The City of Huntsville has approved a funding agreement to move forward with New Stone Commons, a 42-unit affordable housing development aimed at expanding options for low-income and vulnerable residents in northwest Huntsville.

City leaders authorized a resolution allowing Mayor Tommy Battle to enter into an agreement supporting the project, which will be built at 3450 Venona Avenue NW. The city will commit approximately $2.3 million in federal HOME Investment Partnerships Program funds through the American Rescue Plan to support construction.

The development continues a broader effort by the city to address housing instability and homelessness, building on earlier initiatives that directed funding toward services and housing for at-risk populations.

Plans for New Stone Commons were first outlined in 2024, when officials described the project as part of a larger strategy to provide stable housing for individuals experiencing homelessness, those at risk of homelessness, and people fleeing domestic violence. The development is expected to include supportive services and spaces for case management, alongside income-restricted rental units.

At the time, Huntsville City Council President David Little called the project “a big deal,” noting its potential impact in expanding safe, affordable housing in the community.

Under the newly approved agreement, the city’s Community Development Department will partner with the developer to ensure the project meets all federal, state and local requirements as it moves toward construction.

Once complete, New Stone Commons is expected to provide long-term housing stability while supporting the city’s continued growth and efforts to increase access to quality, affordable housing.