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A resolution authorizing the Metropolitan Mayor to submit the Nashville-Davidson Substantial Amendment 1 to the HOME Investment Partnerships - American Rescue Plan (HOME ARP) Allocation Plan to the U.S. Department of Housing and Urban Development (HUD).
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WHEREAS, by Resolution R94-1326, the Metropolitan Council designated the Metropolitan Development and Housing Agency (“MDHA”) as the lead agency responsible for the preparation of the Five-Year Consolidated Plan for Housing and Community Development and administering programs such as HOME ARP associated with it for The Metropolitan Government of Nashville and Davidson County; and
WHEREAS, The HOME Investment Partnerships -American Rescue Plan (ARP) (HOME-ARP) provides (one-time) funding to HOME Participating Jurisdictions (PJs) with the aim of reducing homelessness and increasing housing stability across the country. HUD allocated $9,298,780 in HOME-ARP funds to Nashville-Davidson County. HOME ARP funding offers a range of eligible activities, including supportive services, the development of non-congregate shelters, tenant-based rental assistance, the development of affordable rental housing, nonprofit operating support, and nonprofit capacity building.
WHEREAS, MDHA prepared and submitted an Allocation Plan to HUD in 2022 for the HOME-ARP funding that focused on developing new rental units for individuals experiencing chronic homelessness. In January 2023, HUD directed MDHA to revise the approved Plan to expand access to services to additional qualifying populations considered to be in danger of becoming homeless. MDHA, with the assistance of a HUD technical assistance provider, prepared Substantial Amendment 1 to the HOME-ARP Allocation Plan to meet these requirements.
WHEREAS, In 2021, the community engagement process identified two priority needs for HOME ARP funding: development of affordable rental housing, and the need for supportive services. In 2024 with more than 400 additional units of permanent supportive housing committed or coming online through the Affordable Housing Gap Financing (AHGF) and other programs, there is a need to provide supportive services for the new permanent housing to ensure successful tenancies and reduce returns to homelessness. Amending the HOME ARP Allocation Plan provides a promising opportunity to use the funding for supportive services for tenants occupying the new permanent housing.
WHEREAS, Following community engagement, MDHA prepared Substantial Amendment 1 to the HOME-ARP Allocation Plan. This Substantial Amendment allocates $7,904,430 for supportive services and $1,394,350 for Administration and Planning, as described below.
• Supportive Services - $7,904,430 - MDHA anticipates awarding HOME-ARP funding to eligible service entities through a request for applications (RFA) process to pay for costs associated with providing the homeless and other qualifying populations in danger of becoming homeless with voluntary access to case management, primary and mental health care; substance use treatment; employment and life skills counseling; eviction prevention program; social and recreational events; and tenant advocacy with the goal of building independent living and tenancy skills to increase self-sufficiency to help them remain housed.
• Administration & Planning-$1,394,350-Grant Management until all funds have been expended and the grant has been closed out by HUD.
WHEREAS, in accordance with MDHA’s HUD approved Citizen Participation Plan, this Substantial Amendment 1 was presented via a virtual presentation on May 23, 2024, made available for public comment from June 6 through July 8, and a virtual public hearing was held during the public comment period on June 13. The plan's Appendices include a summary of the 1 question and 1 comment received by the deadline, and MDHA’s responses.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Metropolitan Council adopts the HOME ARP Substantial Amendment 1 attached hereto and made part of this Resolution, and the Metropolitan Mayor is authorized to submit the Substantial Amendment 1 to HUD; and
Section 2. That the Nashville-Davidson HOME ARP Substantial Amendment 1 which describes the use of HOME ARP funds to be used to provide supportive services for the homeless and other qualifying populations in danger of becoming homeless, is attached hereto and made a part of this Resolution.
Section 3. That the Metropolitan Development and Housing Agency is authorized to administer the Consolidated Plan and related programs on behalf of the Metropolitan Government of Nashville and Davidson County; and.
Section 4. That this Resolution shall take effect from and after its passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution authorizes the mayor to submit the Nashville-Davidson Substantial Amendment 1 to the HOME Investment Partnerships - American Rescue Plan (“HOME ARP”) Allocation Plan to the U.S. Department of Housing and Urban Development (“HUD”).
The Five-Year Consolidated Plan for Housing and Community Development is prepared by the Metropolitan Development and Housing Agency (“MDHA”) and is administered by MDHA as authorized per Resolution No. R94-1326.
HOME ARP provides one-time funding to HOME Participating Jurisdictions with the aim of reducing homelessness. HUD has allocated $9,298,780 in HOME ARP funds to the Metropolitan Government. HOME ARP funds can be used for a range of eligible activities, including supportive services, the development of non-congregate shelters, tenant-based rental assistance, the development of affordable rental housing, nonprofit operating support, and nonprofit capacity building.
MDHA prepared and submitted an Allocation Plan to HUD in 2022, which was approved by the Metropolitan Council pursuant to Resolution No. RS2022-1520. The resolution under consideration approves Substantial Amendment 1 to the HOME ARP Allocation Plan to meet requirements from HUD to expand access to services for qualifying populations considered to be in danger of becoming homeless.
Substantial Amendment 1 to the HOME ARP Allocation Plan would allocate $9,298,780 as follows:
• $7,904,430 for supportive services to pay for costs associated with providing the homeless and other qualifying populations in danger of becoming homeless with voluntary access to case management, primary and mental health care, substance use treatment, employment and life skills counseling, eviction and prevention program, social and recreational events, and tenant advocacy with the goal of building independent living and tenancy skills to increase self-sufficiency to help them remained housed.
• $1,394,350 for administration and planning to fund grant management until all funds have been expended and the grant has been closed out by HUD.
A virtual presentation regarding this Substantial Amendment 1 was held on May 23, 2024. MDHA made this Substantial Amendment 1 available for public comment from June 6 through July 8. A virtual public hearing was held on June 13.
Note that the total amount of the HOME ARP allocation listed in the substantial amendment documents is $9,315,254. MDHA was notified after the substantial amendment was prepared and released for public comment that the allocation had been calculated in error, which resulted in a slight reduction to $9,298,780. The updated amount is reflected in the recitals of the legislation.