ALBANY, Ga. (WALB) — The City of Albany secured nearly $1.13 million in federal grant money to build workforce housing near Phoebe Putney Memorial Hospital, but officials say construction cannot begin just yet.

The grant was awarded by the U.S. Department of Housing and Urban Development’s Fiscal Year 2026 Economic Development Initiative – Community Project Funding program. As part of the first phase of the project, six single-family homes are planned to be built on W 2nd Avenue.

Before crews can break ground, though, the contractor must complete an environmental study, and the city must wrap up a request for proposals for project engineers.

“Just because you’ve been awarded the money doesn’t necessarily mean we can go to work,” City Manager Terrell Jacobs said. “The challenge that you have when you do get grants, there’s certain environmental things that you have to do. There’s certain administrative things that you have to do.”

Once site hurdles are cleared, the development will target local workers and low- to moderate-income households earning between 80% and 120% of the area median income.

“The new term, what we call it now, is workforce housing,” Jacobs said. “We want it to be a cross mix of individuals that live in this area — police officers, firemen, fire personnel, Phoebe employees, city employees.”

A master-planned development includes approximately 28 townhomes and single-family units, with two-, three-, and four-bedroom options.

City officials say price point averages are expected to range from $170,000 to $230,000. But unlike several downtown residential developments, the medical district will focus strictly on homeownership rather than rentals.

“The performance of this project, we hopefully have everything done by August 31 of 2034,” Jacobs said. “Completed and hopefully purchased by that time — that is the performance goal.”

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