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A Resolution approving and authorizing the Metropolitan Mayor submitting Amendment Seven to the Action Plan for Disaster Recovery for the use of Community Development Block Grant Disaster Recovery funds to complete recovery efforts resulting from the May 2010 floods.
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WHEREAS, on May 1 and 2, 2010, Nashville experienced unprecedented rainfall which caused extensive flooding and damage throughout Davidson County; and
WHEREAS, President Obama declared Davidson County a Federal Disaster Area on May 4, 2010 (FEMA Declaration Number: FEMA-1909-DR); and
WHEREAS, Congress passed the Supplemental Appropriations Act, 2010 (Public Law 111- 212), which appropriated $100 million in Community Development Block Grant (CDBG) funds for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure, housing, and economic revitalization in areas declared major disasters by the President due to severe storms and flooding that occurred in several states from March 2010 through May 2010; and
WHEREAS, HUD announced the availability of $50 million of the $100 million of the Supplemental Appropriations and published a Notice of allocations, waivers, and alternative requirements for the CDBG disaster recovery funds in the Federal Register, Volume 75, Number 217, Docket Number FR-5452-N-01, effective November 15, 2010, which allocated
$10,731,831 of CDBG disaster recovery funds to Metropolitan Nashville-Davidson County (initial allocation); and
WHEREAS, the Metropolitan Council approved an Action Plan for Disaster Recovery for the initial allocation of the Supplemental Appropriations to address disaster recovery activities in Nashville-Davidson County and by Resolution No. RS2010-1487 authorized the Metropolitan Mayor to submit the Action Plan for Disaster Recovery to HUD; and
WHEREAS, the Metropolitan Development and Housing Agency (MDHA) has been designated to act as the lead agency responsible for the development and administration of Metro Nashville's Consolidated Plan and its related grant programs (CDBG, HOME, HOPWA, and ESG) and, therefore, serves as the lead agency with respect to preparing and administering the Action Plan for Disaster Recovery and any related Amendments; and
WHEREAS, HUD announced the availability of the remaining $50 million of the $100 million of the Supplemental Appropriations and published a Notice of additional allocations and waivers granted to and alternative requirements for 2010 CDBG disaster recovery grantees in the Federal Register, Volume 76, Number 72, Docket Number FR-5452-N-02, effective April 19, 2011, which allocated $22,357,982 of CDBG disaster recovery funds to Metropolitan Nashville-Davidson County (second allocation) bringing the total allocation to
$33,089,813; and
WHEREAS, the Metropolitan Council approved Amendment One to the Action Plan for Disaster Recovery for the second allocation of the Supplemental Appropriations to address disaster recovery activities in Nashville-Davidson County and by Resolution No. RS2011- 1671 authorized the Metropolitan Mayor to submit Amendment One to the Action Plan for Disaster Recovery to HUD; and
WHEREAS, MDHA has prepared five additional amendments to the Action Plan for Disaster Recovery - technical Amendment Two (2011), substantial Amendment Three (2013) approved and authorized by RS2013-771, substantial Amendment Four {2014) approved and authorized by RS2014-1193, substantial Amendment Five {2017) approved and authorized by RS-2018-1091, and substantial Amendment Six (2020) approved and authorized by RS-2020-366 to reallocate funds from activities that have been canceled or closed to other existing activities; and
WHEREAS, the Action Plan for Disaster Recovery and all amendments have been approved by HUD;
WHEREAS, all activities described in the Action Plan, as amended, are completed, and the grant is ready to be officially closed out;
WHEREAS, per HUD guidance, Amendment Seven transfers program income received from CDBG-DR funded Homeowner Rehab Loan & Grant and Purchase/Repair Programs as of March 17, 2025, totaling $2,004,658.86 plus additional amounts estimated not to exceed $30,000 (based on amortized loan repayments) to be received prior to the CDBG-DR grant closeout estimated to be no later than June 30, 2025, to Metropolitan Nashville-Davidson County’s CDBG Entitlement grant. The table below reflects program income on hand, program income estimated to be received prior to CDBG-DR grant closeout and amounts to be transferred for use in the Metropolitan Nashville-Davidson County’s CDBG Entitlement Program.
|
CDBG-DR Grant Project Title |
CDBG-DR Grant Activity Title |
Current Program Income Budget |
Proposed CDBG Entitlement Grant Budget |
Proposed Changes |
|
Housing |
Homeowner Rehab Loan & Grant Program |
$516,814.13 - received as of March 17, 2025 |
$516,814.13 |
Transfer to eligible CDBG Entitlement activities to be identified in the 2025-2026 Action Plan |
|
Housing |
Homeowner Rehab Loan & Grant Program |
Estimated not to exceed $2,098.00 - estimated to be received prior to estimated CDBG-DR Grant Closeout no later than June 2025 |
Estimated not to exceed $2,400.00 |
Transfer to eligible CDBG Entitlement activities to be identified in the 2025-2026 Action Plan |
|
Housing |
Purchase/Repair Program |
$1,387,612.73 |
$1,387,612.73 |
Transfer to eligible CDBG Entitlement activities to be identified in the 2025-2026 Action Plan |
|
Housing |
Purchase/Repair Program |
Estimated not to exceed $25,701.00 - estimated to be received prior to estimated CDBG-DR Grant Closeout no later than June 2025 |
Estimated not to exceed $27,600.00 |
Transfer to eligible CDBG Entitlement activities to be identified in the 2025-2026 Action Plan |
|
Admin |
Program Administration - MDHA |
$100,232.00 |
$100,232.00 |
Use up to 5% of CDBG-DR program income for CDBG-DR Admin until closeout then transfer the balance to be used for eligible CDBG Entitlement activities to be identified in the 2025-2026 Action Plan |
|
Total |
|
$2,032,457.86 |
$2,034,658.86 |
|
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Metropolitan Council approves Amendment Seven to the Action Plan for Disaster Recovery and that the Mayor is hereby authorized to submit Amendment Seven to the U.S. Department of Housing and Urban Development to transfer program income received from 2010 CDBG-DR funded Homeowner Rehab Loan & Grant and Purchase/Repair Programs to Metropolitan Nashville-Davidson County’s CDBG Entitlement grant to be used for eligible CDBG Activities identified in the 2025-2026 Action Plan which will be brought to the Metropolitan Council for approval in June or July, 2025 prior to submitting it to HUD.
Section 2. That the Metropolitan Development and Housing Agency is authorized to administer the CDBG disaster recovery funds on behalf of the Metropolitan Government of Nashville and Davidson County in accordance with the Action Plan for Disaster Recovery and related amendments.
Section 3. 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 seventh amendment to the Action Plan for Community Development Block Grant (“CDBG”) Disaster Recovery funds to complete recovery efforts resulting from the May 2010 flood.
Immediately following the flood, the Metropolitan Government and the Metro Development and Housing Agency (“MDHA”) sought to reallocate approximately $6 million in previously awarded CDBG funds to assist homeowners affected by the flood. MDHA also entered into an agreement with Metro to spend an additional $5 million in anticipation of federal funds. In February 2011, the U.S. Department of Housing and Urban Development (“HUD”) made $10,731,831 in funds from the 2010 federal supplemental appropriations act available to Metro for disaster recovery. Subsequently, HUD released an additional $22,357,982 of CDBG disaster recovery funds to Metro in August 2011, which was adopted in the first amendment. This brought the total allocation to $33,089,813. The plan for the CDBG disaster recovery funds has been amended five additional times (RS2011-1671), 2013 (RS2013-711), 2014 (RS2014-1193), 2018 (RS2018-1091), and 2020 (RS2020-366) which provided further clarification of the proposed activities in the CDBG and reallocated funds from activities that had been cancelled or closed due to other existing activities. All activities described in the action plan, as amended, are completed.
This resolution would approve the seventh amendment to the CDBG Disaster Recovery Action Plan. This amendment would transfer certain funds from the Homeowner Rehab Loan & Grant Program and Purchase and Repair Program into eligible CDBG Entitlement Activities to be identified in the 2025-2026 Action Plan. A total of $2,004,658.86, plus additional amounts not estimated to exceed $30,000, would be transferred to Metro’s CDBG Entitlement grant before the grant close out, estimated to be no later than June 30, 2025.
Additionally, a Program Administration fund would use up to 5 percent of program income for administrative purposes until the fund is closed out. The remaining balance would be transferred to be used for eligible CDBG activities to be identified in the 2025-2026 Action Plan.
The 2025-2026 Action Plan is expected to be brought to the Metropolitan Council for approval in June or July before it is sent to HUD.