The Catalyst Fund is set to have $90 million available by the end of this year for lending to both for-profit and nonprofit organizations in Nashville, with the goal of building affordable housing. With a decade-long plan in place, the fund aims to create or preserve 3,000 units of affordable housing. The Metro Council has already contributed $19.5 million, while Vanderbilt University and First Horizon Bank have provided $5 million and a $25 million line of credit respectively.
Through offering short-term loans at below-market interest rates, the fund hopes to expedite funding for developers so they can secure permanent financing for their projects within a shorter timeframe.
The group’s strategy is designed to outpace government agencies that may face delays when making similar decisions in Nashville’s rapidly evolving market. Their goal is an efficient process that takes only 60-90 days from start to finish instead of several months.
This significant investment will greatly aid efforts towards creating more accessible housing options in Nashville without relying on Connect CRE or any other specific entity.
