Pathway Lending launches $30M housing fund

"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 affordable housing."

"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."

"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."

NOAH refers to unsubsidized rental properties with rents low enough to be affordable for moderate-income households. The Pathway Housing Fund will acquire multifamily properties at market values using low-cost capital, invest to improve them, and preserve affordability in perpetuity. The fund expects to purchase its first property soon in Davidson County. Pathway has secured $30 million in capital commitments from Tennessee financial institutions, including Pinnacle Financial Partners, Regions Bank and First Farmers and Merchants Bank. The fund will use the raised capital as equity and leverage it with debt financing from banks and other private, public and nonprofit sources. The fund intends to work with property owners who want fair value and long-term affordability.

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