Ford Motor Company’s BlueOval City, a project that was announced in 2021 as a part of an investment in electric vehicles and sustainable manufacturing, is expected to bring both new jobs and residents to Western Tennessee in 2025. As a result, housing experts are urging the state to examine residential approval processes in the area.
With the planned expenditure of $5.6 billion, the project is expected to create 6,000 jobs for Tennesseans in Haywood County. The University of Memphis recently received a grant to explore transportation challenges ahead of the project’s opening, examining public transit systems such as fixed-line buses, on-demand micro transit, and more.
Information from the United States Census Bureau said as of July 1, 2023, Haywood County had 8,274 housing units for a population estimate of 17,328. Close to 60 percent of these houses were occupied by homeowners.
A policy brief published by Charles Gardner and George Dean is filled with recommendations for the state’s housing market. It noted that housing prices in the state are on the rise, with many middle-class buyers not being able to keep up with the market. In Memphis specifically, renting has become a more viable option for those seeking housing due to prices increasing drastically in 2021.
“A main contributor to this shortage of affordable housing is the challenge of obtaining subdivision approvals and final permits for both single-family and multifamily housing,” the brief said. “The current housing crisis obligates Tennessee’s policymakers to examine the means for speeding up housing production. One approach is through targeted reforms that streamline the land use approvals process. “
The census reported that as of 2023 Haywood county had 17 building permits. Gardner explained that the state doesn’t strictly regulate building and zoning, leaving those who give out these permits with a lot of freedom. As a result, these permits can take a long time, with no guarantee of approval. He added that Tennessee’s procedure of common law writ of certiorari is “archaic and not well understood.”
To remedy this, Gardner makes several recommendations to streamline the decision-making process and to improve transparency by basing the approvals of solid evidence as opposed to influence from local government.
The brief criticizes Tennessee Vested Property Rights Acts, stating that it has “plagued” the state for decades. Under the doctrine of vested, developers can rely on the zoning laws that were in place when they applied for a project. He mentioned that since the 1935 zoning law doesn’t mention these rights, which can result in the courts getting involved or local officials making decisions.
“In Tennessee, it is not uncommon for public backlash or objections from local officials to arise after a building permit is issued,” the brief said. “Often, those who object to the project quickly introduce a bill to the city council to change the underlying base zoning in a way that renders the construction noncompliant. Typically, these new zoning regulations are adopted much more quickly than the permittee can finish a substantial part of the construction.”
The Tennessee General Assembly recognized this and enacted the Vested Property Rights Act of 2014 which guarantees that a developer’s building permit or project approval will have guidelines and rules that will stay in place for a number of years.
While this addressed a key issue, the policy brief recommends amending the act so that development rights are protected when plans are submitted as opposed to when they are issued. They also ask that zoning rules don’t change “in a manner that reduces development potential.”
In addition to this, Gardner and Dean recommended reforming variances and conditional use permits, replacing the writ of certiorari, and boosting board member trainings.
The entire brief can be read here.