Transforming motels into affordable housing
The idea of turning large, underutilized or abandoned spaces into housing isn't a new one. But motels have a big benefit — many come with the infrastructure necessary for habitation built in.
For example, AGB purchased the property that would become Wallace Studios for $10 million in August 2023, spending 10 months installing new kitchens and bathrooms in each unit.
Converting these sizable assets into affordable housing can be a boon to struggling families.
“The rent is dictated by HUD, what's called the fair market rent. For Davidson County, that’s $1,400, and it includes fully furnished units and all utilities, along with peer support and security,” Rosenberg said of Wallace Studios.
The U.S. Department of Housing and Urban Development (HUD) helps low-income families afford suitable housing. Vouchers can also be distributed to residents who are especially vulnerable. Local agencies determine eligibility for assisted housing programs based on annual income and applicants' status, such as if they are elderly or living with disabilities. Income limits are based on a percentage of an area's median family income.
Nashville is in the midst of an affordable housing shortfall. A 2021 government report stated that in order to meet demand, 52,498 units would need to be created by 2030, requiring a significant ramp-up in production levels.
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Read MoreCould this be a solution nationwide?
Nashville isn't alone in facing an affordable housing crisis. According to the National Low Income Housing Coalition, no state in the U.S. has an adequate supply of affordable housing. There's an estimated shortage of 7.3 million affordable rental homes across the country available to renters with extremely low incomes, which the organization defines as those with incomes at or below the federal poverty guideline or 30% of their area median income, whichever is greater.
Could projects like Rosenberg's provide the solution to this shortage?
There don't seem to be any statistics regarding the number of motel properties that would be out of commission and suitable for conversion. However, it's doubtful there would be enough to address affordable housing shortages alone, and there's no telling exactly where these properties would be located.
But similar projects have been engaged in states like California, New Mexico, Texas and Florida.
The solution to a nationwide affordable housing crisis won't come from a single initiative. However, projects like Wallace Studios show that transforming underutilized properties can offer hope and stability for struggling families, as well as a place to call home.
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