Secretary of Workforce Greg Reed and local officials joined business leaders on Friday to celebrate the 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.
“North Alabama is experiencing rapid growth, bringing new industries, new jobs, and new opportunities to our state,” said 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.”
He 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 total development cost is projected to be approximately $40 million, and upon completion, the project will include 120 units, consisting of 72 two-bedroom and 48 three-bedroom apartments.
“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.
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.
“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, EisnerAmper and Stifel.
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