Oct 23, 2024
After years of living in and out of shelters, Karen Brimer finally has a place to call home. She was among the first residents to move into Wallace Studios, a recently renovated affordable housing complex in Nashville, Tennessee.
“God, I love this place. I love this place,” she told NewsChannel 5 from the couch of her new unit on Sept. 30. “It's mine. I can do what I want with it, how I want to, and it's been a good thing.”
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Wallace Studios — which contains 132 units — is one of several housing projects initiated by AGB Real Estate under the helm of its founder, Adam Rosenberg. His team so far is responsible for transforming three Music City motels into apartment housing. The next one, slated to be finished later this year, will also include affordable housing.
“People who have struggled for months, if not years, whether on the street or in difficult situations, are now able to move into a safe community and call their unit home,” Rosenberg told NewsChannel 5.
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.
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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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Could 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, 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. But 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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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
