Nashville Housing Trust Fund Commission Returns $3.5 Million to the Barnes Fund After Motel Conversion Falls Through
After Park Center withdrew from a plan to turn a motel into permanent supportive housing, Nashville’s Housing Trust Fund Commission voted Oct. 27 to put $3.5 million back into the Barnes Housing Trust Fund. A motion to give the money to Villa Maria Manor on Whitebridge Road failed. Here is what it m
Nashville’s Housing Trust Fund Commission has put $3.5 million back into the Barnes Housing Trust Fund after a plan to turn a motel into housing with support services fell apart. The commission voted on Tuesday, Oct. 27, at the Howard Office Building, after the nonprofit Park Center withdrew from the project.
Commissioners also considered handing the money to a different project, Villa Maria Manor on Whitebridge Road. That motion failed. The money now sits in the fund’s balance for future rental projects, and the next funding round will not be announced until 2027.
What happened to the motel project
Park Center, a Nashville nonprofit, had received a Barnes Fund grant to renovate a motel into permanent supportive housing, which pairs a place to live with services for residents. According to FOX 17, staff told commissioners the project was not financially feasible and that Park Center needed more partners to move forward.
With the project off the table, the commission had two choices: give the money to another applicant now, or return it to the fund for a later round.
The Villa Maria Manor vote
Commissioners looked at Villa Maria Manor, a separate proposed development at 30 Whitebridge Road. It had asked the Barnes Fund for $2 million to help build 144 rental homes, including 58 affordable units. Its application ranked 10th of 11 eligible projects, with a score of 122.6 out of 169.
| Item | Detail |
|---|---|
| Money returned to the Barnes Fund | $3.5 million |
| Withdrawn project | Park Center motel conversion to permanent supportive housing |
| Alternative considered | Villa Maria Manor, 30 Whitebridge Road |
| Villa Maria Manor request | $2 million |
| Villa Maria Manor homes | 144 rentals, including 58 affordable |
| Villa Maria Manor rank | 10th of 11 eligible; 122.6 of 169 points |
| Outcome | Motion to fund failed; money returned for future rental projects |
| Next funding round | Round 17, to be announced in 2027 |
The case for and against
Some commissioners argued the money could meet housing needs sooner and that Villa Maria Manor scored close to the project ranked just above it. Others wanted to hold the money for a future rental project, keeping room to back a stronger proposal. The second view won. The commission rejected the motion to fund Villa Maria Manor and returned the $3.5 million to the fund’s balance.
What the score tells you
Barnes Fund applications are scored against criteria the Housing Division publishes with each request for applications. A score of 122.6 out of 169 placed Villa Maria Manor near the bottom of the eligible list, though some commissioners noted it was close to the project ranked just above it. Keeping the money for a new round lets every applicant compete again under the next set of criteria.
How the Barnes Fund works
The Barnes Fund makes competitive grants to nonprofit housing developers. Metro Council puts money into the fund each year, and the Housing Trust Fund Commission oversees the grants. Metro’s Housing Division writes the requests for applications, including scoring criteria, and the commission approves award recommendations. Final awards and contracts go to Metro Council.
The fund was created in 2013 and is named for the Rev. Bill Barnes, a longtime advocate for affordable housing.
Two ways to count the results
Two sources describe the fund’s track record with different numbers, because they measure different things:
- FOX 17, from a staff update on Oct. 27: Through Round 15, the fund had awarded more than $164 million and supported the creation or preservation of 6,562 affordable homes. More than $138 million had been drawn down.
- Metro’s Barnes Fund page: Since it began, the fund has invested more than $191 million to create and preserve over 6,000 affordable homes and has leveraged over $1.5 billion in other funds.
The staff update stops at Round 15. Metro’s page lists awards through Round 16, made in summer 2026.
What comes next
- December — The commission plans to discuss Park Center’s project and the broader challenges of permanent supportive housing.
- Monthly — The commission usually meets at 2 p.m. on the fourth Tuesday of each month, according to Metro’s Barnes Fund page.
- 2027 — Metro says the Round 17 application period will be announced in 2027.
For the most recent Barnes Fund awards, see Metro Council Approves $6 Million in Barnes Fund Grants for 39 Affordable Homes for Sale.
Other affordable rental news in the Nashville area
Skyline Heights tax break
FOX 17 reported in September that MDHA is considering a payment in lieu of taxes, or PILOT, agreement for Skyline Heights, a proposed 280-unit apartment development at 915 and 927 Skyline Ridge Drive. All 280 units would carry income and rent limits. MDHA estimated the first-year property tax break at about $851,035. The proposed mix is 60 two-bedroom, 160 three-bedroom and 60 four-bedroom apartments, with an average income limit no higher than 60% of area median income. The project is also seeking federal Low-Income Housing Tax Credits and would have to operate as a tax credit property for at least 15 years. MDHA staff recommended approval, but the deal still needs more steps, including Metro Council approval.
Meadow Creek in Goodlettsville sells
On Oct. 26, Western Wealth Capital said it closed on a 192-unit, two-property portfolio for $20,725,000. One is Meadow Creek, an 84-unit community built in 2003 at 919 S. Dickerson Pike in Goodlettsville. It operates under a Section 42 Low-Income Housing Tax Credit land use restriction agreement, which holds rents below market levels.
What it means for Nashville homeowners and renters
Renters waiting on new affordable homes
Returning the money means no new homes come from this $3.5 million right away. It will go back out in a future round, likely after the 2027 application period.
Neighbors of proposed projects
Barnes Fund awards, PILOT deals and tax credit allocations each go through public meetings. If a project is proposed near you, those meetings are the place to learn the details and weigh in.
Owners thinking about selling
Affordable rental supply affects demand for starter homes and small rentals across Davidson County. For a broader look at pricing, read Is the Nashville Housing Market Overpriced in 2026? Honest Buyer Guide and How fast do homes sell in Nashville?.
Thinking of selling in Nashville?
Get a free home valuation, or request a cash offer if you want a fast, certain sale.
Why did Nashville return $3.5 million to the Barnes Fund?
Park Center withdrew from a project to turn a motel into permanent supportive housing. Staff said the project was not financially feasible, and the Housing Trust Fund Commission voted Oct. 27, 2026, to return the money to the fund.
What is Villa Maria Manor?
It is a proposed development at 30 Whitebridge Road that asked for $2 million to help create 144 rental homes, including 58 affordable units. A motion to give it the returned money failed.
When is the next Barnes Fund application round?
Metro’s Barnes Fund page says the Round 17 application period will be announced in 2027.
How much has the Barnes Fund awarded?
A staff update reported by FOX 17 said more than $164 million and 6,562 affordable homes through Round 15. Metro’s Barnes Fund page says more than $191 million invested and over 6,000 affordable homes since it began.
Who can apply for a Barnes Fund grant?
The Barnes Fund makes competitive grants to nonprofit housing developers. Metro Council appropriates the money, and the Housing Trust Fund Commission oversees the grants.
Source links
- FOX 17 News — “Nashville housing commission returns $3.5 million to fund after project falls through,” Oct. 28, 2026
- Metro Nashville — Barnes Housing Trust Fund
- FOX 17 News — “Nearly $1M tax break could help bring 280 affordable apartments to Nashville,” Sept. 9, 2026
- Chattanoogan.com — “Western Wealth Capital Acquires 2 Multifamily Properties In Tennessee,” Oct. 26, 2026
More from Kings of Real Estate
Related local news:
- Metro Council Approves $6 Million in Barnes Fund Grants for 39 Affordable Homes for Sale
- Metro Planning OKs Elam Station SP: 110 Multifamily, 77 Lots
- Is the Nashville Housing Market Overpriced in 2026? Honest Buyer Guide
- How fast do homes sell in Nashville?
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