Knoxville TN, October 13, 2025
News Summary
The Knoxville City Council is set to meet to review crucial proposals aimed at boosting affordable housing in the city, including a potential sales tax increase for funding. The Housing and Neighborhood Development Department is seeking approval for additional resources, while initiatives to incentivize developers for creating affordable units will also be on the agenda, featuring several new projects and funding requests to address housing needs by 2029.
Knoxville, Tennessee – The Knoxville City Council is scheduled to convene on Tuesday to review multiple initiatives aimed at enhancing affordable housing opportunities within the city. Key proposals include a referendum for a sales tax increase in November that could potentially allocate $10 million, or 22% of additional revenue, to the Knoxville Affordable Housing Fund.
The Housing and Neighborhood Development Department is seeking the city council’s approval for these additional funds during the forthcoming meeting. This move is part of a broader strategy to address the increasing demand for affordable housing in Knoxville, where the Affordable Housing Strategy predicts a requirement for an additional 8,000 housing units by 2029.
In addition to the affordable housing proposals, the council is also considering several other items on the agenda. A partnership with HealthEquity to manage the city’s Flexible Spending Accounts and Health Reimbursement Account is on the table, which would come at an annual cost of $76,650.
A separate proposal involves a $250,000 application for a Transportation Planning Grant from the state, which would require a $25,000 local match to fund signal system evaluation and optimization for Kingston Pike. The council may work with Cannon & Cannon Inc. for a $55,000 contract to assist the city’s Transportation Engineering Division, while a $96,100 contract with CDM Smith Inc. is proposed for a traffic impact study on Gay Street. In relation to green space, CDM Smith could also provide professional engineering design services for the Fort Sanders Neighborhood-Tyson Park Connection Greenway Project.
The city is contemplating an annual agreement of $149,000 with the state for property management beneath the James White Bridge and Hall of Fame Drive. Additionally, various zoning changes are also slated for discussion, including adjustments to designations for properties located at 305 West Vine Avenue, 6109 Creekhead Drive, and several locations on Ball Camp Pike.
At the Tuesday meeting, the city council will deliberate on three propositions aimed at incentivizing developers to create more affordable housing in exchange for lower tax rates. The first is a Payment in Lieu of Taxes (PILOT) agreement proposed with Parkview APTS, LLC for an apartment community at 2226 Parkview Avenue. The project aims to provide housing for individuals and families earning up to 60% of the area’s median income and is set to include eight studio and two one-bedroom apartments. Completion of this project is anticipated by February 28, 2026, with a 10-year PILOT agreement set at $39 for the city and $28 for Knox County.
A second initiative at 2501 Edgewood Avenue is projected to yield 15 affordable housing units, with funds requested from the Affordable Rental Development Fund amounting to $360,000 to support the construction. This project is also expected to be completed by February 28, 2026.
The United Way of Greater Knoxville has contributed $570,000 to the Affordable Housing Fund to support both the Parkview and Edgewood projects. Lastly, a third PILOT agreement aims to convert the former “Heritage Homes for Seniors” facility into housing for young adults transitioning out of the foster care system, with Elmington Capital Group spearheading this proposal which includes plans for 18 new units and a 20-year PILOT agreement with a nominal $1 annual payment.
Since 2020, the city has allocated $40 million to foster the creation of affordable housing units. Local builder Parker Bartholomew has successfully completed a townhome development project under the city’s new Middle Housing Standards, which promotes greater density in housing and ultimately lower construction costs, providing more affordable choices for future buyers.
FAQ
What is the purpose of the Knoxville City Council meeting on Tuesday?
The Knoxville City Council is set to meet on Tuesday to discuss several proposals aimed at increasing affordable housing in the city.
What is the proposed sales tax increase intended for?
A referendum for a sales tax increase in November could allocate $10 million, or 22% of additional revenue, to the Knoxville Affordable Housing Fund.
What is being sought from the Housing and Neighborhood Development Department?
The Housing and Neighborhood Development Department is seeking approval for these additional funds during the upcoming meeting.
What are some other proposals on the city council’s agenda?
A proposal with HealthEquity to manage the city’s Flexible Spending Accounts and Health Reimbursement Account for an annual cost of $76,650 and a $250,000 application for a Transportation Planning Grant from the state are among other agenda items.
What housing projects are being discussed in the meeting?
The city council heard three proposals aimed at incentivizing developers to build more affordable housing in exchange for lower tax rates, including the Parkview Apartments and Edgewood Apartments.
How much funding did the United Way of Greater Knoxville provide for affordable housing projects?
The United Way of Greater Knoxville donated $570,000 to the Affordable Housing Fund to support the Parkview and Edgewood projects.
Key Features of Upcoming Meeting
| Proposal | Details |
|---|---|
| Sales Tax Increase Referendum | Could allocate $10 million to Knoxville Affordable Housing Fund |
| Funding Requests | Housing and Neighborhood Development Department seeks approval for additional funds |
| Housing Projects | Parkview APTS (22 units) and Edgewood Apartments (15 units) with PILOT agreements |
| Additional Agenda Items | Flexible Spending Account Management, Transportation Planning Grant, Zoning Changes |
| United Way Donation | $570,000 to support housing initiatives |
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Additional Resources
- WATE: 47 Units of Affordable Housing Open in West Knoxville
- Inside of Knoxville: First Creek at Austin Redefines Affordable Housing
- Knox News: Whittle Springs Townhomes Fill Affordable Housing Gap
- Google Search: Affordable Housing Knoxville
- Wikipedia: Affordable Housing
Author: STAFF HERE KNOXVILLE WRITER
The KNOXVILLE STAFF WRITER represents the experienced team at HEREKnoxville.com, your go-to source for actionable local news and information in Knoxville, Knox County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Dogwood Arts Festival, Big Ears Festival, and Knoxville Asian Festival. Our coverage extends to key organizations like the Knoxville Area Chamber Partnership and United Way of Greater Knoxville, plus leading businesses in healthcare, education, and energy that power the local economy such as Covenant Health, University of Tennessee, and Tennessee Valley Authority. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
