Huntsville approves grant for affordable housing project, funding for homeless groups

HUNTSVILLE, Ala. (WHNT) — The Huntsville City Council has approved a project that will bring a new multi-family development to the city to provide safe affordable housing to vulnerable groups.

The new 42-unit facility will be built on Venona Avenue and provide affordable housing to people dealing with homelessness, those who have recently dealt with homelessness and people fleeing domestic violence situations.

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The city approved giving American Rescue Plan (ARP) money to help partially fund the development during its city council meeting on Thursday.

The facility, which will be named the New Stone Commons Apartments, will be constructed on land owned by Neighborhood Concepts Inc. The city approved giving the non-profit $2,300,376 in HOME Investment Partnerships ARP funds so it can apply for $12.8 million in state ARP funds through the Alabama Housing Finance Authority.

Neighborhood Concepts Executive Director Mary Ellen Judah explained the unit would also offer supportive services for people who live there.

“The neat thing about this property is that it will be completely furnished, all the units will be furnished including washer and dryer,” Judah told News 19. “Folks who are coming directly from homelessness will be able to move right into a safe and decent apartment that is affordable.”

Huntsville Community Development Manager Scott Erwin says the city is committed to assisting in these kind of projects.

“We are excited to be moving forward on this development that will benefit our most vulnerable communities,” Erwin said. “In addition to the homes, the services available to residents are a crucial part of this project.”

Erwin also said as Huntsville continues to grow, so does the need for permanent affordable housing.

“Creating additional affordable housing opportunities in this community is critical to the standard of living,” he said. “We need to make sure that as jobs come in, there are across the wage spectrums that all wage earners have a good opportunity to have a strong quality of life.”

The finished property will be owned by New Stone Commons, a yet-to-be-formed limited liability company. Neighboring Concepts and New Futures, another Huntsville non-profit, will serve as members of that LLC.

During Thursday’s council meeting, the city also approved state grants from the Alabama Department of Economic and Community Affairs for several non-profits serving the homeless across the Tennessee Valley. Those organizations and how much they’ve been awarded can be found below:

  • AshaKiran – $25,000

  • Community Action Partnership of Huntsville/Madison & Limestone Co. – $89,000

  • Crisis Services of North Alabama – $20,000

  • Family Services Center – $50,000

  • First Stop – $90,000

  • Hands Across Decatur – $20,000

  • New Futures – $35,000

  • North Alabama Coalition for the Homeless – $25,000

  • The Salvation Army – $30,000

Construction on New Stone Commons Apartments is expected by December 2025.

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