The Ramada Inn is being transformed into affordable housing in Asheville, providing hope for the community.
Asheville’s commitment to affordable housing shines with the acquisition of the Ramada Inn by Friendship for Affordable Housing (FFAH). The $6.6 million deal aims to convert the long-vacant property into 163 units of permanent supportive housing, including 50 units specifically for veterans. Despite challenges related to community concerns and financing, the initiative promises hope for vulnerable residents. While construction is ongoing, Asheville’s community remains resilient in addressing homelessness.
In a lively twist for the folks in Asheville, the city’s commitment to affordable housing has scored a victory with the recently acquired Ramada Inn. On December 2, Friendship for Affordable Housing (FFAH) officially closed the deal on this long-vacant property in East Asheville. This purchase, marked at a significant $6.6 million, aims to transform the Ramada into a haven for those needing permanent supportive housing.
The path to this purchase wasn’t an easy stroll in the park. The Ramada Inn had been sitting idle for years due to financial roadblocks that hindered the city’s ambition to provide housing for the homeless. In the summer of 2023, FFAH entered into an agreement to acquire the property, but convincing city committees to approve the project was a rocky ride. With FFAH sometimes viewed as a high-risk organization, their plans faced scrutiny in light of unfortunate past incidents linked to permanent supportive housing in the area.
Residents recalling a slew of police activities at places like the Compass Point motel, including a tragic homicide, had their concerns amplified. This local history influenced the decision-making process for the project. In response, FFAH revamped their proposal, which now includes 113 units of permanent supportive housing alongside dedicated 50 units for veterans whose incomes fall below 50% of the area median. The remaining units aim to provide general affordable housing for those in need.
In another twist, FFAH miraculously obtained 100% financing for construction through private lenders, freeing up the $1.5 million initially set aside by the city. This newfound capital paved the way for a reinvigorated approach to funding homelessness solutions. The city took advantage of the available $5 million in ARPA funding, now redirected for pressing needs such as $278,000 for Code Purple expenses and $222,000 for emergency homelessness assistance.
In an interesting turn of events, the city council approved amendments to the deed restrictions of the Ramada, allowing for uses beyond just homeless housing, a move made amidst a city-wide internet outage. However, the road ahead was still fraught with tension. Complaints surfaced regarding the Sunshine Community for Recovery and Wellness, initially set to manage resident services after two residents met untimely ends and reports of violence emerged.
Prior to FFAH stepping in, the city explored purchasing the Ramada but hit financial walls with its $9.75 million asking price. Concerns loomed over the prospect of the property slipping back into the market as a regular motel, which fueled the decision to assign the purchase contract to Shangri-La, a California developer specializing in transforming motels into supportive housing. With previous successes in California, Shangri-La aimed to bring their vision to Asheville.
However, not all residents were thrilled with this new partnership. Skepticism grew due to past experiences with property management, but Shangri-La pledged to work with Step Up on Second Street to ensure wraparound services that empower individuals facing homelessness. Their initiative focuses on community integration and skill development, aiming to tackle issues head-on.
While plans were laid, challenges loomed large for Shangri-La. The developer started facing legal and financial troubles, including mechanics liens leading to litigation and foreclosure complications delaying the project’s progress. Reports revealed that Beverly-Hanks had gone uncompensated for around $400,000 worth of work at the Ramada Inn, leaving many wondering about the project’s future.
As construction on the Ramada Inn remains incomplete, the city continues to hold on to the original $1.5 million set aside. There’s a mix of hope and uncertainty as Asheville watches this ambitious transformation unfold, but one thing is clear: the community is resilient and ready to find solutions for its homeless population.
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