Jun. 04, 2025
Knoxville’s Community Development Corporation (KCDC), along with business and community leaders, officially broke ground June 4 on the second phase of the transformation of Western Heights to build affordable housing, mixed-use space to include a health center, police substation and art center.
Overall, the transformation plan for Western Heights and the surrounding Beaumont neighborhood will bring enhanced access to economic opportunity, transportation, healthcare, recreation and youth enrichment to Northwest Knoxville residents.
“Transforming Western is exactly what the name says – it’s transformational,” KCDC Executive Director and CEO Ben Bentley said. “An area that has lacked the necessary resources to thrive will become a place where the residents will have access to early education, employment, healthcare and transportation.”
Phase 2 will include two mixed-income residential buildings with a total of 52 one- to four-bedroom units. The main floor of one building will have 15,000 square feet of mixed-use space that will include the Knoxville Arts Center; a health center provided by The University of Tennessee Medical Center; and a Knoxville Police Department substation.
The funding for Transforming Western comes in part from a competitive $40 million U.S. Department of Housing and Urban Development (HUD) Choice Neighborhoods grant that was announced in 2022. The City of Knoxville also is investing $26.5 million that has been committed over multiple budgets and includes major infrastructure upgrades.
“I am excited to see the next phase of this project getting underway,” Knoxville Mayor Indya Kincannon said. “Neighbors had the vision for Transforming Western, and we are happy to invest more than $26 million to see this into reality. The City’s ongoing support of infrastructure lays the groundwork for a vibrant neighborhood with affordable housing and valuable amenities that will be enjoyed by everyone.”
Part of that vision included better access to healthcare with the addition of a health center within the housing community.
“As the region’s academic health system, The University of Tennessee Medical Center has a long history of leading and supporting community health initiatives – from screenings and education to health fairs,” said Dr. Keith Gray, President and CEO of UT Medical Center. “Establishing a health center within a residential neighborhood takes our commitment even further by bringing high-quality care close to home – advancing our vision to transform the health of our region. We’re proud to partner in the Transforming Western initiative, providing much-needed resources to this community. We are excited for the opening of the health center and look forward to promoting wellness in Western Heights.”
Work already is underway for Phase 1, which will provide 76 rental units, including 31 subsidized replacement units, 30 affordable units and 15 market rate units. Phase 1 is expected to be completed later in 2025.
Phase 2 will be constructed on the north end of the neighborhood near the intersection of Virginia Avenue and McSpadden Street. The site’s redevelopment will occur over several phases with completion expected in 2029 with an anticipated 479 total housing units.
Architecture for Phase 2 is provided by Shapiro & Company Architects; J.A. Fielden is general contractor; U.S. Bank is equity partner; lender is J.P. Morgan; and Brinshore Development and KCDC are developers.
The process to earn the highly competitive HUD Choice Neighborhoods grant began in 2021 with insight from Western Heights residents followed by meetings with 17 stakeholder groups with a vested interest in the neighborhood. Only three other cities across the United States were awarded the HUD grants, which totaled $180 million, included Omaha, Nebraska; Durham, North Carolina; and Tulsa, Oklahoma.
Established in 1939, Western Heights is KCDC’s largest affordable housing development. The Choice Neighborhoods grant program enables communities to replace distressed public housing and HUD-assisted developments with new mixed-income housing.
The shift leads to investments in the surrounding neighborhood and improves opportunities for residents. Grant recipients and their partners tailor supportive services to improve employment, health and education outcomes for residents living in public and other HUD-assisted housing.
As part of the Transforming Western plan, the 196 units of affordable housing at the current Western Heights are being rebuilt along with an anticipated addition of 283 new units of affordable and market-rate housing to create a diverse, mixed-income community for a total of 479 units. The 232 renovated residences at Historic Western Heights are in addition to these new units.
“The intent is to fundamentally change the fabric of a community, and the Choice Neighborhoods grant has allowed us to earnestly follow that mission,” Bentley said. “The location of this neighborhood offers aspirational views of the city and the mountains, and we want the residents to be the ones to benefit and thrive.”
The grant program also addresses a multitude of enhancements, including better internet access; healthcare; living wage jobs and career paths; affordable, healthy and fresh foods; safety; transportation; parks and recreation; arts and culture; and entrepreneurship.
The opening of the Western Heights Head Start center in October 2022 marked the first step of the overall initiative with comprehensive Head Start and Early Head Start programming by the Knoxville-Knox County Community Action Committee (CAC) to more than 130 neighborhood children from infant to age 5.
KCDC’s lead partners in the Transforming Western planning process include the City of Knoxville, Brinshore Development and CAC.
Information about the full plan is available at transformingwestern.com.
About Knoxville’s Community Development Corporation
Since 1936, KCDC has been dedicated to enhancing the quality of life for the citizens of Knoxville and Knox County. KCDC’s mission is to improve and transform neighborhoods and communities by providing quality affordable housing, advancing development initiatives and fostering self-sufficiency. For more information, call 865-403-1100 or visit kcdc.org.
