Rental Rehabilitation Program

Community Development Director

Becky Wade
bwade@knoxvilletn.gov
(865) 215-2865

400 Main St., Room 532
Knoxville, TN 37902

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BRIEF DESCRIPTION: The City of Knoxville's Rental Rehabilitation Program provides owners of substandard residential rental property with financial and technical rehabilitation assistance. In return for the City's rehabilitation assistance, participants agree to certain long term (5 20 years) rent and occupancy restrictions which provide for the continued availability of the housing to lower income families at an affordable rent. The Program utilizes forgivable loans called "Deferred Payment Loans," which require no monthly payments to subsidize the required costs of rehabilitation. Total funding is limited to 80 percent of cost of required rehabilitation or a maximum of $20,000 per unit for 1- 4 unit dwellings. 

BASIC PROGRAM REQUIREMENTS: To be eligible for Rental Rehabilitation Program funds, a rental property must be located within the City of Knoxville. Single family homes, multifamily properties, group homes, SRO's, transitional housing for homeless persons, and mixed use properties having 51 percent or more residential living space are all eligible for the Program. All properties require a minimum of $1,000/unit in repairs. 

Property owners must be able to obtain private financing for all rehabilitation costs in excess of the City's contribution and the property must have a positive cash flow. 

After rehabilitation, all properties must meet the City's Neighborhood Housing Standards, which include the 2012 ICC Housing Maintenance Code, existing codes related to health and safety, lead based paint requirements, cost effective energy conservation measures and, if applicable, the Secretary of Interior's Standards for rehabilitation of Historic Properties. Each unit assisted with Program funds is then subject to strict rent controls designed to ensure that rent levels remain affordable to lower income families over time. Likewise, the occupancy of each assisted unit is limited to low income families. Owners must also agree not to discriminate against families with children or families receiving rental assistance, and to affirmatively market all assisted units. 

Interested in applying?
Rental Rehab Program Description [PDF]
Rental Rehab Application [PDF]
Rental Rehab Application Process [PDF]
Tenant Packet 2015 [PDF]