Amazon to provide $10.6 million in loans for affordable housing in Nashville
- Amazon’s contributions include $7.1 million in low-interest loans.
- The company will provide a $3.5 million grant to CrossBridge, a nonprofit organization.
- The money will go to affordable housing projects in East Nashville and Rutledge Hill.
Amazon will contribute $10.6 million in low-interest loans and grants to build or renovate more than 130 affordable units in East Nashville and Rutledge Hill, the company announced Wednesday.
The pledge includes a $7.1 million loan to the Metropolitan Housing and Development Agency for construction of the Cherry Oak Apartments, which will begin Wednesday morning in East Nashville.
A $3.5 million grant to Nashville-based nonprofit CrossBridge will help fund the creation of 50 new units and 34 renovated units for adults who are overcoming addiction.
These two investments are Amazon’s first concrete contributions to creating new affordable housing in Nashville.
The funds come from the company’s $2 billion Amazon Housing Equity fund and are separate from the company’s pledge last June to provide $75 million in low-interest loans to preserve at least 800 homes. rentals in Nashville near WeGo transit routes. The specific investments of this $75 million commitment have yet to be announced.
Cherry Oak Apartment development inaugurates
Cherry Oak Apartments will be a 96-unit, mixed-income, multi-family development located at 705 South 6th Street adjacent to MDHA headquarters. Of those units, 53 will be affordable to residents earning 80% or less of the Nashville-area median income for 99 years.
Cherry Oak is the seventh new residential construction in MDHA’s “Envision Cayce” plan to revitalize Cayce Place, Nashville’s largest subsidized housing property. The project will cost about $33.4 million and is expected to be completed by the end of 2023, according to the MDHA.
After:Amazon in talks to lend $7.1 million to 96-unit mixed-income development in East Nashville
CrossBridge increases its accommodation capacity
Amazon’s $3.5 million grant to CrossBridge will help fund the two nonprofit housing projects spanning a city block on Lindsley Avenue.
CrossBridge provides housing and services for adults who are overcoming addiction, including counselling, addictions support and help with re-entering the labor market.
The grant will help CrossBridge maintain affordable rental rates for the projects – a new 50-unit building and a renovated 34-unit building – in addition to expanding services.
Amazon’s commitments to Nashville
Since 2020, Amazon has committed approximately $94 million in loans and grants for affordable housing projects in Nashville. This includes $3.75 million in donations to the Housing Fund and $5 million in funding for the Real Estate Developers Academy, a program designed to support developers of color looking to increase their project capacity, in partnership with the Urban League of Middle Tennessee.
The program’s first cohort of 13 developers launched last week.
“With the Housing Equity Fund, this is an opportunity for us to provide below-market capital to developers and nonprofits,” said Michelle Brown, Amazon’s head of public policy. “For some projects, funding will be in the form of loans, like our partnership with MDHA, and then for others with nonprofits, you’ll see grants.”
The type of support each developer receives from Amazon depends on the needs and plans listed on their app and what the developer’s capital stack looks like, Brown said.
Amazon focuses on housing for residents who earn between 30% and 80% AMI.
“For us, we recognize that if you’re below 30% of the AMI there are public benefits that can help you stay in housing, but we really try to focus on that ‘missing middle’, the people who earn too much for the housing public, but are still priced exorbitantly due to rising rental costs,” Brown said.
Cassandra Stephenson covers metropolitan government for The Tennessean. Contact her at [email protected] or (731) 694-7261. Follow Cassandra on Twitter at @CStephenson731.