Photos L to R: Dixie Street - Townhomes, University Avenue - Fourplex, and Luttrell Street - Duplex (Side-by-Side) |
Program Description
The City of Knoxville’s Housing & Neighborhood Development Department is providing funding for the Middle Housing Redevelopment Program (MHRP), which provides short-term construction loans to renovate or reconstruct unoccupied residential structures and infill vacant lots according to the Middle Housing Standards. Middle Housing types are residential structures containing more than one unit, with building footprints and overall scales comparable to single-family houses. The MHRP is designed to assist with and encourage the development of Middle Housing as demographics and housing preferences shift within Knoxville and residents search for diverse housing choices that retain neighborhood character, are pedestrian and bike-friendly, and provide access to local transit and nearby businesses.
This program is in response to
a study conducted by Opticos Design and numerous public meetings led by city and Knoxville-Knox Co. Planning Staff, leading to the adoption of new zoning code in February of 2024 specific to Middle Housing for the City of Knoxville. The MHRP will address housing needs of households who are caught in the gap between rising housing costs and the inability to secure traditional funding from the banking industry.
Eligibility
Properties meeting the following minimum criteria are eligible to apply. Please consult program guidelines for more information regarding full eligibility requirements.
- Properties located within the RN-1, RN-2, RN-3, RN-4 zoning districts and located in land use areas designated “Traditional Neighborhood Residential” (TDR) within the City of Knoxville limits; and
- Proposals must meet Middle Housing Standards.
In addition, projects must meet at least one of two requirements below to be considered for funding.
Applications not meeting this requirement will be marked incomplete/ineligible for funding upon receipt of submission.
1.
Renovation/reconstruction or infill development will create attainable housing opportunities for low-median income households, based on the following U.S. Department of Housing and Urban Development (HUD) income level requirements, as of 4/1/2025, for Knox County. Fair Market Rent information for Knox County can be located
here.
Income
Limits |
Household Size |
One Person |
Two Person |
Three Person |
Four Person |
Five Person |
| Low-Income (51-80% of Median Income) |
$55,650 |
$63,600 |
$71,550 |
$79,500 |
$85,900 |
| Median Income (81-100%) |
$69,563 |
$79,500 |
$89,483 |
$99,375 |
$107,375 |
OR –
2.
Property is listed on/as one of the following:
a. City of Knoxville’s Homemakers Program;
b. Knox Heritage’s annual Fragile and Fading List;
c. Certified as “Blighted” by the Better Building Board (BBB);
d. Placard as “unfit for human habitation” by the City’s Neighborhood Codes Enforcement Office. Contact Neighborhood Codes enforcement for more information at 865-215-4311; or
e. City-owned Tax-Sale Property. Contact Jillian Love for additional information.
Funding is provided in the form of a zero-interest, short-term construction loan, due upon completion of funded work. All funding is provided on a reimbursement basis only. Projects may be reimbursed a maximum of
$200,0000 towards qualifying redevelopment costs. After projects are completed, properties will be sold, rented, and/or occupied by the owner – encouraging investment, maintaining community identity, and returning properties to the tax role.
Application Process
Confirmation is required with the MHRP application certifying that the applicant has completed a
Pre-Submittal Conference with the City of Knoxville Plans Review and Inspection Division, or that the applicant has an active building permit for the scope of work proposed for MHRP funding. Applicants must indicate an interest in Middle Housing during their Pre-Submittal Conference or have prior Middle Housing approval with active permit. Please contact Plans Review & Inspections at 865-215-4311 for more information regarding Pre-Submittal Conferences.
Applicants may complete the MHRP fillable, PDF application and submit by email, along with required supplemental materials to Jillian Love – Economic & Community Development Project Manager with the Housing & Neighborhood Development Department – at
[email protected] for review. Staff will then schedule an on-site meeting with the applicant and discuss the goals of the project. For additional information or questions regarding the MHRP, please email or call Jillian Love at 865-215-2042. Funding for MHRP is limited. Applications for the MHRP are available as funding allows and will be accepted on a rolling basis throughout the year.
