Knoxville’s Community Development Corporation (KCDC) officially broke ground Aug. 1 for the third phase of First Creek at Austin, the city’s first mixed-income, affordable housing community.



First Creek at Austin is being built in three housing phases with Phase 1 already finished, Phase 2 nearly completed and Phase 3 now getting underway. Business and community leaders, stakeholders and residents attended the ceremony.

“First Creek at Austin is creating a diverse neighborhood close to downtown opportunities and amenities,” KCDC Executive Director and CEO Ben Bentley said. “Phase 3 will not only add more affordable housing units to the urban area, but it also will feature supportive housing and independent living for low-income seniors. Additional amenities, including new parks and connectivity to downtown and South Knoxville as a result of the Reconnecting Communities and Neighborhoods grant, will further improve the quality of life for residents.”

Phase 3 will include approximately 161 new housing units, including 50 supportive housing units for low-income seniors, age 62 and older. The family units will be located in large buildings and townhomes and will offer one-, two-, three- and four-bedroom options. 

The City of Knoxville has invested a total of $14.1 million in sitewide infrastructure support, including utilities, sidewalks and new roads.

“It’s been a pleasure and privilege to watch this new neighborhood take shape and see residents start to move back in,” Knoxville Mayor Indya Kincannon said. “The City is committed to affordable housing, with easy access to parks, transportation, and good jobs and community amenities. This project shows that mixed-income housing can be beautiful, and it can be integrated into a walkable, safe, urban community.”

Senior residents of supportive housing will have access to supportive care such as housekeeping, meals, health-related services and transportation.

Services and amenities will include:

• Slip-resistant flooring materials, adequate lighting in all units and common areas, elevator access, grab bars in bathrooms and handrails in common areas.
• Multi-purpose community room for elderly residents.
• Fitness room programmed for both elderly and non-elderly residents to promote mingling.
• Access to gardens, greenway and a park.
• Telehealth room pre-wired and equipped for virtual health meetings.
• Broadband connectivity.

Architecture for Phase 3 is provided by Southeast Venture and Johnson Architecture; Jenkins & Stiles is general contractor; Partners Development is owner representative; Regions Bank is equity partner; and the lender is Chase Community Development Banking.

The 50 units of supportive housing for seniors became possible in 2021 with a $7.5 million grant from the U.S. Department of Housing and Urban Development (HUD) to a Knoxville nonprofit, the only program grantee in Tennessee that year. Southeastern Housing Foundation II, a subsidiary of the nonprofit Knoxville Leadership Foundation, received the grant, and KCDC serves as the developing partner and property manager.

The Section 202 Supportive Housing for the Elderly Program grants are awarded through a competitive application process. The funds provide both construction funding and rental assistance to low-income seniors ages 62 and older.

Also in 2021, the Tennessee Housing Development Agency (THDA) awarded Southeastern Housing Foundation a $900,000 grant to help build the family housing units for Phase 3. Southeastern Housing Foundation is a partnership of KCDC and Knoxville Leadership Foundation.

The state grant is made possible through THDA’s Tennessee Housing Trust Fund and must be used for affordable rental housing and address the needs of low-income households. The grant will supplement tax credits and debt and will focus specifically on developing a portion of units designated for extremely low-income residents.

First Creek at Austin is built on the site of the former Austin Homes, which was established in 1941 on nearly 23 acres near the Old City and downtown Knoxville, for connectivity, a sense of community and access to employment, entertainment, sports and retail opportunities.

Phase 3 amenities include a fitness center, resident lounge, pet spa, playground and Wi-Fi in common areas. Additional plans for the site include a park, greenway with direct access to the new multi-use stadium opening in 2025, early childhood center, community space and resident gardens.

Phase 1 opened in 2022 with 105 total units – 57 in one multifamily building and 48 spread across eight smaller townhome-style buildings. The diverse housing styles allow residents to choose from various floorplans and amenities to suit their needs.

Phase 2, which will officially open in 2024, will provide 180 one- to three-bedroom units with a fitness center, outdoor green space and indoor community spaces.

The overall First Creek at Austin redevelopment followed months of dialogue with residents, stakeholders and community members in interviews and public meetings and included options for overall site use, street layouts, residential building types and open spaces.

At the point of redevelopment, former Austin Homes residents living at the site received relocation choices to other KCDC properties, including the revitalized Five Points community and the renovated The Vista at Summit Hill, which are both located nearby and in the same school district. The former residents also have the right to return to the site with the opening of First Creek at Austin, if they choose to do so.

For property and leasing information about First Creek at Austin, visit FirstCreekLiving.com. 

To learn more about Knoxville’s Community Development Corporation (KCDC), please visit KCDC.org or call 865-403-1100.