SUBSTITUTE ORDINANCE NO. BL2013-487

An ordinance establishing the Barnes Fund for Affordable Housing to assist in providing good quality affordable housing to residents of Davidson County with limited means, appropriating an initial sum to such fund, and establishing the Metropolitan Housing Trust Fund Commission to oversee the fund and assist in providing good quality affordable housing.

WHEREAS, the 2010 US Census found that more than 58,000 renters in Nashville-Davidson County pay more than 30% of their household income for housing and are considered to be housing cost-burdened; and

WHEREAS, in the Nashville Metropolitan Statistical Area 82 percent of renter households with an income below $35,000 were found in the 2010 Census to be housing cost-burdened; and

WHEREAS, the local economy continues to grow and expand in the aftermath of the recession, but housing costs continue to be a major barrier to economic progress for many in Nashville; and

WHEREAS, monthly rent for apartments in Nashville has risen 75% from 2000 to 2010 while vacancy rates have decreased 20% over the same time period; and

WHEREAS, increasing the supply of modestly priced housing supports economic growth and is an important tool in reducing poverty in Davidson County; and

WHEREAS, housing trust funds have been established in over 600 state and local jurisdictions to address the housing needs of the most vulnerable low income populations using dedicated sources of public funds leveraged by private funding sources; and

WHEREAS, the Poverty Reduction Initiatives Plan includes a recommendation to establish a housing trust fund for Nashville and Davidson County; and

WHEREAS, the Metropolitan Government of Nashville and Davidson County proposes to use a variety of funds to provide initial capital for a housing trust fund, including Urban Development Action Grant (UDAG) repayments and leveraging funds from the HOME Investment Partnership; and

WHEREAS, pursuant to Ordinance No. 090-1112, the Metropolitan Council allocated in equal portions payments received in connection with the Capital Mall Urban Development Action Grant (UDAG) to be used to provide affordable housing and economic development, all to be of direct benefit to the residents of Davidson County; and

WHEREAS, the demand for funds from the affordable housing portion of the UDAG has exceeded those for economic development; and

WHEREAS, it is in the best interest of the Metropolitan Government to appropriate funds from the Capital Mall Urban Development Action Grant (UDAG) repayment funds to the Barnes Fund for the purpose of providing good quality affordable housing to Davidson County residents; and

WHEREAS, Reverend William Barnes has worked tirelessly over five decades to improve the lives and housing conditions of Davidson County residents of limited means; and

WHEREAS, creating the William Barnes Fund for Affordable Housing (Barnes Fund) as a housing trust fund for Metropolitan Nashville and Davidson County to target households earning less than 80% of the HUD area median family income will help address critical housing needs; and

WHEREAS, the Metropolitan Government proposes to create a commission to oversee and administer the Barnes Fund in a way that positions it to attract investment and provide good quality affordable housing to boost the prosperity of the entire community; and

WHEREAS, the enactment of the following provisions of the Metropolitan Code of Laws is in the best interest of the Metropolitan Government of Nashville and Davidson County.

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

Section 1. The Barnes Fund for Affordable Housing (the “Barnes Fund”) is hereby created for the purpose of assisting in the development and provision of good quality affordable housing for Davidson County residents of limited means. Initial capital for the Barnes Fund shall comprise a variety of funds, including money from the Urban Development Action Grant (UDAG) repayments. Initial funding may be supplemented by grants, donations and other public and private funds.

Section 2. Urban Development Action Grant repayments are directed to affordable housing activities to assist residents of limited means anywhere in Davidson County, and the total sum of two million two hundred seventy-nine thousand and forty dollars ($2,279,040) is hereby appropriated to the Barnes Fund from Urban Development Action Grant (UDAG) Repayments Funds for the purposes of the Fund in promoting good quality affordable housing for residents of limited means anywhere in Davidson County.

Section 3. Transfers of funds to the Barnes Fund from the Metropolitan Development and Housing Agency as may be approved by its Board are hereby authorized.

Section 4. Title 2 of the Metropolitan Code of Laws is amended by adding the following new chapter, 2.149, entitled Metropolitan Housing Trust Fund Commission.

Chapter 2.149 Metropolitan Housing Trust Fund Commission

2.149.010 Established
There is created and established a commission to be legally known as the “Metropolitan Housing Trust Fund Commission,” referred to in this chapter as the “commission.” The Department of Finance and Department of Law shall provide support and assistance to the commission as necessary.

2.149.020 Membership and term of office.
The commission shall be composed of seven members, who shall serve as such without compensation. One member of the commission shall be designated by the Board of the Metropolitan Development and Housing Agency. One member of the commission shall be a member of the council designated by the Vice Mayor for a term of two years. The remaining five members of the commission shall be appointed by the Mayor and approved by the metropolitan council. Said five members shall serve terms of five years each, provided that the first members appointed shall serve terms of one, two, three, four, and five years respectively. Any vacancy due to any cause shall be filled for the unexpired term in the same manner as the original appointment.

2.149.030 Purpose of the commission
The purpose of the commission shall be as follows:
A. To promote the study and development of good quality affordable housing;
B. To support education about and creation and development of good quality affordable housing, both rental and ownership;
C. To help create rental housing, housing for the disabled, and long-term affordable homeownership opportunities for citizens of Davidson County;
D. To oversee the management and operation of the Barnes Fund for Affordable Housing (the Barnes Fund).

2.149.040 Powers and duties.
In order to carry out and facilitate the commission’s general purposes and oversight of the Barnes Fund, the commission shall have authority to:
A. Enter into one or more contracts with nonprofit agencies, procured under the Metropolitan Procurement Code, to assist the commission in carrying out its duties and in management of the Barnes Fund;
B. Elect a chairman and such other officers as it may deem necessary to carry out the functions and duties of the commission;
C. Promulgate and maintain its own regulations and bylaws;
D. Conduct its affairs, to select advisory committees or panels of experts as necessary to assist in the discharge of its duties;
E. Solicit, accept, and receive gifts of funds, goods, and services donated to the commission and to the Barnes Fund;
F. Receive and expend any money allocated to the Barnes Fund by the metropolitan government or donated to the Barnes Fund for the purposes expressed in this chapter;
G. Make recommendations to the metropolitan council regarding the awarding of grants from the Barnes Fund, including funds appropriated yearly by the metropolitan council through the operating budget ordinance, to deserving nonprofit organizations and nonprofit civic organizations, or as otherwise authorized by state law, supporting the purposes of the commission. Criteria for the awarding of such funds shall be established by the commission. The commission shall submit a recommendation to the metropolitan council for the appropriation of funds to deserving nonprofit organizations consistent with T.C.A. § 7-3-314, as it may hereafter be amended. Once funds have been appropriated by the metropolitan council to the deserving nonprofit organization(s), the commission shall enter into a grant contract with each such organization. No such grant contract shall become effective without the approval of the metropolitan department of law and director of finance.
H. Perform any additional functions authorized by state law and consistent with the purpose of the commission.

Section 5. This ordinance shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Lonnell Matthews, Sheri Weiner, Burkley Allen, Megan Barry, Ronnie Steine, Sean McGuire, Brady Banks, Peter Westerholm, Fabian Bedne, Karen Johnson

LEGISLATIVE HISTORY
Introduced:	June 18, 2013
Passed First Reading:	June 18, 2013
Referred to:	Budget & Finance Committee Health, Hospitals and Social Services Committee
Substitute Introduced:	July 2, 2013
Passed Second Reading:	July 2, 2013
Passed Third Reading:	July 16, 2013
Approved:	July 19, 2013
By:	'