Housing Trust Fund Commission approves multiple 12‑month extensions, reallocates $3 million to Round 16

The Housing Trust Fund Commission on Tuesday approved a series of 12‑month contract extensions for nonprofit developers and reallocated $3,000,000 returned by a terminated project into the upcoming Round 16 funding pool.

Commission chair Pete Westerholm opened the meeting and asked staff to walk commissioners through the April 2026 budget-to-actuals before the votes. Director Hubbard told the commission the fund paid about $6.9 million in reimbursements in April and that, after accounting for prior obligations, roughly $19 million remained unobligated in the current fund balance.

Why this matters: the votes keep several affordable housing projects moving while adding capacity to the next funding round. Commissioners said they want awards to be timely and enforceable given rising construction costs.

What the commission approved: staff presented and the commission approved 12‑month extensions for several grantees, including Awake Nashville (Round 11), Habitat for Humanity (Round 13) to develop 26 units at Bella Terra, Living Development Concepts (Round 13) for three units, Rebuilding Together Nashville (Round 13) to preserve 65 units, Samaritan Recovery Group (Round 13) for 184 units, Tennessee Prison Outreach Ministry (Round 13) for 18 units, and Woodbine Community Organization (Round 13) for an ongoing construction project. Staff summarized each request briefly and commissioners asked questions about financing status and construction progress before voting; the chair announced each motion carried.

On Awake Nashville, staff said the group had not secured full financing, that it had previously had a $3 million ARP grant rescinded, and that the commission retains the ability to reclaim property if the grantee fails to secure financing or start construction. After discussion, commissioners amended the staff’s initially proposed 12‑month extension to a shorter, year‑end timeline conditioned on the grantee demonstrating fully executed financing commitments. The motion passed.

Contract termination and reallocation: New Level CDC requested termination of a Round 10 contract that would have supported 15 for‑sale townhomes on Dickerson Pike. Staff recommended accepting the termination and returning $3,000,000 to the fund. Commissioners approved accepting the termination and then voted to reallocate that $3,000,000 into Round 16, increasing the round’s allocation from $19,000,000 to $22,000,000 and adjusting per‑category allocations (rental/co‑op and homeownership percentages reflected in staff tables). Director Hubbard said the funds will be added to the fiscal year’s fund balance and applied according to existing percentage allocations for each project type.

Concerns about cost inflation: Commissioner Anton raised a specific example in which construction costs on one project had increased by 52% since February and asked staff for a detailed analysis of cost increases across projects. Director Hubbard said staff are emphasizing reasonableness-of-cost criteria in the current funding round, are tracking per‑unit subsidy and cost drivers, and will present a post‑round analysis of increases and proposed mitigation options.

Next steps: staff reminded applicants that Round 16 question submissions close the same day at 11:59 p.m. and that a no‑communications policy is in effect until awards are voted on July 28. The commission scheduled its next meeting for June 23, 2026, at 2 p.m.

Representative quotes: “ We paid out $6,900,000 in reimbursements for projects that are moving forward,” Director Hubbard said while reviewing the April budget-to-actuals.

“ If they have not secured financing, we would not recommend— I believe the motion is to not extend if they have not secured 100% financing,” staff summarized when describing the amended condition for the Awake Nashville extension.

“ I would love to see more analysis on the cost increases and, like, where things went wrong,” Commissioner Anton said after New Level CDC’s termination was discussed.

The commission adjourned after making the approvals and announcements at about 2:57 p.m.