes Fund for Affordable Housing
12th & WEDGEWOOD DEVELOPMENT (couldn’t include this in the chart – didn’t fit)
Teacher housing
Payment in-lieu of taxes (pilot) for low income housing tax credit (lihtc) program
Federally funded programming
Property tax relief/freeze programs
Using metro owned properties for affordable/workforce housing
Housing incentives pilot program (hipp)
Tax Relief / Freeze Programs
Tax Abatement

5. MAYOR’S OFFICE OF HOUSING + PROGRESS
The Barnes Housing Trust Fund: $500K  $35M
Donated 50+ Metro-Owned Properties
Creating Nashville’s first Community Land Trust
Passed Inclusionary Housing Ordinance (BL )
Created the Housing Incentives Pilot Program (BL )
Prioritized Public Land for Public Benefit
Created Incentive Fund to House Veterans Experiencing Homelessness
Created a Teacher Housing Initiative
Published the Housing Nashville report providing affordable housing supply/demand gaps and housing indicators
Accepted into Housing, Hazards, & Health NLC cohort
Convened a Transit & Affordability Taskforce

6. BARNES HOUSING TRUST FUND
NEW CONSTRUCTION RENTAL
NEW CONSTRUCTION HOMEOWNERSHIP
REHAB RENTAL
HOMEOWNER REHAB
OPERATION COSTS

7. BARNES HOUSING TRUST FUND
Funding
Donate Properties
20-Year Affordability

8. NONPROFIT & PRIVATE DEVELOPER PARTNERSHIPS
ELIGIBLE APPLICANTS
NONPROFIT DEVELOPERS
NONPROFIT & PRIVATE DEVELOPER PARTNERSHIPS

9. Barnes Highlights
Invested in the development and preservation of more than 1,300 units
Leveraged more than $127M
Donated 50+ properties
Financially supported more than 15 local nonprofits

10. NONPROFIT CAPACITY BUILDING
Empower local nonprofits; Increase production
Self-Assessment
Individualized Technical Assistance
Phase 1: Center for Nonprofit Management
Phase 2: National Development Council

11. COMMUNITY LAND TRUST Partner with The Housing Fund
Technical Assistance from Grounded Solutions Network
Donating Metro Property
Funding New Staff Positions
Funding Construction
Developing Advisory Committee
Community Engagement

12. INCLUSIONARY HOUSING ORDINANCE+ HOUSING INCENTIVES PILOT PROGRAM
Mixed-Income Housing

13. HIPP PROGRAM OVERVIEW Adriane
Incentivized Inclusionary Housing Ordinance (IHO) BL
State Preemption
(Spring 2018)
Funding Commitment from Metro to Private Developers ($2M)
Housing Incentives Pilot Program (HIPP) BL
Location of Units: Urban Core; Employment Centers / Services; High Capacity Corridors
Existing Residential Developments Provision
(Voluntary Program)
Mixed-Income Housing
Adriane
The state of Nashville neighborhoods near the urban core
Blight and disinvestment
Tornado of 1998
Flood of 2010
Local policies implemented to improve housing / neighborhood conditions
Unintended consequences of these policies
These activities taking place while the local administration provided incentives for economic development
The rate of growth unexpected; no strategic plan that connected housing and economics to prevent displacement

14. HIPP – HOW IT WORKS HIPP.NASHVILLE.GOV
Rent Subsidy Payments
Third – Party Administrator
Unit That’s Typically $1500/Mo
Receives Subsidy of $600/Mo
Tenant Only Pays $900/Mo
Prior to receiving a building permit, Metro will enter into a grant agreement with developer.
Developer receives payment once leases are signed for below-market units
Metro’s third party administrator will train property management companies how to income verify tenants and will submit invoices to metro finance on behalf of developer
*Rent - $1,500/mo. (average of three most comparable)
* Total of rent subsidy payments capped at 50% of incremental real property taxes (20% for existing buildings)

15. MAXIMUM PAYMENT CALCULATION
New Construction Existing Property Taxes: $20,000 Estimated Property Taxes (after construction): $100,000 $100,000 -$20,000 $80,000 $80,000 *50% = $40,000 Maximum HIPP Payment=$40,000 annually Conversion Existing Property Taxes: $100,000 $100,000 *20%= $20,000 Maximum HIPP Payment: $20,000 annually

16. Transit and Affordability Taskforce Recommendations
Community Outreach and Engagement
Engagement strategy for each high-capacity transit corridor
Transit-Oriented Development Guidance
Fixed targets and annual scorecard
Funding
Explore dedicated sources of funding
Speaker: Brenda Wynn
[specifics ready for public to be determined]
Affordability is about more than just housing costs. We must look at cost of living across housing and transportation.
If Nashville voters adopt Let’s Move Nashville in May of this year, we’ll face a tremendous opportunity to create affordable housing and commercial space along our major pikes and corridors so that Nashville’s future is more equitable.
While recognizing that opportunity, Mayor Barry and her administration also recognize that there is a risk of transit investment’s catalyzing undesirable neighborhood change.
Acting now can ensure that housing built in transit-rich locations will provide for a mix of incomes.
The Transit and Affordability Taskforce – co-chaired by former Nashville Mayor Bill Purcell and Davidson County Clerk Brenda Wynn – presented recommendations to the Mayor last week.
While these recommendations are still drafts, we thought we would share some highlights today.
Community Outreach and Engagement: There will be a customized and multilayered engagement strategy for each high-capacity transit corridor.
Transit-Oriented Development Guidance: We will establish targets for affordable housing and local business development and publish a reliable annual scorecard to measure progress toward the fixed affordable housing and business retention targets that are established before development begins on a transit corridor.
Funding: We will explore additional dedicated sources of funding.

17. THANK YOU!
Adriane Harris, Director, Mayor’s Office of Housing Office of Mayor David Briley Morgan Mansa, Research Advisor Tennessee Housing Development Agency