ORDINANCE NO. BL2015-1281
An ordinance authorizing the Metropolitan Development and Housing Agency to negotiate and accept payments in lieu of ad valorem taxes from its lessees operating low income housing tax credit properties pursuant to Tennessee Code Annotated 13-20-104 and approving the program for determining qualifications and eligibility for such payments.
WHEREAS, Tennessee Code Annotated 13-20-104 (“the Act”) provides that a Metropolitan Government for which a housing authority is created to delegate to such housing authority the authority to negotiate and accept payments in lieu of ad valorem taxes from the housing authority’s lessees operating low-income housing tax credit (“LIHTC”) property; and
WHEREAS, the Metropolitan Development and Housing Agency (“MDHA”) was created pursuant to state law and is the housing authority for the Metropolitan Government; and
WHEREAS, MDHA has developed a payment in lieu of ad valorem tax program (“PILOT Program”), attached as Exhibit A hereto and incorporated herein, for determining the eligibility and qualification of its lessees operating LIHTC properties; and
WHEREAS, with the increasing demand for affordable rental housing in Davidson County and the tight rental market conditions, the PILOT Program would further MDHA’s public purpose by providing additional financial incentives for construction or rehabilitation of affordable housing units through the federally sponsored low income housing tax credit programs resulting in a positive impact on the supply of affordable housing in Davidson County; and
WHEREAS, the Act requires that MDHA submit an annual report to the State Board of Equalization containing specific information about its active PILOT agreements and such report would benefit the Metropolitan Council, the Metropolitan Trustee and the Metropolitan Assessor of Property, and
WHEREAS, the Act also requires that MDHA submit each such PILOT agreement to the Metropolitan Council for approval.
NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
SECTION 1: That the Metropolitan Council hereby finds that the PILOT Program designed by MDHA, attached as Exhibit A hereto and incorporated herein, furthers MDHA’s public purpose and approves the PILOT Program.
SECTION 2: That the Metropolitan Council hereby delegates to MDHA the authority to negotiate and accept payments in lieu of tax from its lessees operating LIHTC properties pursuant to the Act.
SECTION 3: That MDHA shall submit each such PILOT Agreement to the Metropolitan Council for approval by resolution.
SECTION 4: That MDHA shall file an annual report with the Metropolitan Council, the Metropolitan Assessor of Property, and the State Board of Equalization containing the following information:
a) a list of all the real and personal property owned by MDHA and its associated entities and subsidiaries with respect to which payments in lieu of taxes have been negotiated and accepted;
b) the value of each listed property, as estimated by the lessee of the property;
c) the date and term of the lease for each listed property;
d) the amount of payments made in lieu of property taxes for each listed property;
e) the date each listed property is scheduled to return to the regular tax rolls; and
f) a calculation of the taxes which would have been due for each listed property if the properties were privately owned or otherwise subject to taxation.
SECTION 5. That this Ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Bill Pridemore, Peter Westerholm, Burkley Allen
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|Introduced:||July 7, 2015|
|Passed First Reading:||July 7, 2015|
|Referred to:||Budget & Finance Committee|
|Passed Second Reading:||July 21, 2015|
|Passed Third Reading:||August 4, 2015|
|Approved:||August 10, 2015|
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