One project to bring affordable housing to the Choto area in West Knox County was met with strong opposition resulting in its being canceled. The company behind that effort, DGA Residential LLC, which is owned by the Dominion Group, is forging ahead with plans to add more than 200 apartments to other areas of Knox County over the next couple of years.
“We are about to break ground on 280 units on two different sites in the city,” DGA Residential LLC Vice President Craig Cobb said. “One of them is 184 units off of Merchant Drive and the other is 96 units off of Holston Hills Road, across from Holston Hills Park.”
Cobb said the property off of Merchant Drive will include 25 acres of excess land that is being dedicated to Legacy Parks.
“Legacy Parks and the City have plans to create a park with walking trails and mountain biking trails all the way up to Pleasant Ridge,” Cobb said. “We are working with them to enable access points and to dedicate that land to them. That’s a real big amenity to not only the residents but also the city in general.”
While these buildings are classified as affordable housing, they fall under Section 42 rather than Section 8, meaning the renters have to meet certain income requirements.
“It’s very confusing between section 42 and section 8. This is a tax credit that allows us to raise equity as one of our sources to build a project,” Cobb said. “Section 8 is more of a voucher program for rents. These are section 42 and they’ll be under the tax credit program.”
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The Dominion Group has recently opened a 72-unit property in West Knoxville near the Pellissippi Parkway that has welcomed its first set of residents. That property is also classified as affordable housing.
The average rent for the two properties in the process of being built will range between $960 to $1,300 according to Dominion Group. The two projects will break ground in November and be completed within the next two years.