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Residents, Nonprofits Urge Council to Protect Barnes Fund, Back Revolving Housing Production Fund
Summary
Speakers at the Metro Council meeting pressed the council to increase and protect affordable-housing funding, asking for $30 million for the Barnes Fund and for the city to issue bonds for a revolving housing production fund to build permanently affordable housing.
Dozens of housing advocates, nonprofit leaders and residents urged the Metropolitan Council to preserve and expand the city’s affordable-housing funding during public comment on the city’s operating and capital budgets.
Speakers repeatedly asked the council to keep the Barnes Housing Trust Fund at $30 million and to create a revolving housing production fund funded by municipal bonds so the city can act as majority owner of permanently affordable developments. Advocates said the combination — more immediate subsidies from Barnes plus a bond-funded, self-replenishing production fund — would speed delivery of homes and protect long-term affordability.
The call came as nonprofits described high construction costs and shrinking federal support for housing. Habitat for Humanity of Greater Nashville and other builders said projects that cost about $180,000 in 2018 now run about $300,000 and that Barnes awards often constitute the final gap financing that makes a project feasible. Rebuilding Together Nashville described home repairs averaging roughly $25,000 that keep long-term residents in place and urged an increase in Barnes allocations to scale that work.
Several speakers proposed a revolving fund model in which the city issues bonds (advocates proposed $50 million) and lends the proceeds to projects at modest interest rates; loan repayments would recapitalize the fund over time. Proponents cited examples in other jurisdictions and argued the model multiplies public dollars by enabling repeated reuse of capital rather than one-time grants.
Advocates and developers also urged the council to follow the recently completed Unified Housing Strategy (UHS), which recommended specific funding levels and mechanisms; many speakers said not following UHS recommendations would worsen homelessness and displacement. Speakers warned that cutting Barnes or failing to create new financing would accelerate displacement and leave the city chasing the consequences rather than building solutions.
Council committees heard the budget items; the capital improvements budget passed second reading with rereferral to joint committee work and a special call meeting. No final council action on the Barnes Fund or on a housing production bond took place at this meeting; council members and staff said the issues would continue to be negotiated in the substitute budget and committee meetings.
Advocates pledged follow-up: requests included continuing the Barnes Fund at $30 million, advancing the bond-financed revolving housing production fund, and dedicating operating budget resources for debt service to make bond-financed projects feasible.
