Secretary of Workforce Greg Reed and local officials joined business leaders on Friday to celebrate the historic groundbreaking of The Grove at South Jefferson in Athens.
A product of the Working for Alabama legislative package, The Grove at South Jefferson is a public-private partnership aimed at expanding affordable housing options to address growing demand and strengthen workforce development across North Alabama, according to Reed’s press release.
“North Alabama is experiencing rapid growth, bringing new industries, new jobs, and new opportunities to our state,” said Secretary Reed. “With that growth comes a greater need to support our workforce, not only through job training and education, but by ensuring workers and their families have access to affordable, quality housing close to where they work.”
Reed continued, “The Grove at South Jefferson represents the kind of forward-thinking collaboration we need to sustain this momentum and strengthen communities across Alabama.”
“The Grove at South Jefferson is the culmination of many years of planning and demonstrates how public-private collaboration can pay massive dividends for local communities across the state,” said Hall Group President and Developer Gary Hall. “We are immensely grateful for the leadership of Governor Ivey, Secretary Reed, the Alabama Legislature, and local leaders.”
The Grove is expected to generate more than $17 million in economic impact, support approximately 150 jobs, and produce an estimated $6.7 million in initial state and local tax revenue.
“There are so many great things happening in our city, and we are seeing generational investment in our economy,” said Athens Mayor Ronnie Marks. “I am thankful that Governor Ivey, Secretary Reed, the Alabama Legislature, and private industry are committed to investing in our city. Projects like this one represent our commitment to smart, planned growth in Athens.”
The Grove is the first in a series of planned developments targeting housing hotspots across the state. Project supporters include the Hall Group, Regions Bank, the Alabama Housing Finance Authority, AHFA, EisnerAmper and Stifel.
Regions Bank provided $25.6 million in Low-Income Housing Tax Credit, LIHTC, equity, $31.3 million in construction financing, and a $13.8 million Fannie Mae permanent loan commitment to support the development. LIHTC consists of contributions for federal and state tax benefits for building or rehabilitating affordable housing.
“North Alabama is growing at a remarkable pace, and Regions Bank continues to build on its strong legacy of serving the people and businesses at the heart of the Tennessee Valley’s progress,” said Sean Kelly, Huntsville market executive for Regions Bank. “We are championing more economic opportunities to keep our area growing responsibly while helping address community needs along the way.”
Kelly added, “As affordable housing becomes increasingly crucial, the collaboration among local and state leaders has never been stronger. Regions Affordable Housing is proud to help lead the way in making The Grove at South Jefferson a reality.”
In recent years, state leaders have re-envisioned Alabama’s approach to workforce development, recognizing that a lack of affordable housing can often be a barrier to new investment and smart growth. Projects like The Grove are a major component of the state’s new approach moving forward, Secretary Reed’s press release stated.
AHFA Executive Director Robert Strickland highlighted that new approach, saying, “The Grove at South Jefferson represents the very first Workforce Housing Tax Credit project to close in Alabama, marking a major milestone for our state and for the working families who rely on quality, affordable housing.”
Strickland continued, “AHFA was pleased to issue $21 million in tax-exempt bonds and award more than $3.3 million in federal and state tax credits, resulting in an anticipated total equity infusion of $24.6 million to help make this development possible.”
Total development cost is projected to be approximately $40 million, and when completed, the project will include 120 total units, consisting of 72 two-bedroom and 48 three-bedroom apartments.
In addition to a range of family-friendly amenities, Grove residents will be able to request financial assistance for after-school care for school-age children in kindergarten through eighth grade, helping working families better balance employment and childcare needs.
Hall concluded, “Governor Ivey and her team have done a marvelous job recruiting industry, and The Grove is the first step toward expanding affordable housing in areas that need better options for workers and their families.”
