Pathway Lending Launches Pathway Housing Fund With $30 Million Committed to Preserve Affordable Housing

Pathway Lending, a Community Development Financial Institution headquartered in Nashville, has launched the Pathway Housing Fund with $30 million of committed capital to acquire and preserve Naturally Occurring Affordable Housing (NOAH) properties in communities across Tennessee that are in the pathway of gentrification and at risk of becoming unaffordable. 

“Over the past two decades, Tennessee’s housing crisis has grown more personal for thousands of families. As costs rise faster than wages, longtime residents are being priced out of neighborhoods as the state has lost tens of thousands of NOAH units to market-rate redevelopment,” said Clint Gwin president and CEO of Pathway Lending.”

NOAH refers to unsubsidized rental properties whose rents are low enough to be affordable for moderate-income households. 

By utilizing low-cost capital, the fund will acquire multiple multifamily properties at market values, invest to improve them, and keep them affordable in perpetuity for generations to come.  The Fund expects to purchase its first property in Davidson County in the near future.

“The Pathway Housing Fund is the next extension of our work to help strengthen communities,” said Clint Gwin, president and CEO of Pathway Lending. “For over a decade, Pathway has funded affordable housing. Now, through the Pathway Housing Fund, we can go a step further, investing directly to ensure more Tennesseans have access to a safe and affordable place to call home.” 

Pathway has secured $30 million of capital commitments to fund this initiative from leading financial institutions in Tennessee and invites additional partners and community banks to join in. Initial investors in the Pathway Housing Fund include Pinnacle Financial Partners, Regions Bank and First Farmers and Merchants Bank.

“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.” 

Pathway will acquire and preserve multifamily properties using the capital raised from financial institutions as equity and will leverage it with debt financing from entities such as banks and other private, public, and nonprofit sources. 

"Affordable housing has been a priority at Pinnacle since we were founded 25 years ago," said Dale Mitchell, community development coordinator at Pinnacle. "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.” 

“Regions Bank is committed to creating financial solutions that will make a lasting impact for the families of Tennessee,” said Lee Blank, Middle Tennessee market executive for Regions Bank. “Affordable housing is key to strong communities, and we are proud to expand our collaboration with Pathway Lending through this innovative initiative to help more Tennesseans access safe, stable homes.”

“Our investment in Pathway Lending’s Pathway Housing Fund reflects our commitment to strengthening communities and preserving affordability where it matters most,” said Brian K. Williams, CEO of First Farmers & Merchants Bank. “Housing stability is foundational to economic opportunity, and we are proud to support the work which helps ensure families and individuals can continue to live and thrive in the neighborhoods they call home.”

About Pathway Housing Fund 

Pathway Housing Fund (PHF), established by Pathway Lending a Community Development Financial Institution, leverages low-cost capital to preserve Naturally Occurring Affordable Housing (NOAH) properties across Tennessee that are at risk of becoming unaffordable due to gentrification. PHF acquires, renovates, and develops rental housing and ensures long-term affordability. Learn more at PathwayHousing.com. 

About Pathway Lending 

Pathway Lending is a Tennessee-based Community Development Financial Institution certified by the U.S. Department of the Treasury that propels economic growth in under-resourced communities. Since its establishment in 1999, Pathway has generated more than $1 billion in economic impact as a leading community-focused lender in the Southeast. Over the past 25 years and through its lending and advisory programs, Pathway has financed over 1,500 businesses, delivering more than $587 million in direct lending through its small business, affordable housing, and climate-related loan funds, plus investing $115 million in new markets tax credits. Pathway is committed to creating economic opportunity and lasting impact across Tennessee, serving businesses and communities in Memphis, Nashville, Chattanooga, Knoxville and surrounding cities. 

In 2024, Pathway funded $61.3 million in loan capital and provided 15,000 hours of education and coaching to 2,800 entrepreneurs. This funding supported 162 affordable multifamily housing units, 2,700 small business jobs and $386,000 in annual energy cost savings. To learn more about the entrepreneurs and communities that Pathway Lending serves, visit PathwayLending.org.