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Each year the Metropolitan Government of Nashville and Davidson County receives new federal funding from HUD through its Community Planning and Development (CPD) programs.  The four (4)CPD programs for whicMetro Nashville receives funding are the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant(ESG), and Housing Opportunities for Persons with HIV/AIDS (HOPWA) programs. These funds are awarded each year using a formula based on population, income levels, and other factors.  The amount of the grants received locally is determined by the total amount of funding that Congress appropriates and the number of entitlement communities nationwide.
In addition, Metro receives funding that passes from the U.S. Department of Energy through the Tennessee Housing Development Agency for the Weatherization Assistance Program (WAP). Following the May 2010 Flood, Metro Nashville received a one-time allocation of Community Development Block Grant Disaster Recovery (CDBG-DR) funds to assist with recovery efforts. MDHA administers these grant programs on behalf of Metro Nashville.
As a recipient of federal grant funds, MDHA is required by HUD to produce a five-year Consolidated Plan and Annual Action Plan for the following federal programs:
·         Community Development Block Grant (CDBG)
·         HOME Investment Partnerships Act Program (HOME)
·         Emergency Solutions Grant (ESG)
·         Housing Opportunities for Persons with AIDS (HOPWA)
Metro Nashville’s Five-Year Consolidated Plan identifies the community’s affordable housing, community development and economic development needs and outlines a comprehensive and coordinated strategy for addressing them.   The Plan is developed through an extensive public input process. The current Consolidated Plan covers the period from April 1, 2013 to March 31, 2018.  In August 2013, MDHA prepared a Substantial Amendment to the Consolidated Plan, which was approved by HUD in September 2013, to make significant budget revisions, add new activities, and revise the place-based strategy. Each year during, MDHA prepares an Annual Update to the Consolidated Plan (Annual Action Plan) which allocates funding for eligible projects for the respective program year.   
The primary objectives of the four Consolidated Plan programs are to develop viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities principally for low- and moderate-income persons. Related outcomes are increasing availability and accessibility, improving affordability, and promoting sustainability of communities. 
During the development of the Consolidated Plan, a number of priority needs were identified:
1.      Increase the Supply of Affordable Housing;
2.      Strengthen Collaboration Among the Network of Service Providers;
3.      Increase Access to Healthy Food Choices;
4.      Decrease Homelessness;
5.      Develop and Implement Place-Based Strategies for Community Development;
6.      Provide Summer Programs for Low- and Moderate-Income Children and Youth;
7.      Provide Housing Assistance for Persons With HIV/AIDS; and
8.      Affirmatively Further Fair Housing.
Specific activities to address these priorities are undertaken through the four grant programs: CDBG, ESG, HOME, and HOPWA and are described in the Action Plans.  Click here for the 2013 Action Plan and here for the draft 2014 Action Plan.
The CDBG Program is authorized under Title I of the Housing and Community Development Act of 1974, as amended. The primary objective of the program is the development of viable urban communities. These viable communities are achieved by providing decent housing, a suitable living environment; and expanded economic opportunities. Nashville-Davidson County is an “Entitlement Community” and receives annual funding directly from HUD according to the formula allocation. 
All activities funded by the CDBG program must meet one of the three national objectives:
            1.         to benefit low and moderate income persons;
            2.         to address slums and blight; or
            3.         to meet an urgent community development need.
The federal statute governing the CDBG program requires that at least 70% of all project expenditures benefit low and moderate income persons; typically, the low/moderate benefit level is 99%. The federal statute also limits two other categories of spending: planning and administrative costs cannot exceed 20% of the annual allocation and program income and public service costs are limited to 15%.
The HOME Investment Partnerships Program (HOME) is a federal entitlement program, which was established by the National Affordable Housing Act of 1990. As in the case of CDBG, the Metropolitan Government receives an annual allocation of funds directly from HUD.  
The primary objective of HOME is to expand the supply of decent, safe and affordable housing. Eligible activities include: homeowner and rental rehabilitation, new construction, and downpayment assistance. A  minimum 15% of the annual allocation must be set-aside for use by Community Housing Development Organizations (CHDOs). CHDOs are non-profit organizations that have affordable housing as their primary objective. 
The HOME allocation must be matched by other local public or private monies at a rate of 25%. Typically, this match requirement is met through the valuation of property and non-federal funds in a project. HOME funds for homeownership projects must be used to benefit persons who earn less than 80% of the area median income for Nashville and Davidson County (AMI), while rental projects must benefit persons who earn less than 60% AMI. Recipients of HOME subsidies must agree to maintain affordability for a specified period of time based on the amount of subsidy received.

Title IV of the McKinney-Vento Homeless Assistance Act (1987) authorized the Emergency Shelter Grant Program.  The Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act) amended the McKinney-Vento Homeless Assistance Act, including major revisions to the Emergency Shelter Grants program, which was renamed the Emergency Solutions Grants (ESG) program.  The ESG program is designed to identify sheltered and unsheltered homeless persons, as well as those atrisk of homelessness, and provide the services necessary to help those persons quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness. Funds support program administration, emergency shelters, HMIS, and rapid re-housing. Organizations that receive funds must provide a 100% match.

HOPWA program funds are distributed under a statutory formula that is based on AIDS surveillance information (cumulative AIDS cases and are a incidence) from the Centers for Disease Control and Prevention (CDC)  to eligible cities on behalf of their metropolitan areas and to eligible States to address the specific needs of persons living with HIV/AIDS and their families.  Metropolitan areas with a population of more than 500,000 and at least 1,500 cumulative AIDS cases are eligible for HOPWA formula grants. In these areas, the largest city serves as the Formula Grant Administrator on behalf of the metropolitan area.
In 1997, Nashville-Davidson County became eligible to receive HOPWA funds as a formula grantee, and MDHA was designated as the local agency to administer HOPWA funds for the area consisting of the following counties in Middle Tennessee: Cannon, Cheatham, Davidson, Dickson, Hickman, Macon, Robertson, Rutherford, Smith, Sumner, Trousdale, Williamson, and Wilson.  HOPWA funds support the following activities, which are described below: rental assistance, supportive services, and administrative costs.  
Low-income persons (at or below 80% of AMI) who are medically diagnosed with HIV/AIDS and their families are eligible to receive HOPWA assistance. Programs are administered by Sponsors that are selected for funding through a Request for Proposals..