ORDINANCE NO. BL2015-1147

An ordinance requiring the Metropolitan Planning Department to prepare an amendment to the Metropolitan Zoning Code to require affordable and workforce housing units as part of residential developments, and to establish rules and regulations pertaining to the implementation of such requirements.

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 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”; and

WHEREAS, the enactment of this Ordinance is in the best interest of The Metropolitan Government of Nashville and Davidson County.

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. For purposes of this Ordinance, the terms “Affordable Housing” and “Workforce Housing” shall have the following meanings:

"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.

"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 2. The Metropolitan Planning Department shall prepare an amendment to the Metropolitan Zoning Code to add a new Chapter 17.10 entitled Inclusionary Zoning. Such amendment to the Metropolitan Zoning Code shall be submitted to the Metropolitan Council for consideration on first reading not less than one hundred eighty (180) days after the enactment of this Ordinance.

Section 3. The intent of such amendment to the Zoning Code is to provide requirements 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. The purpose of such amendment to the Zoning Code shall be:
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.

Section 4. In preparing the amendment to the Metropolitan Zoning Code, the Metropolitan Planning Department shall, at a minimum, consider the following:
1. The necessary percentage of units in all new residential development in Davidson County, including new construction, renovation of existing developments, and the conversion of rental property to for-purchase, that should be designated for Affordable Housing and/or Workforce Housing in order to achieve the intent and purpose set forth in Section 3 of this Ordinance.
2. Whether there should be a minimum project size that is required to provide Affordable Housing and/or Workforce Housing.
3. Whether any residentially-zoned land or proposed projects should be “grandfathered” in and not be required to provide Affordable Housing and/or Workforce Housing.
4. What should the income eligibility and target population for the Affordable Housing and/or Workforce Housing be?
5. Whether there should be a limit on the period of time that the units should remain Affordable Housing and/or Workforce Housing, and/or the conditions under which Workforce Housing units may be sold or re-sold, and who is entitled to the increased equity.
6. Whether developers should be offered cost offsets, for example, such as a density bonus or the waiver of certain fees to assist developers in recuperating the cost of providing the Affordable Housing and/or Workforce Housing.
7. Whether developers should be offered a “cash in lieu of building” option, with any such payments being deposited in the Barnes Fund for Affordable Housing, or any successor fund.
8. Whether there should be reduced Affordable Housing and/or Workforce Housing requirements for new high rise residential construction made primarily with steel and concrete.
9. Whether an option should be provided to build the affordable and/or workforce housing units within a different development, up to one mile from or up to three miles along the same transit corridor as the development that triggers the affordable and/or workforce housing requirement.
10. Any other technical or administrative details needed to provide affordable or workforce housing.

Section 5. The Planning Department is hereby authority to utilize the services of a consultant or consultants to develop the required Affordable Housing and Workforce Housing amendment to the Zoning Code pursuant to its contracting authority under Tennessee law and the Metropolitan Charter.

Section 6. 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: Brady Banks, Ronnie Steine, Sheri Weiner, Peter Westerholm, Karen Johnson, Anthony Davis