A resolution authorizing the execution of a Cooperation Agreement between The Metropolitan Government of Nashville and Davidson County and the Metropolitan Development and Housing Agency.

WHEREAS, pursuant to the Tennessee Housing Authorities Act, the Metropolitan Government has heretofore executed cooperation agreements with the Metropolitan Development and Housing Agency (the “Agency”) in support of housing projects owned by the Agency; and

WHEREAS, the Agency is in the process of converting its traditional public housing under the U. S. Department of Housing and Urban Development’s Rental Assistance Demonstration program allowing the Agency to participate in various financial scenarios to ensure the long-term financial security of low income housing; and

WHEREAS, the Metropolitan Government is desirous of assisting and cooperating with the Agency to operate, maintain, construct and reconstruct mixed income housing including affordable and workforce housing by entering into a Cooperation Agreement, a copy of which is attached hereto as Exhibit “A” (the “Cooperation Agreement”);


Section 1. The Metropolitan Government of Nashville and Davidson County is authorized to enter into the Cooperation Agreement with the Agency, by which it undertakes to furnish to the Agency and its residents the same type and level of public services and facilities that are provided without cost or charge to other dwellings and inhabitants of the community at large, and the Metropolitan Mayor is authorized to execute such agreement.

Section 2. 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: John Cooper

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Mr. President,

I move to amend Resolution No. RS2017-690 as follows:

Section 1. That the phrase "subject to the conditions contained in Section 2 of this Resolution" is inserted at the end of Section 1.

Section 2. That a new Section 2 is inserted in the Resolution as follows:

Section 2. The Metropolitan Mayor may only execute the Cooperation Agreement if the following conditions have been satisfied:

(a) The Cooperation Agreement is revised to include the following:

i. A requirement that, if any land, building, structure, or other improvement is used for any for-profit activities, including without limitation any office, commercial, retail, or industrial use ("for-profit parcel"), such for-profit parcel shall be subdivided from the remaining Housing Project real property and, for such for-profit parcel, MDHA shall make a payment in lieu of taxes ("PILOT") that is equal to the real property taxes that would be due for such for-profit parcel if it were not owned by a housing authority;

ii. A requirement that, for any housing units where the residents are not screened for an income eligibility requirement, the PILOT will be Eighty Dollars ($80.00) per Unit to be increased by the same Consumer Price Index mechanism described in the Cooperation Agreement for other Units;

iii. Notwithstanding anything to the contrary in subsections (i) and (ii), if a for-profit parcel also contains housing units, then the PILOT due by MDHA for that parcel shall be: (A) the amount due under subsections (i) ("Base PILOT Amount"); (B) minus an amount equal to the Base PILOT Amount times the ratio determined by dividing the rentable square feet of housing units by the total square feet of the parcel; provided that "rental square feet" shall mean the actual usable square footage of the housing units plus a pro-rata share of building common areas; and (C) plus Fifty Dollars ($50.00) or Eighty Dollars ($80.00) per housing unit as applicable;

iv. A termination date for the Cooperation Agreement not to exceed seven (7) years after approved by the Metropolitan Council; and

v. A binding commitment for MDHA and Metro Nashville to cooperate to complete, no later than six (6) months prior to the contract termination date, an analysis of what the property taxes would be for current Housing Project Units with no income eligibility requirement if those Units were not owned by a housing authority.

Section 3. That the existing Section 2 of the resolution is renumbered to be Section 3.

Sponsored by: Bob Mendes


Referred to: Budget & Finance Committee
Introduced: May 16, 2017
Adopted: May 16, 2017
Approved: May 17, 2017
By: Mayor's signature

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