Knoxville Redevelopment Bridges the Divide at First Creek at Austin

The former Austin Homes site is transforming into a thriving mixed-income neighborhood, with the second phase creating 180 units of new housing.

The Knoxville’s Community Development Corp. (KCDC) is reconnecting an isolated public housing site into the surrounding neighborhood and the urban center of Knoxville, Tennessee.

First Creek at Austin sits on the site of the former Austin Homes, barrack-style housing that was established in 1941 on nearly 23 acres. Over the years, the site became bifurcated by highways and a creek.

“We heard through the master planning process that residents felt they were separate from the community and that the housing development was looked down upon figuratively and literally,” says Ben Bentley, KCDC executive director and CEO. “We wanted to correct that through the design and development of the site. While the topography is challenging, we brought the buildings back up to elevation to recreate a streetscape. It’s a visual sign of the redevelopment and what we hope to achieve—recreating this as part of the community and not something separate.”

Completed in August 2024, First Creek at Austin Phase 2 adds 180 mixed-income units for households earning less than 30% of the area median income (AMI) to 80% of the AMI. Once the third phase is complete, 446 units will be added to Knoxville’s housing inventory. This is a nearly 250% increase in the number of housing units on the site, substantially increasing the 129 occupied units at the start of the redevelopment.

The community resource center is a vital hub for residents. Events include food distribution, youth development, education, and community fairs. In addition, The Lighthouse at First Creek at Austin, which is managed by Central Bearden Church and had been on the site for 25 years, provides after-school tutoring, mentoring for high school students, backpack drives, a women’s Bible study group, and other events. In addition, the Pathways Program provides a five-week course on breaking down barriers to employment and continuing education for residents ages 16 to 24. 

“We wanted to make this a place where anyone would want to live, with access to jobs, education, and open space,” adds Bentley.

The $44.2 million second phase was financed with low-income housing tax credits, tax-exempt bonds, an allotment from the Tennessee Housing Trust Fund, and project-based vouchers through the Housing Choice Voucher program.