Round 12 Barnes Housing Fund Applications

Timeline

Applications for Round 12: American Rescue Plan Act (ARPA) Special Funding will open on November 1, 2023, and close January 22, 2024. Please see the Round 12 timeline for more details.

Round 13: Barnes General Funding will be announced and opened later in the Fall.

How to Apply

• Before applying, please read the complete description of Round 12 grant policy and eligibility requirements at Fall 2023 Round 12: American Rescue Plan Act (ARPA) Grant Policy. It contains important information that will be needed for application preparation.
• Applications will be accepted beginning November 1, 2023, and closing January 22, 2024.
• No paper applications will be accepted. Applications must be submitted online through the links available on this webpage.
• Inquiries may be sent to the Barnes Housing Trust Fund Manager [email protected]).

Round 12 American Rescue Plan Act (ARPA) Applications

Round 12 Applications

All three grants are under the same program, so please click on the application link and then choose which of the following program(s) you wish to apply for:

• Grant 1 Homesharing (Shared Housing) Improvements
• Grant 2 Cooperative Housing for Families
• Grant 3 Shared Equity

Round 12 Application Uploads and Scoring Information

• 2023 Barnes Affirmative Marketing Plan Checklist
• Diversity, Equity, Accessibility, and Inclusion (DEAI) Checklist
• Fall 2023 Energy Efficiency and Sustainability Checklist
• Fall 2023 Universal Design Checklist
• Round 12 Scoring Matrix -Grant 1 Homesharing (Shared Housing) Improvements
• Round 12 Scoring Matrix -Grant 2 Co-op Housing for Families
• Round 12 Scoring Matrix -Grant 3 Shared Equity

Eligibility Requirements

Eligible proposals for Round 12 must create or preserve affordable housing opportunities in Nashville-Davidson County, Tennessee.

All General Applicant Requirements

• Applicant must be a 501(c)3 nonprofit. The nonprofit may partner with a for-profit developer as long as the nonprofit maintains 51% control of the development. Team and partnership structures should be described in the application.
• Nonprofits who serve their mission through housing, but whose mission is not specifically the creation or preservation of housing, must partner with an experienced general contractor or other experienced partner with development experience. This includes nonprofits seeking to grow their housing expertise.
• Contract terms are for 24 months, and the proposed project must be completed within that timeframe unless an approved contract extension is granted by the Commission. American Rescue Plan Act (ARPA) funds must be expended by December 31, 2026, and no contracts will be extended beyond that date. See Contract Extension policy on page 27.
• Previously funded grantees must be in good standing with the Commission based on their project completion and progress within their contract period.
• Applicants are encouraged to have multiple funding sources outside of the Barnes request.

American Rescue Plan Act (ARPA) Applicant Requirements by Project Type

Grant #1: Shared Housing Improvements Applicant Requirements

• Residents served must be 62 years of age or older and be homeowners at or below 80% of the Area Median Income; cannot be delinquent on property taxes and mortgage payments (if applicable) unless they are participating in an assistance program; and must have an active homeowners insurance policy.
• Unless otherwise prohibited by local, state, or Federal law, these programs will be open to all at-risk older adults (defined above) regardless of immigration status.
• An investment per unit can be up to 25% of the value of the improved home (per Metro tax assessment), not to exceed $70,000. Lien on the home is based on the loan amount as follows:

Lien	Loan Amount
2 years	Up to $10,000
3 years	$20,000
4 years	$30,000
5 years	$40,000
6 years	$50,000
7 years	$60,000
8 years	$70,000

• Applicant must have demonstrated experience serving older adults.
• Maximum Development Fee allowed is 20%. Higher points may be earned by projects where the Developer Fee is 10% or less.
• Proposals must include Universal Design Checklist.
• Project proposals must meet Energy Efficiency and Sustainability Checklist standards.

Grant #2: Cooperative Housing and Grant #3: Shared Equity Homeownership Applicant Requirements

• All Barnes-funded Cooperative Housing units must serve residents at 50% AMI or below, per the annual HUD AMI adjusted for family size.
• All Barnes-funded Shared Equity Homeownership units must serve residents at 80% AMI or below per the annual HUD AMI adjusted for family size.
• Loans provided by the nonprofit must meet or exceed FHA standards of lending for homebuyers.
• Barnes-funded homes must remain affordable for the 30-year affordability term. Applicants will be asked to describe how they will ensure affordability.
• Applicants are encouraged to have strong land control for the proposed development prior to applying.
• Developer Fee must be below the program maximum of the total project budget request from Barnes. Higher points will be given to projects where the Developer Fee is 10% or less.
  • Grant #2 - American Rescue Plan Act (ARPA) Cooperative Housing for Families: developer fee maximum is 25%.
  • Grant #3 - American Rescue Plan Act (ARPA) Shared Equity Construction: developer fee maximum is 20%.
• Proposals must include Universal Design Checklist.
• Project proposals must meet Energy Efficiency and Sustainability Checklist standards.

Minimum Standards Required for Consideration

Several minimum standard criteria must be met in order to be considered for funding.

Note: If these criteria are not met, staff will not advance the application for further review.

Complete Application and Attachments

• All applications must be completely filled out.
• All uploads required for the relevant category must be attached, including Universal Design Checklist, Affirmative Marketing Plan, and Energy Efficiency and Sustainability Checklist. and Diversity, Equity, Accessibility, and Inclusion (DEAI) Matrix (All will be available on the Barnes webpage once the Application Period is open.)

Financial Standing

• All applicants must have good financial standing, including a positive cash flow.
• Organizations with an annual budget above $500,000 must provide an audit with no findings for the Lead Organization, completed within the past 24 months. Small Organizations with annual budgets of $200,000 to $500,000 must provide Financial Statements completed by an independent CPA.

Organizational/Partnership Structure

• Organizational information must be complete. All partners are listed.
• Applicant must be a 501(c)3 nonprofit organization.
• No part of the leadership team is involved in a lawsuit or subject to outstanding claims related to safety violations or wage payments.
• Portion of administration (developer) fee to be paid by Barnes does not exceed the maximum developer fee allowed for the project type. See Section I and II under General Applicant Requirements above.

Metro-Owned Properties for Donation

In addition to awarding funds to nonprofit developers, The Barnes Fund often donates Metro-owned property to nonprofit applicants. In order to apply for Metro-owned properties, developers must also apply for financial support and it must be during a competitive funding round. If applying for a Metro-owned property, please list the relevant parcel information in the address section of the application.

For Round 12, Metro is making the properties listed below available for affordable housing development through the Barnes Fund application process. Click on the property address for additional information on each of these properties.

• 0 Hagan Street = only available to applicants applying for Grant #2: Cooperative Housing.
• 136 Jacksonian Drive = only available to applicants applying for Grant #3: Shared-Equity Homeownership Development Subsidy.

These parcels will not be transferred through the typical quitclaim process. Rather, Metro intends for long-affordability to be maintained through either a ground lease or the use of a land trust. Metro will not require a lease payment. An applicant must propose which option it will utilize as part of its application, and Metro will not consider property requests that do not include one of these options. The Housing Trust Fund Commission and Metro Council must approve the award before construction can begin.

Applicants should consider current land use policies and zoning designations when requesting these properties, keeping in mind that the project must be completed by December 31, 2026.

In the event two or more organizations request the same lot, the property will be awarded to the organization with the highest scoring application.

Site Control/Zoning

1. Do you have another site if you are not awarded this property?
2. Is the title clear?
3. Site control is strongly recommended. Evidence of site control includes deed in hand, a 99-year ground lease, or a signed sales contract. You are required to describe site control in Question 8.
4. Zoning determination under one of the two following scenarios (I or II) is required. Failure to meet I or II (and if II, provide items a and b) will prevent your application from being considered for funding.
   I. If property is zoned: Provide documentation.
   II. If property is not zoned: Prior to the use of any funds, the property must be properly zoned, and it is the sole responsibility of the Recipient to pursue any necessary rezoning or other land use change. The Grant Contract in no way serves to supersede the authority of the Metro Nashville Planning Commission or the Metropolitan Council’s authority to approve or deny zoning or land use changes on the proposed property and shall not be used for such purposes.
   Applicant must verify with Metro Planning staff that rezoning is feasible (provided that Metro Council approves). Therefore, the submitted Barnes application must include:
   1. Council Member letter of support for project
   2. Date of conversation and contact info for Planning Staff involved in verification conversation

Because American Rescue Plan Act (ARPA) funds have strict expenditure deadlines, applicants are encouraged to submit proposals for projects that meet zoning and land use requirements.