CHATTANOOGA, TN (January 5, 2026) — Invest Chattanooga today announced a partnership with American South Capital Partners (ASCP) to deliver new mixed-income multifamily housing across Chattanooga, with deep and permanent affordability built in from the start.
The partnership will leverage the City of Chattanooga’s initial $20 million housing investment to attract additional mission-aligned private capital, with a goal of more than doubling capital available for Invest Chattanooga projects, helping more residents at all income levels access high-quality housing in the neighborhoods they want to live in.
The partnership establishes a repeatable model that developers can access to build new multifamily housing in Chattanooga with affordability embedded from the outset and protected over time. Invest Chattanooga will identify and evaluate opportunities brought forward by developers, help shape deal structure, deploy local public capital, and establish clear affordability and ownership commitments. ASCP will complement that work by bringing additional capital, underwriting capacity, and an institutional asset management platform, alongside strong relationships and credibility with regional and national impact investors and developers. Together, Invest Chattanooga and ASCP will use this model to help more high-quality projects move from concept to reality.
“This partnership is about using Invest Chattanooga to bring new capital into the city in a way that makes Chattanooga more affordable,” said Matt Bedsole, President and CEO of Invest Chattanooga. “By pairing public investment with private impact capital, we can help projects move forward that expand housing choice while securing deep, permanent affordability. Our role is to make sure people have real options to live in the neighborhoods they want, not just today, but for the long term.”
According to recent data, nearly 70% of Chattanooga renters are either rent-burdened or severely rent-burdened, underscoring the urgent need for more affordable housing options. Invest Chattanooga will remain actively involved over the life of each project, helping ensure affordability commitments are upheld and that properties continue to function as long-term community assets.
“This is one way we continue to build great neighborhoods and keep Chattanooga a place where there’s o portunity for everyone,” said Mayor Tim Kelly. “The city seeded Invest Chattanooga and it’s exciting to see it be a catalyst for this partnership with American South Capital Partners.”
For American South Capital Partners, the partnership provides an opportunity to invest alongside a local organization with clear standards and long-term accountability.
“Invest Chattanooga has developed an innovative way to use private funding for public good," said Tyler Epps, Executive Vice President at American South Capital Partners. "We’re thrilled to work together to provide funding and infrastructure to help Invest Chattanooga grow and support housing in Chattanooga that increases supply while keeping it affordable for years to come.”
The partnership is expected to support both new construction and acquisition opportunities, with initial projects anticipated to advance beginning in 2026.
About Invest Chattanooga
Invest Chattanooga (investchattanooga.org) is a nonprofit housing investor launched by the City of Chattanooga to expand the supply of quality, mixed-income housing. Using flexible public capital and public-private partnerships, Invest Chattanooga invests in new construction and preservation projects that include deep, long-term affordability, serving as a capital partner that brings mission-aligned private investment into Chattanooga.
About American South Capital Partners
American South Capital Partners manages a family of real estate impact funds focused on investing in transformative projects in 10 states across the Southern U.S. American South Capital Partners, is a joint venture between Los Angeles-based impact fund manager SDS Capital Group ( sds.capital <http://www.sds.capital/>) and Vintage Realty Company, a Shreveport, Louisiana-based property developer/manager (vintagerealty.com).