title
A resolution authorizing grants not exceeding $7,000,000.00 from the Barnes Fund for Affordable Housing to William Franklin Buchanan Community Development Corporation for the express purpose of creating affordable or workforce housing utilizing American Rescue Plan Act funds.
body
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 William Franklin Buchanan Community Development Corporation; and,
WHEREAS, the $7,000,000.00 of grant funds will be used by William Franklin Buchanan Community Development Corporation to purchase an existing building and develop cooperative housing for creation or preservation of units for families at or below 50% AMI in a mixed income environment; and
WHEREAS, cooperative housing offers an innovative, non-traditional option for families through equitably shared ownership and control, which decreases the barrier to entry of ownership and increases housing security; and
WHEREAS, William Franklin Buchanan Community Development Corporation will receive all grant funds upon execution of this grant contract, and has set up an escrow account for the grant funds until such time a closing on the property occurs; 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 William Franklin Buchanan Community Development Corporation for $7,000,000.00, for the express purpose of constructing affordable and workforce housing the terms and conditions of which are 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 $7,000,000.00 from the Barnes Fund for Affordable Housing to fund a grant to William Franklin Buchanan Community Development Corporation.
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 approves grants not exceeding $7,000,000 from the Barnes Fund for Affordable Housing to William Franklin Buchanan Community Development Corporation (“WFBCDC”) for the express purpose of creating affordable or workforce housing utilizing American Rescue Plan Act funds (“ARP Funds”).
On November 17, 2022, the Council appropriated to the Housing Division of the Planning Department $7,000,000 in ARP Funds for the express purpose of building innovative affordable housing for families at or below 50% Area Median Income (“AMI”) through RS2022-1862 and $10,000,000 in ARP Funds for the express purpose of increasing homeownership opportunities and housing security for populations with historical barriers and demonstrated inequities in homeownership through RS2022-1860.
The Barnes Fund Review Committee has recommended that $7,000,000 of these ARP funds be distributed to WFBCDC. The Metropolitan Housing Trust Fund Commission has accepted this recommendation. WFBCDC would use these funds to purchase an existing building and develop cooperative housing for the creation of 60 units of affordable housing for families at or below 50% AMI in a mixed income environment in Goodlettsville. The term of this grant agreement is 24 months.
Fiscal Note: This would appropriate $7,000,000 to William Franklin Buchanan Community Development Corporation from the Barnes Fund for Affordable Housing.