City Council Committee Recommends $4.6 Million for Affordable Housing Construction Allocation

A City Council committee recommended allocating $4.6 million in Housing Trust Fund dollars to support construction of 197 affordable housing units citywide. Funding would spread across five projects, from rental units and homebuyer down payment assistance programs, to construction of backyard ADUs, intended to support the city’s unhoused.

Projects represent a range of bedroom types, affordability levels, and housing models. The city’s Housing Trust Fund provides low-interest loans for projects that serve low- and moderate-income people. Final approval rests with full council on April 23.

Of the six eligible applications, only one was not recommended for funding this cycle. This round of funding was coordinated to align with Buncombe County’s process, and several projects are vying for support from both municipalities.

Recommended for full approval was a $40,000 request from Hospitality Houses, proposing affordable Accessory Dwelling Units (ADUs) constructed in backyards. The units will serve as transitional housing for people exiting homelessness. The first unit, now partially constructed in West Asheville, was paid for by private donations and in-kind contributions by contractors. The second and third units will begin construction this summer, contingent on funding.

Recommended Allocations

Star Point Apartments
Housing Trust Fund Request: Up to $1.5 million
Recommended loan amount: $252,838 (in addition to a previous loan of $850,000 for land acquisition, awarded in fiscal year 2023). The amount to be funded is contingent on Buncombe County’s funding decision.
Number of affordable units: 60 apartments at 60% area median income. Of the units, 20% will be dedicated to youth aging out of the foster care system.
Recommended loan terms: 40-year term, 0% interest.
Additional information: The 60-unit Mountain Housing Opportunities’ development, at 16 Restaurant Court, will be 100% affordable.