Greater Birmingham/ Real Estate & Development

Leeds Mayor Says City Cannot Handle 144-Unit Ivey-Backed Housing Project

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Published on October 27, 2026
Leeds Mayor Says City Cannot Handle 144-Unit Ivey-Backed Housing Project2240 Rocky Ridge Rd. — State Housing-Credit Program Context
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Leeds Mayor Eddie Moore says he backs Alabama's workforce-housing push in principle, but he does not believe his city can handle the version of it landing on its doorstep. The Grove at Leeds, a proposed apartment community of more than 140 units backed by Gov. Kay Ivey, is running headlong into a one-year moratorium on apartment developments that the city currently has in place.

A $47 Million Proposal Meets a City Moratorium

According to WBRC 6 News, The Grove would bring more than 140 apartment units to Leeds as part of a workforce-housing project tied to the governor's initiative. The Hall Group has described the development as a $47 million apartment community with 144 units, split between 84 two-bedroom apartments and 60 three-bedroom apartments, according to Yellowhammer News. The catch: Leeds currently holds a one-year moratorium on apartment developments, and that moratorium covers The Grove along with everything else, per the station's report.

A city notice posted by the City of Leeds adds a stark procedural detail — at the time it was published, The Grove had not been issued a city permit, and an active moratorium remained in place. The notice also states that any development must comply with applicable city laws, ordinances and requirements. No groundbreaking date for The Grove has been announced, Yellowhammer News reports.

Mayor Weighs Traffic, Growth and Public Safety

Moore told the station he supports the workforce-housing program but does not believe Leeds can handle that type of growth. He pointed specifically to one intersection already under strain, raising concerns about what 144 additional apartments would put on that intersection as far as traffic. He also warned that the city's emergency responders could be stretched thin: “Our police, our fire, our public safety people would be overtaxed,” Moore said, per the same account.

The mayor's worries extend beyond infrastructure. City leaders believe many residents consider the proposed complex a poor fit for Leeds even though they view the broader workforce-housing program favorably, the station notes. Moore has said residents want their voices heard about how the city grows, and he has called a Monday meeting an important opportunity for neighbors to weigh in on the project. Separately, Moore has said growth in Leeds must be done thoughtfully, according to Alabama's 42, which also reported that a recent settlement with a developer has resulted in separate plans for 36 single-family homes in the city.

Developers Have Not Responded

WBRC reported that developers behind The Grove had not responded to its outreach as of publication. That silence leaves open questions about financing, eligibility for state tax credits, and whether the project will ultimately move forward in its current form.

Part Of A Larger Statewide Push

The Grove at Leeds is tied to Alabama's Workforce Housing Credit program, created when the state enacted the Alabama Workforce Housing Tax Credit Act, Act No. 2024-302, on May 9, 2024, according to the Alabama Housing Finance Authority, which administers the program. The initiative is designed to increase affordable rental housing near areas with expanding or newly created jobs. The Alabama Department of Revenue describes the credit as providing up to $2 million per project annually for up to 10 years, subject to statutory eligibility requirements.

A statewide economic-impact study cited by Yellowhammer News projects the broader program will create more than 3,100 jobs and generate $1.1 billion in economic activity, with every $1 in state credits estimated to leverage $7.30 in economic activity and $3 in combined federal credits and private investment. Similar Grove-branded projects have already broken ground elsewhere in the state: The Grove at South Jefferson in Athens is planned for 120 two- and three-bedroom units at an estimated $40 million cost, according to AL.com, while The Grove at Foley Beach is a 180-unit complex that AL.com reported is expected to take at least 18 months, probably closer to two years, to open. Mobile has also announced a 70-unit development called Anchor Place that would draw on the same tax credit and AHFA funding, per AL.com's reporting.

Accounts differ on exactly how many of these projects are planned statewide. WBRC described The Grove at Leeds as Alabama's third workforce-housing location, while Rocket City Now described the Athens project as the first of three such developments planned for the state, and AL.com's coverage of the Foley groundbreaking described that project as the second in a series of at least seven such complexes planned across Alabama. For Leeds, the count may matter less than the outcome Monday, when residents get their chance to tell city leaders — and, indirectly, the state program backing The Grove — whether this particular project belongs in their city at all.