Nashville

Metro Council Approves $6 Million in Barnes Fund Grants for 39 Affordable Homes for Sale

Metro Council adopted RS2026-2331 on Oct. 20, and the mayor approved it Oct. 21. The resolution sends $6 million from the Barnes Fund to Habitat for Humanity and Living Development Concepts for 39 affordable homes for sale.

Tracy King

23 Oct 2026 • 5 min read

Illustrative stock photo; not the property or project described.

Metro Council adopted a resolution on Tuesday, Oct. 20, that sends $6 million from the Barnes Fund for Affordable Housing to two nonprofit builders. The money will help build 39 homes that working families can buy. RS2026-2331 cleared the Budget and Finance and Planning and Zoning committees on Oct. 19, passed the full council on Oct. 20, and was approved by the mayor on Oct. 21, according to the Legistar record.

The grants are part of Barnes Fund Round 16, which Metro calls the largest single round of funding in its history.

Where the $6 million goes

The resolution text lists two grants, both for homeownership:

Nonprofit	Grant	Barnes Fund homes	Council District	Location (grant contract)
Habitat for Humanity	$3,500,000	26	9	610 East Old Hickory Blvd.
Living Development Concepts	$2,500,000	13	26	401 Welshwood Dr.
Total	$6,000,000	39

Habitat for Humanity: Kitty Wells Station, Phase 1

Habitat’s scope of work says “Phase 1 of Kitty Wells Station will consist of constructing 26, single family homes.” The project sits at 610 East Old Hickory Blvd. The grant budget breaks down like this:

Site work and mitigation: $1,430,000
Hard construction (labor and materials): $1,590,000
Homebuyer subsidy: $130,000
Developer fee: $350,000

The project timeline in the contract lists homebuyer closing, its last milestone, for Feb. 26, 2029.

Living Development Concepts: 13 townhomes on Welshwood Drive

Living Development Concepts, Inc. will build at 401 Welshwood Dr. The scope says “The above Barnes units will consist of townhomes with garages.” Its budget lists $617,500 for site development, $1,657,500 for hard construction costs and a $225,000 developer fee. The timeline lists homebuyer closing in September 2028.

How the money is paid out

Neither nonprofit gets the full grant up front. The contracts reimburse costs in draws, each tied to proof of work. Habitat’s first draw, 40.7% of the grant or $1,430,000, covers predevelopment site work and mitigation. The second, 45.5% or $1,590,000, covers labor and materials. The $130,000 homebuyer subsidy is paid only when homes sell. Habitat has to show the closing disclosure and an eligibility certificate before that money is released.

There is also a clock on the grants. Final invoices are due 24 months after each grant agreement is signed, unless Metro Council approves an extension. Any money not claimed by then expires.

Who sponsored it

The Legistar record lists a long sponsor roster. It includes Councilmembers Courtney Johnston, Jason Spain, Rollin Horton, Ginny Welsch and Burkley Allen. Allen is also the council’s appointee to the Housing Trust Fund Commission. In Metro’s Oct. 6 release she said she looked forward to “getting shovels into the ground and new keys in the hands of the Nashvillians who make our communities thrive.”

Who can buy these homes

The grant contracts set the rules for buyers and prices:

Income limits. Buyers must earn at or below 80% of area median income (AMI), or at or below 60% AMI for homes the project scope sets aside at that level. Income is checked with HUD’s Part 5 (Section 8) process.
Price caps. Prices must stay at or under the limit MDHA sets in its Consolidated Plan. The contract puts that limit at $432,250 for existing single-family homes and $479,513 for new single-family construction.
HOA costs count. If a project has a homeowners association, the HOA fee plus the mortgage should not exceed 35% of the income target for the home.
Counseling. Builders must offer pre- and post-purchase counseling.

Metro’s Oct. 6 release explains what those percentages mean in dollars. For a family of four in Nashville, 60% AMI is a household income at or below $69,660, and 80% AMI is at or below $92,900.

How long the homes stay affordable

The two documents give different numbers. Metro’s release says Barnes-funded projects, other than rehab of existing owner-occupied homes, “must remain affordable for at least 30 years.” The grant contract goes further. It requires a Declaration of Restrictive Covenants that will “run with the land over a 99-year term.” If a buyer sells during that period, the contract says the nonprofit “must assist the seller in finding a qualified buyer who meets the income requirements.”

For buyers, this is the trade-off. You get a home priced below the market, but resale is limited by the covenant.

The bigger Round 16 picture

On Oct. 6, Metro said it was “poised to grant $40.2 million” in Round 16. That money goes to 14 nonprofit organizations for the development and rehabilitation of 1,106 affordable homes. The Metro Housing Trust Fund Commission approved the awards on July 28, 2026. Each contract still needs its own council resolution, and Metro expects Round 16 contract approvals to be finished by the end of November.

Since it began, the Barnes Fund has invested $224 million and leveraged more than $1.9 billion in federal and private funding to build and preserve over 7,600 housing units, according to the release.

The same Oct. 20 meeting also took up other housing items. See Metro Council Sets Oct. 20 Final Vote on 16-Story, 311-Unit Plan at 300 McCann Street and Metro Sets Oct. 20 Third Reading on 68-Unit Cane Ridge Road SP.

Dates to know

May 4, 2026 — Housing Trust Fund Commission opens applications for nonprofit grants.
July 28, 2026 — Commission approves Round 16 awards.
Oct. 19–21, 2026 — RS2026-2331 clears committees, passes council and is approved by the mayor.
End of November 2026 — Metro’s target for finishing Round 16 contract approvals.
September 2028 / Feb. 26, 2029 — Homebuyer closing milestones for the Welshwood and Kitty Wells Station projects.

What it means for Nashville buyers and sellers

First-time buyers: Income-qualified households should contact the builders early. These homes are years away, and the resale rules are strict.
Nearby homeowners: New entry-level homes add supply in Districts 9 and 26. They will not set market comps, though, because their prices are capped and they carry deed restrictions.
Sellers: Price against open-market sales. Also check how property tax rates affect buyers’ monthly costs. See Nashville Property Reappraisal and Tax Rates: What Homeowners Need to Know in 2026.

Thinking about selling in Nashville or Davidson County? Get a free home valuation, or request a cash offer if you want a set closing date without showings.

What did Metro Council approve in RS2026-2331?

RS2026-2331 authorizes grants not exceeding $6,000,000 from the Barnes Fund: $3.5 million to Habitat for Humanity for 26 homes and $2.5 million to Living Development Concepts for 13 homes. It was adopted Oct. 20, 2026.

Where will the new Barnes Fund homes be built?

The grant contracts list Habitat’s Kitty Wells Station Phase 1 at 610 East Old Hickory Blvd. and Living Development Concepts’ townhomes at 401 Welshwood Dr.

Who qualifies to buy a Barnes Fund home?

Households at or below 80% of area median income, or 60% AMI for designated homes. Metro says 80% AMI for a family of four in Nashville is a household income at or below $92,900.

What is the maximum price for a Barnes Fund home?

The contract says prices cannot exceed MDHA’s purchase price limit, currently $432,250 for existing single-family homes and $479,513 for single-family new construction.

Can I resell a Barnes Fund home on the open market?

Resale is restricted. The contract says affordability covenants run with the land over a 99-year term, and the nonprofit must help a seller find an income-qualified buyer.