Asheville, June 2026 – The availability of up to $88 million in federal affordable housing grants has sparked unprecedented interest from developers and advocates, creating what many describe as a rare chance to tackle the region’s severe housing crisis.
Housing groups, including MountainTrue, have urged the city to prioritize multifamily affordable rental construction over single‑family home repairs. “If we keep the funding in multifamily, we create hundreds of affordable places to live, whereas with the single‑family program, we keep affordable housing for those 50 to 60 homes,” said Susan Bean, MountainTrue’s housing and transportation director.
The debate intensified after the city proposed shifting $9.2 million from new construction to the Renew NC home repair program, which could fix up to 65 storm‑damaged houses but at an average cost of $342,000 per home. Critics argue that federal disaster‑recovery funds are better suited for long‑term, income‑restricted housing at scale.
Demand for funding is high: 13 affordable projects applied for city recovery funds, requesting a total of $70.4 million to build nearly 1,500 apartments. The council pledged $8.39 million to two projects totaling 205 units but denied a $9.5 million request from Mountain Housing Opportunities for the Terrace at River Hills, despite city staff rating it the most shovel‑ready project.
Meanwhile, Buncombe County has adopted a “go big” strategy, pledging nearly $8 million or more to three projects since 2025, including the Rocky River Apartments and a 203‑unit development on Coxe Avenue. Advocates warn that without similar large‑scale commitments from Asheville, the city risks missing out on critical state tax credits and being left with “crumbs” when awards are announced later this year.
The stakes are high: the Bowen Housing Needs Assessment found Buncombe must build 8,704 rental units by 2029, with nearly 5,000 needed for families earning less than half the area median income. With rents in Asheville 46% higher than the state average, nearly half of renters are already cost‑burdened.
The City Council will vote on the revised spending plan on June 23, a decision that could determine whether Asheville seizes this rare opportunity to expand affordable housing or focuses instead on costly short‑term repairs.
