Tennessee Senate Approves Anti-Mandatory Inclusion Bill

The so-called “mandatory inclusion” guideline used by many cities to require a specific amount of affordable units be reserved in new residential developments has hit a major roadblock in Tennessee.

According to a report in The Tennessean, the state’s Senate voted 26-3 to approve a bill that would prevent Tennessee cities from creating and enforcing mandatory inclusion. The bill was introduced in response to efforts in Nashville to pass a mandate that would require developers to set aside a percentage of units in new residential construction for affordable housing.

Rep. Glen Casada, a Republican who introduced the bill in January with Sen. Ferrell Haile (also a Republican), insisted that mandatory inclusion mandates fail to benefit any of the stakeholders in the housing market.

"I would contend that wherever they’re implemented, it drives homebuilders out of that community and thus it drives up the cost of homes,” Rep. Casada said “What we’re trying to do is to stop the inflated pricing and structure and let the free market continue to work. The free market can solve the problems, not government.”

The bill will now go to the Tennessee House of Representatives for debate and a vote.