A $38 million, 100-unit affordable apartment complex planned for Lovell Road near Turkey Creek could provide 25 apartments for one of the city's lowest-income populations.
Union at Smoky Mountains, developed by Indiana-based Annex Group, is requesting $750,000 from the city's Affordable Rental Development Fund to aid in construction. The project is slated for completion in March, according to planning documents.
The developer is pledging to reserve 25 apartments for extremely low-income households for the next 30 years. The other 75 units will be set aside for families making 60% to 70% of the area's median income.
"The project addresses a need in a community, where lower cost housing is not readily available, to provide stable and affordable housing for multifamily
households often bridging the gap from homelessness," the project summary reads.
The Knoxville City Council will vote Oct. 27 whether to approve city funding for the property at 360 Lovell Road, south of I-40 near the Turkey Creek shopping center.
A combination of Tennessee Housing Development Agency assistance, a tax incentive, project-based vouchers and possible city funding make the project possible. Here's a breakdown of how the affordable units will be distributed and the income restrictions for each, according to 2026 HUD data.
Extremely low-income apartments prioritized
Twenty-five units will be reserved for households making 30% of the area's median income. To qualify, a one-person household would need to make up to $21,900 or up to $31,100 for a family of four.
The Annex Group is requesting $750,000 from the city for development costs, and rent will be subsidized with help from KCDC project-based vouchers.
Rent costs will vary depending on a family's qualifications, and could be 30% or 10% of the family's income, or $50 per month, according to planning documents.
Tennessee Housing Development Agency credits aid in development
The other 75 units are reserved for households making 60% to 70% of Knoxville's median income.
- 15 units will have a 60% median income restriction for residents making about $43,500 for one person or $62,200 for a family of four
- 60 units will have a 70% restriction for residents making about $50,800 for one person or $72,600 for a family of four.
These units are funded through the state's Low-Income Housing Tax Credit program, which cushions development costs. Knox News reached out to Annex Group about rent rates on the THDA-assisted units, but hasn't heard back.
Construction costs and features of the affordable complex
Project proposals show an L-shaped, four-story complex with a fitness center, dog park, covered pavilion and community space. The center of the property will be a surface parking lot, and the Annex Group will offer one- to three-bedroom apartments.
KCDC and the Annex Group entered into an agreement in 2025 to split up some development responsibilities. Under this partnership, KCDC granted the Annex Group a 20-year PILOT, or payment in lieu of taxes, reducing property taxes to $13,472 annually for that period.
An itemized budget shows a construction cost of $380,095 per unit and a land lease estimate of $897,000. The total construction cost is about $18 million.
A city in need of more affordable housing
In 2024, Knoxville needed 6,000 to 8,000 more housing units by 2029 to meet demand and undo years of underbuilding. The city's solution to the affordable housing component was asking for donations to its affordable housing fund, which is being tapped for this project.
This development will be the fifth complex and third-largest in Knoxville's 2nd District using the affordable housing fund, joining the completed Flats at Pond Gap and the Moss Grove Apartments.
Before kickstarting this project, the Annex Group alerted neighbors and held a community meeting in January.
You have power. Use it
The Knoxville City Council will hear the request for $750,000 in city funds at 6 p.m. Oct. 27 in the Large Assembly Room of the City-County Building.
Community members can address councilmembers on the agenda item during the public comment period. To do so, they must sign up between the release of the agenda and 4 p.m. the day of the meeting by contacting the City Recorder's Office.
Documents regarding Union at Smoky Mountains can be found in the Oct. 27 agenda at knoxvilletn.gov.
Sophia Tiedge is the Growth and Transformation reporter for Knox News. Email: sophia.tiedge@knoxnews.com
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This article originally appeared on Knoxville News Sentinel: 'Bridging the gap': Turkey Creek apartments prioritize low-income residents
