Jake Lowary

USA TODAY NETWORK - Tennessee

House members on Thursday passed a bill that would prevent cities like Nashville from requiring affordable housing be a part of new housing developments, a measure that met resistance from Democrats who argued cities should have the autonomy.

House Majority Leader Glen Casada, R-Franklin, argued that "mandates" placed on developers would make real estate prices in places like Nashville and Memphis mirror high living costs that are often associated with places like San Francisco, Honolulu and Atlanta.

Casada's bill would instead allow cities to offer incentives for including affordable housing in new developments, and prohibit requirements that below-market options are part of new projects.

"It's obvious, government mandates drive up the cost of housing," Casada said. "It destroys affordable housing and destroys the free market."

The measure takes specific aim at a law Nashville's Metro Council passed that would take effect in June.

Casada said last month the bill was brought to him by multiple "business interests" around the region. His bill is similar to a law passed last year that took aim at the same issue.

Nashville worked around that law by passing a bill that would hand more development entitlements to developers willing to include affordable units.

Under Metro’s law, residential apartment developers in Nashville building five or more units will have to include a percentage of new workforce units in their projects when they request a zoning variance for greater development rights. These could include the ability to build taller that what is normally allowed. Grants are meant to offset the costs of developers to make the housing cheaper than market value.

If passed by the Senate and signed by Gov. Bill Haslam, the Metro law could be nullified.

Rep. Mike Stewart, D-Nashville, proposed several amendments to exempt cities like Nashville and Memphis from the bill, but all either failed or were withdrawn.

"I really think this is an area where we need to let cities have some autonomy," he said.

Stewart called Metro's ordinance a "trade-off" that the city allow developers variances on developments — to add more units or more dense developments than normally allowed — in exchange for making some of those units or homes available at a lower cost.

Casada said that's not the case.

"If the cities will ask, work with, cooperate, incentivize, and mandate there would be no reason for this bill, but that's not what's happening," he said.

A separate three-year pilot program to let residential developers who agree to build affordably priced units compete for financial incentives and grants would not be affected if Casada's bill becomes law.

Jake Lowary covers Tennessee politics and state government for the USA Today Network. Reach him at 615-881-7039 or follow him on Twitter @JakeLowary.