February marks 10 years since the establishment of the Payment in Lieu of Taxes (PILOT) program in Metropolitan Nashville-Davidson County. Over the past decade, the program has provided significant property tax relief to developers awarded Low-Income Housing Tax Credits (LIHTC) by the Tennessee Housing Development Agency. These types of public-private partnerships are key in expanding Nashville’s supply of affordable housing.
Paddock at Grandview was the first development to receive a PILOT when approved by Metro Council on Feb. 5, 2016. Since then, 56 developments consisting of 11,387 affordable housing units have been supported by the PILOT program. Of those, 7,876 units were newly constructed and 3,511 were rehabilitated. As of Feb. 2026, 612 new affordable units are under construction in PILOT-supported developments.
In June 2024, MDHA received approval from Metro Council to increase the annual property tax abatement capacity from $2.5 million to $5 million. That increase allows MDHA to serve additional affordable housing developments each year.
MDHA is proud to support these developments with the PILOT program. Through these efforts, the Agency continues to further its mission to create quality affordable housing opportunities, support neighborhoods, strengthen communities and help build a greater Nashville.
Click here for more information about MDHA’s PILOT program. The page includes an application for interested developers.
See where the PILOT program has made a difference.
Click the button below for a map of PILOT developments in Davidson County to see the reach of the program’s impact.
