The state Department of Community Affairs has awarded the Athens Housing Authority $8.6 million in tax credits for the first phase of a new development at Jack R. Wells Homes (AKA Pauldoe) off Hawthorne Avenue.

The 40-year-old, 125-unit complex will be replaced with a new $47 million, 375-unit development of one-third public housing, one-third affordable units for low- to middle-income families and one-third market rate units, including a senior assisted-living facility and amenities like a park and a town square. The 100-unit mid-rise building for seniors will be the first built and is scheduled to open in 2014. The second and third phases are scheduled to be completed in 2016.

The housing authority announced the plans in September 2011. Pauldoe was up for renovation, but rather than try to fix it up, AHA officials decided to scrap it and start over.

"This is an exciting time for the Athens Housing Authority as we look to developing a new neighborhood and changing the way affordable housing is provided in our community," AHA Executive Director Rick Parker said in a news release. "The expansion of heathcare systems in Athens and the construction of the Caterpillar plant will require a variety of housing for workers. We look forward to being part of this exciting time."

Working with University of Georgia planners and private developers Columbia Residential, AHA held a charette the following month to get Pauldoe residents' input on the new development. Those residents can move to other AHA neighborhoods or use Section 8 vouchers to find housing on the private market during construction, which is scheduled to start next summer. They'll have first dibs on the new units.

In addition to the tax credits, Athens-Clarke County is contributing about $700,000 for infrastructure like new roads.

AHA is working with Columbia Residential because federal rules require that tax-credit recipients have built tax-credit-funded developments before. AHA hasn't, but Columbia Residential has built 45 such projects in Atlanta, New Orleans, Houston, Dallas, Columbus, Marietta and elsewhere. The tax credits are sold to investors to fund construction.