New Program To Address Lack Of Affordable Housing In Tennessee

Wednesday, May 22, 2013

Pathway Lending is expanding its product offerings by partnering with the Tennessee Bankers Association (TBA) and its member banks to provide developers a uniquely designed long-term, fixed-rate financing option for new construction and the rehabilitation of affordable multi-family housing communities. As part of this program, Pathway Lending will also work with the Tennessee Housing Development Agency (THDA), which aims to create well designed, high quality affordable housing throughout the state.

“We are excited about this product expansion and our ability to increase positive impacts in underserved communities throughout Tennessee,” said Clint Gwin, president of Pathway Lending. “Our ability to respond quickly to needs in the marketplace will provide developers the opportunity to meet certain deadlines and efficiently create much needed affordable housing.”

The program, which was approved by the TBA board of directors on May 6, will provide a long-term, fixed-rate source of first lien permanent financing that will be leveraged with federal Low Income Housing Tax Credits (LIHTC). This pairing will be used to develop or rehabilitate apartment communities throughout Tennessee with rents that are affordable to households earning 80 percent or less of an area’s median family income.

“Pathway Lending and the Tennessee Bankers Associations have enjoyed a strong relationship since 2007,” said Mr. Gwin. “This expansion illustrates the continued commitment of the TBA and its member banks to ensure the availability and flow of capital to meet these critical needs in Tennessee.”

According to Brad Barrett, president of the Tennessee Bankers Association, “This program provides TBA member banks another tool to strengthen the communities they serve. By reducing risk concerns and increasing lending opportunities, we are offering our members a safe, sound and profitable community development lending opportunity. ”

A recent housing needs assessment conducted by THDA determined approximately 150,000 more affordable rental units are needed throughout the state. More than one in four Tennesseans experience some sort of housing problem due to high costs.

“THDA welcomes the opportunity to work with TBA and Pathway Lending on this exciting new initiative,” said Ralph Perrey, executive director of THDA. “By leveraging our public and private resources, we will be able to provide more quality affordable housing opportunities in communities across the state.”


Home Prices And Sales Rise In July

Although low supply and tight credit standards are still hurdles to recovery, prices continue to rise in most local areas. Job growth has strengthened lately, but wage growth has not kept pace with the price gains we have seen.   Buoyed by stable and continuously lower interest rates, affordability is still historically high yet below its all-time peak. Rising inventory ... (click for more)

John Shearer: Covering The Derek Dooley House Auction

On Saturday, as part of my freelance journalism work I do, I had an opportunity to cover the scheduled auction of former Tennessee football coach Derek Dooley’s home in West Knoxville. He has, of course, moved on to Dallas with his family as receivers coach of the Cowboys of the NFL, but his large and historic home bought within his first year at Tennessee for more than $2 million ... (click for more)

Bradley, 24, Charged In Death Of Boy, 3; Child Had Numerous Injuries After Left With Boyfriend; Mother Was In Workhouse

Justin Dale Bradley has been charged with criminal homicide in the death of a three-year-old child, who was rushed to the hospital on Wednesday and later died. Police said Dakota James Arndt had numerous injuries over his body. Authorities said Bradley, 24, is the boyfriend of the child's mother, Brianna Kwekel, who was in the Workhouse at the time. Ms. Kwekel was serving 48 ... (click for more)

Helen Burns Sharp Asks Recovery Of Legal Fees In Successful Black Creek TIF Lawsuit

Helen Burns Sharp, citizen activist who sued to try to stop a $9 million Black Creek Tax Increment Financing (TIF) and won, is seeking to have her legal expenses paid by the city and the developers. Ms. Sharp said in a court filing that her legal bills to attorney John Konvalinka are $74,427 thus far. Chancellor Frank Brown ruled in favor of Ms. Sharp, saying the Sunshine ... (click for more)

The Many Lessons I Learned From Helen McDonald Exum

Helen McDonald Exum was my friend and mentor. As I think of her passing I can only imagine the celebration that is happening in heaven as the news of her arrival is being told. I am sure that there is a party that not only has she organized but that there is not a detail that has been left to chance. I am sure that it is the grandest of events, for you see, she has been planing ... (click for more)

Insurance Burden Should Not Fall On The Teachers

I have attended several Hamilton County School Board meetings over the past few months, including the recent special called meeting" to vote on teacher insurance changes. First, let me say I am very impressed with Superintendent Rick Smith and his staff at the Central Office.  Mr. Smith is a very dedicated public servant, working hard to provide services to our community ... (click for more)