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A resolution requesting the Department of Finance and the Housing Division of the Department of Planning to research and determine the feasibility of the creation of a special revolving loan fund to issue loans for affordable housing that allow for smaller investments from members of the Nashville community.
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WHEREAS, the recent explosive growth of commercial and recreational investment in Nashville, has led to a critical shortage of housing, estimated in various studies as around 36,000 units affordable for lower income workers, families, individuals, and homeless people individuals with incomes ranging between 0-30% of AMI, and is substantially larger for those between 0-with incomes less than 80% of AMI; and
WHEREAS, financial and revenue restraints prevent adequate funding from the operating budget of Metro Nashville Government to meet affordable housing needs; and
WHEREAS, non-profit affordable housing construction and management organizations, and service and outreach organizations, are stretched to the limits of their capabilities; and
WHEREAS, the Metropolitan Government has funded programs aimed at increasing affordable housing in Nashville and Davidson County, including annual funding allocated to the Barnes Fund for Affordable Housing and a $20 million grant to establish the Nashville Housing Catalyst Fund using American Rescue Plan Act Funds; and
WHEREAS, the Metropolitan Government should also research the creation of a revolving loan fund that is capitalized through loans from members of the community, local businesses, nonprofit groups, and other organizations; and
WHEREAS, the creation of this type of revolving loan fund would help to fund more affordable housing with local buy-in and allow for the community of Nashville and Davidson County to ensure funding for affordable housing for their neighbors.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Metropolitan Council hereby goes on record as requesting the Department of Finance and the Housing Division of the Department of Planning to research and determine the feasibility of the creation of a special revolving loan fund to issue loans for affordable housing that allow for smaller investments from members of the Nashville community, local business, nonprofit groups, and other organizations. The Department of Finance and the Housing Division of the Department of Planning should recommend the best vehicle to accomplish the creation of this fund, whether it is through a fund of the Metropolitan Government, partnership with an existing program such as the Nashville Housing Catalyst Fund, or a new public-private partnership with a nonprofit organization.
Section 2. That the Metropolitan Council further requests that the Department of Finance and the Housing Division of the Department of Planning provide a report on the feasibility of the creation of a special revolving loan fund, including whether it could be accomplished by the Metropolitan Government itself or whether partnership with a nonprofit organization such as the Nashville Housing Catalyst Fund, is required, and that report be delivered to the Metropolitan Council no later than October 1, 2025.
Section 3. This resolution shall take effect from and after its adoption, the welfare of the people and Metropolitan Government of Nashville and Davidson County requiring it.