Nashville, Tennessee, December 22, 2025
Pathway Lending has launched the Pathway Housing Fund with $30 million to acquire and preserve Naturally Occurring Affordable Housing across Tennessee. This initiative aims to combat the housing crisis and gentrification by providing stable rental options for moderate-income households. With support from local financial institutions, the fund highlights the importance of affordable housing in maintaining community stability and resilience.
Pathway Lending Launches $30 Million Housing Fund to Preserve Affordable Housing in Tennessee
Nashville, Tennessee – Pathway Lending, a Community Development Financial Institution (CDFI) based in Nashville, has launched the Pathway Housing Fund with $30 million in committed capital. The fund aims to acquire and preserve Naturally Occurring Affordable Housing (NOAH) properties across Tennessee, focusing on communities at risk of gentrification and potential unaffordability.
Addressing Tennessee’s Housing Crisis
Over the past two decades, Tennessee has experienced a significant housing crisis, with rising costs outpacing wage growth. This trend has led to the displacement of longtime residents as tens of thousands of NOAH units have been redeveloped into market-rate housing. The Pathway Housing Fund seeks to counteract this by investing in properties that provide affordable rental options for moderate-income households, showcasing the determination of local leaders and entrepreneurs to improve living conditions for all.
Fund’s Strategy and Initial Investments
The fund plans to utilize low-cost capital to acquire multiple multifamily properties at market values, invest in their improvement, and ensure they remain affordable for future generations. The first property acquisition is expected to occur in Davidson County. Initial investors in the fund include Pinnacle Financial Partners, Regions Bank, and First Farmers and Merchants Bank, with invitations extended to additional partners and community banks to join the initiative, demonstrating the power of private investment and community partnerships in tackling pressing challenges.
Background on Pathway Lending
Established in 1999, Pathway Lending has been a leading community-focused lender in the Southeast, generating over $1 billion in economic impact. The organization has financed more than 1,500 businesses and invested $115 million in new markets tax credits. In 2024, Pathway Lending funded $61.3 million in loan capital and provided 15,000 hours of education and coaching to 2,800 entrepreneurs, supporting 162 affordable multifamily housing units and 2,700 small business jobs. This track record reflects their commitment to fostering economic growth in Tennessee’s under-resourced communities.
About Naturally Occurring Affordable Housing (NOAH)
NOAH refers to unsubsidized rental properties whose rents are low enough to be affordable for moderate-income households. These properties play a crucial role in providing housing options for individuals and families who might otherwise be priced out of the market due to gentrification and redevelopment trends. By focusing on NOAH, the Pathway Housing Fund underscores the importance of preserving affordable living spaces in the face of rising costs.
Pathway Housing Fund’s Objectives
- Acquisition and Preservation: Acquire multifamily properties at market values and invest in their improvement to maintain affordability.
- Community Stability: Support communities at risk of gentrification by preserving affordable housing options.
- Long-Term Affordability: Ensure that renovated properties remain affordable for future generations.
Call for Additional Partnerships
Pathway Lending invites other financial institutions and community banks to join the Pathway Housing Fund in its mission to preserve affordable housing across Tennessee. By collaborating with various partners, the fund aims to expand its impact and support more communities in need, emphasizing that collective efforts are key to fostering economic stability and growth.
Conclusion
The launch of the Pathway Housing Fund represents a significant step toward addressing Tennessee’s housing affordability challenges. Through strategic investments and partnerships, the fund aims to preserve and enhance affordable housing options, ensuring that communities can thrive without the threat of displacement due to rising housing costs. Supporting initiatives like the Pathway Housing Fund is crucial for Memphis and Tennessee’s long-term economic growth and community resilience.
Frequently Asked Questions (FAQ)
What is the Pathway Housing Fund?
The Pathway Housing Fund is a $30 million initiative launched by Pathway Lending to acquire and preserve Naturally Occurring Affordable Housing (NOAH) properties across Tennessee, focusing on communities at risk of gentrification and potential unaffordability.
What is Naturally Occurring Affordable Housing (NOAH)?
NOAH refers to unsubsidized rental properties whose rents are low enough to be affordable for moderate-income households. These properties provide essential housing options for individuals and families who might otherwise be priced out of the market due to gentrification and redevelopment trends.
How does the Pathway Housing Fund plan to maintain affordability?
The fund plans to utilize low-cost capital to acquire multifamily properties at market values, invest in their improvement, and ensure they remain affordable for future generations. The first property acquisition is expected to occur in Davidson County.
Who are the initial investors in the Pathway Housing Fund?
Initial investors include Pinnacle Financial Partners, Regions Bank, and First Farmers and Merchants Bank. Pathway Lending is also inviting additional partners and community banks to join the initiative.
What is Pathway Lending’s mission?
Established in 1999, Pathway Lending is a Community Development Financial Institution (CDFI) based in Nashville, Tennessee. The organization aims to propel economic growth in under-resourced communities by providing financing and support to businesses and affordable housing developers, with a focus on creating economic opportunity and lasting impact across Tennessee.
Key Features of the Pathway Housing Fund
| Feature | Description |
|---|---|
| Fund Size | $30 million in committed capital |
| Target Properties | Naturally Occurring Affordable Housing (NOAH) units at risk of gentrification |
| Investment Strategy | Acquire, improve, and preserve multifamily properties to maintain long-term affordability |
| Initial Investors | Pinnacle Financial Partners, Regions Bank, First Farmers and Merchants Bank |
| Geographic Focus | Communities across Tennessee, starting with Davidson County |
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