RESOLUTION NO. RS2010-1485
A resolution approving a short term Intra-governmental loan in the amount of five million dollars ($5,000,000) from The Metropolitan Government of Nashville and Davidson County to the Metropolitan Development and Housing Agency.
Whereas, the Metropolitan Development and Housing Agency (“MDHA”) has applied for federal grant monies under a special appropriation of Community Development Block Grant fund for disaster assistance (the “Grant Funds”) on behalf of the Metropolitan Government from the U.S. Department of Housing and Urban Development (“HUD”); and
Whereas, due to the required procedures for approval of funding from HUD, the disbursement of such Grant Funds will be delayed beyond the time funding will be needed to maintain the current recovery effort; and
Whereas, the delay in receipt of the Grant Funds would cause MDHA to experience a disruption in funding the We Are Home Program administered by The Housing Fund, such that the program will be unable to continue to operate until the Grant Funds are received; and
Whereas, the We Are Home Program assists the citizenry of the Metropolitan Government in recovery from the May 2010 Floods by providing grants and loans to hundreds of homeowners for the repair and restoration of their flood-damaged residences; and
Whereas it is in the best interest of the Metropolitan Government and MDHA to continue uninterrupted funding of the We Are Home Program; and
Whereas, it is expected that the federal approval and disbursement of the Grant Funds will occur no later than February 2011; and
Whereas, the Metropolitan Government desires to loan to MDHA sufficient funds to allow MDHA to continue to fund the We Are Home Program pending receipt of the Grant Funds, contingent upon MDHA’s pledge of the Grant Funds to secure the repayment of such loan; and
Whereas, T.C.A. § 13-20-417 authorizes a municipality located in the area of operation of a housing authority to lend money to the authority provided that the housing authority, when it has money available, reimburses such loans.
Section 1. That the Metropolitan Council hereby approves an intra-governmental loan in the amount of five million dollars ($5,000,000) from the Metropolitan Government to MDHA, subject to reimbursement not later than thirty days after receipt of the Grant Funds, and subject to the terms and conditions stated in the Intra-governmental Note attached hereto and incorporated by reference.
Section 2. That the Director of Finance is authorized to take all action necessary to carry out the loan approved by this resolution.
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: Megan Barry, Edith Taylor Langster
Amendment No. 1
Resolution No. RS2010-1485
I move to amend Resolution No. RS2010-1485 by substituting the Intra-Governmental Note referenced in Section 1 with the attached new Intra-Governmental Note.
Sponsored by: Megan Barry
Attachment(s) on file in the Metropolitan Clerk's Office
|Referred to:||Budget & Finance Committee|
|Introduced:||December 21, 2010|
|Amended:||December 21, 2010|
|Adopted:||December 21, 2010|
|Approved:||December 22, 2010|