Nashville approves $50M in COVID-19 relief funds for homelessness response
Nashville will spend $50 million in one-time federal funds in a multipronged approach to address homelessness.
Metro Council approved on Tuesday the use of American Rescue Plan Funds for a four-part plan backed by Mayor John Cooper's administration. The funding includes:
$25 million in low-cost loans for developers to bring units of deeply affordable housing online quickly
$9 million to support temporary housing
$9 million toward housing-first supportive services
$7 million in competitive grants to incentivize landlords and developers to relax barriers to housing
"Homelessness is a decades-old challenge for Nashville, and I believe the size, scope and sophistication of this plan meets the magnitude of the problem," Cooper said in an emailed statement early Wednesday.
Cooper and a collection of local organizations who serve people experiencing homelessness in Nashville increasingly pressed the council to approve the allocations. Consultants said the set of programs will help Nashville secure additional funding from various federal sources, presenting an opportunity to supplement or sustain programs after the COVID-19 relief money runs out.
Council members initially hesitated to approve the legislation, which several members said was lacking in detail and accountability mechanisms. Council members approved amendments crafted by Council member Courtney Johnston and staff that add reporting guidelines and other parameters.
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What's being funded
At $25 million, the largest allocation will fund a program offering low-cost loans to developers in an effort to get new, affordable rental units built in six to 18 months.
The Metropolitan Development and Housing Agency will run the program, which is intended to provide funding to assist existing projects in overcoming setbacks like unexpected inflated costs. Up to $5 million may be used to issue forgivable loans, but the rest must be repaid (creating income to reinvest into homelessness response efforts).
Cooper's administration estimates the program could create 120 new units guaranteed to be affordable for 20 to 30 years. Residents will be matched with units through coordinated entry, a process that prioritizes individuals deemed most vulnerable in accordance with the U.S. Department of Housing and Urban Development.
Another $9 million will expand the use of hotels and mobile housing navigation centers to house people as they await permanent housing placement, providing up to 1,000 temporary beds by fall 2023.
The number of Mobile Housing Navigation centers will increase from the two current sites run by Community Care Fellowship to seven. Council members separately approved a grant contract with Community Care Fellowship for that expansion.
That $9 million tranche would also provide funding for Metro to use the entirety of the former Rodeway Inn at 95 Wallace Road for temporary housing. The Salvation Army will provide on-site program staff and contract with a third-party firm to provide security.
A separate $9 million will fund mobile, 24/7 services to an estimated 900 individuals experiencing homelessness, including:
mental health
addiction treatment
referral to health services and reconnection with family and community groups
assistance with housing and benefits applications
The final $7 million will be used to provide:
$3 million toward the Low Barrier Housing Collective to add staff to work with landlords, provide landlord incentives and fund minor repairs, cover tenant deposits and provide one-time furniture grants
$4 million toward competitive grants for support services
This article originally appeared on Nashville Tennessean: Nashville approves $50M in one-time federal funds for homelessness
