NASHVILLE, Tenn. (WTVF) — Nashville Metro Council members are weighing a voluntary housing incentive program, introduced on first reading Tuesday night, as the city faces a projected shortage of 90,000 homes by 2035.
The proposed Voluntary Attainable Housing Incentive Program would offer developers additional building entitlements in exchange for setting aside 10% of units at attainable prices for middle-income residents.
"What it would do would say for a developer who is interested in additional entitlements, they'd like to be able to put a few more units on. If they voluntarily choose to use this program, then they could set aside 10% of those units to be what's called an attainable price," said Metro Council member Burkley Allen.
Allen said attainable housing means units priced at 30% of a middle-income salary. Developers who participate in the voluntary program could receive incentives, including no maximum unit count and no minimum parking requirements.
The program stems from legislation passed by the Tennessee General Assembly in spring 2024 that authorized voluntary zoning for attainable housing statewide.
A City of Nashville study shows the area will need close to 100,000 homes by the next decade to meet growing demand while housing supply remains low.
"Hopefully, we'll see that it's a tool that can be used that will create some just different housing options for people that, you know, are the, you know, the core of our city doing the work that needs to be done that just can't find housing that they can afford," said Allen.
Allen says this is just a first step in the the creation of this program and there will be more to come.
So far, Chattanooga is the only Tennessee city that has implemented a Voluntary Attainable Housing Incentive Program, passing it through their council earlier this year.
The Nashville proposal will require additional readings before final approval.
This story was reported on-air and written by reporter Kelsey Gibbs and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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