An ordinance authorizing the Metropolitan Mayor to submit an Annual Update to the Consolidated Plan for Housing and Community Development programs to the U.S. Department of Housing and Urban Development

WHEREAS, the U.S. Department of Housing and Urban Development requires local governments participating in federal housing and community development programs to submit a Consolidated Plan for housing and community development; and

WHEREAS, the current five year Consolidated Plan for Housing and Community Development programs was prepared by the Metropolitan Development and Housing Agency (MDHA) in 1999 and adopted by the Metropolitan Council through Ordinance No. BL99-69; and

WHEREAS, the Consolidated Plan was prepared by MDHA with the assistance of a wide-variety of public and private agencies, as well as, numerous private citizens and community advocates and using a number of existing planning documents; and

WHEREAS, the Consolidated Plan includes a Citizen Participation Plan, a Market Analysis and Needs Assessment, Strategies for Meeting Priority Needs and an Annual Plan for the expenditure of Community Development Block Grant (CDBG), HOME Investment Partnerships Program, Emergency Shelter Grants (ESG) Program and the Housing Opportunities for Persons With AIDS (HOPWA) program funds; and

WHEREAS, a 2002 Annual Update to the Consolidated Plan has been prepared by the Metropolitan Development and Housing Agency to allocate funds from the Community Development Block Grant program, the HOME Investment Partnerships Program, the Emergency Shelter Grants Program and the Housing Opportunities for Persons With AIDS program.

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

SECTION 1. That the Metropolitan Mayor is hereby authorized to submit the Annual Plan update to the Consolidated Plan for Housing and Community Development programs to the U.S. Department of Housing and Urban Development.

SECTION 2. A description of the Annual Plan for the expenditure of CDBG, HOME, ESG, and HOPWA funds for the program years 2002-2005 is attached hereto and made a part of this Ordinance.

SECTION 3. That the Metropolitan Development and Housing Agency is authorized to administer the Consolidated Plan on behalf of the Metropolitan Government of Nashville and Davidson County.

SECTION 4. The local match required for Emergency Shelter Grant funds will be provided by local non-profit organizations selected as sub-grantees. Repayments received from the Urban Development Action Grant (UDAG) will be used as necessary to provide the twenty-five percent local match for the HOME Investment Partnerships Program.

SECTION 5. If any changes occur in the final entitlement amounts for CDBG or HOME as shown in the attachments to this Ordinance, each line in the proposed program not specifically regulated by contracts or agreements with the U.S. Department of Housing and Urban Development shall be raised or lowered on a pro rata basis. If the final entitlement amount for the ESG or HOPWA funds is below that shown in the attachments to this Ordinance, each line item in the proposed program will be reduced on a pro rata basis. Any additional ESG or HOPWA funds received above the amount shown in the attachments to this Ordinance will be allocated by the ESG & HOPWA Review Committee, based on applications submitted to the Review Committee.

SECTION 6. The acquisition of any real property by the Metropolitan Development and Housing Agency in conjunction with the four federal programs included in the Consolidated Plan shall be subject to the following provisions:

a. The exercise of the power of eminent domain is expressly reserved by the Metropolitan Council and is not delegated to any agency, board, commission or authority administering any part of a Community Development Plan, project or program.

b. No parcel of property may be acquired under any Community Development Plan or project except for public use and by ordinance authorizing the acquisition of such parcel except with the written consent of the owner.

c. This section shall not apply to any open urban renewal project, redevelopment project, or housing development program approved by the Metropolitan Council in accordance with state law.

SECTION 7. The Metropolitan Council expressly withholds any approval for the expenditure of funds for any project or for the administrative costs associated with the Community Development Block Grant program. All requested program expenditures shall be submitted to the Council for final approval by Resolution. And further, detailed project plans for capital improvement projects shall be on file in the Community Development Office of MDHA at the time of the filing of the Resolution.

SECTION 8. That this ordinance shall take effect from and after its passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Earl Campbell, Chris Ferrell, Lawrence Hall, Eileen Beehan, Tony Derryberry

OVERVIEW

Introduction

The attached five tables show the planned allocation of funds for the CDBG, HOME, ESG, and HOPWA programs in Metropolitan Nashville-Davidson County for April 2002 through March 2005. The tables also represent the Action Plan section of the Consolidated Plan for Housing and Community Development, which is submitted to the U.S. Department of Housing and Urban Development.

Table 1: Community Development Block Grant Allocations;
Table 2: NSA Neighborhood Allocations;
Table 3: HOME Program Allocations;
Table 4: Emergency Shelter Grants Program Allocations;
Table 5: HOPWA Allocations.

Community Development Block Grant Funds

Community Development Block Grant funds are based on new entitlement funding in the amount of $6,000,000. Program income of $897,000 is anticipated during the coming program year. All program income is used for the same activity that generated the income. CDBG funds designated for Affordable Housing Activities will be used to provide matching funds for federal, state or other affordable housing development programs. Special Neighborhood Activity funds are allocated for the Youth Initiatives Program and community projects associated with storm water drainage, sidewalks, park improvements, and other localized needs. The Youth Initiatives Program is a competitive grant program for non-profit agencies servicing low to moderate-income youth during the summer. The program offers an initial maximum grant of $20,000 which is reduced in successive years for agencies that reapply for funding.

Within the framework of serving eligible low- and moderate-income families, eliminating blight, and providing for urgent needs, the Metropolitan Government of Nashville and Davidson County has targeted a large portion of its Community Development Block Grant (CDBG) funds to specific areas so that a comprehensive treatment approach can be taken. Key among such targeted districts are low- and moderate-income residential Neighborhood Strategy Area(s) (NSAs). Funds committed to a NSA that are not obligated within a five-year period, may be recaptured and obligated to other CDBG eligible activities. These areas are selected for inclusion in the program because their size, condition of housing, level of community organization, owner occupancy, and income make them good candidates for effective and visible treatment within the scope of the CDBG and local resources.

Community Development Block Grant funds are also programmed for planning initiatives in two commercial district target areas. These two areas are the Dickerson Road and Buchanan Street Commercial Districts. In addition to these three areas, funds are also programmed to continue improvements in the Jefferson Street corridor between 8th and 28th Avenues North.

From a categorical overview, housing rehabilitation, infill housing related projects, and neighborhood-related public facilities constitute the greatest portion of CDBG funds. Funds are also used for efforts that complement targeted areas and projects designed for residential areas, including:

* Neighborhood commercial revitalization;
* Planning, and slum and blight removal aimed at providing a healthy central business district, and;
· Other economic development efforts directed toward generating long-term employment opportunities for low- and moderate-income inner city residents.

The Rehabilitation Program offers very low interest loans to eligible homeowners. Loan proceeds return to the program to help ensure its long-term viability. A limited amount of grant funds are available per case to apply toward the cost of meeting HUD's lead-based paint requirements. The Emergency Rehabilitation Program is administered through the Rehabilitation and Related Services Department and provides grants for emergency repairs.

Community development funds may be used for eligible activities identified in the statement of objectives that are expected to generate program income in time to carry out activities for which funds were originally allocated. These short term or temporary uses of funds in the letter of credit shall be limited in amount and term in order to be reasonably sure that no delays will occur in the implementation of planned activities.

Community development funds will continue to be used for the repayment of loans guaranteed by the U.S. Department of Housing and Urban Development in accordance with Section 108 of the Housing and Community Development Act of 1974. Payments shall be made on an annual basis.

Home Investment Partnerships Program Funds

HOME funds are programmed to continue providing a mixture of owner-occupied and rental rehabilitation; new housing homeownership programs; downpayment assistance; and housing assistance through non-profit Community Housing Development Organizations (CHDOs). Beginning this year, HOME funds are also programmed to assist non-profit organizations develop new rental housing.

Emergency Shelter Grants Program Funds (ESG or ESGP)

ESGP funds are allocated to local homeless shelter providers under four broad categories: operations, rehabilitation, prevention and essential services. Since 1986, MDHA has allocated these funds to as many as twenty-two local agencies. Since funding is expected to remain about the same as last year, the use of the funds is anticipated to closely mirror that in 2001-2002. This funding pattern distributes most of the funds to shelter programs' costs of ongoing operation, the majority of which is used to defray utility costs. ESGP funds targeting homeless prevention will be centralized at one agency. There is no expectation at this time to fund any renovation. A small portion of funds may be used for essential services, such as bus passes or to provide necessary identification for homeless persons.

Housing Opportunities for Persons With AIDS Funds (HOPWA)

The HOPWA program provides housing related assistance and supportive services for low-income persons with HIV/AIDS and their families. HOPWA funds are distributed by Metropolitan Statistical Area (MSA), which for Nashville, consists of Davidson County plus Cheatham, Dickson, Robertson, Rutherford, Sumner, Williamson, and Wilson Counties. As a part of the Consolidated Plan, the program now receives oversight by MDHA instead of the State, on behalf of The Metropolitan Government. Most of the services will be provided in, and for residents of Davidson County, reflecting the relative incidence of HIV/AIDS.

Amendments

Changes to the Consolidated Plan will not be considered as a substantial amendment unless the change results in the elimination of a category of activity for which funds have been allocated, the addition of a new category of activity not included in the Consolidated Plan, the elimination or addition of a targeted area of service, a change in the categories of beneficiaries or eligibility criteria, a substantial change in the method of distribution of funds as described in the Consolidated Plan or a change in the allocation priorities established by the Plan.

LEGISLATIVE HISTORY
Introduced:	November 6, 2001
Passed First Reading:	November 6, 2001
Referred to:	Federal Grants Review Committee
Passed Second Reading:	November 20, 2001
Passed Third Reading:	December 4, 2001
Approved:	December 5, 2001
By: