New Partnership Expands Housing Affordability

CHATTANOOGA, Tenn. (WDEF) – Invest Chattanooga is partnering with American South Capital Partners to fund new mixed-income housing projects in Chattanooga. 

The nonprofit, operating for just six months, provides early, lower-cost capital to help developers move projects forward that might otherwise be too expensive to build.

The partnership leverages the city’s $20 million investment to attract additional private, mission-aligned capital, allowing projects to expand housing access in neighborhoods where affordability is increasingly difficult. 

High-demand areas include Hamilton Place Mall, downtown, and North Shore, according to project leaders.

Invest Chattanooga and its partners do not build housing themselves. Instead, they fund experienced developers and maintain long-term oversight to ensure affordability commitments are met. 

This model allows the nonprofit to recycle funds: once a project stabilizes, some of the investment is returned and redeployed into future projects, while maintaining long-term affordable units.

The partnership is expected to support both new construction and acquisition opportunities, with initial projects anticipated to advance beginning in 2026. 

This approach provides a repeatable framework for mixed-income housing that combines public investment, private capital, and long-term oversight to expand housing choice across the city.