RESOLUTION NO. RS2015-1496

A resolution requesting the Davidson County Delegation to the Tennessee General Assembly to introduce and support the necessary legislation to clearly authorize the Metropolitan Government to issue public obligation bonds for the purpose of providing funds for 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, many cities around the United States of America have issued municipal bonds in order assist in creating affordable housing; and

WHEREAS, the NashvilleNext general plan specifically recommends, in part, creating dedicated financial resources to subsidize equitable and affordable housing; and

WHEREAS, the Metropolitan Government has previously created the Barnes Fund for Affordable Housing (which is administered by the Metro Housing Trust Fund Commission), but the Barnes Fund is not adequately funded; and

WHEREAS, the laws of the State of Tennessee, including without limitation Tennessee Code Annotated Section 9-21-101, et seq., do not expressly authorize the issuance of local government public obligation bonds for the purpose of creating affordable housing in major urban areas such as Nashville; and

WHEREAS, the passage of legislation by the Tennessee General Assembly to clarify that the Metropolitan Council may authorize the issuance of public obligation bonds for the purpose of providing funds for affordable housing would be in the best interest of The Metropolitan Government of Nashville and Davidson County.

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 clearly authorize local governments in any county with a population greater than 600,000 in the 2010 federal census, such as the Metropolitan Government of Nashville and Davidson County, to issue municipal bonds for the purpose of providing funds for affordable housing, including for the purpose of funding a housing trust fund such as the Barnes Fund for Affordable Housing.

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: Fabian Bedne, Ronnie Steine, Megan Barry, Sandra Moore