LEGISLATIVE HISTORY
ORDINANCE NO. BL2016-334
An ordinance amending BL2015-1281, which authorizes the Metropolitan Development and Housing Agency to negotiate and accept payments in lieu of ad valorem taxes from its lessees operating low income housing tax credit properties pursuant to Tennessee Code Annotated 13-20-104 and revising the program for determining qualifications and eligibility for such payments.
WHEREAS, Tennessee Code Annotated 13-20-104 (“the Act”) provides that a Metropolitan Government for which a housing authority is created to delegate to such housing authority the authority to negotiate and accept payments in lieu of ad valorem taxes from the housing authority’s lessees operating low-income housing tax credit (“LIHTC”) property; and
WHEREAS, the Metropolitan Development and Housing Agency (“MDHA”) was created pursuant to state law and is the housing authority for the Metropolitan Government; and
WHEREAS, the Metropolitan Government seeks to revise the payment in lieu of ad valorem tax program (“PILOT Program”) for determining the eligibility and qualification of MDHA's lessees operating LIHTC properties, and that revision is attached as Exhibit A hereto and incorporated herein; and
WHEREAS, with the increasing demand for affordable rental housing in Davidson County and the tight rental market conditions, the PILOT Program has, will continue to, further MDHA’s public purpose by providing additional financial incentives for construction or rehabilitation of affordable housing units through the federally sponsored low income housing tax credit programs resulting in a positive impact on the supply of affordable housing in Davidson County; and
WHEREAS, the Act requires that MDHA submit an annual report to the State Board of Equalization containing specific information about its active PILOT agreements and such report would benefit the Metropolitan Council, the Metropolitan Trustee, and the Metropolitan Assessor of Property, and
WHEREAS, the Act also requires that MDHA submit each such PILOT agreement to the Metropolitan Council for approval.
NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
The text of Ordinance BL2015-1281 is deleted in its entirety and replaced with the following:
SECTION 1: That the Metropolitan Council hereby finds that the PILOT Program attached as Exhibit A hereto and incorporated herein furthers MDHA’s public purpose and approves the PILOT Program.
SECTION 2: That the Metropolitan Council hereby delegates to MDHA the authority to negotiate and accept payments in lieu of tax from its lessees operating LIHTC properties pursuant to the Act and in accordance with the PILOT Program. Subject to the terms of the PILOT Program and other applicable law, MDHA shall have the authority to negotiate up to $2,500,000 in additional PILOTs per calendar year.
SECTION 3: That MDHA shall submit each such PILOT Agreement to the Metropolitan Council for approval by resolution. No such resolution shall be considered by the Metropolitan Council unless a recommendation of the Metropolitan Planning Commission is noted on the resolution. If the Planning Commission has recommended approval, the resolution must receive an affirmative vote from a majority of the whole membership of the Metropolitan Council to be approved. If the Planning Commission has recommended disapproval, the resolution must receive an affirmative vote from not less than a two-thirds majority of the whole membership of the Metropolitan Council to be approved.
SECTION 4: That MDHA shall file an annual report with the Metropolitan Council, the Metropolitan Assessor of Property, and the State Board of Equalization containing the following information:
a) a list of all the real and personal property owned by MDHA and its associated entities and subsidiaries with respect to which payments in lieu of taxes have been negotiated and accepted;
b) the value of each listed property, as estimated by the lessee of the property;
c) the date and term of the lease for each listed property;
d) the amount of payments made in lieu of property taxes for each listed property;
e) the date each listed property is scheduled to return to the regular tax rolls; and
f) a calculation of the taxes which would have been due for each listed property if the properties were privately owned or otherwise subject to taxation.
SECTION 5. That this Ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Bob Mendes, Burkley Allen
AMENDMENT NO. 1
TO
ORDINANCE NO. BL2016-334
Mr. President-
I move to amend Ordinance No. BL2016-334 as follows:
I. By deleting in its entirety the fourth recital paragraph, which currently begins: "WHEREAS, with the increasing demand ... ", and replacing it with the following in lieu thereof:
WHEREAS, with the increasing demand for affordable rental housing in Davidson County and the tight rental market conditions, the PILOT Program has and will continue to further MDHA's public purpose by providing additional financial incentives for construction or rehabilitation of affordable housing units through the federally sponsored low income housing tax credit programs resulting in a positive impact on the supply of affordable housing in Davidson County; and
II. By amending Section 2 by deleting the second sentence thereof in its entirety and substituting therefore the following:
Subject to the terms of the PILOT Program and other applicable law, MDHA shall have the authority to negotiate up to $2,500,000 in in estimated tax abatements through PILOT agreements each calendar year.
III. By amending Section 3 by deleting the second sentence thereof in its entirety and substituting therefore the following:
No such resolution shall be considered by the Metropolitan Council unless a recommendation of the Metropolitan Planning Commission accompanies the
resolution.
IV. By adding a new Section 5 stating as set forth below, renumbering the remaining sections as necessary:
SECTION 5. That PILOT agreements approved by the Metropolitan Development and Housing Agency prior to the adoption of this ordinance shall be governed by the requirements of BL 2015-1281.
Sponsored By: Bob Mendes, Colby Sledge
| LEGISLATIVE HISTORY |
|
|---|---|
| Introduced: | July 19, 2016 |
| Passed First Reading: | July 19, 2016 |
| Referred to: | Budget & Finance Committee |
| Deferred: | August 2, 2016 |
| Amended: | August 16, 2016 |
| Passed Second Reading: | August 16, 2016 |
| Passed Third Reading: | September 6, 2016 |
| Approved: | September 7, 2016 |
| By: | |
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