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A resolution appropriating $15,000,000.00 in American Rescue Plan Act funds from Fund #30216 to the Metropolitan Development and Housing Authority to improve infrastructure at Cayce Place and to increase safety at Cumberland View.
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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 Count, 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, there are federal requirements for use of ARP Funds that require that these funds be expended or obligated on or before December 31, 2024; and,
WHEREAS, the Committee recognizes that developing and sustaining safe affordable housing is a critical priority for the city; and,
WHEREAS, the Committee recognizes that the negative financial effects of the COVID-19 pandemic have emphasized the need to continue investment in affordable housing; and,
WHEREAS, MDHA has proposed a $13,600,000.00 infrastructure improvement plan for Cayce Place, specifically addressing a major sewer separation project, as well as various water, sewer, roads, and sidewalk work, the funding of which will result in critical infrastructure improvements for 1100 planned units; and,
WHEREAS, MDHA has proposed $1,700,000.00 for Cumberland View for improved lighting, traffic calming efforts, sidewalks and additional safety needs; and,
WHEREAS, MDHA contends that funding of both proposals will free $15,000,000.00 in gap financing to allow for building an additional 100 units of affordable housing; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this resolution be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Metropolitan Council accepts this resolution as a recommendation of the COVID-19 Financial Oversight Committee.
Section 2. That $15,000,000.00 from the Covid-19 American Rescue Plan Fund #30216 is hereby appropriated to the Metropolitan Development and Housing Authority to be used in described in Exhibit A.
Section 3. This resolution shall take effect from and after its final passage, the welfare of the public requiring it.
Agenda Analysis
Analysis
This resolution appropriates $15,000,000 in American Rescue Plan Act funds to the Metropolitan Development and Housing Authority (MDHA) to improve infrastructure at Cayce Place to provide more affordable housing units and to increase safety at Cumberland View.
The COVID-19 Financial Oversight Committee recommends appropriating funding as follows:
• $7,500,000 for a sewer separation project that will impact more than 800 units at Cayce Place
• $5,800,000 for water, sewer, roads, and sidewalk work at Boscobel IV, Boscobel V, Boscobel VI, 5th & Summer, A2 East, and Block 23 West that will impact more than 300 units at the Cayce Place site.
• $1,700,000 for site security measures including street traffic calming, additional lighting, ballads, and sidewalk work at Cumberland View
Fiscal Note: This appropriation, along with the appropriations per Resolution No. RS2022-1307, Resolution No. RS2022-1310, and Resolution No. RS2022-1313 would be the 15th, 16th, 17th, and 18th resolutions appropriating from the American Recovery Plan Act (ARP) Fund for a cumulative total of $75,764,250. The total grant award is $259,810,600 and the first half of this amount was received in July 2021.