RESOLUTION NO. RS2011-38

A resolution requesting the Davidson County Delegation to the Tennessee General Assembly to introduce and support the necessary legislation to provide property tax relief, to the extent allowed by the Tennessee Constitution, for flooded properties that have been identified for acquisition under the Hazard Mitigation Grant Program but are awaiting release of the funds from the federal government to complete the sale.

WHEREAS, the historic rain event of May 1 and 2 of 2010 caused widespread flooding through Nashville and Davidson County resulting in the destruction of homes and displacement of families; and

WHEREAS, on May 4, 2010, the President of the United States determined that the rain events of May 1 and 2, 2010 caused damage of sufficient severity and magnitude to warrant major disaster assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act; and

WHEREAS, in addition, the Pre-Disaster Mitigation Grant, Repetitive Flood Grant, and other hazard mitigation grants administered by the Tennessee Emergency Management Agency provided opportunities for additional hazard mitigation through the acquisition and removal of structures damaged by the rain event that occurred on May 1 and 2, 2010; and

WHEREAS, on October 19, 2010, the Metropolitan Council enacted Ordinance No. BL2010-765 to authorize the Metro Water Services Department to apply for federal and state funds to acquire interests in and demolish flood-damaged properties pursuant to a hazard mitigation grant program; and

WHEREAS, Metro Water Services has identified the properties eligible for the initial buyout program and has applied for federal and state grant funding for the program; and

WHEREAS, the Federal Emergency Management Agency is currently withholding $30.4 million to be used for the purchase of 119 homes as part of the buyout program; and

WHEREAS, Article 2, § 28 of the Tennessee Constitution and Chapter 5 of Article 67 of the Tennessee Code Annotated require all real property to be assessed for taxation for state, county, and municipal purposes unless the property is declared exempt under such provisions; and

WHEREAS, owners of properties included as part of the flood buyout program are responsible for payment of the property taxes owed up until the Metropolitan Government actually purchases the property; and

WHEREAS, the freezing of the federal funding has caused owners of properties awaiting purchase under the flood buyout program to owe property taxes even though they are no longer living in the homes; and

WHEREAS, it is fitting and proper that the Tennessee General Assembly enact some type of tax relief, including the waiver of penalties and interest, for these owners of flooded properties that are part of the home buyout program.

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

Section 1. That the Metropolitan County Council hereby goes on record as requesting the Davidson County Delegation to the Tennessee General Assembly to introduce and support the necessary legislation to provide property tax relief, to the extent allowed by the Tennessee Constitution, for flooded properties that have been identified for acquisition under the Hazard Mitigation Grant Program but are awaiting release of the funds from the federal government to complete the sale. Such tax relief could include the waiver of penalties and interest that otherwise would be owed on delinquent taxes.

Section 2. That the Metropolitan Clerk is directed to send a copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 3. That this Resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Sean McGuire, Steve Glover, Karen Johnson, Phil Claiborne, Edith Taylor Langster