The Metropolitan Development and Housing Agency has exceeded the milestone of 10,000 affordable apartments through MDHA’s Payment in Lieu of Taxes program for tax credit properties. The program, which was established in 2016, assists in the creation and preservation of affordable apartments in Davidson County. Of the 10,000 affordable apartments 6,115 have been placed in service, and 3,898 are under construction.
MDHA’s PILOT program provides 10 years of property tax relief to developers who have been awarded a Low-Income Housing Tax Credit from the Tennessee Housing Development Agency. These financial incentives encourage developers to expand the supply of affordable multi-family housing through new construction and substantial rehabilitation and ensure that affordable housing development is financially feasible in Davidson County.
“While there is still much work to be done, MDHA’s PILOT program reaching this significant milestone is the result of a tireless team effort with public and private partners that will cascade into supporting housing for all Nashvillians,” said MDHA Executive Director Dr. Troy D White
“Public-private partnerships are key to addressing the need for affordable housing in Nashville,” said MDHA Executive Director Dr. Troy D. White. “While there is still much work to be done, MDHA’s PILOT program reaching this significant milestone is the result of a tireless team effort with public and private partners that will cascade into supporting housing for all Nashvillians.”
Once a PILOT submission is approved by MDHA’s Board of Commissioners, it is presented to the Metropolitan Council for approval. At the Oct. 1 Metro Council meeting, councilmembers approved MDHA PILOTs for three new developments for a total of 50 new or rehabilitated developments since 2016. Nearly 75% of the apartments approved through MDHA’s PILOT program are new construction.
“Over the last eight years, we have preserved 10,000 affordable homes thanks to the PILOT program, and since taking office, I’ve witnessed firsthand the daily improvements we are making to our housing options,” said Mayor Freddie O’Connell. “The priorities of this administration are to improve quality of life and make Nashville more affordable, and programs like PILOT are part of the tools we are deploying to help address the affordable housing need in our community.”
When established in 2016, MDHA’s PILOT program was granted an annual abatement capacity of $2.5 million by Metro Council. In 2024, MDHA received approval from the Board of Commissioners and Metro Council to increase the annual abatement capacity to $5 million to ensure that the PILOT program could continue to support the demand for affordable housing in Nashville. So far in 2024, $2,878,978 in property tax abatement has been approved for MDHA PILOT developments.
Click here for more information about MDHA’s PILOT program, including an application for developers.
