ATHENS, Ala. — State and local officials broke ground at The Grove at South Jefferson in Athens, a first-of-its-kind affordable housing development supporting North Ala. workforce growth, on Fri., Feb. 20, 2026.

The Grove at South Jefferson is an historic public-private partnership set to offer affordable multifamily apartments in response to increasing workforce demands and investment in the area.

“North Alabama is experiencing rapid growth, bringing new industries, new jobs, and new opportunities for our state,” said Secretary of the Department of Workforce Greg 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.

“The Grove at South Jefferson represents the kind of forward-thinking collaboration we need to sustain this momentum and strengthen communities across Alabama.”

According to Sec. Reed, Alabama’s workforce participation rate increased by 24,900 workers in 2025. U.S. Space Command (USSPACECOM) is set to transfer 1400 jobs to Huntsville over the next five years. In addition, Eli Lilly aims to hire an estimated 450 Alabamians for its $6 billion pharmaceutical manufacturing facility in Huntsville, projected for completion in 2032.

The development is a core component of the Working for Alabama legislative package passed by Gov. Kay Ivey in 2024. Supported by the Hall Group, the Alabama Housing Finance Authority (AHFA), Regions Bank, EisnerAmper and Stifel, the project is expected to support an estimated 150 jobs and generate over $17 million in economic impact. Initial state and local tax revenue is estimated at $6.7 million.

“This fits a critical need in our community,” said Athens Mayor Ronnie Marks. “It’s just a great development. We’re really proud they chose Athens.”

Athens Mayor Ronnie Marks. Photo: Haley Walden

Lack of Affordable Housing: A Common Barrier to Work

For North Ala. workers, The Grove at South Jefferson is a step toward addressing one of the most common barriers to work: a lack of affordable housing.

“Business leaders across the state asked, ‘What are impediments to people joining the workforce? What’s holding them back? Adequate, affordable, attractive housing was one of them,” said John David Chambliss, Director of Development for the Hall Group. “What we’re doing here is a direct response to that, and it’s meeting a lot of other needs in the community.”

The $40 million development will feature 120 units: 72 two-bedroom and 48 three-bedroom apartments. Each unit’s targeted rent is projected to fall between $1100 and $1300 per month, according to Chambliss.

Chase Simpson, Regions Affordable Housing Relationship Manager, said that for The Grove at South Jefferson, the state will allow qualifying renters to make up to 80% of the area median income, opening access to a new tenant population. That’s a 20% increase from the previous income cap.

As of 2024, the median household income in Limestone County was $83,629. That means a local family making up to $66,903 could qualify for housing at The Grove at South Jefferson.

In addition to housing, Sec. Reed also identified healthcare, childcare and reliable transportation as barriers. Residents of The Grove at South Jefferson will be able to apply for after-school childcare assistance as part of the program.

“Our job was to stay focused on finding ways to encourage Alabamians to […] get in the workforce,” Sec. Reed said. “We’re trying to remove barriers, incentivize options, [and] encourage working in close collaboration with industry and business manufacturers, all of our education partners, the two-year system, and all of the four-year institutions.”

Regions, AHFA Provide Financial Support Through Tax Credits, Equity, Bonds

Regions Bank provided $25.6 million in Low-Income Housing Tax Credit (LIHTC) equity to support the project. In addition, it financed $31.3 million in construction, plus a $13.8 million Fannie Mae permanent loan commitment.

AHFA issued $21 million in tax-exempt bonds and awarded over $3.3 million in federal and state tax credits to the project, according to AHFA Executive Director Robert Strickland. Its total equity inclusion in The Grove at South Jefferson is an anticipated $24.6 million.

“[This] quality, affordable workforce housing will be a big focus for the city of Athens, and this investment of over $38 million is important to the city and into the local economy,” said David C. Young, Multifamily Administrator at AHFA.

“AHFA is proud to play a role in part of the investment process to see this groundbreaking come to fruition today. It demonstrates a real opportunity for families to live closer to work, for communities to experience economic growth, and for businesses that rely on a stable workforce.”

The First Development Approved by the Alabama Workforce Housing Tax Credit Act

In January 2024, the Lt. Gov.’s Commission on 21st Century Workforce, led by Lt. Gov. Will Ainsworth, recommended establishing a tax credit for affordable workforce housing. That March, Gov. Ivey introduced the Working for Alabama legislative package, which included the Alabama Workforce Housing Tax Credit Act.

The act was unanimously approved by the state legislature, and Gov. Ivey signed it into law in May 2024. It allotted $5 million in tax credits over a three-year period. In the 2027 legislative session, it will be up for renewal.

AHFA generates plans and procedures for administering the credit. Its application process opened in Oct. 2024. In March 2025 three new approved developments, including The Grove at South Jefferson, were announced to be moving forward with design, financing and land entitlements.

“If they can get [The Grove] built and leased up, it gives the state something to look at, point out and say, ‘Here’s why we need to continue this program,’” said Simpson. “The three-year period it’s been approved for was a great first step, but getting that extended is going to be very important for the state.”

According to Chambliss, similar developments to The Grove at South Jefferson are underway. These include a development by Fyffe Construction’s The Vantage Group on Winchester Rd. in Huntsville, as well as a Hall Group affordable housing development in Baldwin County.

Chambliss hopes these projects are the first of many similar ventures to support the growing Alabama workforce.

“Getting product on the ground is so important to show a proof of concept, because we’ve got to have support from the state legislature to be able to move forward, and to do more of this,” he said.