Borrow from the Catalyst Fund
The Fund is aimed at facilitating the use of existing (and future) long-term housing subsidy programs that typically cannot respond in a timely fashion to important acquisition opportunities in Nashville’s dynamic real estate market.
To that end, the Fund will lend to support transactions that are currently or planned to become income-restricted at the end of the Fund’s loan period.
Acquisition Loans
- Acquisition-focused
- Multifamily properties & land
- Concessionary terms
Pre-Development Loans
- Early-stage capital
- Pre-development costs
- Unsecured loans available
Bridge Loans
- Bridges project cash flow needs
- For grant & tax credit sources
- Avoids delayed repayment risks
Please note, the Catalyst Fund does not lend to individuals or households.
Acquisition Loan
Financing to support a borrower’s acquisition of 1) existing, occupied multifamily projects for preservation transactions; and 2) an unoccupied site/building for ground-up affordable multifamily housing development/adaptive reuse.
Affordability Requirements
- Income restrictions cannot exceed 100% AMI for rentals or 120% for home ownership.
- Mixed income is allowed, with up to 50% of the units market rate OR the project qualifies for other public housing programs.
Permitted Uses
- Hard and soft costs associated with acquisition and predevelopment of a project. Examples: acquisition of land or buildings; soft costs such as appraisals, environmental reports, title and recording fees, A&E fees, application fees, legal, and interest allowance.
- In cases of acquisition of occupied property, a minor amount of hard costs may be funded by the Loan, limited to an amount that does not exceed $20,000/unit across the project, and focused on addressing any documented urgent/safety needs or to perform minor unit rehabilitation work. Any site work will be performed by contractors who meet Fund insurance and reporting requirements.
Rates & Terms
Pre-Development Loan
Early stage financing to support a sponsor’s predevelopment costs (e.g., permitting, legal and consulting fees, design, and planning, third-party reports, etc.). This product may support project costs in advance of a Sponsor obtaining site control, as well as costs where collateral is available.
Affordability Requirements
- Income restrictions cannot exceed 100% AMI for rentals or 120% for home ownership.
- Mixed income is allowed, with up to 50% of the units market rate OR the project qualifies for other public housing programs.
Eligible Sponsors/Borrowers
- Sponsors working on the city’s high priority developments.
- Nonprofit and emerging/BIPOC developers with limited capital.
Permitted Uses
- Loan proceeds may be used to support early-stage project soft costs or reimbursement of such costs associated with the predevelopment of a project. Examples include appraisals, environmental reports, architect and engineering fees, application fees, legal fees, and interest allowance.
Rates & Terms
Bridge Loan
Flexible financing able to bridge to a project’s committed subsidy sources (e.g., tax credits, public subsidy, grant funding, etc.) for a short term.
Affordability Requirements
- Income restrictions cannot exceed 100% AMI for rentals or 120% for home ownership.
- Mixed income is allowed, with up to 50% of the units market rate OR the project qualifies for other public housing programs.
Permitted Uses
- Loan proceeds may be used to support hard and soft costs associated with the predevelopment or acquisition. Limited construction and/or rehabilitation may also be considered.
Rates & Terms
Submit Your Project
Do you have a project that the Catalyst Fund could help accelerate? Fill out our intake form below or email us at info@nashvillecatalyst.org.
FAQ
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