by Metro Council may pass an ordinance Tuesday evening that will make Nashville’s current affordable housing situation worse.Since The Tenneseean's content is now hidden behind a paywall and you may not be able to access this article I will summarize it. Here are the main points:
The ordinance — # BL2015-1139 — would mandate that 14 percent of the units in all new or renovated residential real estate in Nashville/Davidson County be set aside as “Affordable Housing” or “Workforce Housing,” which means they must be rented or sold at below-market rates.
While it may sound like an attractive idea to simply mandate that Nashville’s affordable housing issues disappear by councilmatic decree, the reality is anything but attractive.(link)
- This is basically a tax on the development of residential real estate and the more you tax any activity, the less of it you get.
- Affordable housing has to be subsidized by someone. Artificially reducing rent for 14 percent of the residents in a development means the other 86 percent have to make up the difference by paying above-market rates.
- There is still affordable housing in the Nashville, but maybe not where one wants to live. If you want affordable housing you may have to live in Madison or Antoch rather than Greenhills or Downtown.