Presentation to Tennessee Affordable Housing Coalition May 17

Presentation to Tennessee Affordable Housing Coalition May 17, 2019

The Challenge q Housing prices have appreciated rapidly over the past eight years $350, 000 Median Davidson County Q 4 Residential Sale Price $306, 000 $300, 000 $250, 000 $200, 000 $154, 000 $150, 000 $100, 000 $50, 000 $0 2011 2012 2013 2014 2015 2016 2017 2018 Source: Greater Nashville Realtors 2

The Challenge q Housing prices have appreciated rapidly over the past eight years Average Two Bedroom Apartment Rent $1, 536 $1, 600 $1, 400 $1, 200 $1, 000 $872 $800 $600 $400 $200 $0 2011 2012 2013 2014 2015 2016 2017 2018 Source: Rent. Jungle, December of each year 3

The Challenge – 2015 q Where we are – or at least were. Source: 2017 Housing Nashville Report. 4

The Challenge – 2025 q The 31, 000 unit deficit… Source: 2017 Housing Nashville Report. 5

The Challenge – 2025 q …but 50, 000 units of “excess supply” Source: 2017 Housing Nashville Report. 6

The Proposal q Public-private partnership to construct at least 10, 000 additional housing units over the next 10 years q $750 million investment Ø $350 million of bond funding to MDHA for the Envision Process and 1, 000 additional deeply affordable units = 20% Ø $150 million of operating funds to the Barnes Fund for “gap financing” = 50% Ø $250 million of private sector investment 7

Addressing the Full Spectrum of Need 8

MDHA & the Envision Vision q MDHA serves 13, 500+ families on a daily basis Ø Primary mission: provide safe, affordable, equitable housing for those most in need in our community q Primary means of achieving that mission – Envision Ø Revitalize and preserve aging public housing supply in urban core with minimal disruption for residents Ø Increase number of affordable housing units available Ø Deconcentrate poverty o Community oriented, community-driven o Mixed income and mixed use development Ø Do all this with an eye to building community – including adding important community amenities (i. e. open and green space, food options, libraries, etc. ) 9

Overview of Envision Process CUMBERLAND VIEW North Nashville 21 Acres 226 Current Units ~800 Potential CHEATHAM PLACE Germantown 14 Acres 314 Current Units ~700 Potential ~2, 700 units on five former Hope VI sites and seven towers including 125 market rate units on 227 acres in exceptional condition in the core of Nashville CAYCE + CWA East Nashville 96 Acres 1, 038 Current Units ~2, 700 Potential ANDREW JACKSON Fisk University Area 15 Acres 374 Current Units ~750 Potential EDGEHILL APARTMENTS SUDEKUM/NAPIER East Nashville 56 Acres 821 Current Units ~2, 200 Potential Vandy/Belmont Area 33 Acres 380 Current Units ~1, 485 Potential 10 Potential for over 5, 000 new units on 235 acres in the core of Nashville

Where We Are Today q Initial Envision undertaking is Cayce Place Ø Master plan completed 2014 Ø Rezoning completed 2016 Ø 70 “deeply affordable” homes at Barrett Manor completed 2017 Ø 94 “mixed income” homes at Kirkpatrick Park will be complete this summer 11

Envision Plans Going Forward q Envision Napier and Sudekum Ø Master Plan completed August 2018 Ø Rezoning projected to be complete fall 2019 Ø Construction could begin as early as 2020 q Envision Edgehill Apartments Ø Master Plan underway – projected completion May 2019 Ø Rezoning projected to complete early 2020 Ø Construction could begin as early as 2021 q Envision planning at Cheatham Place, Andrew Jackson Courts and Cumberland View will come next 12

What’s New? q Add 1, 000 additional deeply affordable units q Faircloth Units – subsidized by federal government long-term and allows MDHA to increase number of “deeply affordable” units in the city. Ø Leveraging local investment to seek these federal subsidies preserves affordability for those most vulnerable in our community. Ø This investment will result in at least 1, 000 new “deeply affordable” units – on top of what was already planned through Envision. 13

City Investment in Envision q Mayor’s calculation re: investing in Envision efforts is three-fold: Clear need for more “deeply affordable” homes – MDHA primary entity that can help us meet that need. Able to use local $ to maximize federal and state money funds to us. If we believe this is top priority for city, we should have “skin in the game” and a seat at the table. 14

Barnes Fund Overview q Provides “gap financing” to nonprofit affordable housing developers q Provides funding for rental, homeowner and rehab projects q Projects primarily support units at 30 -80% AMI q Donates back-tax property in addition to funding 15

Barnes Fund Progress to Date q Since its inception in fall 2014, Barnes has awarded $28 m to nonprofit affordable housing developers Ø Leveraged an additional $127. 7 m from private sector and other grants to develop $155. 4 m total projects Ø Developed and seeded Community Land Trust to create permanent affordability throughout the city Ø Supported vital Capacity Building work to create more diversity and equity in nonprofit affordable housing development community Unit Breakdown Unit Type Multi Rental 8% Owner 15% Single 26% Rehab 77% 74% 16

Barnes Fund Locations q The Barnes Fund has created and preserved affordable housing across Davidson County. 17

Barnes Plans and Objectives q What will we do with the $150 million Ø Create stability and predictability for nonprofit affordable housing developers Ø Allows for more scale Ø Creates opportunity to support both specific, vulnerable populations and address the citywide affordable housing need Ø Creation and preservation of 5, 000 units 18

Support for Individuals Experiencing Homelessness q Goal: Decrease outdoor homelessness through outreach, services and low-barrier housing solutions q 100+ units of permanent supportive housing Ø Housing and on-site supportive services q Downtown Homeless Service Center Ø Storage, health services, intake/assessment, case management for Nashville’s Coordinated Entry System (CES). Emphasis on housing navigation. q RFP for construction to be released soon 19

Private Capital q $250 million q Three expected categories Ø Philanthropic giving Ø Affordable Housing REITs Ø Acceleration of current investments o Examples: Curb Victory Hall, Dominium 20

Conclusion q Nashville faces a significant challenge that merits an immediate investment q Historic local investment, national significance q Public-private partnerships are key q Investing in building stronger communities by creating mixedincome neighborhoods q Quality of life issue that benefits all Nashvillians 21