Metropolitan Development & Housing Agency
Nashville, Tennessee

The Affordable Housing Gap Financing program (AHGF) is a $25,000,000 loan fund dedicated to the creation of new rental units and permanent supportive housing. The program will provide subordinate financing for affordable rental housing projects benefitting families at up to 30% of the Area Median Income (AMI) which was $22,770 for a family of 3 in Nashville in 2021. Additionally, the funding will provide units to be set aside for use for Permanent Supportive Housing (PSH) subsidies combined with Housing First Supportive Services and assigned by Coordinated entry In Multifamily Developments throughout the City. AHGF is intended to bring much needed housing units into use for the homeless. This is done by providing gap financing to multi-family mixed housing developments which have already been approved for Low Income Housing Tax Credits and/or other federal subsidies and have completed their financial stack but are experiencing a gap due to increased costs of insurance, materials, and labor. These are projects that are underway, ready to break ground and in some instances are already complete. The program will be administered by MDHA. A portion of funds (5%) will be allocated to MDHA for program administration expenses. This program is funded solely with American Rescue Plan Act funding. The funding was approved by the Metro Nashville Council in fall of 2022 and the first round of applications were due in December 2022.

Funding Source
Special one-time federal funding
Funding Year
2022
Program Status
Active
Total Funding
$25,000,000
Treasury State and Local Fiscal Recovery Funds (SLFRF) Funding
$25,000,000
Contact
Angela Harrell Metropolitan Development & Housing Agency [email protected] 615-252-8422
How Provided?
Development loans
Program Type
Income Eligibility Threshold
Info Source
Program administrator survey response
Last Updated
3/30/23 14:49
Other Eligibility Requirements

Persons experiencing or at risk of homelessness

Coordinates Eligibility With

Does not coordinate with other systems

Eligibility Limitations

Does not limit eligibility on these criteria

Priority Populations

Extremely low-income households (income less than 30% AMI); Persons experiencing homelessness or at risk of homelessness