Huntsville receives HUD grant for new Mill Creek development

mill creek rendering — A rendering of the Mill Creek project. (City of Huntsville)

The City of Huntsville and the Huntsville Housing Authority announced they have received a $50 million grant from the Department of Housing & Urban Development to help revitalize and transform the area surrounding Butler Terrace and Johnson Towers.

This project, the Mill Creek development, has been in the works for more than five years.

About the Mill Creek development

mill creek map — Where the Mill Creek Project would go. (City of Huntsville)

The Mill Creek transformation plan proposes 750 residential units – a mix of market rate, Housing Authority, workforce and senior housing. It also includes pedestrian-oriented shopping focused on the Governors Drive and Clinton Avenue corridors.

Huntsville was able to secure the $50 million Choice Neighborhood Implementation Grant in large part because of a commitment from Huntsville Hospital of $25 million to create 125 workforce housing units and a health clinic on-site.

“This exceptional model allows us to create a new neighborhood, one that centers on the needs of residents and provides housing for workers who are the backbone of this community.”

Mayor Tommy Battle

Mill Creek — Johnson Towers residents will have a new building to live in by 2027. (City of Huntsville)

The project will happen in five phases:

Phase1 is slated to commence within 10-12 months and includes the construction of an 84-unit Universal Design building located at the intersection of Governors Drive and 1st Street. This building will become the new residence for occupants of Johnson Towers by 2027.
Phase 2 focuses on the establishment of a 100-unit senior housing development, also located off 1st Street.
Phase 3 expands the initiative with 151 units of family housing, including a substantial development along Governors Drive between Seminole Drive and 1st Street, and another family housing complex along Harden Avenue between 1st Street and a newly designated street.
Phase 4 will introduce an additional 172 family units located south of Clinton Avenue off Seminole Drive, separated by a new street.
Phase 5 encompasses 73 units to be constructed at the intersection of Brahan Avenue and Indiana Street, as well as the completion of a new linear park.

Stay in the know, Huntsville! Follow Hville Blast on Facebook, TikTok, Threads and Instagram, and be sure to subscribe to our newsletter.