The Housing Incentives Pilot Program (HIPP) is designed to motivate private developers to incorporate workforce units (60-120% MHI) 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.
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.
To learn more about the program, review the Policies and Procedures. New applications are not being accepted at this time.