Knoxville, Tennessee, situated in a broad valley between the Cumberland Mountains to the northwest and the Great Smoky Mountains to the southeast, is the gateway city to the Great Smoky Mountains National Park. Knoxville lies at the geographic center of the eastern United States, where the French Broad and Holston Rivers converge to form the Tennessee River, and where three of the Nation's busiest highways (I-40, I-75, and I-81) converge to form a major crossroads. One-third of the U.S. population lives within 550 miles of Knoxville.
The historic urban and geographic heart of the Southern Highlands region, also known as the Southern Appalachians, lies in the area called the Heart of Knoxville and is often referred to in this document as the "zone." In the late 1700s, this region was Cherokee Indian country and the new frontier for early colonists.
For 1995 the city has $4,080,000 in entitlement grants and an estimated $115,000 in program income. Using these funds, the city will provide: minor home repairs to very low- income elderly and handicapped homeowners, loan assistance to low- and moderate-income owner occupants, low-interest loans and deferred payment loans for housing rehabilitation, infrastructure improvements, building code enforcement activities to reverse the decline of the area, and programs to promote community economic development.
On January 30, 1995, the City and Knox County jointly sponsored two public hearings on the Consolidated Plan. Publicity for the meetings included a notice in the Knoxville News- Sentinel and flyers posted in the Knoxville Community Development Corporation and the Knox County Housing Authority offices.
A complete draft was made available to the public on April 11, 1995, at the Lawson- McGhee branch of the Knox County Public Library, the main offices of the Knoxville-Knox County Community Action Committee, the Center for Neighborhood Development, and Knoxville Neighborhood Housing and Commercial Services. The city also published a summary of the plan in the News-Sentinel on April 9.
MAP 1 is a map of the jurisdiction which depicts points of interest.
In 1990 the median family income (MFI) for Knoxville's metropolitan statistical area (MSA) was $30,447. In Knox County, the MFI was higher at $32,614, while within city limits, the MFI was significantly lower at $26,131.
The area's racial and ethnic diversity increased by about 66 percent during the 1980s, with an influx of Asian Americans, Hispanics, Native Americans, and other racial or ethnic groups. However, in 1990 these groups still represented a small portion of the region's population, accounting for 1.4 percent. Minority populations now make up 10 percent of the Knox County population, but 17 percent of the city population. The African American population grew almost 50 percent within the county, but only 4 percent within the Knoxville city limits. Overall, African Americans currently comprise nearly 9 percent of the county population.
MAP 2 depicts points of interest and low-moderate income areas.
MAP 3 depicts points of interest, low-moderate income areas, and minority concentration levels.
MAP 4 depicts points of interest, low-moderate income areas, and unemployment levels.
The greater Knoxville area does not suffer from severe unemployment. The Knox County unemployment rate of 5.6 percent is typically much lower than the national average. However, the picture within the city of Knoxville is not as favorable. In 1990 the U.S. unemployment rate was 6.3 percent, while Knoxville's was 11.9 percent. The overall poverty rate in the heart of Knoxville is also high, at about 40 percent. Individual zone tracts there have poverty rates approaching 60 percent.
Crime is average for a city this size. In 1993, Knoxville police responded to 183,880 calls from citizens and made 10,229 criminal arrests. Of the murders reported in Knoxville in 1993, 57 percent occurred within the zone where many of the city's public housing projects are located. The community's crime levels and perceived lack of safety have created a substantial barrier to revitalization. Many residents would prefer to leave the area, making it difficult to build a sense of community or to foster a neighborhood organization. In addition, businesses are reluctant to invest in an area where they anticipate security problems.
There are 7,762 small renter households in Knoxville with incomes in the low- to moderate- income range (below 80 percent of MFI). The largest number of these are extremely low- income households. Approximately 67 percent of households earning less than 30 percent of MFI and 63 percent of those earning less than 50 percent of MFI have a cost burden greater than 30 percent of their income. The situation improves for those earning 51-80 percent of MFI. Within this group, 28 percent have a cost burden greater than 30 percent of their income, and only 1 percent have a cost burden greater than 50 percent.
Of the city's 810 large renter households earning less than 50 percent of MFI, 77 percent have some housing problems, while 87 percent of those earning 31-50 percent of MFI have housing problems. Even many renter households earning 50-80 percent of MFI have a housing problem. with 35 percent having a cost burden greater than 30 percent. However, this group generally does not qualify for rental housing assistance.
Housing stock deterioration, particularly due to aging, is evident countywide. Despite enforcement efforts, a number of dwelling units become substandard each year. By the year 2000, it is estimated that more than half of the entire housing stock in Knox County will be more than 30 years old. This gradual deterioration has serious implications for the city's future housing supply, because older housing is expensive to maintain and rehabilitate. More than half of the housing built before 1960 is either owned and occupied by, or rented to, low- and moderate-income households. According to a housing conditions survey, more than 27,000 substandard dwelling units existed in Knox County in 1993. Of these, 262 units were unsuitable for rehabilitation, and more than two-thirds were inside Knoxville's city limits.
In 1990, Knoxville had an even proportion of renter- (50 percent) and owner-occupied (49 percent) housing units. Since that time, owner-occupied units have experienced a net increase of 5.4 percent.
Home sales in the Knoxville area have increased steadily during the past 5 years, as have prices. According to the Knoxville Board of Realtors, during the first 5 months of 1994, the median price for a three-bedroom home was $89,900, and the median price for a home with four or more bedrooms was $159,200. At this level, both low- and moderate-income families and individuals may find it difficult to purchase a home in the Knoxville area. However, the local housing market exhibits substantial variation in price ranges. Median home prices in the western areas of Knoxville exceed $100,000, but homes in the inner city can be purchased for less than $30,000.
The U.S. Department of Housing and Urban Development (HUD) estimates that the 1995 median family income for the Knoxville MSA is $35,400. By definition housing affordability is the ratio of MFI to the income needed to purchase a median priced home, based on current interest rates and underwriting standards. Therefore, according to the National Association of Realtors, a family earning the Knoxville MSA median income would be able to afford a $98,500 home, assuming that the family could obtain a 30-year loan that pays 95 percent of the cost of the home at 8 percent interest, and that they have the required downpayment and credit eligibility.
On the basis of this scenario, there appears to be ample affordable housing in Knoxville. Unfortunately, most Knoxville households have incomes below the MSA median. A family earning half the median income, which is the typical income of a family qualifying for assistance through Federal programs, could afford a $45,000 home. At the time of the 1990 census, 46 percent of renter households in Knoxville had incomes less than 50 percent of MFI, and few homes sold for a price those at the top end of this income group could afford.
Similarly, census numbers showed an apparent surplus of rental units in Knoxville, even though an estimated 25 percent of rental units were in substandard condition. At the time of the census, there were 38,372 rental units and 35,788 rental households in the city. The rental vacancy rate was more than 7 percent for efficiency and one-bedroom units, 9 percent for two-bedroom units, and 9 percent for three-bedroom units. This discrepancy existed because although those households earning 80 percent of MFI could have afforded almost all of the rental units, most renters had incomes lower than 80 percent of MFI.
A survey conducted in 1985 to determine the nature and extent of homelessness in Knox County found that 1,080 individuals stayed at a shelter for at least one night during the survey month and that 120 additional individuals were living on the street. The survey also identified 85 homeless families among those living in shelters. A further breakdown showed that men accounted for 83 percent of the county's homeless population, and that African Americans accounted for 18 percent, which was proportionately higher than African Americans' population share in the city (16 percent) and the county (9 percent).
Although Knoxville has about 600 shelter beds, the city lacks adequate shelters for single women, married couples with and without children, and men with children. Additional programs and services are needed to address the crucial factors leading to homelessness, including: educational deficiencies, lack of job skills, past housing and credit problems, and substance abuse. There is also a need for medical services, such as vision and dental care, which are not provided by Tenn Care, and for affordable transportation to work and school.
The Knoxville Community Development Corporation (KCDC) is Knoxville's local public housing authority which manages and maintains all public housing units in the jurisdiction. There are 3,972 public housing units in Knoxville, none of which are in substandard condition. KCDC has a total of 1,032 certificates and 403 vouchers. The assisted housing inventory is targeted primarily to very low- and extremely low-income households. The city does not anticipate losing any of its assisted housing inventory.
In an effort to identify barriers to affordable housing for low-income residents, the city sent a survey to builders appearing on the Knoxville Homebuilders' Association mailing list and asked them about building plans and the barriers they had encountered. The housing strategy subcommittee on moderate-middle income housing reviewed the results of that survey, along with other market information, to identify barriers. In addition, surveys were sent to housing providers. Using this information, along with input from the staff, the city identified the following primary issues relating to public policy:
The housing strategy will be implemented in a way that ensures all residents have equal access to the housing opportunities arising from the strategy implementation. A fair housing marketing strategy will inform a broad-based group of tenants and potential homebuyers about the opportunities for decent, affordable rental housing. Targeted initiatives will inform existing residents of public housing, and other efforts will advertise, seek referrals, and market the programs on a neighborhood level.
Knoxville estimates that about half of its housing stock built before 1980 has lead-based paint, and that more than half of those units are low- and very low-income dwellings. However, only three children in Knox County have been diagnosed with lead poisoning.
The city will continue to inspect homes built before 1978 for defective paint surfaces and will require such surfaces to be treated by either covering or removing the paint. If housing is occupied by families with children under 7 years of age, and if those children have elevated blood-lead levels, chewable surfaces must be tested for lead paint and treated if contaminated. The inspector must certify that inspections and tests comply with city requirements, and that records will be kept for 3 years. Occupants must be protected from the hazards of abatement procedures. Therefore, during abatement activities, they will be moved out of the property.
Although AIDS Response Knoxville (ARK) is beginning construction on a new eight-unit home for people with AIDS and their families, ARK believes that the greatest need for this population is immediate financial assistance to help patients remain in their homes for the longest feasible timeframe. ARK has served 1,319 people with either HIV or AIDS, providing them with services such as housing information, resource identification, and short-term rent and utility payment assistance.
Knoxville's lack of residential treatment facilities and related funds prevents drug- and alcohol-addicted citizens from finding effective solutions to their addiction problems. Other significant barriers to drug treatment include affordability, limited accessibility, lack of transportation, and the absence of gender-specific services.
People with mental disabilities need safe, affordable housing. They also need: short-term acute care, group homes with live-in staff, supportive living facilities where paraprofessionals provide a home, congregate housing with onsite supervision, basic living skills training, and integrated housing with different levels of assistance, such as emergency help lists and daily visits.
The physically disabled need additional supportive housing, vocational training opportunities, and home-based employment opportunities.
At the heart of Knoxville's strategic plan is nonhousing community development. The focus is to help inner city residents escape poverty through self sufficiency and to improve living conditions within the area. With citizen input, the city has identified a number of nonhousing needs, including:
The city's vision for the zone is to bring together residents, staff and resources of community agencies, the private sector, and the government to create:
Knoxville has identified several strategies to provide more housing opportunities to lower income households. These include:
The focus of the nonhousing community development plan is to help area residents escape poverty through self-sufficiency. Strategies which will enable the city to achieve its vision, include:
This strategy is part of the city's housing and nonhousing community development strategies.
Knoxville will use Federal resources, such as: Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG), HOME Investment Partnerships (HOME) Program, Section 8, and other programs. In addition, the city may draw upon a number of State, local, private, and nonprofit resources.
The City receives State funds for the following Tennessee Housing Development Agency (THDA) programs: Housing Opportunities Using State Encouragement Program, THDA Home Ownership Mortgage Program, and the THDA Tax Exempt Multifamily Bond Program.
Locally, the city will draw from the Affordable Housing Demonstration Fund, Knoxville's Community Development Corporation, and its general funds. For-profit organization assistance will come from the Federal Home Loan Bank Board Affordable Housing Program, the FirstHome Program (in which nine financial institutions have committed a total of $5 million of first mortgage financing), and the Community Reinvestment Act programs (in which local financial institutions have programs designed to serve low- and moderate- income borrowers).
Nonprofit help will come from the United Way, which provides funding to local social service organizations and other private initiatives.
To a large extent, Knoxville's Consolidated Plan will be coordinated through the Knoxville Department of Community Development and three networking groups: The Partnership for Neighborhood Improvement, which is designed to encourage cooperation among the public and private sectors, the financial community, and Knoxville's low- to moderate-income neighborhoods; the Knox Housing Partnership, a nonprofit organization which formed in response to the local problems of substandard housing and lack of affordable housing; and the Knoxville Coalition for the Homeless.
Nonprofit organizations involved in the plan include: the Salvation Army, Knoxville- Knox County Community Action Agency, Center for Neighborhood Development, Inner City Community Development, Mid-Way Rehabilitation Center, and the Young Men Christian Association.
MAP 5 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 6 is a map, sectioned by neighborhood, which depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 7 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one of the four neighborhoods indicated in MAP 6.
MAP 8 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point and provides a table with information about the project(s).
For 1995 the city has $4,080,000 in entitlement grants and $115,000 in program income which will be used for some of the following projects:
The city of Knoxville Department of Community Development (DCD) is the lead agency responsible for developing the Consolidated Plan. DCD will monitor and report on performance in order to determine if applications for funding are consistent with the Consolidated Plan. DCD will cooperate with the Development Corporation of Knox County (TDC), the agency responsible for leading the development of priorities and strategies for Knox County. Other lead public institutions involved in implementing the plan include: Knoxville Community Development Corporation, Knoxville/Knox County Metropolitan Planning Commission, and the Tennessee Housing Development Agency.
