Houston-based Park Street Homes will construct 31 houses on Third Street North. The council also set a hearing on the Southern Area Framework Plan for Oct. 20 and approved repairs to the elevators of the Birmingham Central Library.

The Birmingham City Council on Tuesday approved a $1.1 million agreement under which 31 affordable single-family homes will be built at the former Hill School on Third Street North. 

Councilor Clinton Woods, chairman of the Budget and Finance Committee, said the measure is part of an ongoing effort to revitalize neighborhoods and create pathways to homeownership.

“This is an opportunity to redevelop a property that has been abandoned for a long time,” Woods said. “One of the things when we look around the city as a whole is there is a need to fill vacant spaces and reimagine spaces that are deteriorating. Projects like this allow us to leverage the dollars we have, bring in partners with the private sector and walk away with something that will benefit the city on many levels.”

As part of the agreement, the city will sell the former Hill School property at 507 Third St. N. to Houston-based homebuilders Park Street Homes for $1. The city will also provide the firm with $633,393 in direct payments and a loan amount of up to $495,000.

For its part, Park Street Housing will build 11 homes that will be made available for people making 80% or less of the area’s median income. The company will also build 20 homes for buyers making up to 120% of the area’s median income.

The historic B.C. Hill Elementary School closed in 2014 and suffered severe fire damage in 2024. 

The City Council last year approved $360,000 and the transfer of five vacant lots for Park Street to build eight affordable homes in the Smithfield community. 

The council on Tuesday also approved a two-year, $1 million agreement with Neighborhood Housing Services of Birmingham under which the group will administer the city’s Ready to Own Birmingham initiative. 

Under this program, homebuyers can apply for up to $10,000 to cover down payments, closing costs and interest rate buydowns. The assistance operates as a zero-interest loan that is fully forgiven after five years, provided the house remains the buyer’s primary residence. 

In other business the council:

• Set a public hearing at 9:30 a.m. Oct. 20 for the Southern Area Framework Plan. It’s one of nine such plans developed under the city’s 2013 Comprehensive Plan. Local leaders say the documents are designed to guide Birmingham’s future growth, investments and neighborhood revitalization, breaking down citywide goals into actionable steps. The council also has a public hearing set for the Pratt-Ensley Framework Plan at 9:30 a.m. Sept. 22. Both hearings will be at City Hall during regularly scheduled City Council meetings.
• Approved paying TK Elevator of Pelham $364,925 to replace two inoperable elevators at the Birmingham Central Library.