Nashville receives first-of-its-kind federal grant to remove obstacles to housing

Nashville will receive $5 million from the White House and U.S. Department of Housing and Urban Development to remove barriers to affordable housing production and preservation by creating a Faith Based Development Institute. Metro Nashville will also use the funds to bolster its Affordable Housing Finance Program, create and preserve new permanent supportive housing units, and accelerate development capacity with emerging partners. (See attached photo of check presentation).

Nashville is one of just 21 communities nationwide out of more than 175 applicants to receive the funding award from HUD's new Pathways to Removing Obstacles to Housing (PRO Housing) program, which assists with lowering housing costs. On Thursday, Mayor Freddie O'Connell announced that a portion of these funds will support the new Faith Based Development Institute and facilitate affordable housing development on land owned by faith-based organizations.

"As the cost of land increases, it becomes even more challenging to create affordable housing units, and our faith community, which owns nearly 4,000 acres of land across the county, represents a significant opportunity to partner together to create affordable housing options," Mayor O'Connell said. "We appreciate the support of our federal partners whose funding will help us add another set of tools to our toolkit to support the creation of more affordable homes across Nashville and address one of the greatest cost of living challenges we face."

Claudette Fernandez, the General Deputy Assistant Secretary for Community Planning and Development from HUD, presented a check (see attached photo) to Nashville Thursday on the 50th anniversary of the Community Development Block Grant Program. She noted, "This funding will build upon the impressive work Nashville and Davidson County have already done to increase housing supply, adopt bold policy strategies, and greater partnership with citizens, developers, and the private sector."

A report prepared by Think Tennessee and the Urban Institute identified approximately 1,600 parcels (3,491 acres) of land geographically dispersed across Davidson County owned by faith-based institutions. More than half of the acres (57%) are undeveloped and could be used for housing.

"We are grateful to HUD for selecting Nashville to be one of the PRO Housing Grant recipients, which is the first Federal Grant Metro's Housing Division has received," said Angela Hubbard, Metro Housing Director. "This funding will help our community unlock additional innovative tools to create and preserve much-needed affordable housing."

The PRO Housing program is the latest success in Metro's work to increase housing stock and make Nashville a more affordable city.

Clark UMC affordable homes open

Earlier this week, Clark United Methodist Church opened six new affordable homes on its property off Phillips Street that will help six families find a new place to call home that leaves them income they can use for more of their needs.

The Clark UMC Barnes-funded project, one O'Connell worked on directly as a councilmember, faced several hurdles to get to completion, and Mayor O'Connell used it as an example of a project that could have moved faster. To that end, the mayor has instituted several reforms aimed at streamlining affordable housing projects so that delays like the ones that impacted Clark UMC should be less likely for future affordable housing developers:

• Metro now offers priority plans and permits review for affordable housing projects.
• Affordable housing developers who are participating in an income-restricted affordable housing program, like the Barnes Fund, can request affordability certification by contacting the Housing Division.
• Metro recently established an Affordable Housing Permit, which flags all affordable housing projects that have been certified by the Housing Division. This makes it much easier for Metro departments to identify which projects should receive priority review.
• Planning has created these permits for all projects certified since 2022.
• The Housing Division is working with Metro departments to revise the legislation authorizing the priority review process to better define what "expedited" means.

Clark UMC received $400,000 from the Barnes Fund to construct the six homes and improve the infrastructure along Phillips St. In the nearly 11 years of the Barnes Fund, nearly 110 million dollars have been awarded, leading to the development and preservation of more than 4,700 homes.

First 11 months of O'Connell administration: an investment in affordability

• In October 2023, cut the ribbon on the Nashville Rescue Mission – Women and Children's Campus
• In November 2023, Affordable Housing Resources cut the ribbon on new affordable townhomes in Madison.
• In November 2023, Urban Institute launched its Affordable Housing Report
• In November 2023, the Mobile Housing Navigation Center, a first in Metro Nashville, launched to focus on helping young adults and LGBTQ+ youth find stable housing.
• In November 2023, Mending Hearts launches a new transitional living recovery home in the Nations.
• MDHA has more affordable homes under construction currently than at any point in the last 54 years as 400 new homes are underway with Park Point East.
• In March, Cherry Oak Apartments opened in East Nashville opened, bringing 95 more homes, including 45 for current Cayce residents.
• In April, Holladay Ventures cut the ribbon on Park24's new facility in the East Hill neighborhood of East Nashville. Park24 helps individuals with mental health challenges and co-occurring substance abuse disorders.
• In April, Metro Council approved the Master Developer Agreement with The Fallon Co. Which will build 695 units of affordable housing that will remain affordable for 99 years (the duration of the ground lease).
• In June, Mayor O'Connell announced the formation of the Nashville Catalyst Fund. The Fund will provide fast, flexible loans to help preserve affordability for rental homes that would otherwise be lost to the market and to increase affordable housing production in Nashville.
• In July, the 808 at Skyline Ridge opened in Madison which is a 178-home affordable development over 15 acres.
• In first operating budget, Mayor O'Connell adds $30 million to the Barnes fund for affordable housing.
• Between June and October 2024, the Metro Housing Division will award over $50 million in Barnes Fund grants to nonprofit organizations to create and preserve over 1,000 affordable homes, including homes for our most vulnerable residents and the first Metro-funded housing co-operative.
• In the last 12 months, 1919 previously unhoused Nashvillians were moved into housing with the assistance of more than 42 community partner agencies.