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An ordinance amending BL 2016-334, which authorized the Metropolitan Development and Housing Agency to negotiate and accept payments in lieu of ad valorem taxes from its leases operating low income housing tax credit properties pursuant to Tennessee Code Annotated 13-20-104 and revise the annual amount of abatement authorized for the program.
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WHEREAS, Tennessee Code Annotated 12-20-104 (the "Act") provides that the Metropolitan Council may delegate to the Metropolitan Development and Housing Agency ("MDHA") to negotiate and accept payments in lieu of ad valorem taxes from the housing authority's leases of low income housing tax credit ("LIHTC") property; and
WHEREAS, the Metropolitan Council authorized MDHA to negotiate and enter into Payment in Lieu of Tax (PILOT) Agreements with private real estate developers through BL 2015-1281 and amended by BL 2016-334 and BL 2016-435; and
WHEREAS, the program has created or preserved more than 9,000 affordable units through this program, and
WHEREAS, the Council authorized and annual maximum abatement of $2,500,000 for the program; and
WHEREAS, a review of the program from the Tax Incentive and Abatement Study and Formulating Committee of the Metropolitan Council acknowledged the impact of this program on producing and preserving affordable housing in Nashville and has recommended an increase to the annual abatement capacity available to MDHA's LIHTC PILOT program; and
WHEREAS, the Federal Government has expanded its use and funding of the LIHTC program which has resulted in more dollars being allocated to Tennessee; and
WHEREAS, MDHA has effectively been operating at full abatement capacity for the past four years.
NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The text of Section 2 of Ordinance No. BL2016-334, as amended, is amended by deleting the section in its entirety and replacing it with the following:
Section 2. That ...
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