Birmingham Wins $50M HUD Grant for Smithfield Affordable Housing Development

A Historic Federal Award for Birmingham

On July 26, 2023, U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge traveled to Birmingham, Alabama, to announce a $50 million Choice Neighborhoods Implementation grant to the Housing Authority of the Birmingham District (HABD) and the City of Birmingham. The award was the first Choice Neighborhoods Implementation grant ever given to a city in Alabama.

U.S. Rep. Terri Sewell joined Secretary Fudge, Mayor Randall Woodfin, and community leaders for the announcement, calling the grant transformative for the historically Black Smithfield neighborhood and the adjacent College Hills and Graymont communities.

What the Grant Will Fund

The $50 million federal award is the anchor of a larger redevelopment effort that, together with state, local, philanthropic, and private investments, is expected to exceed $283 million in total spending. Key elements of the plan include:

• Rebuilding the aging Smithfield Court public housing site.
• Creating roughly 1,100 new mixed-income, affordable housing units across Smithfield, College Hills, and Graymont.
• Developing a portion of the former Parker High School surplus land — reportedly about 11 acres — into roughly 350 new affordable multi-family units.
• Expanding social services, workforce training, and wraparound supports for current and returning residents.

Who's Involved

HUD's Choice Neighborhoods program requires applicants to demonstrate strong partnerships with community institutions. The Birmingham plan brings together:

• HABD and the City of Birmingham as lead applicants.
• Birmingham City Schools (BCS).
• The University of Alabama at Birmingham (UAB).
• United Way of Central Alabama.
• National and local housing development, service, and investment partners.

Why Smithfield

Smithfield has a deep history as a Black middle-class community that endured racist zoning, disinvestment, and the bombings of the civil rights era. Smithfield Court, built in the late 1930s, was one of the first public housing developments in Alabama and had fallen into serious disrepair. The Choice Neighborhoods award was framed as an opportunity not just to rebuild housing, but to honor and reinvest in a historically significant community.

Timeline and Progress

City and housing authority officials indicated that construction activity would begin in 2024, with full build-out anticipated by 2031. In January 2025, the Birmingham City Council approved a land transfer to enable the next phase of Smithfield housing development, signaling the project was moving from planning to execution.

How Residents Will Be Protected

A core principle of Choice Neighborhoods is that existing public housing residents have the right to return to the redeveloped site. The Smithfield plan includes commitments to:

• Keep current residents on comparable subsidized units during redevelopment.
• Guarantee a right of return for displaced households.
• Include a mix of public housing, affordable, and market-rate units in the new development.
• Provide case management, education, and employment services through partner organizations.

What It Means for Alabama Homeowners and Renters

While the Smithfield project is focused on a specific Birmingham neighborhood, its ripple effects will reach broader: more affordable rental supply in the city, renewed investment in blocks long neglected by public and private capital, and a model other Alabama cities may seek to replicate in future Choice Neighborhoods competitions.

Birmingham residents interested in Smithfield housing opportunities, or in following the project's progress, can monitor HABD announcements and the dedicated Smithfield Choice project website for updates on waitlists, design reviews, and construction milestones.