The population is booming in North Alabama, as employment opportunities and economic development are attracting new residents to the area in droves. The Huntsville metro, which includes fast-growing Madison and Limestone counties, was the 15th fastest growing metro in the country in 2024, and the population continues to tick upward in cities including Huntsville, Madison and Athens.
With that growth comes the need for housing, including the availability of affordable rental housing. To support this, Regions is collaborating with the Hall Group, LLC to develop The Grove at South Jefferson, a new apartment complex in Athens, Alabama. Construction will begin in early 2026 on the development, which will include five three-story buildings containing 120 apartment units. The property will also feature amenities such as a business center, central laundry, clubhouse, fitness center, pet park, picnic areas, playground and swimming pool.
The Grove at South Jefferson development is significant for several reasons, including having 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, an ambitious group of six new laws aimed at transforming Alabama’s workforce and streamlining the state’s economic development offerings.
This development will have apartments that are affordable for families who are earning 50%, 60% and 80% of area median income.David Payne, head of Originations for Regions Affordable Housing
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.
The Grove at South Jefferson will not only meet program requirements, but also provide deeper affordability on a broad scale. “This development will have apartments that are affordable for families who are earning 50%, 60% and 80% of area median income,” said David Payne, head of Originations for Regions Affordable Housing. “This range of affordability is important because there are a lot of people who work in professions that are essential to the community, including teachers, law enforcement officers and healthcare workers, who need some affordable housing support. The range of affordable apartments allows us to meet that larger need.”
The Workforce Housing Program Act supports developments that provide after-school care for children of tenants. Chase Simpson, relationship manager for Regions Affordable Housing
The property will also support tenants in another noteworthy way. “The Workforce Housing Program Act supports developments that provide after-school care for children of tenants. In the case of The Grove at South Jefferson, this means tenants will be able to apply for childcare assistance and receive funding to use at the childcare provider of their choice,” said Chase Simpson, relationship manager for Regions Affordable Housing. “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.”
Regions Affordable Housing provided around $25,592,000 in equity financing for The Grove at South Jefferson, including a direct investment of about $15,874,000 in Federal LIHTC and $9,718,000 in State LIHTC. Regions’ financing also included a $17,450,000 bridge loan and $13,800,000 construction loan.
“We’re excited about the opportunities this project will bring to people in Athens, as well as how it will contribute to the ongoing economic development of the area,” said Payne. “Alabama is home for Regions, and Regions Affordable Housing is committed to continuing to invest and make a difference, here and throughout our footprint.”
Bottom-left: Regions Affordable Housing Relationship Manager Chase Simpson spoke with WHNT-TV to highlight how the bank works to expand access to more affordable housing. Top-right: Regions joined local and state leaders recently to officially break ground on a new affordable housing in Athens.
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