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A resolution authorizing grants not exceeding $760,554.00 from the Barnes Fund for Affordable Housing to The Housing Fund for the express purpose of creating affordable or workforce housing utilizing American Rescue Plan Act funds.
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WHEREAS, on November 1, 2023, the Metropolitan Housing Trust Fund Commission issued a request for application to qualified nonprofit organizations to participate in the nonprofit housing development grant program; and,
WHEREAS, on June 15, 2021, the Metropolitan Council passed Resolution RS2021-966, a resolution which accepted grant funds for local government support from the Coronavirus State and Local Fiscal Recovery Funds established by the American Rescue Plan Act of 2021 (“ARP Funds”) from the U.S. Department of the Treasury to The Metropolitan Government of Nashville and Davidson County, which was subsequently signed into law by Mayor John Cooper on June 16, 2021; and,
WHEREAS, Resolution RS2021-966 established a COVID-19 Financial Oversight Committee (("the Committee") whose role is to collect, consider, and recommend appropriate uses of the ARP Funds as designated by the Metropolitan Council disbursement plan. The Committee will submit its reports and recommendations to the Mayor, the Director of Finance, and the Metropolitan Council not later than June 30, 2025; and,
WHEREAS, on November 17, 2022, Metropolitan Council appropriated $7,000,000 in ARP Funds to the Housing Division of the Planning Department for the express purpose of building innovative affordable housing for families at or below 50% AMI through RS2022-1862; and,
WHEREAS, on November 17, 2022, Metropolitan Council appropriated $10,000,000 in ARP Funds to the Housing Division of the Planning Department for the express purpose of increasing homeownership opportunities and housing security for populations with historical barriers and demonstrated inequities in homeownership through RS2022-1860; and,
WHEREAS, there are federal requirements for use of ARP Funds that require that these funds be obligated on or before December 31, 2024 and expended on or before December 31, 2026; and,
WHEREAS, Section 7-3-314 of the Tennessee Code Annotated states that metropolitan forms of government may provide financial assistance to a nonprofit organization in accordance with the guidelines of the Metropolitan Government; and,
WHEREAS, Section 5.04.070 of the Metropolitan Code of Laws provides that the Metropolitan Council may by Resolution appropriate funds for the financial aid of nonprofit organizations; and,
WHEREAS, the grant process has conformed to the requirements of Tennessee law; and,
WHEREAS, pursuant to the regulations and procedures of the Metropolitan Housing Trust Fund Commission, the Metropolitan Housing Trust Fund Commission has accepted the recommendations of the Barnes Fund Review Committee that the appropriated funds be distributed to The Housing Fund; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this grant contract be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Metropolitan Housing Trust Fund Commission is hereby authorized to enter into a grant contract with The Housing Fund for $760,554.00, for the express purpose of constructing affordable and workforce housing the terms and conditions of which is attached hereto as Exhibit A and incorporated herein. Such grant contract shall specify the terms and conditions under which the grant is to be made including a deed restriction requiring the property to be used exclusively for construction of affordable and workforce housing for residents of Davidson County as those terms may be defined in Tennessee Code Annotated § 5-9-113.
Section 2. There is hereby appropriated $760,554.00 from the Barnes Fund for Affordable Housing to fund a grant to The Housing Fund.
Section 3. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution authorizes grants not exceeding $760,544 from the Barnes Fund for Affordable Housing to the Housing Funds to create affordable or workforce housing through American Rescue Plan Act funds.
The Metropolitan Council previously appropriated $7,000,000 in APRA funds to the Housing Division of the Planning Department to build innovative affordable housing through Resolution No. RS2022-1862 and appropriated $10,000,000 in ARPA funds to the Housing Division of the Planning Department to increase homeownership opportunities and for populations with historical barriers and demonstrated inequities in homeownership through Resolution No. RS2022-1860.
The Metropolitan Housing Trust Fund Commission accepted the recommendations of the Barnes Fund Review Committee that the appropriated funds be distributed to The Housing Fund. Tennessee Code Annotated section 7-3-314 allows metropolitan governments to provide financial assistance to a nonprofit organization in accordance with Metro guidelines.
Pursuant to the terms of the grant contract, the Metropolitan Housing Trust Fund Commission would provide The Housing Fund with $760,554 for the construction of five affordable units on Nashville Community Land Trust parcels on 22nd Avenue North, Herman Street, Batavia Street, Maury Street, and Green Street. The Barnes-funded units are directed to serve families at or below 80% of Area Median Income (AMI) according to the work scope attached as Exhibit A.
The grant contract term is no greater than 24 months. If the grant recipient fails to complete its contractual obligations within the term Metro may rescind the agreement and reclaim funding. The contract requires a 30-year deed restriction requiring the property to be used exclusively for construction of affordable and workforce housing for residents of Davidson County as defined in Tennessee Code Annotated section 5-9-113.