SUBSTITUTE ORDINANCE NO. BL2015-1139

An ordinance amending Title 17 of the Metropolitan Code, Zoning Regulations, to establish a requirement for affordable and workforce housing units, and to authorize the Planning Department to establish rules and regulations in accordance with this ordinance (Proposal No. 2015Z-011TX-001).

WHEREAS, the 2010 US Census found that more than 58,000 renters in Nashville-Davidson County pay more than 30% of their household income for housing and are considered to be housing cost-burdened; and

WHEREAS, in the Nashville Metropolitan Statistical Area 82 percent of renter households with an income below $35,000 were found in the 2010 Census to be housing cost-burdened; and

WHEREAS, the local economy continues to grow and expand in the aftermath of the recession, but housing costs continue to be a major barrier to economic progress for many in Nashville; and

WHEREAS, monthly rent for apartments in Nashville has risen 75% from 2000 to 2010 while vacancy rates have decreased 20% over the same time period; and

WHEREAS, increasing the supply of modestly priced housing supports economic growth and is an important tool in reducing poverty and maintaining a local workforce in Davidson County; and

WHEREAS, in the Metropolitan Planning Department’s Memorandum dated April 30, 2009, to Vice Mayor Diane Neighbors and the Metropolitan Council, the Planning Department stated: “If Nashville/Davidson County is seeking a proactive approach to meet its affordable housing needs in an equitable fashion, then the County should consider Inclusionary Zoning.”

WHEREAS, the enactment of the following provisions of the Metropolitan Code of Laws is in the best interest of The Metropolitan Government of Nashville and Davidson County and its citizens.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. Title 17 of the Metropolitan Code of Laws is amended by deleting the definition of “Affordable Housing” to Section 17.04.060 and replacing it with the following language:

"Affordable housing" means housing that, on an annual basis, costs thirty percent or less than the estimated median household income for households earning sixty percent or less than the median household income for the applicable county based on the number of persons in the household, as established by Median Household Income in the Past 12 Months by Household Size (B19019) from the most recently available US Census Bureau American Community Survey.

Section 2. Title 17 of the Metropolitan Code of Laws is amended by adding the following definition of “Workforce housing” to Section 17.04.060:

"Workforce housing" means housing that, on an annual basis, costs thirty percent or less than the estimated median household income for households earning more than sixty percent and not to exceed one hundred and twenty percent of the median household income for the applicable county based on the number of persons in the household, as established by Median Household Income in the Past 12 Months by Household Size (B19019) from the most recently available US Census Bureau American Community Survey.

Section 3. Title 17 of the Metropolitan Code of Laws is amended by adding the following new chapter, 17.10, entitled Inclusionary Zoning.

Chapter 17.10 Inclusionary Zoning

17.10.010 Purpose and Intent

A. The purpose of this chapter is:
1. To increase the supply of affordable housing and workforce housing.
2. To provide housing opportunities that meet the affordability needs of households needing affordable housing and workforce housing
3. To disperse housing opportunities throughout Davidson County for households needing affordable housing and workforce housing.
4. To promote social and economic integration in safe and stable neighborhoods.
5. To promote the creation and maintenance of suitable residential areas that are safe, attractive and stable.
6. To protect property values.
7. To implement the housing goals and policies contained in the General Plan For Nashville and Davidson County.

B. The intent of this chapter is to provide enabling legislation for residential development that creates Affordable Housing and Workforce Housing, and equitably distributes such housing within new or substantially renovated residential development and construction across all of Davidson County. These regulations may consider any means of providing affordable and/or workforce housing, including the following:
1. Minimum project size that is required to provide Affordable Housing and/or Workforce Housing.
2. Qualifications for “grandfathered” projects not required to provide Affordable Housing and/or Workforce Housing.
3. Income eligibility and target population for the Affordable Housing and/or Workforce Housing
4. Period of time that the units should remain Affordable Housing and/or Workforce Housing, and/or the conditions under which Affordable Housing and/or Workforce Housing units may be sold or re-sold, and who is entitled to the increased equity.
5. Development and financial incentives for providing affordable or workforce housing.
6. An in-lieu fee option for building affordable or workforce housing.
7. An offsite option to build the affordable or workforce housing units, provided that the offsite option meets the intent to equitably distribute affordable and workforce housing.

17.10.020 Minimum Requirements

A. In preparing the rules and regulations for implementation of this chapter, the planning department shall set a goal of requiring at least fourteen percent of the units in all residential development in Davidson County, including new construction and renovation be reserved and used for Affordable Housing and/or Workforce Housing.
B. If any rule or regulation promulgated pursuant to this chapter allows an in lieu of payment in place of providing Affordable Housing or Workforce Housing units, all such payments shall be deposited in the Barnes Fund for Affordable Housing, or any successor fund.

17.10.030 Method of Implementation

A. The Executive Director of the Metropolitan Planning Department, subject to the requirements of section 17.10.020 and all applicable state law including without limitation TCA 66-35-102, shall promulgate rules and regulations or propose further amendments to the Zoning Code to carry out the intent of this chapter; provided, that all such rules and regulations promulgated by, or further amendments to the Zoning Code proposed by, the Executive Director shall become effective upon approval by the Metropolitan Council, and also provided, that the minimum requirements set forth in section 17.10.020(A) shall not be effective until the Metropolitan Council has approved the rules and regulations promulgated by, or further amendments to the Zoning Code proposed by, the Executive Director under this section.
B. The Executive Director of the Metropolitan Planning Department shall submit an ordinance to the Metropolitan Council amending the Metropolitan Zoning Code to implement the rules and regulations no later than one hundred and eighty days after this ordinance takes effect.

17.10.040 Conflict with Provisions of Zoning Code
If there is a conflict between the requirements of this chapter 17.10 and any other part of the Zoning Code, the provisions of this chapter 17.10 shall prevail.

Section 4. That this ordinance take effect immediately after its passage and such change be published in a newspaper of general circulation, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Fabian Bedne, Brady Banks, Jerry Maynard, Anthony Davis, Scott Davis, Megan Barry, Karen Johnson, Peter Westerholm

LEGISLATIVE HISTORY
Introduced:	May 19, 2015
Passed First Reading:	May 19, 2015
Referred to:	Planning Commission Planning & Zoning Committee
Substitute Introduced:	July 7, 2015
Passed Second Reading:	July 7, 2015 - Roll Call Vote
Passed Third Reading:	July 21, 2015 - Approved 31 - 4
Approved:	July 22, 2015
By:
Effective:	July 24, 2015