Metro Planning proposes $45.7M year‑one housing package, shifts Barnes Fund into operating budget

Lucy Kempf, executive director of Metro Planning, and Angie Hubbard, director of the housing program, told the Metro Council Budget & Finance Committee that the department’s FY2026 request centers on housing and infrastructure work and seeks about $45.7 million in year‑one investments, including a $16 million Barnes Fund allocation included in the mayor’s operating budget.

The request is the first year of the Unified Housing Strategy (UHS), a multi‑strategy plan the department released this month that the presenters described as a road map for addressing homelessness, affordable homeownership and preservation. "We're at a portfolio approaching now combined with operating funds, with ARP, with surplus funding, nearing $180 million," Hubbard said, adding the office has "already awarded over $150 million to projects to fund nearly 6,000 or preserve 6,000 affordable homes across Nashville."

Why it matters: Planning staff said the UHS organizes more than seven strategies and about 40 actions so the city can prioritize annually. The department identified year‑one priorities focused on permanent supportive housing, eviction prevention and keeping people in their homes. Speakers said some measures must be phased because limited funding and staff capacity mean "everything's urgent, but we can't have it all be priorities," as Hubbard put it.

Key budget items and programs presented

- Year‑one funding priorities: $45.7 million total identified for housing and infrastructure priorities. This package includes operating and programmatic requests across multiple Metro agencies, Planning officials said.

- Housing division request: About $24 million in line items tied directly to the housing division, including staff and program support. The request includes three requested new positions, a 4% budget request for grants management technology, and underwriting services intended to improve project evaluation.

- Barnes Fund: Planning described the Barnes Fund portfolio as approximately $180 million in appropriations to date, with more than $150 million already awarded to projects. The mayor’s proposed operating budget moves $16 million for the Barnes Fund into the operating budget, up from $6 million in the prior year’s operating allocation, officials said.

- Grants and pilots: A $5 million pro‑housing grant was noted to seed a faith‑based development initiative and an affordable housing accelerator to help smaller developers access capital. Planning also proposed funds for permanent supportive housing and rehousing supports.

- Eviction right to counsel: Hubbard said the eviction right‑to‑counsel program will be funded at $2.4 million through American Rescue Plan Act (ARPA) dollars rather than the operating budget. "Yes. It will be funded through the American Rescue Plan Act funds instead of through the operating budget," she said.

- Housing dashboard and staffing: The department requested $75,000 for the housing dashboard and three new housing division staff to support data, grants and compliance work. Planning said the dashboard shows an overview of housing metrics, Barnes Fund performance and local resources; it does not list currently available rental properties.

Discussion, outstanding requests and next steps

Speakers described additional staffing and communications requests that did not appear funded in the mayor’s proposed operating budget. Director Kempf noted a communications/outreach position request for the housing and infrastructure work was not funded and that underwriting services ($500,000) are carried in the administrative budget rather than the housing budget. Kempf also said the department will return in June with program recommendations and possible legislation tied to the housing and infrastructure work.

On use of Metro‑owned land, Planning staff said the UHS and a mayoral special projects process will prioritize long‑term or permanent affordability when appropriate and that a list of potential Metro sites appears in the UHS for exploration. Bergen Dawson was identified as leading the Metro property special projects work.

Janine Reed, director of finance, answered a question about bonding for housing: "It is difficult to do, like, GO bonds, for something that is affordable housing because we don't generally own the affordable housing," and said recent state legislation may open limited options and that discussions are in early stages.

What remained unresolved at the hearing

Committee members pressed for clarity on which requests were recurring, which items are funded from one‑time sources, and how the Barnes Fund rounds will be timed; planning staff said historically surplus funds delayed allocations and that moving Barnes Fund dollars into the operating budget will enable earlier awards. Several council members emphasized outreach and language access for engagement and asked for clearer pathways for residents to find resources; Planning said a UHS action calls for centralized navigation through HUB Nashville and partner entry points.

The department did not ask the committee to take a formal vote at the hearing; the presentation was framed as a briefing on the mayor’s budget and early UHS implementation steps. Planning said items requiring Council appropriation or ordinance will be returned for formal consideration in the coming months.