$90M Fund to Aid Nashville Affordable Housing Efforts

By the end of the year, the Catalyst Fund will have $90 million to lend to for-profit and nonprofit entities to build affordable housing in Nashville. The fund reports that it believes it can create or preserve 3,000 affordable housing units in a decade. So far, the fund has received $19.5 million from the Metro Council, $5 million from Vanderbilt University and a $25 million line of credit from First Horizon Bank. The group says it will have the $90 million in the next few months.

The fund will provide short-term loans at below-market interest rates to quickly get funding into the hands of developers so they can have the time to get their full, permanent project financing.

The aim is to be faster than a government agency having to make similar decisions in a fast-moving market like Nashville. The group is eyeing 60 to 90 days from start to finish, as opposed to many months.