Sep. 30, 2025
Knoxville’s Community Development Corporation (KCDC) officially opened Sept. 30 the third phase of First Creek at Austin, the final residential component of the redeveloped site and the city’s first mixed-income, affordable housing community.
First Creek at Austin Phase 3 adds 161 new housing units, including 50 supportive housing units for low-income seniors, age 62 and older. The family units are located in large buildings and townhomes with one-, two-, three- and four-bedroom options.
Business and community leaders, stakeholders and residents attended the ceremony to mark the final phase of modern residential housing and complete transformation of the former Austin Homes site, which opened in 1941 on nearly 23 acres east of downtown.
“The opening of the final residential phase of First Creek at Austin represents a promise fulfilled to create a diverse neighborhood providing a sense of community and connecting residents to employment, entertainment and retail opportunities in downtown and East Knoxville,” KCDC Executive Director and CEO Ben Bentley said. “The supportive housing for low-income seniors also addresses a need and offers a vulnerable group that same sense of community.”
The City of Knoxville invested a total of $14.1 million in sitewide infrastructure support, including utilities, sidewalks and new roads for the neighborhood.
“From the first ribbon cutting in 2022 to officially open the first phase of a new housing community to the final one today in 2025, it’s been a privilege to see this neighborhood take shape and deliver exactly what was promised for the residents,” Knoxville Mayor Indya Kincannon said. “The City of Knoxville has made affordable housing a priority, and First Creek at Austin took that even further with access to parks, transportation, employment and amenities to create a true sense of community. The supportive housing also is so beneficial and will help keep senior citizens engaged within a neighborhood.”
Senior residents of supportive housing will have access to supportive care such as housekeeping, meals, health-related services and transportation. Amenities and services include:
Slip-resistant flooring materials, adequate lighting in all units and common areas, elevator access, grab bars in bathrooms and handrails in common areas.
- Multi-purpose community room for elderly residents.
- Fitness room programmed for both elderly and non-elderly residents to promote interaction.
- Access to gardens.
- Telehealth room equipped for virtual health meetings.
- Broadband connectivity.
Architecture for Phase 3 was provided by Southeast Venture and Johnson Architecture; Jenkins & Stiles was the general contractor; Partners Development is owner representative; Regions Bank is equity partner; and the lender is Chase Community Development Banking.
The 50 units of supportive housing for seniors became possible with a $7.5 million grant from the U.S. Department of Housing and Urban Development (HUD) to a Knoxville nonprofit, the only program grantee in Tennessee in 2021. Southeastern Housing Foundation II, a subsidiary of the nonprofit Knoxville Leadership Foundation, received the grant, and KCDC serves as the developing partner and property manager.
HUD’s Section 202 Supportive Housing for the Elderly Program grants are awarded through a competitive application process. The grants provide both construction funding and rental assistance to low-income seniors ages 62 and older.
Also in 2021, the Tennessee Housing Development Agency (THDA) awarded Southeastern Housing Foundation a $900,000 grant to help build the family housing units for Phase 3. Southeastern Housing Foundation is a partnership between KCDC and Knoxville Leadership Foundation.
The state grant is made possible through THDA’s National Housing Trust Fund and must be used for affordable rental housing and address the needs of low-income households. The grant supplemented tax credits and debt and focused specifically on developing a portion of units designated for extremely low-income residents.
Phase 3 amenities include a fitness center, community garden, community room, playground and Wi-Fi in common areas. Additional plans for the site include a neighborhood park and greenway connectivity.
Phase 1 opened in 2022 with 105 total units – 57 in one multifamily building and 48 spread across eight smaller townhome-style buildings. The diverse housing styles allow residents to choose from various floorplans and amenities to suit their needs.
Phase 2, which opened in 2024, provided 180 one- to three-bedroom units across five buildings with a fitness center, laundry room, outdoor green space and indoor community spaces.
The development has earned several awards, including:
- Phase 1: Keep Knoxville Beautiful Orchids Award for New Architecture, 2023
- Tennessee Housing Development Agency Tennessee’s Best Award for Neighborhood Stabilization, 2024
- Phase 1: National Association of Housing and Redevelopment Officials (NAHRO) Award of Merit, 2024
- Phase 1: Urban Land Institute (ULI) Nashville Excellence in Development Award, 2025
- Phase 1: Urban Land Institute (ULI) Nashville Rose Faeges-Easton Community Impact Award, 2025
- Phase 2: Affordable Housing Finance Readers’ Choice Award, Best Public Housing Redevelopment Project, 2025
The overall First Creek at Austin redevelopment followed months of dialogue with residents, stakeholders and community members in interviews and public meetings and included options for overall site use, street layouts, residential building types and open spaces.
At the point of redevelopment, former Austin Homes residents living at the site received relocation choices to other KCDC properties, including the revitalized Five Points community and the renovated The Vista at Summit Hill, which are both located nearby and in the same school district. The former residents also had the right to return to the site with the opening of First Creek at Austin, if they chose to do so.
For property and leasing information about First Creek at Austin, visit firstcreekliving.com.
About Knoxville’s Community Development Corporation
Since 1936, KCDC has been dedicated to enhancing the quality of life for the citizens of Knoxville. KCDC’s mission is to improve and transform neighborhoods and communities by providing high-quality affordable housing, advancing development initiatives and fostering self-sufficiency. For more information, call 865-403-1100 or visit kcdc.org.
