The City of Knoxville has allocated two grants from its Affordable Rental Development Program to assist in the construction of rental housing for low- and moderate-income tenants.

In late 2017, City Council voted to approve two grants from the fund, which was established by Mayor Rogero in her 2017 budget with an initial allocation of $2 million:

• $180,000 for The Restoration House of East Tennessee to complete work on Phase 2 of The Village, transitional (up to two years) housing for low-income single mothers; and

• $300,000 to Helen Ross McNabb Foundation for housing for homeless veterans.

These grants are in the form of low-interest deferred loans that are forgiven over the required affordability period.

Restoration House began construction of The Village in 2013, with Phase 1 including six housing units, a community center, playground, basketball court and community garden. The completion of Phase 2 will allow housing for up to 24 additional families.

Helen Ross McNabb Center’s two-story, 10-unit apartment complex will open in early 2018, providing permanent, supportive housing for veterans living with a mental health, substance use or co-occurring disorder who are also homeless or at risk of becoming homeless.

Applications for grants from the Affordable Rental Housing Development Fund are still being accepted. If the demand for funds exceeds the amount available, funding will be awarded with consideration of the priorities outlined in the guidelines. Proposals must be for new multi-family (five or more) projects or retrofitting of existing buildings to contain at least five or more units.

Grant guidelines and application form are available on the City of Knoxville website at http://www.knoxvilletn.gov/development.