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Adriane Harris, Director-Office of Housing Office of Mayor Megan Barry
MAYOR’S OFFICE OF HOUSING
BUILD FUND PRESERVE RETAIN
Since September 2015, Metro has committed to over $70M toward housing affordability, creating and preserving over 2,000 affordable
and workforce housing units.
HOUSING DEFINITIONS
AREA MEDIAN INCOME
$68,700
MEDIAN HOUSEHOLD
INCOME
$54,310
Affordable Housing
(0-60% of MHI)
Workforce Housing
(60%-120% MHI)
Housing is considered affordable for a particular family or individual if it costs equal or less than 30% of their income.
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
NASHVILLE’S HOUSING TOOLKIT
General Obligation Bonds
Community Land Trust
Tax Relief / Freeze Programs
Tax Abatement
MAYOR’S OFFICE OF HOUSING + PROGRESS
• The Barnes Housing Trust Fund: $500K $45M
• Donated 50+ Metro-Owned Properties
• Creating Nashville’s first Community Land Trust
• Passed Inclusionary Housing Ordinance (BL2016-133)
• Created the Housing Incentives Pilot Program (BL2016-342)
• 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
BARNES HOUSING TRUST FUND
NEW CONSTRUCTION RENTAL
NEW CONSTRUCTION HOMEOWNERSHIP
REHAB RENTAL
HOMEOWNER REHAB OPERATION COSTS
$45M
BARNES HOUSING TRUST FUND
Funding
Donate Properties
20-Year Affordability
ELIGIBLE APPLICANTS
NONPROFIT DEVELOPERS
NONPROFIT & PRIVATE
DEVELOPER PARTNERSHIPS
BARNES HOUSING TRUST FUND
• 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
NONPROFIT CAPACITY BUILDING
• Empower local nonprofits; Increase production
• Self-Assessment
• Individualized Technical Assistance
• Phase 1: Center for Nonprofit Management
• Phase 2: National Development Council
NASHVILLE TEACHER HOUSING
GENERAL OBLIGATION BONDS
• $25M Allocated
• Acquire property & existing multi-family units
• Rehabilitate existing multi-family units
• New construction of multi-family units
• Adaptively reuse buildings and developing housing on Metro-owned properties
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
INCLUSIONARY HOUSING ORDINANCE+HOUSING INCENTIVES PILOT PROGRAM
IHO + HIPP= Mixed-Income Housing
HIPP PROGRAM OVERVIEW
Incentivized Inclusionary Housing Ordinance (IHO)
BL2016-133
Funding Commitment from Metro to Private
Developers ($2M)
Housing Incentives Pilot Program (HIPP)
BL2016-342
Location of Units: Urban Core; Employment
Centers / Services; High Capacity Corridors
Existing Residential Developments Provision
(Voluntary Program)
Mixed-Income Housing
BL2016-133
For rental residential units, incentivize Inclusionary Housing with any additional residential development entitlements gained through the rezoning process.- Rezoned properties are mapped.- May need additional info at the
permit stage to determine if residential entitlements were gained.
- Track OEOE. They may add a U&O sign off.– Inclusionary Housing Review – Task ID
2049– Inclusionary Housing U&O – Task ID
2050
- For-sale developments may participate.
- …as long as adequate financial incentives from the Metropolitan Government of Nashville and Davidson County are available
Exceptions• Less than five residential units
– includes developments on adjoining sites under common control developed within five years of each other
• Development in already affordable areas. (reviewed by OEOE)• That any appropriately filed application that complies with all
existing filing requirements and that is filed prior to the effective date of this ordinance shall not be subject to the provisions of this ordinance, however a developer and/or property owner may participate in the incentives of this Section.
• Mayor’s Office of Housing is also running a voluntary program. They will handle all operational compliance.
Mayor’s Office of Housing
Set aside
Based on housing grant or $20,000 (UZO/collectors)/$10,000 (outside UZO)
Rental at
60% MHI or less
Rental at
Greater than 60%
MHI to 80% MHI
Rental at
Greater than 80% MHI
to 100% MHI
(available in the UZO
only)
For-sale at
Greater than 60%
MHI to
80% MHI
For-sale at
Greater than 80% MHI
to 100% MHI
(available in the UZO
only)
Single-family and
Two-family uses
12.5% of total
residential units
15% of total
residential units
17.5% of total
residential units
10% of total
residential units
15% of total residential
units
Multi-family uses less
than 3 stories
12.5% of total
residential floor area
15% of total
residential floor area
17.5% of total
residential floor area
10% of total
residential floor area
15% of total residential
floor area
Multifamily uses
(3 to 6 stories)
10% of total
residential floor area
12.5% of total
residential floor area
15% of total residential
floor arean/a n/a
Multifamily uses
(≥ 7 stories)
7.5% of total
residential floor area
10% of total
residential floor area
12.5% of total
residential floor arean/a n/a
The Office of Economic Opportunity and Empowerment with assistance from the Finance Department may approve a mixture of MHI
levels, provided the mixture is equivalent to the set asides above. The equivalency of the mixture of MHI levels and the approval shall be
documented in the Inclusionary Housing Plan.
For the purposes of this Article, the residential floor area shall be the net leasable residential floor area.
Set Aside
Example • If a rental project with 100,000 square feet of residential floor area requests another 50,000 square feet of residential uses, the resulting building is greater than seven stories and the developer chooses to provide housing at 80% AMI, then 10% of the 150,000 square feet, or 15,000 square feet, must be provided as housing at 80% AMI.
• The calculation is based on a square foot requirement instead of a unit requirement in order to facilitate the flexibility of unit sizes that can be rented or sold to families.
Rental at
60% MHI
or less
Rental at
Greater
than 60%
MHI to
80% MHI
Rental at
Greater than
80% MHI to
100% MHI
(available in
the UZO
only)
For-sale at
Greater
than 60%
MHI to
80% MHI
For-sale at
Greater than
80% MHI to
100% MHI
(available in
the UZO
only)
Single-
family and
Two-family
uses
12.5% of
total
residential
units
15% of
total
residential
units
17.5% of
total
residential
units
10% of
total
residential
units
15% of total
residential
units
Multi-
family uses
less than 3
stories
12.5% of
total
residential
floor area
15% of
total
residential
floor area
17.5% of
total
residential
floor area
10% of
total
residential
floor area
15% of total
residential
floor area
Multifamily
uses
(3 to 6
stories)
10% of
total
residential
floor area
12.5% of
total
residential
floor area
15% of total
residential
floor area
n/a n/a
Multifamily
uses
(≥ 7 stories)
7.5% of
total
residential
floor area
10% of
total
residential
floor area
12.5% of
total
residential
floor area
n/a n/a
The Office of Economic Opportunity and Empowerment with assistance from the
Finance Department may approve a mixture of MHI levels, provided the mixture is
equivalent to the set asides above. The equivalency of the mixture of MHI levels
and the approval shall be documented in the Inclusionary Housing Plan.
For the purposes of this Article, the residential floor area shall be the net leasable
residential floor area.
In-lieu options
Construction
• If on a multimodal corridor (MCSP), within one mile
• Otherwise within ½ mile
• Not in an already affordable census tract
Contribution
• Equation included in the ordinance
• Housing Incentives Fund (administered by OEOE)
Construction, Occupancy and
Enforcement
With the building permit application, the Owner/Developer shall submit an Inclusionary Housing Plan, which documents the following:
1. Number of total residential units 2. Use public resources or public property.3. Number of affordable or workforce housing
units 4. Income levels of targeted families for
affordable or workforce housing units. 5. The proposed rents or sales prices and
guarantee of limits on future rent increases or sales prices.
6. Location of affordable or workforce housing units.
7. Sizes of affordable or workforce housing units.
8. Bedroom counts of affordable or workforce housing units.
9. Census tract market rate pricing or rental rates for the project site and, if applicable, the in lieu site.
10. The party responsible for compliance reports, with approval OEOE.
Construction, Occupancy and
Enforcement
• Inclusionary Housing units shall be – at least 80% of the average size of market
rate units.– breakdown of bedroom counts of
Inclusionary Housing units shall be similar to the breakdown of bedroom counts for the market rate units in the project.
– Remaining floor area utilizes the in lieu contribution option.
• Exteriors of Inclusionary Housing units shall closely resemble the exteriors of other units in a project.
• The owner shall ensure to the satisfaction of the Metropolitan Government that the Inclusionary Housing units will:
1. be occupied by eligible households.2. be maintained for:
15 years for rental units and30 years for for-sale units
Sunset provisions
• December 31, 2019
• Requires another study of the impact of Article XVII (lnclusionary Housing) and related incentives. This study shall include an assessment of the economic impact, impact on affordable housing and whether the incentives should be recalibrated.
• The study shall be delivered to the Metropolitan Council no later than six (6) months before the sunset date.
Rent Subsidy Payments
Third – Party Administrator
Unit That’s Typically
$1500/Mo
Receives Subsidy of $600/Mo
Tenant Only Pays
$900/Mo
*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)
HIPP – HOW IT WORKSHIPP.NASHVILLE.GOV
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
MAXIMUM PAYMENT CALCULATION
HIPP PROGRAM PROCESS
1. Prior to receiving a building permit, Metro will enter into a grant agreement with developer.
2. Developer receives payment once leases are signed for below-market units
3. 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
Housing Affordability + Transit
Let’s Move Nashville: Goals
Provide economic opportunities for the entire city
Increase mobility options for everyone
Enhance accessibility for the disabled, disadvantaged, youth, and elderly
Connect communities with an enhanced bus system, high capacity LRT, and Rapid Bus service
Create safer opportunities to walk and bike to/from transit lines
Support TOD and better access to jobs, education and affordable housing
•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
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Transit and Affordability Taskforce Recommendations
THANK YOU!
Adriane Harris, Director--Mayor’s Office of Housing