NASHVILLE, Tenn. (WTVF) — Nashville continues to be a city on the rise, and a new law hopes to keep affordable units inside the new complexes popping up all over town.
The new program intends to give a tax break to qualifying developments if they include affordable units.
Mayor Cooper's office specifically mentioned that to qualify, a development would need to have long term affordability for 20% to 40% of the units.
That tax break is tiered: the more affordable the rent, the bigger the break it gets. This is called the Mixed Income PILOT program.
The program aims to help people making 50% to 70% of the area's median income.
According to the Department of Housing and Urban Development, 50% median income would be $33,050 for a single person. For a family of four, it would be $47,150.
"As Nashville grows, it’s critical Nashvillians can afford to continue living and thriving here, which starts with more affordable housing,” Mayor John Cooper said.
The Mayor's Office also said that this targets construction projects which would not normally offer places for lower than market price.
It will be a 15 year deal and there will be an option to renew it for the same length. The tax break would go down by 20% between the 11-15 years of that term, according to the Mayor's Office.
The application goes live at the beginning of June.
