Knoxville City Council recently approved a plan for the City to contribute $2 million to a project that will create 80 affordable apartments in East Knoxville. 

On Nov. 2, Council will vote whether or not to approve the City’s proposed contribution of $1.98 million to a project that will create 66 affordable apartments in the Inskip neighborhood. 

Both projects – The Ammons on Asheville Highway and Inskip Flats – requested support from the City’s Affordable Rental Development Fund, created in December 2017 in response to a community-wide need for affordable rental housing. 

Mayor Indya Kincannon has—with Council’s support—continued support for the program that to date has committed $16.6 million to the creation of affordable rental housing. And, by the end of 2021, approximately 788 units of affordable rental housing will be available for qualifying low- to moderate-income households.

“These apartments will provide safe, comfortable and affordable homes for Knoxville residents whose incomes fall below the Area Median Income,” says Housing and Neighborhood Development Director Becky Wade. “The City’s contributions to affordable housing developments can help fill the gaps in funding that developers can frequently face when building housing with rents that are lower than market value.”  

The Housing and Urban Development (HUD) definition of affordable housing is that which costs no more than 30 percent of the household’s income. According to the U.S. Census’ American Communities Survey, 50.5 percent of Knoxville renters pay more than 30 percent of their incomes on rent alone, not including utilities and insurance.

Mayor Kincannon’s 2021-2022 budget established the Knoxville Affordable Housing Fund with a commitment to spend $50 million over the next 10 years. The budget included an initial allocation of $8,177,860, including $2.5 million for the Affordable Rental Development Fund; $3,781,900 to the Austin Homes Revitalization; and $1.5 million for development of permanent supportive housing, which is critical to providing housing for many individuals who struggle with chronic homelessness.

The City’s investments in affordable rental housing are visible across Knoxville. Southside Flats and Young High Flats in South Knoxville and the Flats at Pond Gap near Bearden opened in 2020 and 2021. In the next few weeks, Burlington Commons on Holston Drive will open 49 units, supported by $1.47 million from the City. And Moss Grove Apartments in Cedar Bluff is starting to lease 192 affordable units, supported by $950,000 from the City. 

A total of 50 supportive housing apartments for seniors located on Mineral Springs Avenue in North Knoxville are expected to be completed in late winter 2022.

To learn more about other affordable and mixed-income developments in the City, go to KnoxvilleTN.gov/development and KnoxvilleTN.gov/housing.