Nashville Catalyst Fund Supports Creation of 138 Affordable Homes Through Innovative Cooperative Housing Model

NASHVILLE, Tenn. (July 8, 2026) — Two Madison apartment communities with a combined 138 units will remain permanently affordable for working families, thanks to a new financing model taking root in Nashville for the first time.  The Nashville Catalyst Fund’s latest loan closings support the acquisition of Amalie Meadows Apartments and Cedar Place Apartments by William Franklin Buchanan Community Development Corporation, an experienced affordable housing developer, with assistance from MFX Ventures and the Urban Homesteading Assistance Board (UHAB).  William Franklin Buchanan purchased both existing market rate multifamily properties and will convert them into Limited Equity Cooperatives (LECs) for families earning 60 to 80% of Area Median Income.

While still a new model in Nashville, Limited Equity Cooperatives have gained traction in other markets as a way for residents to collectively own and govern their housing while preserving long-term affordability for future generations.

“We are incredibly excited to celebrate the acquisition of Cedar Place Apartments and Amalie Meadows Apartments in Madison, TN,” said Carlina Bell, Executive Director, William Franklin Buchanan Community Development Corporation.  “Building a housing cooperative ecosystem in Middle Tennessee requires bold thinking, trust, and partners who are willing to invest in new approaches to preserving affordability and strengthening communities.”

To support these transactions, the Nashville Catalyst Fund sold a $4 million participation out of $12 million in financing across the two loans to NHT Community Development Fund, a CDFI (Community Development Financial Institution) with deep experience financing LECs.  The Catalyst Fund is happy to have originated NHT’s first loans in Davidson County, bringing about the arrival of a new mission-oriented housing lender to the Nashville market.

With these transactions, the Catalyst Fund has succeeded in closing nine loans totaling just under $25 million in originations since its launch in mid-2024.  These investments are expected to create or preserve 705 homes across Nashville and Davidson County, including 664 affordable homes.

“The Nashville Catalyst Fund has been more than a funding partner, they have been a true collaborator in advancing a vision that puts residents at the center of long-term housing stability,” said Bell.  “Together, we are demonstrating that permanently affordable, resident-led housing can be a reality in Nashville, and we believe these communities are just the beginning of what is possible.”

Created through a partnership between the Metropolitan Government of Nashville and Davidson County and the Community Foundation of Middle Tennessee, the Nashville Catalyst Fund provides fast, flexible financing for affordable housing development, especially in neighborhoods where rising land costs and limited predevelopment funding have slowed progress.  With $76 million in initial capital raised, the Fund is actively deploying loans to help mission-driven developers acquire land, bridge financing gaps, and advance projects in a highly competitive real estate market.

The Fund’s loan products are designed to support both the creation of new affordable housing and the preservation of existing homes at risk of redevelopment.  The Nashville Catalyst Fund works with other housing programs, such as the Barnes Fund and the Unified Housing Strategy, to accelerate these projects.

The need remains urgent.  Nashville is projected to require nearly 90,000 additional housing units by 2030.

About the Nashville Catalyst Fund

Launched in 2024, the Nashville Catalyst Fund is a nonprofit loan fund created through a partnership between the Metropolitan Government of Nashville and Davidson County and the Community Foundation of Middle Tennessee.  The Fund provides acquisition, bridge, and predevelopment loans to mission-aligned developers working to preserve and expand affordable housing across Nashville and Davidson County.  Day-to-day management is provided by Forsyth Street Asset Management, in collaboration with the Community Foundation of Middle Tennessee and Pillars Development.