Mayor Megan Barry has put forward the Housing Incentives Pilot Program (HIPP) that is designed to motivate private developers to incorporate affordable and workforce units into their apartment, condo, or housing developments. This voluntary program would encourage more mixed-income housing, primarily in the urban core and along major pikes and transportation corridors where it is needed the most. The goal is to provide housing options for working families in Nashville that would be offered at rates that do not exceed 30% of their household income. Rental or mortgages prices that exceed 30% of an individual or household's income are determined to result in them being "cost-burdened," which can lead to difficult choices in paying for basic necessities such as food, utilities, or transportation.
Additional details of HIPP are attached below in the following press release, draft ordinance, and a chart outlining Median Household Income levels for Davidson County residents, along with the associated maximum rental prices before a household becomes cost-burdened. An amendment has been proposed and added to this page.
Interested applicants can review the Policies and Procedures for a better understanding of the program.
Housing Incentives Pilot Program Application (Currently closed for conversion applications)
Competitive Grant Process
Application Period: 12/18/2017 – 2/9/2018
Conversion of Existing Rental Units:
- Must be located within the UZO (Urban Zoning Overlay)
- Existing Rental Conversion Applicants will be entered into a competition to receive HIPP Incentive
The amount of the incentive grant will be the difference between the average rent for a market-based rental housing unit and the average rent for an occupied affordable or workforce housing unit multiplied by the number of occupied affordable or workforce housing rental units for the duration of the affordability period. In no event shall the amount of the annual grant be greater than twenty percent (20%) of the real property ad valorem tax assessment for the calendar year for which an incentive grant is applicable.
The average rent for a market-based rental housing unit will be calculated on a square footage basis using the rent charged for the three most comparable unrestricted units within the same or, if there are less than three unrestricted in the same and comparable, development, as determined by the Mayor’s Office of Housing.
All agreements for affordable and/or workforce housing incentive grants to be funded by the Metropolitan Government shall expressly provide that the Metropolitan Government’s financial obligations are conditioned upon the appropriation of funds by the Metropolitan Council. The Metropolitan Government shall have no obligation to make an affordable and/or workforce housing incentive grant if adequate funds are not appropriated.
Grant agreements will cover 12 month lease agreements. Payments will be provided to the developer monthly upon invoice receipt and compliance with income verification standards provided by Metro’s contracted administrator and approval by the Mayor’s Office of Housing and the Department of Finance.
For more information about the Housing Incentives Program, please contact Adriane Harris.