Study finds 'crisis' of affordable housing in Nashville

James Fraser has conducted some studies that went overlooked.

But he has a hot one on his hands now.

The Vanderbilt University professor and urban planner led a team last year that assembled Nashville's most authoritative report on the city's affordable housing and gentrification "crisis."

The study came out to little fanfare. But now it's the subject that thousands of surveyed Nashvillians rank as the city's most pressing concern. Community groups, city officials and mayoral candidates are championing Fraser's recommendations. And specific policy talks have begun.

"It's taken off," Fraser said. "A report for a planning department usually just sits there.

"On top of that, there's been a crisis of affordable housing in Nashville for quite awhile," he said. "We need to do something now."

The Metro Planning Department commissioned the 51-page study, but researchers didn't hold back on several sharp critiques of city policy. They found:

• Nashville's efforts have been "scattershot,"

• that a celebrated housing trust fund has thus far been "largely symbolic"

• and that current ordinances don't guarantee more affordable housing will be built for residents in need and for the waves of new arrivals.

Affordable housing is not just for the poorest Nashvillians, but also for families earning at or even slightly above the median income of $56,377 for a family of four — teachers, electricians, nurses and computer programmers.

"We're talking about people who work full time in professions," Fraser said. "If our teachers can't afford to live in the city they teach in, that's crazy."

Assembled at Vanderbilt by Fraser, professor Doug Perkins, and graduate students Amie Thurber and Jyoti Gupta in the Department of Human and organizational Development, the study shows the city's high rate of "cost-burdened" households and the immense pressure of gentrification.

In Nashville, researchers say, gentrification — defined as neighborhood revitalizations that raise housing costs and force out low-income residents — has been rapid in walkable neighborhoods near downtown.

These areas are attractive to the largest populations of new arrivals: millennials and baby boomers. But those areas have long been home to the residents most in need of affordable housing and access to city services and transit.

"For years now, especially with the market changing after the recession, neighbors have been feeling these pressures," said Tifinie Capehart, Metro community planner. "The larger public is starting to pay attention to it."

A road map ahead

But part of what sets the study apart, Fraser said, is the specific road map it suggests for how Nashville can increase affordable housing and ensure "equitable development" for everyone.

Researchers want better data and monitoring of changing neighborhoods — both a report card for gentrifying areas and predictions about where redevelopments will take place next. And they want a handful of proven policies enacted.

In four steps, they suggest:

• First, provide much more money, on an ongoing basis, to the Barnes Housing Trust Fund, which would be tapped for affordable housing projects. Fraser suggests $125 million.

• Second, pass an inclusionary housing ordinance to require some portion of new developments to remain affordable — an idea now under study here.

• Third, preserve affordable units long term by creating a shared equity housing program. This would provide public money to build housing that, by law, must remain affordable in future sales.

• And, finally, retain current residents through a home-repair assistance program.

In the past month, attention has grown on the status of the housing trust fund and officials are considering inclusionary zoning.

The study's "toolkit" scrutinizes a dozen other affordable housing strategies and how they work in other cities.

"I think we're at a crossroads," Fraser said. "The people have spoken. … The next thing to do is to take some bold steps to make a strong statement that we care about the people who live here and that they can participate in the revitalization that's taking place across the city."

Reach Tony Gonzalez at 615-259-8089 and on Twitter @tgonzalez.

Affordable housing

Step by step

A local study gaining new interest suggests four necessary pieces to create affordable housing while reducing the displacement of low-income families.

Fund

Dedicated funding streams to provide public dollars to private projects

Build

Ordinances and incentives to spur construction of affordable units

Preserve

Programs with rules to hold prices over time

Retain

Tools that help residents afford to stay in place and improve homes

Source: "Equitable Development" report commissioned by Metro Planning Department

The affordability problem

Surveys of thousands of Nashvillians landed housing affordability as the top-ranked concern. In response, Vanderbilt researchers detailed the shortage of housing and the displacing impact of gentrification.

• Nashville needs 1,500 additional affordable units every year to meet new demand.

• 77,000 households below median income are spending more than 30 percent of income on housing.

• An additional 27,000 live in public or subsidized housing, with thousands more on waiting lists.

• Gentrification, or the displacement of low-income residents, was documented in the 12South neighborhood, where housing costs rose 269 percent from 2000 to 2012, while the black population fell by 58 percent

Source: "Equitable Development" data gathered by Vanderbilt doctoral student Amie Thurber

The Nashville solution

Researchers analyzed 14 affordable housing tools in the "Equitable Development" study and recommended at least four that Nashville should pursue.

IDEA: Dedicate funds for affordable housing projects

Tool: Barnes Housing Trust Fund

Status: Nashville's fund lacks an ongoing revenue source and hasn't been scaled up, but "enjoys enthusiastic local support." James Fraser recommends a goal of $125 million, assembled from taxes, bonds, developer fees or federal and state grants.

IDEA: Require or incentivize affordable unit construction

Tool: Inclusionary zoning policies to require a portion of units at some developments

Status: A voluntary program exists but is "ineffective" in Nashville, but Metro recently asked a firm to develop a policy for the city.

IDEA: Preserve units with programs and rules to hold prices over time

Tool: Shared equity housing or a community land trust, in which public money helps build homes that have future sale price limits

Status: Limited use in Nashville, and challenging to administer. Best used alongside inclusionary zoning.

IDEA: Retain residents with tools to help them keep and improve homes

Tool: Home repair assistance program for low-income owners

Status: Resources limited but in use by several agencies; perhaps in need of greater awareness.

Source: "Equitable Development" report commissioned by Metro Planning Department

Read the report

Find the full study at bit.ly/EquitableDevelopment.