New Tennessee Law Allows No-Cost Incentives for Affordable Housing

Local governments in the Volunteer State can now offer developers incentives like increased density, lower parking requirements, and priority permitting for affordable housing projects.

2 minute read

June 10, 2024, 5:00 AM PDT

By Mary Hammon @marykhammon


Multistory apartment building under construction.

eunikas / Adobe Stock

Tennessee Gov. Bill Lee has signed into law a bill aimed at stimulating construction of affordable housing. According to an Nooga Today article by Kristen Templeton, local governments in the state are now able to offer no-cost incentives to builders of affordable housing developments:

  • Increased density allowance to allow more units to be built on a piece of land, which makes it possible to build lower-cost homes.
  • Lowered parking requirements, which can create savings up to $14,000 per home.
  • Priority permitting, which can reduce carrying costs for developers in the pre-development process. 

The incentive programs are voluntary and must align with PILOT reform and upcoming zoning reform. “Each municipality wishing to adopt the new framework will have to pass a local ordinance detailing the local incentives + [sic] process. Once adopted, developers and builders can opt in through a written notice of interest, and projects that meet the criteria will go through a review process for approval or denial by the Regional Planning Commission,” reports Templeton.

These types of no-cost incentives can be an easier pill for community stakeholders to swallow versus tax incentives and fees waivers, as they don’t directly cost local or state government revenue. But, according to InclusionaryHousing.org, “Even planning incentives such as density bonuses, which appear free, result in increased infrastructure and other public costs.” They add, “communities have to carefully weigh the costs and benefits of each incentive and evaluate them relative to the cost of meeting specific affordable housing requirements.”

Thursday, June 6, 2024 in Nooga Today

Single-family homes in a suburban neighborhood in Florida.

New Florida Law Curbs HOA Power

The legislation seeks to cut down on ‘absurd’ citations for low-level violations.

June 16, 2024 - The Guardian

Multistory apartment building under construction.

New Tennessee Law Allows No-Cost Incentives for Affordable Housing

Local governments in the Volunteer State can now offer developers incentives like increased density, lower parking requirements, and priority permitting for affordable housing projects.

June 10, 2024 - Nooga Today

Aerial view of intersection in New York City with yellow cabs and zebra crosswalks.

Planners’ Complicity in Excessive Traffic Deaths

Professor Wes Marshall’s provocatively-titled new book, "Killed by a Traffic Engineer," has stimulated fierce debates. Are his criticisms justified? Let’s examine the degree that traffic engineers contribute to avoidable traffic deaths.

June 13, 2024 - Todd Litman

Brick high-rise apartment buildings in New York City

Study: Housing Crisis is About Affordability, not Supply

New research shows that there is no overall shortage of housing units, but all U.S. metropolitan areas face a severe lack of affordable units for low-income renters.

June 18 - University of Kansas

Couple on one side of desk with banker on other side looking at paperwork.

Are Race-Based Lawsuits Affecting Community Lenders?

Shelterforce spoke with community lending leaders and experts about the current mood across the sector. What, if anything, are organizations doing to avoid becoming the next target of conservative activists?

June 18 - Shelterforce Magazine

Rendering of Glory Park in Lewisville, Texas.

New Park Promotes Community and Connectivity in Lewisville, Texas

The city of Lewisville just celebrated the opening of Glory Park/Parque la Gloria, helping to improve park access and the quality of life for residents.

June 18 - Lewisville Leader

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.