Ground broken on new 120-unit housing development in Athens

Officials broke ground this week on The Grove at South Jefferson, a new affordable housing development in Athens. The 120-unit development will include 72 two-bedroom and 48 three-bedroom apartments, with amenities typically seen in Class A communities.

Here’s more:

The Grove at South Jefferson

The Grove at South Jefferson development carries the distinction of being the first transaction closed under Alabama’s new Workforce Housing Tax Credit program.

The Alabama State Workforce Housing Tax Credit Program was established to foster workforce and affordable housing through additional support that complements state and federal Low Income Housing Tax Credits (LIHTC).

With strong support from Governor Kay Ivey, the Alabama Legislature established this tax credit program in 2024 as part of a landmark “Working for Alabama” legislative package, a group of six new laws aimed at transforming Alabama’s workforce and streamlining the state’s economic development offerings.

Under the program, The Grove at South Jefferson development received tax credits in exchange for committing to cap rental rates for eligible participants who earn qualifying levels of the Area Median Income (AMI) with the total project having rental restrictions that average to 60% AMI.

According to the U.S. Department of Housing and Urban Development, area median income in the Huntsville metro area is $115,500 for a family of four.

This development will have apartments that are affordable for families who are earning 50%, 60% and 80% of area median income. Regions Bank’s Affordable Housing office played a major role in the development of the project.

“For many working professionals, having ready, affordable access to childcare support is almost as important as having access to affordable housing. We’re thrilled to be part of a development that can help meet these fundamental needs.”

Chase Simpson, relationship manager for Regions Affordable Housing

Regions Affordable Housing provided around $25.5 million in equity financing for The Grove at South Jefferson, including a direct investment of about $15.8 million in Federal LIHTC and $9.7 million in state Low-Income Housing Tax Credits. Regions’ financing also included a $17.4 million bridge loan and $13.8 million construction loan.

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