180 new units open at affordable housing development near Downtown Knoxville

KNOXVILLE, Tenn. (WATE) — 180 new units are open at Knoxville’s first mixed-income, affordable housing community.

Knoxville’s Community Development Corporation cut the ribbon for Phase 2 of First Creek at Austin , a mixed-income, affordable housing community on the edge of downtown, on August 29. The new 180 apartments include one- to three-bedroom units.

Rent on the apartments will depend on whether or not the resident qualifies for an income-based assistance program, however, their website lists that a one-bedroom apartment will be $1,300 a month and $1,560 for a two-bedroom without assistance. Trash, parking and water sewer will also be included in the rent.

“First Creek at Austin has created a diverse community within walking distance of schools, downtown and the Old City, the soon-to-open new multi-use stadium and other nearby amenities and opportunities,” KCDC Executive Director and CEO Ben Bentley said. “A true sense of community is being established in a vibrant, connected urban area.”

Construction for Phase 2 was primarily funded through $19.6 million of low-income housing tax credits from the Tennessee Housing Development Agency. This is “a credit against federal income tax liability each year for 10 years for owners and investors in low-income rental housing” according to KCDC.

Phase 1 opened in 2022 and included 105 units , with 55 in one multifamily building and 50 spread across six smaller buildings. KCDC broke ground on the third phase on August 1, 2024 . This phase will include 161 new housing units, 50 of which will be supportive housing units for low-income seniors aged 62 and older.

In 2019, the plan for the development was set in motion . KCDC met with community members t o create a master plan to create a total of about 430 units over three phases. First Creek at Austin is located on the former site of Austin Homes, which was established in 1941 just east of downtown.

People can apply to live at First Creek at Austin on Firstcreekliving.com .

This complex is one of several affordable housing projects underway in Knoxville . Several of the projects are funded through the Affordable Housing Fund, a 10-year, $50-million commitment to develop more affordable housing.

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