The City of Knoxville has released a report on how it spent funding received from the U.S. Department of Housing and Urban Development (HUD) between July 1, 2016, and June 30, 2017. 

The Consolidated Annual Performance and Evaluation Report (CAPER) details how the City spent Community Development Block Grant (CDBG) and HOME Investment Partnerships Act (HOME) funding during the program year 2016 (PY2016) to support local organizations and activities that prevent and mitigate blighted conditions in neighborhoods, provide services to prevent and end homelessness, increase the City's stock of affordable owner-occupied and rental housing, and assist low- and moderate-income homeowners and renters to make their homes safer, as well as more livable, accessible and energy efficient.

The City used just over $2 million in CDBG funds and $1.5 million in HOME funds for a total of about $3.6 million, which included program income received and unspent prior year funds.

Expenditures break down this way:

• 81% on affordable housing
• 6% on economic development
• 3% on homeless activities
• 1% on blighted property acquisition and maintenance, and 
• 8% on general program administration

“While the City has surpassed its affordable housing goals overall during the program year, given the federal funds it received, the need for affordable housing still outmatches the supply,” said Community Development Administrator Linda Rust. 

In PY2016, 276 low- and moderate-income households were provided affordable housing: 208 owner-occupied households and 56 renter households received housing rehabilitation, including major housing rehabilitation, minor and emergency home repairs, weatherization-related repairs and accessibility modifications; seven new owner-occupied houses were constructed; and five new rental units were developed. Down-payment assistance funds helped seven new income-eligible homebuyers purchase the newly constructed housing units. The City also assisted a non-profit housing developer with the purchase and acquisition of property where affordable rental units will be developed in the next couple of years. 

HUD funds used for housing and other construction activities also benefited the local economy by providing contracts/subcontracts to local low and very low income persons and businesses that are owned by or substantially employ such persons (26 contracts worth over $400,000, and six new jobs were created), minority-owned businesses (eight contracts worth over $84,000), and women-owned businesses (four contracts worth over $20,000). 

Economic development activities such as the Commercial Façade Improvement program assisted two new businesses in redevelopment areas, which created nine full-time jobs and one part-time job. Neighborhood Housing Inc.’s Workforce Development program also utilized $114,920 in CDBG funds to provide construction training and credentialing to 39 disadvantaged and at-risk young adults from inner-city neighborhoods. 

CDBG funds in the amount of $93,412 assisted Catholic Charities in the renovation of temporary housing for neglected and/or abandoned children.

The high demand and low supply of affordable rental housing, especially for those households at very-low income levels, remains an issue the City continues to address via the Affordable Housing Fund, which Mayor Rogero announced at the State of the City budget luncheon in April 2017. 

The report is available online at http://bit.ly/CAPER16draft and in the City’s Community Development office located on the 5th floor of the City-County Building.

Questions and comments may be submitted for inclusion in the CAPER through Sept. 25. Contact Linda Rust at 865-215-2357, [email protected] or mail to City of Knoxville, Community Development Department, P.O. Box 1631, Knoxville, TN 37901.