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A resolution approving an adjustment to the Mixed-Income PILOT Program as authorized pursuant to Ordinance No. BL2022-1170 program.
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WHEREAS, increasing demand for affordable rental housing and tight rental market conditions continue to exist in the Metropolitan Government of Nashville and Davidson County ("Metropolitan Government" or "Nashville") area; and
WHEREAS, housing affordability is a primary concern of the citizens of Nashville, as itis a major barrier to economic progress for many individuals in Nashville; and
WHEREAS, increasing the supply of housing for low and moderate-income persons supports economic growth and is an important tool in reducing poverty in Nashville; and
WHEREAS, the Affordable Housing Task Force ("AHTF") Report (June 8, 2021) projected that 44,772 rental units for households with incomes at or below 80% of the area median income ("AMI") are needed to meet the current demand and future growth over the next ten years; and
WHEREAS, the Metropolitan Government currently has a successful payment in lieu of ad valorem tax program ("MDHA PILOT Program") operated by the Metropolitan Development and Housing Agency ("MDHA") for MDHA lessees operating Low Income Housing Tax Credit ("LIHTC") properties resulting in a positive impact on the supply of affordable housing in
Nashville; and
WHEREAS, MDHA's PILOT Program is limited by state law to properties that have received LIHTC, and the need for affordable housing is much greater than what can be provided by this program alone; and
WHEREAS, the AHTF Report recommended the creation and expansion of tools and resources to address the City's housing affordability challenges, including the creation of a payment-in-lieu of taxes ("PILOT") to support non-LIHTC developments to fund long-term housing options in partnership with nonprofit and private developers; and
WHEREAS, mixed-income housing in market rate developments creates affordability options that may not otherwise exist and, therefo...
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