In Nashville, Using Loan Guarantees to Fund Affordable Housing Preservation

Urban Housing Solutions, a Nashville nonprofit housing developer, made a $19.2 million investment to preserve 165 apartments for people earning in the mid-30s. In a tight and expensive housing market where aggressive investors often outflank nonprofits seeking to provide lower-cost housing, UHS financed the purchase with a bank loan that will earn the lender state tax credits and that was secured by four philanthropic foundations' funds as collateral. The transaction was a first in Nashville for the use of community investment tools to preserve lower-cost housing.

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