Asheville committee recommends $4.6M to support 197 affordable units; Where will they be?
ASHEVILLE - 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.
"This is the kind of housing infusion we need," said council member Sage Turner, chair of the Housing and Community Development Committee. Projects represent a range of bedroom types, affordability levels and housing models.
The city's Housing Trust Fund, established in 2000, provides low-interest loans for projects that serve low- and moderate-income people.
Turner and council members Antanette Mosley and Sheneika Smith approved the recommendations in a 3-0 vote. Final say rests with full council April 23.
Of the six eligible applications, only one was not recommended for funding this cycle, though allocations sometimes vary from the applicant requests — which totaled over $9 million. This round of funding was coordinated to align with Buncombe County's process, and several projects are vying for support from both municipalities.
A new model for transitional housing
Recommended for full approval was a $40,000 request from Hospitality Houses, a new area organization headed by social worker Wesley Furlong, proposing affordable accessory dwelling units constructed in backyards — starting with his own. The units will serve as transitional housing for people exiting homelessness.
Furlong told the Citizen Times April 17 he was inspired by time spent volunteering at Western Carolina Rescue Ministries, meeting women coming out of recovery programs. The Rescue Ministries will provide supportive case management services for the first six tenants.
“We got to know the moms there and noticed a gap in transitional housing,” Furlong said. ADUs would provide housing for up to two years, with residents paying the lesser of $300 or one-third of their income.
Sasha Vrtunski, the city's Affordable Housing Officer, told council members they considered it a "pilot project," an "outside the box development concept" making use of unused land and meeting the needs of a high-risk population.
There's some "risk" supporting a brand new organization, still in the process of cementing nonprofit status, but it is a modest investment by the city, she said.
“The model’s not proven, but they will be learning as they go through this process," Vrtunski said.
The first unit, now partially constructed in Furlong's West Asheville yard, was paid for by private donations and in-kind contributions by contractors. The second and third, to be about 30% funded by the city's loan — pending final approval — 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.
Roers Affordable
HTF Request: $3.9 million.
Recommended loan amount: $3.9 million.
Number of affordable units: 126 apartments at or below 60% AMI.
Recommended loan terms: 30-year term, 2% interest.
Additional information: The development is located on Pine Lane, between Brevard Road and I-26, north of the Asheville Outlet Mall. A conditional zoning is still required, with a tax credit application in progress. The proposed bedroom mix includes 21 four-bedroom units.
Hospitality Houses
HTF Request: $40,000.
Recommended loan amount: $40,000.
Number of affordable units: Two supportive housing ADUs at less than 60% AMI.
Recommended loan terms: 3-year term, 2% interest.
Mountain Housing Opportunities - down payment assistance
HTF Request: $1.5 million, spent over five years.
Recommended loan amount: $300,000, representing one year of funding.
Number of affordable units: Five units scattered throughout Asheville.
Recommended loan terms: 40-year term, 0% interest.
Additional information: Vrtunski said a multi-year request is better funded in a year with a larger balance of available funds, so only one year was funded in this allocation. The program tends to target around 60% AMI.
Habitat for Humanity - down payment assistance
HTF Request: $146,000.
Recommended loan amount: $146,000.
Number of affordable units: Four units scattered throughout Asheville.
Recommended loan term: 30-year term, 0% interest.
Additional information: Habitat will rehabilitate four homes and sell them to qualified buyers. HTF dollars will be used to reduce the homebuyer's mortgage. Individual homes have not been identified yet.
More: Buncombe affordable housing projects could cost $79M, raising questions about funding
More: Hundreds of new shelter beds, housing units planned as part of $30M ABCCM expansion
Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email shonosky@citizentimes.com or message on Twitter at @slhonosky. Please support local, daily journalism with a subscription to the Citizen Times.
This article originally appeared on Asheville Citizen Times: Asheville council considers funding ADUs as housing for homeless
