City of Huntsville and Huntsville Housing Authority Win Prestigious $50 Million HUD Grant for Mill Creek Transformation
Excitement is soaring in Huntsville! The City of Huntsville and the Huntsville Housing Authority are elated to announce they have been selected to receive one of the U.S. Department of Housing and Urban Development's (HUD) prestigious Choice Neighborhoods Implementation Grants (CNI). This grant will ignite a transformative opportunity for our community, focusing on the area surrounding Butler Terrace and Butler Terrace Addition, now known as Mill Creek.
Huntsville emerged as a top contender, selected among nine finalists from a pool of 28 applicants representing projects nationwide. The City of Huntsville will receive an individual grant of $50 million to fund housing redevelopment, neighborhood improvements, health and education initiatives, and resident services. Finalists were evaluated based on how well their vision, capacity, and need addressed the three core goals of the Choice Neighborhoods program:
Housing: The grant will facilitate the creation of high-quality, mixed-income housing that meets the needs of the community.
People: This initiative aims to enhance outcomes for residents in employment and income, health, and children’s education.
Neighborhood: The project will foster conditions for public and private investment in distressed neighborhoods, ensuring access to safety, good schools, and vibrant commercial activity—key factors for families choosing their community.
The Mill Creek transformation project, supported by the CNI implementation grant, will revolutionize housing in the area. The plan includes the replacement of distressed public and assisted housing with high-quality, mixed-income housing that is well-managed and responsive to the needs of the surrounding neighborhood. The redevelopment will occur in five CNI phases, creating 580 apartment homes with 1-4 bedrooms, including universal design, senior, and family units. This encompasses 284 replacement units, 174 affordable housing units, and 122 market-rate units. Additionally, Huntsville Hospital is investing in the project to create an additional 125 units, bringing the total to 705 mixed-income units.
“This is a big win for Huntsville. Thanks to the CNI grant, we will be able to leverage $50 million in HUD funding, alongside millions of dollars committed by the City, Huntsville Housing Authority, Huntsville Hospital, and others to transform this neighborhood and create a model of mixed-income housing and quality-of-life amenities and services.”–Mayor Tommy Battle
Prior to this significant achievement, the City of Huntsville, in partnership with the Huntsville Housing Authority, was awarded a highly competitive $1.3 million Choice Neighborhoods Planning Grant from HUD. This initial grant has been pivotal in planning the revitalization to transform a portion of the community just southwest of downtown Huntsville.
“The Huntsville Housing Authority is extremely excited about the announcement that our city has been awarded the Choice Neighborhood Initiative Implementation Grant. This prestigious grant will significantly aid us in furthering our mission of developing and preserving a high standard of safe and affordable housing for qualifying individuals and families, ensuring these opportunities are free from discrimination. We look forward to leveraging this support to create vibrant, inclusive communities and enhance the quality of life for our residents. – Tony McGinnis, Executive Director/CEO Huntsville Housing Authority. “
“This is no longer a plan,” said Joe Weatherly, Senior VP Development, McCormick Baron Salazar. “This is no longer an application. It’s no longer a pile of paper and a lot of conference calls. This is going to happen.”
The Choice Neighborhoods program is a cornerstone of HUD's strategy to revitalize communities through partnerships and collaboration among local stakeholders. Huntsville's selection for this grant highlights our city's dedication to creating inclusive, sustainable neighborhoods that provide opportunities for all residents.