Buncombe affordable housing projects could cost $79M, raising questions about funding

Overview of the Buncombe County Affordable Housing Subcommittee Meeting

The Buncombe County Affordable Housing Subcommittee reviewed six applications seeking $21 million in affordable housing construction loans and grants during its April 16 meeting. These projects come as the subcommittee is on the verge of considering funding for two major Buncombe County affordable housing projects in the 2025 fiscal year.

Loans and grants for affordable housing development in Buncombe County are processed through the Affordable Housing Services Program, which assists developers and nonprofits in bringing affordable housing to the Asheville-Buncombe area. The total request for AHSP loans and grants for fiscal year 2025 is currently $39 million, excluding additional funding for the Coxe Avenue and Ferry Road affordable housing projects.

Challenges in Funding

Commission Chair Brownie Newman highlighted the need for “strategic” funding solutions as the 2022 housing bond funds are expected to run dry. Buncombe County voters approved a $40 million bond for housing in 2022, but the current requests, combined with funding for the two major county affordable housing projects, could total $73 to $79 million.

Newman emphasized that strategic funding questions may arise sooner than anticipated by the commission, indicating a need for robust discussions on securing additional financial resources.

Projects Under Consideration

The projects discussed during the meeting have the potential to introduce up to 379 new affordable housing units within or below 80% of the area median income. Here is a breakdown of the six projects currently under consideration:

• 319 Biltmore Apartments: $1.9 million
• Asheville Buncombe Community Land Trust: $1.3 million
• Lofts at Swannanoa: $379,787
• Pine Lane: $8.6 million
• Rock Hill Place: $200,000
• Rocky River Apartments: $8.8 million

Asheville-Buncombe Community Land Trust’s Proposal

The Asheville-Buncombe Community Land Trust aims to expand its inventory of permanently affordable single-family homes in the region. The grant of $1.3 million sought from Buncombe County would support the construction or acquisition of 20 single-family homes that are permanently affordable at 60% of the area median income.

The total project cost is estimated at $5.2 million, with the land trust already having sold two homes under the homeownership program.

Major Project Requests

The 319 Biltmore Avenue project is seeking a $1.9 million loan to facilitate the development of 221 market-rate and affordable apartments, with 67 units designated as affordable below 80% of the area median income.

Roers Companies has requested an $8.6 million loan to construct 126 units of affordable housing off Pine Lane near Brevard Road, targeting individuals earning 60% of the area median income. The project is anticipated to cost $45 million.

Fitch Irick Development is seeking an $8.8 million loan to build Rocky River Apartments in Woodfin, aiming to create 120 units with income targets ranging from 80% to 30% of the area median income. Approximately 64 units would cater to individuals at 60% of the area median income.

Conclusion and Next Steps

The projects discussed at the meeting will undergo further evaluation by the Buncombe County Board of Adjustment, with funding recommendations expected to be determined during an upcoming Affordable Housing Committee meeting on April 23.

The challenges of funding these projects highlight the growing need for sustainable financial solutions to address the affordable housing crisis in Buncombe County.