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Housing Trust Fund Commission rescinds $4.5M Round 15 award after undisclosed MDHA application; funds reallocated to Urban League project
Summary
Staff told the commission that an applicant’s partner had applied for MDHA CDBG Disaster Recovery funds before the Barnes Fund round opened and did not disclose that application; the commission rescinded a $4.5 million Round 15 award and voted to reallocate the money to the Urban League of Middle Tennessee’s Madison Station project.
The Housing Trust Fund Commission voted to rescind a $4,500,000 Round 15 award after staff discovered the original applicant’s partner had applied for CDBG Disaster Recovery funding from the Metropolitan Development and Housing Agency before the Barnes Fund funding round opened and did not disclose that funding pursuit in the Barnes application.
Angie Hubbard, housing director, told commissioners staff found the partner’s prior MDHA application in their review and that the applicant had included statements in the Barnes application saying no additional funding was necessary. Hubbard said staff recommended rescission because the undisclosed application could have affected the project’s scoring.
Commissioner JL made the motion to rescind; Anton seconded. The chair called for the question and the motion carried.
With the $4.5 million freed by the rescission, staff recommended applying the amount to the next-highest scoring Round 15 applicant. Commissioners approved staff’s recommendation to reallocate the funds to a proposal submitted by the Urban League of Middle Tennessee for the Madison Station project. Deborah moved the reallocation; Anton seconded, and the motion passed.
Hubbard said the reallocation followed the commission’s established practice of awarding funding in rank order “from highest scoring until funding is exhausted.” The commission did not publish a member-by-member vote tally in the meeting record; the chair announced the motions carried.
Next steps identified in the meeting record include staff completing the administrative steps required to rescind the original award and update the contract file for the Madison Station award. The commission also opened time in the agenda for a follow-up work session and said any remaining items would carry over to the next scheduled Housing Trust Fund Commission meeting on September 23.
