Tennessee Productive Housing Development
Housing development in the years between 1999 and 2006 were of the most productive in Nashville’s history. Consequently, this high rate of production and a community-wide focus on affordable housing led to the creation of an unprecedented number of affordable housing opportunities throughout the County.
Between 1999-2006, the affordable housing industry provided 26,487 new affordable housing opportunities in Nashville and Davidson County. These include homebuyer opportunities, single or multi-family rental units, development financing, special needs housing opportunities, and units preserved for affordability.
While a majority of these opportunities have been developed by the private, for profit sector, the community development community has played a critical role is this effort. However, the non-profit community development organizations have been critical to this success, as well, as they serve the most in-need households, particularly those earning 60% or less than the median family income.
Approximately 45 percent of the total number produced was in homeownership. Financial market conditions during this time period made homeownership possible for many families that never thought they could own a home. That, combined with a variety of creative lending products developed by the non-profit and for-profit financial services industry in Nashville provided the opportunity to achieve the American Dream to over 12,000 households.
Rental housing accounted for about 35 percent of overall production. Over 9,000 new rental opportunities were created that provided safe, decent, affordable housing opportunities to households throughout Davidson County. A majority of these opportunities were financed using either Low-Income Tax Credits, or mortgages insured by the US Department of Housing and Urban Development and were affordable to households earning 60 percent or less of our area median family income.
In addition, about 20 percent of the production was for the preservation of affordable housing stock. Through various partnerships with non-profit community development organizations, local government programs, and federal government insured refinancings, over 5,000 homeownership and rental opportunities were stabilized and maintained as affordable.
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