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An ordinance amending Chapter 2.149 of the Metropolitan Code of Laws to authorize the Metropolitan Housing Fund Commission to extend the term length of certain affordable housing grant contracts.
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contracts.
WHEREAS, Chapter 2.149 of the Metropolitan Code of Laws governs the operation, management, and regulation of the Metropolitan Housing Trust Fund Commission within the Metropolitan Government of Nashville and Davidson County ("Metro"); and,
WHEREAS, the Housing Trust Fund Commission makes recommendations regarding the awarding of grants from the Barnes Fund; and,
WHEREAS, the current provisions of Section 2.149.040(G) currently authorize the commission to rescind grant contracts when a recipient fails to complete its obligations within twenty-four months; and,
WHEREAS, permitting the Housing Trust Fund Commission to differentiate between recipients receiving funds for the purpose of preservation or rehabilitation projects and those receiving funds for undertaking new construction projects would provide necessary flexibility; and,
WHEREAS, it is in the best interest of the Metropolitan Government to amend Chapter 2.149 to authorize such activity.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. Section 2.149.040 of the Metropolitan Code of Laws is hereby amended by removing subsection G in its entirety and substituting in lieu thereof the following new subsection:
"G. Make recommendations to the metropolitan council regarding the awarding of grants from the Barnes Fund, including funds appropriated yearly by the metropolitan council through the operating budget ordinance, to deserving nonprofit organizations and nonprofit civic organizations, or as otherwise authorized by state law, supporting the purposes of the commission. Criteria for the awarding of such funds shall be established by the commission. The criteria shall include setting aside at least twenty percent of such grants to be used for the creation and preservation of affordable housing or capacity building for organizations that create or preserve affordable housing to be awarded to small nonprofit organizations, provided that a sufficient number of qualified applications are received. For the purposes of this subsection, "small nonprofit organizations" means nonprofit organizations with an annual operating budget of no more than four million dollars and a housing budget of no more than one million dollars. The commission shall submit a recommendation to the metropolitan council for the appropriation of funds to deserving nonprofit organizations consistent with T.C.A. § 7-3-314, as it may hereafter be amended. Once funds have been appropriated by the metropolitan council to the deserving nonprofit organization(s), the commission shall enter into a grant contract with each such organization. No such grant contract shall become effective without the approval of the metropolitan department of law and director of finance.
In the event the recipient organization undertaking preservation or rehabilitation projects fails to complete its obligations under the grant contract within twenty-four months from execution, the commission shall be authorized to rescind the contract and to reclaim previously appropriated funds from the organization, subject to terms and conditions within the grant contract allowing for such. In the event the recipient organization undertaking new construction projects fails to complete its obligations under the grant contract within thirty-six months from execution, the commission shall be authorized to rescind the contract and to reclaim previously appropriated funds from the organization, subject to terms and conditions within the grant contract allowing for such.”
Section 2. This ordinance shall take effect from and after its final passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.