The Knoxville City Council is supporting exploring options to empower renters and give rent price relief for some.
The council voted on three housing-related resolutions during the Nov. 14 council meeting, which led to discussion on how to improve rental affordability in Knoxville, ways to add to the housing stock in general and how to financially help renters.
The council approved two and denied one of the resolutions.
The council approved a resolution in support of the city creating an incentive program to offer tax freezes to owners of Naturally Occurring Affordable Housing (apartments built before 1990) in exchange for keeping rent prices affordable. Landlords wanting to make property improvements could apply for the tax freeze.
The council approved a resolution to ask the Knoxville-Knox County Planning Commission to consider adding RN-1 zoning to Mayor Indya Kincannon's missing middle housing plan, adding to areas of town where multifamily housing like townhouses and duplexes could easily be built.
The council denied a resolution to ask the planning commission to explore an ordinance to allow long-term renters in residential buildings to rent their units on sites like Airbnb for short-term rentals.
Here's what happened with each of the resolutions.
726 Morgan Street, is seen Thursday, Sept. 21, 2023. 726 Morgan Street is considered “middle housing”.
Apartment owners could receive tax freezes
Seven of eight city council members present voted in favor of exploring tax freezes for apartment owners. Amelia Parker abstained because she said the resolution was vague and didn't outline a clear ordinance.
Councilmember Charles Thomas was not at the meeting.
The city is still working on the details of a plan. If any ordinance or law would need to be made or changed, Kincannon's Chief of Staff David Brace previously told Knox News the city council would need to approve.
During the meeting, Kincannon said ordinances hopefully would be brought in front of the council in December.
Several community members spoke in favor of the resolution, saying they were happy the city was looking into ways to provide relief to renters. They said they wished it had come sooner.
Only unsubsidized, affordable housing built before 1990 would be eligible for the incentive.
The money saved during the tax freeze would be used to keep rental rates affordable for the duration of the freeze. Brace said rental rates would be based on the U.S. Department of Housing and Urban Development housing rates and tenant income levels.
HUD's 2023 Fair Market Value rates for the Knoxville Metropolitan Statistical Area are:
Studio: $887 a month
One bedroom: $952 a month
Two bedroom: $1,156 a month
Three bedroom: $1,507 a month
Four bedroom: $1,773 a month
Over 71% of Knoxville's housing stock, including apartments and single-family homes, are at least 30 years old, according to the Knoxville Housing & Neighborhood Development department.
The resolution was requested by Knoxville Housing & Neighborhood Development.
RN-1 could be eligible for missing middle housing
The resolution, requested by city councilmembers Tommy Smith and Seema Singh, asks the planning commission to consider expanding Kincannon's missing middle housing plan to allow the nontraditional residences to be built on RN-1 zoned properties in Traditional Residential Neighborhood zones.
It was approved unanimously by the eight council members present.
Kincannon's current plan, if approved, would only allow missing middle housing in Traditional Residential Neighborhood zones on properties zoned RN-2, RN-3 and RN-4.
Both single-family homes and duplexes can be built on RN-1 and RN-2. RN-1 zoned properties have larger minimum lot sizes.
Of the 2,039 vacant lots in Knoxville's Traditional Residential Neighborhood areas, 51 of those lots are zoned RN-1, Knoxville-Knox County Planning Principal Planner Lindsay Crockett said. Most of the vacant lots, 1,846 of them, are zoned RN-2.
Council members Lynne Fugate and Parker were concerned that the inclusion of RN-1 would have broader implications on non-vacant RN-1 lots, as they could be redeveloped into missing middle housing.
Parker was concerned developers could purchase RN-1 properties and redevelop them, then charge high rent prices.
The planning commission will consider Kincannon's overall missing middle housing plan in December after it delayed voting earlier this fall, saying the plan needed more public input and didn't provide enough opportunity to build missing middle housing.
Renters won't be allowed to have Airbnbs
This resolution, also requested by Smith and Singh, asked the planning commission to create an amendment to the city's short-term rental ordinance to allow renters in residential areas to list their units on Airbnb with the consent of the landlord.
The resolution was denied by a vote of 7-1, with Smith being the only vote in favor.
Council members cited concerns that it would be difficult to enforce and short-term rentals would take away rental opportunities for those who need long-term housing.
Smith said at the meeting that the rental would still need to be the tenant's primary residence, and a new tenant of the home would have to get a new permit to have a short-term rental.
Right now, renters in commercial properties (like residences on Gay Street, for example) are able to turn their rentals into Airbnbs.
