ORDINANCE NO. BL2000-518

An ordinance approving a Memorandum of Understanding by and among The Metropolitan Government of Nashville and Davidson County, the Metropolitan Development and Housing Agency and the Nashville Housing Fund regarding the use of certain funds, and authorizing all necessary officials to execute the same.

Whereas, during the Nashville's Agenda planning process, Nashvillians identified "affordable, adequate and safe housing" as a fundamental goal for this community; and

Whereas, it was recommended that a flexible local housing fund be established to encourage home ownership and the development of new affordable housing; and

Whereas, the mission of the Metropolitan Development and Housing Agency ("MDHA") is to provide decent, safe, and sanitary housing to low and moderate income citizens of Nashville-Davidson County, and to develop or redevelop neighborhoods and commercial areas of the city in order to prevent or eliminate blighting influences, and

Whereas, MDHA established the Nashville Housing Fund ("NHF") as a not-for-profit affiliate of MDHA, to assist MDHA in accomplishing its mission by: (a) acquiring funds from governmental entities and agencies, including but not limited to The Metropolitan Government of Nashville and Davidson County (the "Metropolitan Government") and MDHA, and from non-governmental entities and individuals, through gifts, grants, loans, or otherwise; (b) acquiring, leasing, or obtaining easements over real property, improved or unimproved, and personal property, from governmental entities and agencies, including but not limited to the Metropolitan Government and MDHA, and from non-governmental entities and individuals, through gifts, grants, purchases, exchanges, or otherwise; (c) making loans, grants, gifts, or payments of any kind to owners, developers, lessors, lessees, occupants, lenders, or others to induce them to or assist them in providing decent, safe, and sanitary housing to low and moderate income citizens of Nashville-Davidson County or in developing or redeveloping neighborhoods and commercial areas of the city in order to prevent or eliminate blighting influences; (d) selling, leasing, giving, or granting easements over real or personal property to owners, developers, lessors, lessees, occupants, lenders, or others to induce them to or assist them in providing decent, safe, and sanitary housing to low and moderate income citizens of Nashville-Davidson County or in developing or redeveloping neighborhoods and commercial areas of the city in order to prevent or eliminate blighting influences; and (e) owning, operating or managing real property, improved or unimproved, and personal property, in order to provide decent, safe, and sanitary housing to low and moderate income citizens of Nashville-Davidson County or to develop or redevelop neighborhoods and commercial areas of the city in order to prevent or eliminate blighting influences; and

Whereas, in the Fiscal Year 2000-2001 budget of the Metropolitan Government, $197,377 was appropriated to MDHA (the "Budget Funds"), $74,906 of which was to be used by NHF to support the Urban Homestead Program and $122,471 of which was to be used by NHF to provide administrative support for the Front Door, Downpayment Assistance and Development Loan programs of NHF.

Whereas, the Memorandum of Understanding, by and among the Metropolitan Government, MHDA and NHF sets forth the terms and conditions for the use of the Budget Funds.

Now, therefore, be it enacted by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1: The Memorandum of Understanding, by and among the Metropolitan Government, MHDA and NHF, a copy of which is attached hereto and incorporated herein, is hereby approved and all necessary officials of the Metropolitan Government are authorized to execute the same.

Section 2: Any amendments, renewals or extensions of the terms of the Memorandum of Understanding described in Section 1 shall be approved by Resolution of the Metropolitan Council.

Section 3: This Ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

MEMORANDUM OF UNDERSTANDING

THIS MEMORANDUM OF UNDERSTANDING (the "MOU"), is made and entered into effective the 1st day of July, 2000, by and between THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY (hereinafter referred to as the "Metropolitan Government"), the METROPOLITAN DEVELOPMENT AND HOUSING AGENCY, created and existing pursuant to the Tennessee Housing Authorities Law, Tenn. Code Ann. 13-20-101, et seq., and designated as the housing authority of the Metropolitan Government pursuant to Section 18.04 of the Charter of the Metropolitan Government (hereinafter referred to as "MDHA") and THE NASHVILLE HOUSING FUND, INC., a Tennessee not for profit corporation (hereinafter referred to as "NHF").

WITNESSETH

WHEREAS, during the Nashville's Agenda planning process, Nashvillians identified "affordable, adequate and safe housing" as a fundamental goal for this community; and

WHEREAS, it was recommended that a flexible local housing fund be established to encourage home ownership and the development of new affordable housing; and

WHEREAS, the mission of MDHA is to provide decent, safe, and sanitary housing to low and moderate income citizens of Nashville-Davidson County, and to develop or redevelop neighborhoods and commercial areas of the city in order to prevent or eliminate blighting influences, and

WHEREAS, MDHA established NHF as a not-for-profit affiliate of MDHA to assist MDHA in accomplishing its mission by: (a) acquiring funds from governmental entities and agencies, including but not limited to the Metropolitan Government and MDHA, and from non-governmental entities and individuals, through gifts, grants, loans, or otherwise; (b) acquiring, leasing, or obtaining easements over real property, improved or unimproved, and personal property, from governmental entities and agencies, including but not limited to the Metropolitan Government and MDHA, and from non-governmental entities and individuals, through gifts, grants, purchases, exchanges, or otherwise; (c) making loans, grants, gifts, or payments of any kind to owners, developers, lessors, lessees, occupants, lenders, or others to induce them to or assist them in providing decent, safe, and sanitary housing to low and moderate income citizens of Nashville-Davidson County or in developing or redeveloping neighborhoods and commercial areas of the city in order to prevent or eliminate blighting influences; (d) selling, leasing, giving, or granting easements over real or personal property to owners, developers, lessors, lessees, occupants, lenders, or others to induce them to or assist them in providing decent, safe, and sanitary housing to low and moderate income citizens of Nashville-Davidson County or in developing or redeveloping neighborhoods and commercial areas of the city in order to prevent or eliminate blighting influences; and (e) owning, operating or managing real property, improved or unimproved, and personal property, in order to provide decent, safe, and sanitary housing to low and moderate income citizens of Nashville-Davidson County or to develop or redevelop neighborhoods and commercial areas of the city in order to prevent or eliminate blighting influences; and

WHEREAS, in the Fiscal Year 2000-2001 budget approved by Substitute Bill No. BL2000-290, the Metropolitan Government appropriated $ 197,377 (the "Budget Funds"), to MDHA, $74,906 of which was to be used by NHF to support the Urban Homestead Program and $122,471 of which was to be used by NHF to provide administrative support for the Front Door, Downpayment Assistance and Development Loan programs of the Nashville Housing Fund.

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged and the mutual promises contained herein, the parties agree as follows:

1. Agreements of Metropolitan Government.
A. The Metropolitan Government shall pay the Budget Funds to MDHA only after the receipt of invoice(s) and any supporting information as may be requested by the Finance Department of the Metropolitan Government to demonstrate that the Budget Funds are used by NHF in accordance with Section 3A of this MOU. All invoices shall be sent to Division of Accounts, Department of Finance, Metropolitan Courthouse, Nashville, TN 37201.
B. The payment of an invoice by the Finance Department of the Metropolitan Government shall not prejudice its right to object to or question any matter in relation thereto, and such payment by the Finance Department of the Metropolitan Government shall not be construed as approval of the expenditures covered therein. MDHA's invoice shall be subject to reduction or repayment of amounts therefore made which are determined by Metropolitan Government on the basis of audits not to constitute allowable expenditures.
2. Agreements of MDHA.
A. MDHA shall pay the Budget Funds to NHF only after the receipt of invoice(s) and any supporting information as may be requested by the Finance Department of the Metropolitan Government to demonstrate that the Budget Funds are used by NHF in accordance with Section 3A of this MOU, and the receipt of the payment of the invoice from the Metropolitan Government. All invoices shall be sent to MDHA at 701 South Sixth Street, Nashville, Tennessee 37206. The payment of an invoice by MDHA shall not prejudice its right to object to or question any matter in relation thereto, and such payment by MDHA shall not be construed as approval of the expenditures covered therein. NHF's invoices shall be subject to reduction or repayment of amounts therefore made which are determined by MDHA on the basis of audits not to constitute allowable expenditures.
B. MDHA shall provide the Finance Department of the Metropolitan Government with a copy of an audited financial statement for each MDHA fiscal year, which covers the period of this MOU.
3. Agreements of NHF.
A. The Budget Funds shall be utilized by NHF as follows:
(i) $74,906.00 to provide administrative support to the Nashville Homestead Corporation in awarding lots through the Urban Homestead Program (NHC), including staff salaries and fringe benefits, printing and postage, land transfer costs, sundry expenses and lot maintenance.
$122,471.00 to provide administrative support the Front Door, a one-stop information, screening and evaluation service for approximately 1,000 low and moderate income persons who want to become home owners; the Downpayment Assistance Program for low and moderate income families purchasing a home in Davidson County; and the Development Loan Program, which provides low interest gap financing for affordable housing developers.
B. NHF shall provide MDHA with any invoices and any supporting information as may be requested by the Finance Department of the Metropolitan Government to demonstrate that the Budget Funds are used by NHF in accordance with Section 3A of this MOU.
C. NHF shall provide MDHA and the Finance Department of the Metropolitan Government with a copy of an audited financial statement of all the activities of NHF for each NHF fiscal year, which covers the period of this MOU. NHF shall conduct such audit or audits in compliance with OMB Circulars A-110, A-122 and A-133. NHF shall deliver such audited financial statement or statements to MDHA and the Finance Department of the Metropolitan Government within thirty (30) days of the receipt of the completed audited financial statement or statements from the auditor.
D. NHF shall procure all materials, property or services for all the activities of NHF in accordance with the requirements of Attachment O of OMB Circular A-110, Procurement Standards.
E. When making any loans, grants or other agreements for the purpose of increasing home ownership opportunities for low and moderate-income persons or for the developing new affordable housing opportunities, NHF shall comply with the following:
(i) No board member, director or employee of NHF shall receive any financial assistance from NHF unless (a) the financial assistance is provided pursuant to standard underwriting procedures, terms and conditions, (b) the board member, director or employee does not participate in any way regarding the decision making regarding the financial assistance, (iii) the board of directors of NHF approves the financial assistance, and (iv) the financial assistance is provided in accordance with the policy on providing financial assistance to board members, directors and employees approved by the board of directors of NHF.
(ii) No board member, director or employee of NHF shall solicit or accept gratuities, offers of employment, favors or anything of monetary value from any actual or potential recipients of financial assistance from NHF.
F. NHF shall not subscribe to any personnel policy which permits or allows for the promotion, demotion, employment, dismissal or laying off of any individual due to the individual's race, creed, color, national origin, age, sex, or which is in violation of applicable laws concerning the employment of individuals with disabilities. No individual with a disability nor any individual due to the individuals' race, creed, color, national origin, age, or sex shall be excluded from participation in, or be denied benefits of, or be otherwise subjected to discrimination in the performance of any of the activities of NHF. NHF shall, upon request, show proof of such non-discrimination, and shall post in conspicuous places, available to all employees and applicants, notice of non-discrimination.
G. NHF agrees to comply with all applicable federal, state and local laws and regulations in the performance of for all the activities of NHF.
4. Term. The term of this MOU shall be for a period of twelve (12) months, commencing on July 1, 2000, and ending on June 30, 2001.
5. Miscellaneous Provisions.
A. This instrument contains the entire agreement between the Metropolitan Government, MDHA and NHF. This MOU may be modified only by written amendment that has been executed and approved by the appropriate parties as indicated on the signature page of this MOU. No party to this MOU may assign its rights or delegate its responsibilities hereunder without the written consent of the other parties.
B. This MOU may be terminated for cause by any party thereto upon thirty (30) days written notice to the other parties.
C. The Metropolitan Government shall have no liability except as specifically provided in this MOU.
D. The validity, construction and effect of this MOU and any and all extensions and/or modifications thereof shall be governed by the laws and in the courts of the State of Tennessee.
If any provision of this MOU is held invalid, the remainder of the MOU shall not be affected thereby and all other parts of this MOU shall remain in force and effect.

IN WITNESS WHEREOF, the said parties have hereunto set their signatures effective on the day and date set forth above

Sponsored by:  Howard Gentry, Melvin Black & Chris Ferrell

LEGISLATIVE HISTORY

Introduced: November 21, 2000
Passed First Reading: November 21, 2000
Referred to: Budget & Finance Committee
Passed Second Reading: December 5, 2000
Passed Third Reading: December 19 , 2000
Approved: December 21 , 2000
By: Mayor Bill Purcell