04 Jun Summary Review of Agenda Items for MDHA’s June 8, 2021, Board Meeting
5a. 900 Dickerson PILOT Agreement
Dominium has established a limited partnership, Nashville Leased Housing Associates III, LP to acquire property located at 900 Dickerson Pike Nashville and construct a 255-unit affordable housing complex. Nashville Leased Housing Associates, LP has applied for 4% Low Income Housing Tax Credits (LIHTCs) from the Tennessee Housing Development Agency (THDA). The tax credits will result in an equity amount of $31,798,700. When completed, the development will consist of 6 two-bedroom units, 153 one-bedroom units, 65 two-bedroom units, and 31 three-bedroom units. 100% of the units will be subject to income and rent restrictions, the average income restriction will be no greater than 60% of area median income (AMI). Nashville Leased Housing Associates III, LP has submitted an application to MDHA for a Payment in Lieu of Taxes (PILOT).
Staff is recommending approval of a PILOT that would require Developer to make a total initial payment of $23,821 in lieu of property taxes after the project is placed in service. The PILOT would increase by 3% annually over the 10-year life of the agreement. This PILOT payment was based on review of the site’s projected base year taxes, development budget, operating pro forma, and debt obligations. MDHA estimates this to be a tax abatement of approximately $536,198 for the first year the property is placed in service. This would leave MDHA’s annual abatement capacity at $-277,353.
5b. Substantial Amendment 4 and 2021 -2022 Annual Update for Program Year four to the 2018 -2023 Consolidated Plan for Housing and Community Development for Nashville-Davidson County
Approval of the 2021 Action Plan and Substantial Amendment 4 to the 2018-2023 Consolidated Plan for Housing and Community Development.
The 2021 Action Plan serves as Metro Nashville’s application for receiving funds for the following programs: Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), the Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). The Plan describes community needs and funding priorities for the 2021-2022 Program Year (June 1, 2021 through May 31, 2022). MDHA has also prepared Substantial Amendment 4 to the 2018-2023 Consolidated Plan to provide clarifications/changes to the original Plan.
MDHA is seeking Board approval for the 2021 Action Plan and Substantial Amendment 4 to the 2018-2023 Consolidated Plan. The Plan will be presented to the Metro Council for approval before submittal to the U.S. Department of Housing and Urban Development.
The 2021 Action Plan and Amendments to it can be viewed at the following link: http://www.nashville-mdha.org/wp-content/uploads/2015/20/2021-Action-Draft-for-Public-Comment-Final.pdf.
6a. Amendment to Housing Choice Voucher Administrative Plan
A proposed amendment to the Housing Choice Voucher (HCV) Administrative Plan provision regarding the purging of the HCV waiting list is being recommended. Currently MDHA establishes the HCV waiting list every two years, and selects applicants from the waiting list for two years. At the end of the two-year period, the waiting list is purged and new waiting list is established. The proposed amendment to this provision is to select from the HCV waiting list until the response rate for selected applicants is below 50% for three consecutive months, or for no more than 48 months from the date the waiting list is established.
6b. The Public Housing Authority Plan
The Agency is required to prepare and submit to HUD an Annual Plan that pertains to the Housing Choice Voucher program and to our intended uses of Faircloth Amendment authority for any new public housing units we intend to develop. The Annual Plan is largely a progress report on the goals and objectives we set forth in the Five-Year Plan that was adopted in 2019. The draft Annual Plan was made available for public review and comment and a public hearing was conducted by the Board on May 11; but no comments have been received. The Board is requested to approve the Annual Plan and authorize its submission to HUD.