Pathway Lending, а Нэшвилл-based Community Development Financial Institution (CDFI), announced on Thursday the launch of the Pathway Housing Fund with $30 million in committed capital to acquire and preserve Naturally Occurring Affordable Housing (NOAH) in Теннесси communities at risk of gentrification.
“Over the past two decades, Tennessee’s housing crisis has grown more personal for thousands of families. As costs rise faster than wages, longtime residents are being priced out of neighborhoods as the state has lost tens of thousands of NOAH units to market-rate redevelopment,” said Clint Gwin, president and CEO of Pathway Lending.
NOAH refers to unsubsidized rental properties with rents deemed low enough to be affordable for moderate-income households. Using low-cost capital, the fund will acquire multifamily properties at market values, invest to improve them and keep them affordable in perpetuity.
The fund expects to purchase its first property soon in Davidson County.
“The Pathway Housing Fund is the next extension of our work to help strengthen communities,” Gwin said. “For over a decade, Pathway has funded доступное жилье. Now, through the Pathway Housing Fund, we can go a step further, investing directly to ensure more Tennesseans have access to a safe and affordable place to call home.”
Pathway has secured $30 million in capital commitments from Tennessee financial institutions. Initial investors include Pinnacle Financial Partners, Regions Bank и First Farmers and Merchants Bank.
“As the demand for housing rises rapidly, countless apartment communities in Tennessee have become unaffordable,” said Matt Wiltshire, president of Pathway Housing Fund. “The Pathway Housing Fund looks forward to working with property owners who want to receive a fair value for their properties and are interested in ensuring that they remain affordable into the future.”
Pathway will use the raised capital as equity and leverage it with debt financing from banks and other private, public and nonprofit источники.
“Affordable housing has been a priority at Pinnacle since we were founded 25 years ago,” said Dale Mitchell, community development coordinator at Pinnacle Financial Partners.
“The fight against gentrification is a major piece of the housing puzzle and getting more important all the time. As Tennessee’s economy continues to grow, we need innovative solutions like the Pathway Housing Fund to ensure more people get an opportunity to share in that prosperity.”
Lee Blank, Middle Tennessee market executive for Regions Bank, said the company is proud to collaborate with Pathway. “Regions Bank is committed to creating financial solutions that will make a lasting impact for the families of Tennessee,” Blank said. “Affordable housing is key to strong communities.”
“Our investment in Pathway Lending’s Pathway Housing Fund reflects our commitment to strengthening communities and preserving affordability where it matters most,” added Brian K. Williams, CEO of First Farmers and Merchants Bank.
“Housing stability is foundational to economic opportunity, and we are proud to support the work which helps ensure families and individuals can continue to live and thrive in the neighborhoods they call home.”
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