The City Council voted 9-0 on Tuesday night to give a 12-year tax break to a developer planning to convert two old buildings near the UTC campus for apartments geared toward students.
Kim White, River City Company executive director, said the projects by the Walk to Campus firm would not be feasible without the tax relief.
The locations are the former Frances Willard Building on Lindsay Street between Oak and Vine and the old Womens Hospital (most recently a pizza place) on McCallie Avenue.
The former building will have 48 beds for students and the latter 90 beds.
Rents will range from $625 for a private room to $475 for a room shared with three other students.
The work is set to begin now in order to have the units ready for students to occupy next August.
The firm has done five similar projects in the city.