Nashville Catalyst Fund Sets the Stage for 490 Affordable Housing Units With Five New Loans

NASHVILLE, Tenn. (Feb 20th, 2026) — In the last two months, the Nashville Catalyst Fund closed on five loans totaling $11.2 million in Nashville and Davidson County that will create or preserve 490 affordable homes.

“We established the Nashville Catalyst Fund to provide flexible loans that help partners preserve affordable rental homes that would otherwise be lost to the market and increase housing production so more Nashvillians and their families have dependable homes in the long term,” said Mayor Freddie O’Connell. “It adds a practical tool to the city’s housing strategy by bringing public, private, and philanthropic partners together so more Nashvillians can remain in the neighborhoods they call home.”

To date, the Fund has supported six projects with 526 affordable units and has a growing pipeline of affordable housing projects across Nashville and Davidson County.

Launched in 2024, the Fund has raised $76 million in initial capital and is actively deploying loans to help mission-driven developers acquire land, bridge financing gaps, and move projects forward in a highly competitive real estate market. The Fund’s portfolio now includes 526 affordable housing units, representing $12.6 million in cumulative closed loans.

The Nashville Catalyst Fund was created through a partnership between the Metropolitan Government of Nashville and Davidson County and Community Foundation of Middle Tennessee to provide fast, flexible financing for affordable housing development, particularly in neighborhoods where rising land costs and limited predevelopment funding have slowed progress.

Projects supported by the Fund are advancing in areas including Madison, Jefferson Street in North Nashville, and other communities experiencing rapid growth and displacement pressure.

A $2 million bridge loan from the Fund is supporting the development of 221 affordable homes for families and seniors at Madison Station. The mixed-use, transit-oriented project is part of more than $1 billion in planned investment in the Madison area and will help create a walkable, resource-rich residential hub.

The Fund is also providing $2.6 million in loans to support Renaissance on Jefferson, a mixed-use development in the historic Fisk/Meharry district. The project, which is scheduled to break ground at the end of February, will deliver 66 mixed-income homes, with 40% reserved for households earning 75% or less of the area median income. The project will include community-serving uses such as the economic mobility nonprofit organization Corner to Corner and the new headquarters and branch of Citizens Savings Bank & Trust, the nation’s oldest African American–owned bank.

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 Fund works with other housing programs, such as the Barnes Fund and the Unified Housing Strategy, to accelerate these projects.

“The Nashville Catalyst Fund was built to move capital quickly when traditional financing falls short,” said Hal Cato, CEO of Community Foundation of Middle Tennessee. “What we are seeing now are tangible results. Deals are getting approved, projects are advancing, and housing units are moving toward construction to support additional affordable housing across Nashville.”

The need remains urgent. Nashville is projected to require nearly 90,000 additional housing units by 2030, including 20,000 affordable to households earning below 60% of the area median income.

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.