Developers plan housing for up to 400 UTC students in a new four-story building to be constructed at the corner of McCallie Avenue and Central Avenue.
The Planning Commission on Monday recommended approval for the project by David Hudson, Bob McKenzie and John Clark.
There will be a 300-car parking garage constructed as well on the 1.7-acre site.
New Home Missionary Baptist Church is currently at the location.
There will be 112 "dorm-style" units.
Several residents were in favor, including one who said he welcomed new development because "the area is falling apart. It's a mess."
Attorney Lisa Mack, who lives on Oak Street, said the new building would be "towering above" nearby homes on Oak.