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Council approves philanthropic boost and city funding for several small affordable housing projects
Summary
The council accepted a private donation to the city's affordable rental development fund and approved multiple awards and tax‑incentive steps to advance 43 new affordable units across three neighborhood infill projects and supportive housing for youth aging out of foster care.
The Knoxville City Council approved a set of resolutions that the administration said will accelerate small, neighborhood‑scale affordable housing projects by combining city funds with private philanthropy.
The council expressed appreciation for a $570,000 donation routed through the United Way of Greater Knoxville and gifts by local donors that the administration said will expand the city—s affordable rental development fund (ARDF). "For the first time, construction of affordable housing through the city's affordable rental development fund is relying on private gifts," the mayor said in remarks introducing the item.
Council then approved ARDF awards and related actions: Parkview Apartments (2226 Parkview Avenue) received up to $210,000 to support 10 affordable units; Edgewood Apartments (2501 Edgewood Avenue) received up to $360,000 for 15 affordable units; and the council authorized related payments‑in‑lieu‑of‑ad‑valorem‑taxes (PILOT) negotiations for both projects through the Industrial Development Board. The council also approved a HOME American Rescue Plan (HOME‑ARP) award of up to $1,000,000 to Lumen Flats Knox LLC (1585 Coleman Road) for 18 affordable units contingent on HUD approval of the ARP allocation plan amendment.
Supporters characterized the projects as neighborhood infill that increases housing diversity. "These developments will add quality density, increase housing diversity, and create affordable housing in established neighborhoods," said Ellen Zavisca of YES Knoxville in a brief public comment.
Council members noted the projects use multiple funding sources and recent zoning changes that permit smaller multiunit developments under missing‑middle reforms. "We've got 18 supportive affordable housing units for youth aging out of foster care, which I think is amazing," Councilman Roberto said after the Lumen Flats item was introduced; the administration said the Coleman Road project includes supportive services for youth exiting foster care.
All resolutions on the ARDF awards and related PILOT authorizations passed on voice votes; council members asked staff to continue to monitor outcomes and to ensure the projects meet affordability and readiness conditions before funds are disbursed.
What this covers: the actions are funding commitments (subject to conditions) and authorization for the Industrial Development Board to negotiate PILOTs. The donations routed through United Way were identified by the administration as coming from donors including the Lawson Family Foundation, the Haslam family, Clayton Holmes and Randy Boyd.
Next steps: staff will finalize agreements, verify project financing and timelines, and return to council or the Industrial Development Board with final funding and PILOT documents. The HOME‑ARP award is contingent on federal approval of the city's allocation plan amendment.
