Metro Code 17.36.060 grants density and height bonuses to projects that voluntarily commit affordable units. The bonus is tied to NashvilleNext goals and is administered by the Metro Planning Department through the standard zoning entitlement process.
Building on the 2015 NashvilleNext General Plan, Metro Council enacted voluntary density-bonus provisions in Title 17. Eligible projects in qualifying districts may receive additional dwelling units, reduced parking minimums, or modest height increases in exchange for binding restrictions reserving a defined percentage of units at incomes of 60 to 120 percent of area median income for prescribed terms. Tennessee state law preempts mandatory inclusionary zoning under TCA 66-35-102, so Nashville's program operates as an opt-in incentive rather than a requirement. Applications are processed through Metro Planning, with deed restrictions recorded and monitored by the Metro Development and Housing Agency or designated administrator.
Failure to deliver promised affordable units results in revocation of the density bonus, requiring project reduction, plus civil penalties under the recorded land-use restriction agreement, often calculated as an in-lieu fee per missing unit.
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