A crumbling stretch of West Fifth Avenue is getting a serious glow-up. Developers and city leaders broke ground Monday on Riella on 5th, a four-story, 121-unit affordable housing complex set to replace a dilapidated building and vacant lot in downtown Knoxville. The project is slated to wrap in December 2027 and will bring a mix of one-, two-, and three-bedroom apartments aimed at households earning up to 80% of the area median income.
City Backing and Bond Financing
According to the City of Knoxville, the municipality is putting $2,270,000 into the effort, using American Rescue Plan Act dollars and payment-in-lieu-of-taxes incentives to make the numbers work. Documents from KCDC show the housing authority issued multifamily revenue bonds to DGA Fifth Ave LP in support of the financing and list the development site as 521 and 525 W. Fifth Avenue.
What Residents Will Find
The complex is planned to include a range of unit sizes, with one-, two-, and three-bedroom apartments, plus some extra perks you do not always see in budget-conscious buildings. As reported by WATE 6 On Your Side, plans call for a fitness center, a computer room, and dedicated areas for tutoring or tenant gatherings. Common spaces will be powered by solar panels, and the total project cost is pegged at about $90 million.
Who Qualifies and How to Apply
City and project officials say the apartments are targeted to families earning up to 80% of the area's median income. For a family of four, that works out to roughly $80,000, Mayor Indya Kincannon said. "Affordable housing is the number one need in our city," she added, as reported by WATE 6 On Your Side. People interested in living at Riella on the 5th are being sent to KCDC's website for details on eligibility and how to apply.
Where This Fits in Knoxville's Housing Push
Riella on 5th is one piece of a much larger housing puzzle as Knoxville tries to catch up with demand for lower-cost rentals. Local reporting shows there are still 10,000 families waiting on the KCDC lists for help. The City's affordable-housing pages list Riella on Fifth among planned developments and highlight how American Rescue Plan Act funds and local incentives are being used to pull in private capital for permanently affordable units.
Next Steps
Construction will continue alongside the remaining permitting and financing work, and developers say leasing and move-in dates will be announced as the project advances. Dominion Development Group, which includes Riella on 5th in its portfolio, is serving as the developer and plans to coordinate with the City of Knoxville and KCDC throughout the buildout.
