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An ordinance requiring the Metro Division of Housing to establish a public dashboard on how the city is addressing the issue of housing affordability in Nashville and Davidson County.
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WHEREAS, housing stability is considered a social determinant of health that affects a wide range of quality of life outcomes and risks; and
WHEREAS, housing costs that are more than a household can reasonably afford lead to housing insecurity and instability and a negative impact on people’s health, well-being, and quality of life; and
WHEREAS, according to the U.S. Census, 49% percent of renters and 23% of homeowners in Nashville spent more than 30% of their incomes on housing costs in 2021 and are considered cost burdened; and
WHEREAS, the costs of housing in Nashville are growing significantly more than incomes; and
WHEREAS, the average asking monthly rents in Nashville increased 123% and the typical mortgage payment increased 126% from July 2012 to July 2022; and
WHEREAS, the median household income of renters increased by 71% and the median income of homeowners increased 45% from 2011 to 2021; and
WHEREAS, according to the U.S Census, the Median Household Income for Davidson County for all households is $65,348, which is approximately 68% of the Area Median Income (AMI) for all households in the 10-county Metro area; and
WHEREAS, the gap analysis in the 2021 Affordable Housing Task Force Report estimates that 44,772 units of rental housing and 7,726 units of owner housing are needed for households with incomes at or below 80% AMI by 2023 to meet growth and affordability projections; and
WHEREAS, an estimated 2,000 persons are experiencing homelessness in Metro Nashville at any given time, and the Affordable Housing Task Force Report estimates the need for 2,399 units of Permanent Supportive Housing within 5 years; and
WHEREAS, the Task Force recommended that Metro maintain an inventory system that tracks all subsidized affordable units funded, when units will be completed, and when affordability restrictions expire; and
WHEREAS, such data shall be used to inform the evolution of tools and policies to address affordability needs; and
NOW, THREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Metropolitan Council hereby directs the Metropolitan Planning Department, through its Housing Division, to create a centralized dashboard to track funding and development and preservation of subsidized homeownership and rental housing, including when units were funded, their completion status, and when affordability restrictions expire.
The Housing Division shall track the number of subsidized owner-occupied units preserved through home rehabilitation and improvement programs annually.
Subsidized units, for this purpose, shall be defined as:
1. Income-restricted units funded or incentivized through a Metro resource, including grants, loans, property awards, and tax incentives and abatements, whether administered by a Metro Nashville agency, board or commission (such as the Industrial Development Board and the Health and Educational Facilities Board), or another entity on behalf of Metro (such as MDHA).
2. Income-restricted units funded by state or federal funds or resources awarded to Metro Nashville through direct allocation or competitive award and/or administered on behalf of Metro Nashville.
Data for the dashboard shall be based on reports submitted by agencies and entities administering subsidized housing programs and supplemented by grantees and recipients of awards and incentives.
By July 1, 2023, the Housing Division shall publish the total number of subsidized units funded for development and/or rehab annually since 2018. Moreover, by July 1, 2023, the Housing Division shall establish a reporting method and schedule for collecting data and will work with organizations administering subsidized programs to complete the inventory by June 30, 2024.
The Housing Division will endeavor to track income-restricted units funded and/or incentivized with non-Metro resources (such as Low-Income Housing Tax Credits and Project-Based Rental Assistance units) to include in the inventory.
Section 2. The Metro Housing Division dashboard shall be available and accessible to the general public by January 1, 2024. In addition to the housing inventory described in Section 1, the dashboard shall provide a baseline of Davidson County’s housing needs for households with incomes at or below 80% of the Area Median Income as defined by the U.S. Department of Housing and Urban Development and may include additional metrics as identified by the Housing Division as best practices. The dashboard will be updated as new information is available but no more frequently than quarterly.
Section 3. That Resolution No. RS2018-1242 is hereby repealed.
Section 4. This ordinance shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This ordinance, as amended, directs the Metropolitan Planning Department, through its Housing Division, to create a dashboard to track funding, development, and preservation of subsidized homeownership and rental housing. This would include when units were funded, location (council district), sources of funding, income levels, completion status, and when affordability restrictions expire. This information would not include information about the location of projects that provide housing for victims of domestic violence. The Housing Division will also track the number of subsidized owner-occupied units preserved through home rehabilitation and improvement programs annually.
For the purposes of the ordinance, “subsidized units” are (1) income-restricted units funded or incentivized through a Metro resource, including grants, loans, property awards, and tax incentives and abatements, including those administered by agencies, boards, and commissions (such as the Industrial Development Board and the Health and Educational Facilities Board) or another entity on behalf of Metro (such as MDHA) and (2) income-restricted units funded by state or federal funds or resources awarded to Metro Nashville through direct allocation or competitive award and/or administered on behalf of Metro Nashville.
By July 1, 2023, the Housing Division is required to publish the total number of units funded by the Barnes Housing Trust Fund since its inception as well as the total number of other subsidized units funded for development and/or rehab annually since 2018. In addition, by this same date, the Housing Division is required to establish a reporting method and schedule for collecting data and will work with organizations administering subsidized programs to complete the inventory by June 30, 2024.
The dashboard must be available and accessible to the public by January 1, 2024. This dashboard should also provide a baseline of Davidson County’s housing needs for households with incomes at or below 80% of the Area Median Income as defined by the U.S. Department of Housing and Urban Development and may include additional metrics as identified by the Housing Division as best practices. The dashboard will be updated quarterly.
Finally, this ordinance repeals Resolution No. RS2018-1242, which requested the Mayor’s Office of Housing to provide periodic reports on affordable housing to the Council’s Ad Hoc Affordable Housing Committee.