Recode Knoxville offers limited density and parking incentives for projects that include income-restricted units, but Tennessee preempts mandatory inclusionary zoning, so all bonuses remain voluntary.
Recode Knoxville incentives reduce minimum parking, increase allowed units per acre, and relax some setbacks for projects providing income-restricted housing for households at or below specified area median income levels. Eligibility requires recorded affordability covenants and consultation with Knoxville Community Development. Tennessee state law prohibits cities from imposing mandatory inclusionary zoning on private development, so Knoxville relies on incentives, gap financing, and city-owned land partnerships. Projects using bonuses must still meet building code, stormwater, and design standards in the underlying district.
Failing to record or maintain affordability covenants triggers loss of bonus density, city repayment of gap funding, and potential civil action by Knoxville Community Development to enforce restrictions.
See how Knoxville's density bonus law rules stack up against other locations.
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