Regions Bank has announced a $20 million investment to increase affordable housing options for under-resourced communities in Nashville and beyond. The investment is a 10-year loan to Pathway Lending, a community development financial institution (CDFI) that provides capital to developers of affordable multi-family housing in Nashville and throughout Tennessee.
The deal was made possible by Regions’ participation in the Tennessee Community Investment Tax Credit (CITC) program, a strategy that helps the bank advance the economic success of the communities it serves by providing substantial equity for developing affordable rental housing.
“This is about making sure modern, affordable housing is accessible to more people and more families as Nashville continues to grow,” said Lee Blank, Middle Tennessee market executive for Regions Bank.
“The benefits of Middle Tennessee’s growth are immense. But it also creates a challenge in that it’s harder for people to have an affordable place to live. Regions’ approach to the Community Investment Tax Credit program, and our work with CDFIs like Pathway Lending, are leading to real solutions that will create a real impact for people in Nashville and even across the state.”
This latest investment in the Pathway fund follows $5 million supplied by Regions in 2022, bringing the bank’s two-year total investment in the fund to $25 million.
Through the fund, Pathway collaborates with developers for various purposes, including:
- Providing working capital to sustain project operations;
- supporting comprehensive interior and exterior renovations;
- covering costs to accelerate project completion times.
The fund is making a difference in several communities, including North Nashville. That’s where Pathway is working with a developer to revitalize multi-family duplexes along Village Trail.
The two-bedroom, one-bathroom rental units had not been updated since the mid-1980s. Now, along with new roofs, gutters, and windows, there’s fresh interior paint, new cabinets, countertops, appliances, and tile and luxury vinyl plank flooring throughout each unit. Up next, there are plans to install wood privacy fences, and back patios. Each unit will rent for $1,250 per month, which is $150 lower per month than the current Housing and Urban Development (HUD) measure for affordable housing in Davidson County.
“With financing through Pathway’s Tennessee Affordable Multifamily Housing Loan Fund, these upgrades are enhancing the overall quality of housing and helping to preserve the character of the North Nashville neighborhood,” said Clint Gwin, president/CEO of Pathway. “We’re expanding the supply of affordable rentals and preventing the displacement of longtime residents. We’re thrilled about these opportunities made possible with support from Regions.”
Blank said Regions’ latest investment shows the bank’s commitment to creating more inclusive prosperity in Nashville.
“We have been here for 140 years, and we see ourselves as partners in Nashville’s growth from a mid-sized city to a major metropolis,” Blank said. “We want to do what we can to ensure more people benefit from that growth.
“Collaborating with Pathway makes it possible for more of our neighbors who live and work in the city to continue to call Nashville home and to flourish in the community they know and love.”
