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Committee asks planning and finance to study a small-investor revolving loan fund for affordable housing
Summary
The committee approved a resolution directing the Department of Finance and the Housing Division of the Department of Planning to study the feasibility of a revolving loan fund that would allow smaller investments from community members to support affordable housing.
The Metro Council Planning & Zoning Committee unanimously approved a resolution requesting the Department of Finance and the Housing Division of the Department of Planning to research the feasibility of creating a special revolving loan fund to issue loans for affordable housing that would permit smaller investments from members of the Nashville community.
RS 20 25 (agenda item number 10) was introduced by Council Member Gadd and discussed on the floor by Council Member Horton, who identified herself as an advocate and co-sponsor in Gadd’s absence. Horton described the request as twofold: to evaluate whether such a fund could be established and to direct staff to return to council with a feasibility report.
Council Member Allen said he supported the resolution and emphasized the importance of allowing smaller contributions; he contrasted the proposal with the existing Catalyst Fund, which currently accepts minimum contributions of $1,000,000. “There are lots and lots of people…who would willingly give some amount to make that happen,” Allen said, identifying the high minimum for the Catalyst Fund as prohibitive.
Hannah Davis of the Housing Division, Planning Department, told the committee the division would perform the analysis requested by the resolution. Davis said the Catalyst Fund’s $1,000,000 minimum was driven by transaction costs including legal fees, compliance, investor relations and reporting obligations. She said the division would research other cities’ approaches and the potential mechanisms — including technology platforms that aggregate smaller investments — and return a report to council. “We can certainly complete the analysis, return it to council so you're able to understand,” Davis said.
The committee voted by voice; the chair announced the motion carried with no recorded opposition. The resolution does not itself create the fund or set contribution minimums; it requests analysis and a report from the departments named in the resolution.
