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

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.

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 60-120% 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)

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

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 (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

BARNES HOUSING TRUST FUND Funding Donate Properties 20-Year Affordability

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

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

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

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 Mixed-Income Housing

HIPP PROGRAM OVERVIEW Adriane Incentivized Inclusionary Housing Ordinance (IHO) BL2016-133 State Preemption (Spring 2018) 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 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

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)

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

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.

THANK YOU! Adriane Harris, Director, Mayor’s Office of Housing Office of Mayor David Briley adriane.harris@nashville.gov Morgan Mansa, Research Advisor Tennessee Housing Development Agency mmansa@thda.org