Asheville City Council recorded 22 votes at its regular meeting on June 24, 2025; none drew a no vote. Most items concerned Zoning & Land Use, Housing and Boards & Appointments.
Voting: Bo Hess, S. Antanette Mosley, Kim Roney, Sheneika Smith, Maggie Ullman. Absent: Esther E. Manheimer, Sage Turner.
22recorded votes
0split votes
1failed
2members absent
All votes
Item A · Community Programs · consent agenda
Approval of the combined minutes of the worksession held on June 5, 2025, and the formal meeting held on June 10, 2025
Passed5–0 · unanimous · Moved by Kim Roney, seconded by Maggie Ullman
Tropical Storm Helene significantly damaged park amenities and open spaces.
The City’s Infrastructure Recovery Support Group (“RSG”) and Asheville Parks & Recreation have been working to identify and establish temporary recreation amenities for the community.
Mission Health, as part of HCA Healthcare, participates in the Show Love Project.
BPD, the agency of record representing HCA Healthcare, expressed an interest in providing a financial donation for projects that would benefit the community during the recovery and rebuilding efforts.
Donated funds can enable the City to build temporary recreation amenities that would otherwise require expenditure of City funds.
The donation of $35,000 will assist in the development of a temporary dog park at Riverbend Park.
An additional donation of $75,000 can be used to establish other recreation assets destroyed by Tropical Storm Helene such as, but not limited to sand volleyball, pickleball, or a skating rink.
Vendor Outreach Efforts:
Not applicable Committee(s):
None Pro(s):
Financial donations help offset the costs associated with establishing temporary amenities that are not eligible for FEMA reimbursement. Con(s):
None known
Fiscal Impact:
$110,000 will be added to the Special Revenue Fund.
Tropical Storm Helene significantly damaged park amenities and open spaces.
The City’s Infrastructure Recovery Support Group (“RSG”) and Asheville Parks & Recreation have been working to identify and establish temporary recreation amenities for the community.
Mission Health, as part of HCA Healthcare, participates in the Show Love Project.
BPD, the agency of record representing HCA Healthcare, expressed an interest in providing a financial donation for projects that would benefit the community during the recovery and rebuilding efforts.
Donated funds can enable the City to build temporary recreation amenities that would otherwise require expenditure of City funds.
The donation of $35,000 will assist in the development of a temporary dog park at Riverbend Park.
An additional donation of $75,000 can be used to establish other recreation assets destroyed by Tropical Storm Helene such as, but not limited to sand volleyball, pickleball, or a skating rink.
Vendor Outreach Efforts:
Not applicable Committee(s):
None Pro(s):
Financial donations help offset the costs associated with establishing temporary amenities that are not eligible for FEMA reimbursement. Con(s):
None known
Fiscal Impact:
$110,000 will be added to the Special Revenue Fund.
The mission of the City’s Internal Audit division is to promote efficient, effective, and accountable city government by conducting financial, operational, and compliance audits of all City departments, divisions, and programs.
Due to staff turnover within the division and ongoing recruitment challenges, which are prevalent throughout the industry, the City has decided to continue a co-sourced model for Internal Audit Services in which most of the audits are contracted out with a City staff position being maintained as project manager for the program.
To facilitate this service model, contracted Internal Audit Services were sought via a Request for Proposals (RFP) in the spring of 2025.
The City received nine RFP responses which were reviewed by a team consisting of City staff.
Plante Moran was the highest scoring RFP responder.
Actual costs will be billed on a per-hour basis.
Vendor Outreach Efforts:
Staff performed outreach to minority- and women-owned businesses through solicitation processes following the City’s ABI process and posting to the State’s Electronic Vendor Portal (eVP) and the HUB.
Of the nine RFP responses reviewed by staff, none identified as MWBEs.
All of the nine firms that responded to the RFP chose the Self-Performing Option on the City’s ABI forms. Committee(s):
None Pro(s):
Provides services to support and enhance the City Internal Audit program. Con(s):
Will require additional budget resources in future years to continue the co-sourced service model.
Fiscal Impact:
Funding for the $115,000 in first year costs for this contract is available in the FY 2025-26 Internal Audit division operating budget.
Future years will be planned during the annual budget development process.
The contract is contingent on budget appropriations in future fiscal years.
At the end of September 2024, the City of Asheville experienced large-scale devastation and destruction as a result of Tropical Storm Helene that has affected residents, businesses and city-owned property and infrastructure.
A budget amendment was adopted by City Council on November 12, 2024 to add budgets in the City’s Enterprise Operating Funds for Helene-related expenses.
As staff has reviewed that earlier budget amendment, we have determined that from an accounting perspective certain budgets and expenses need to be moved from Enterprise Operating Funds to Enterprise Multi-Year Funds prior to the end of the fiscal year.
This is a technical budget amendment in the sense that it is not adding a budget, it is simply moving previously adopted budgets from one fund to another.
In addition, at the May 27th meeting, City Council approved a technical budget amendment in the General Fund (2100 Fund) related to the refunding of debt which occurred in April, but staff failed to include the part of that transaction which occurred in the Transit Services Fund. This technical amendment will correct that oversight. Pro(s):
Allows the City to budget for expenses related to Tropical Storm Helene response and recovery and be in compliance with NC General Statutes and Generally Accepted Accounting Principles.
Amends the Fiscal Year (FY) 2024-25 Transit Services Fund budget in order to ensure statutory budgetary compliance. Con(s):
None.
Fiscal Impact:
There is no net fiscal impact from this technical budget amendment.
As noted above, the Helene part of this technical amendment will simply move budgets from one fund to another. It is anticipated that Federal Emergency Management Agency (FEMA) reimbursements will cover the costs for all expenses.
For the Transit debt refunding, the amendment will reflect the receipt of refunding proceeds from the bank and the subsequent payment to pay off the prior debt issuance.
The North Carolina General Assembly created a $100 million cashflow loan program under the Disaster Recovery Act of 2024, which was passed on December 11, 2024.
The goal of the program is to help local governments whose communities were devastated by Tropical Storm Helene while they wait for federal money to arrive.
In late February, the City received notice that it was awarded a $2,791,793.35 Round 1 loan as part of this program, and City Council approved the Round 1 loan agreement in March.
On June 13th, the City received notice that it was awarded an additional $1,842,175.47 Round 2 loan.
The loan, which is not structured as a forgivable loan due to duplication of benefit concerns with Federal Emergency Management Agency (FEMA) funding, comes with a 0% interest rate and a five-year payback schedule.
To participate in the cashflow loan program Round 2, local governments must execute a loan agreement, promissory note, and other associated agreements with the State.
Staff is recommending approval of a resolution accepting this second round of loan funding from the State and authorizing the City Manager to execute necessary documents to participate in the loan program. Pro(s):
While the loan can’t be utilized to replace revenue that City lost due to Helene, it will help with overall cash flow and strengthen the City’s year-end balance sheet.
The State has indicated the possibility of multiple rounds of financial support so acceptance of this loan will help demonstrate to the State and other potential funders that there is a continued need for additional Helene-related assistance. Con(s):
None
Fiscal Impact:
As noted above, the City will receive approximately $1.8 million in cash from the loan to support Helene-related expenses incurred in the current fiscal year.
The loan is designed to be a cash flow bridge until FEMA reimbursements are received, which will then be used to pay back the loan.
Unlike the Community Disaster Loan (CDL) program, which allows funding to be used to maintain essential government services after a natural disaster, the funding from this State loan can only be used for Helene-related response expenses that will ultimately be reimbursed as part of the FEMA Public Assistance Program.
A municipal government is authorized to accept donations of personal or real property pursuant to North Carolina General Statute 160A-11.
The authority to accept these donations lies with the governing board unless and until this is delegated to City staff pursuant to North Carolina General Statute 160A-12.
During a review of City policies for an upcoming donation, City staff learned that the Council had not yet delegated the authority to accept donations to the City Manager, or a designee.
Until Council delegates the authority, as requested, all donations must be approved by the Council.
Community members, nonprofit organizations and businesses often make donations to the City and this is an important outlet for connecting donated resources to meet the needs of the City’s operations.
Donated funds can enable the City to take actions that would otherwise require expenditure of City funds.
By delegating this authority to staff, the process of accepting these donations will be streamlined, improving efficiency and easing the burden on City Council.
Donations of $90,000 or greater will require City Council approval.
Vendor Outreach Efforts:
Not applicable. Committee(s):
Not applicable. Pro(s):
Delegates authority to accept donations to the City manager or a designee which means that not all donations will require Council approval. Con(s):
None known.
Fiscal Impact:
No fiscal impact. Future donations can be added to the budget through a budget amendment or through the annual Budget Ordinance if needed.
The Biltmore Estate has been served by the City of Asheville Fire Department since 1995 and Haw Creek has been served by the City of Asheville Fire Department since 2009 through contracts with Buncombe County.
The Asheville Special Fire Protection and Rescue Service District of Buncombe County was established and created effective July 1, 2016.
It comprises the Biltmore Estate property, and portions of the Haw Creek District.
It is served by the Asheville Fire Department for fire protection, medical response, and rescue services.
The County levies a special tax in the District and appropriates those funds to the City of Asheville.
The taxes collected by the County from the District are paid to the City by the last day of each month in twelve equal monthly installments.
At the end of the fiscal year, the County reconciles the monthly payments made to the City and the actual amounts collected to make a final adjusted payment in July of the following fiscal year.
The current agreement with the County expires at the end of June 2025, and staff seeks approval of a new agreement with the County, effective July 1, 2025, that will run through the end of the current fiscal year. Committee(s):
Pro(s):
This contract provides revenue for the City of Asheville that is greater than the cost of services. Con(s):
None
Fiscal Impact:
The agreement will provide reimbursement for services provided to the County, which is budgeted in the FY2026 Special Revenue Fund.
Revenue from this agreement is included in the FY2026 Adopted Budget.
North Carolina is divided into seven geographical regions for the purpose of hazardous material emergency response.
The North Carolina Department of Public Safety contracts with municipalities across North Carolina to respond into the geographical regions and provide technician level hazardous materials emergency response.
The region's six areas encompass the westernmost twenty counties.
The City of Asheville has been a regional hazardous materials provider since Fiscal Year 1994-1995.
The State of North Carolina provides funding that fully supports the operational costs of the program.
The City is reimbursed at 100% of the costs expended when the team is deployed for a state mission.
The Asheville Fire Department wishes to renew the agreement for July 1, 2025
June 30, 2026.
Vendor Outreach Efforts:
N/A These services will be delivered internally by staff. Committee(s):
None Pro(s):
The State of North Carolina provides the hazardous materials response truck, all response equipment and provides for administrative costs of operating the team.
In addition, the state funds extensive training for members of the Asheville Fire Department to enable us to competently handle hazardous materials emergencies.
The City of Asheville has full use of the truck and all specialty equipment within the City of Asheville.
Without the state hazardous materials contract, Asheville taxpayers would need to provide much of the resources necessary to properly respond to emergencies within Asheville.
With the contract, the city has the advantage of the equipment and resources being funded at the state level, rather than at the local level.
During the 19 years that the City has provided regional hazardous materials response services, it has not experienced difficulties or disadvantages with the program. This program is also consistent with the City’s Strategic Operating Plan in partnership.
Firefighter and public safety will be enhanced. Con(s):
None Identified
Fiscal Impact:
There are no fiscal impacts that have been identified
AT THE ASHEVILLE HALF MARATHON 10K & 5k ON AUGUST 23, 2025 RESOLUTION NO. 25-139
RESOLUTION TO PERMIT THE POSSESSION AND CONSUMPTION OF MALT BEVERAGES AND/OR UNFORTIFIED WINE AT THE BOOMTOWN ARTS & HERITAGE FESTIVAL ON AUGUST 29-31, RESOLUTION NO. 25-140
RESOLUTION TO PERMIT THE POSSESSION AND CONSUMPTION OF MALT BEVERAGES AND/OR UNFORTIFIED WINE AT THE BLUE RIDGE PRIDE FESTIVAL ON SEPTEMBER 27, 20225
Background:
N. C. Gen. Stat. sec. 18B-300(c) authorizes the City by ordinance to regulate or prohibit the consumption and/or possession of open containers of malt beverages and unfortified wine on the public streets and property owned, occupied, or controlled by the City and to regulate or prohibit the possession of malt beverages and unfortified wine on public streets, alleys or parking lots which are temporarily closed to regular traffic for special events.
The City Council of the City of Asheville has adopted an ordinance pursuant to that statutory authority; and that ordinance, codified as Section 11-11 in the Code of Ordinances of the City of Asheville, provides that the City Council may adopt a resolution making other provisions for the possession of malt beverages and/or unfortified wine at a special event or community festival.
The following organizations have requested that City Council permit them to serve beer and/or unfortified wine at their events and allow for consumption at the events:
Asheville Downtown Association for the Independence Day Block Party to be held on July 4, 2025, on Coxe, Banks, and Buxton Avenues.
Sisu Running Foundation for the Asheville Half Marathon 10K & 5K to be held on August 23, 2025, at Pack Square Park.
LEAF Global Arts for the Boomtown Arts & Heritage FestAVL to be held on August 29
31, 2025, at Pack Square Park.
Blue Ridge Pride, Inc. for the Blue Ridge Pride Festival to be held on September 27, 2025, at Pack Square Park.
Alcohol boundaries are defined as per the accompanying event site maps. Committee(s):
None Pro(s):
Allows fundraising opportunities for the sponsoring nonprofit organization. Con(s):
None
Fiscal Impact:
This action requires no City resources and has no fiscal impact.
CODE OF ORDINANCES TO REINSERT SECTIONS 7-11-8 (c) (d), (e) AND (f) WHICH WERE INADVERTENTLY REMOVED DURING THE RECENT ZONING TEXT AMENDMENT ADOPTED IN ORDINANCE NO. 5127 ON MARCH 11, 2025 Principal Planner Will Palmquist said that this is the consideration of an ordinance to consider amendments to Chapter 7 of the Asheville Code of Ordinances, to reinsert sections 7-11-8(c), (d), (e), and (f) which were inadvertently removed during the recent zoning text amendment adopted in Ord. No. 5127 on March 11, 2025. This public hearing was advertised on June 13 and 20 , 2025. Background:
Ordinance 5127 was adopted on March 11, 2025 and amended portions of the Unified Development Ordinance (UDO) regarding project level thresholds, site compliance requirements, and new sidewalk construction requirements.
These changes to sidewalk requirements (UDO section 7-11-8) were intended to eliminate the requirement for new sidewalks when a building was vacant for a period of more than 180 days.
The ordinance re-adopted UDO section 7-11-8 in its entirety, but only included subsections 7-11-8(a) and (b), while inadvertently removing sections 7-11-8(c), (d), (e), and (f).
This proposed zoning text amendment will restore the sections removed inadvertently to what existed prior to the adoption of Ordinance 5127, while retaining the intended change to not require sidewalks when the use of a building has ceased for a period of more than 180 days.
Comprehensive Plan Consistency:
This proposal supports a number of goals in the Living Asheville Comprehensive Plan, including:
Make Streets More Walkable, Comfortable and Connected
by eliminating gaps in the city-wide sidewalk network.
Enhance the Safety of the Public Realm
by constructing pedestrian facilities that enhance pedestrian safety.
Fiscal Impact:
n/a.
Staff Recommendation:
Staff recommends approval of this zoning text amendment request based on the reasons stated above; the text amendment provided does not include the additional fee-in-lieu criterion proposed by the Planning & Zoning Commission because the City Attorney’s Office has concluded it would not be a legally permissible part of the conditional zoning process. Mr. Palmquist reviewed the background and proposed amendments as follows: (1) Ordinance 5127 was adopted on March 11, 2025 and amended portions of the Unified Development Ordinance (UDO) regarding project level thresholds, site compliance requirements, and new sidewalk construction requirements; (2) These changes to sidewalk requirements (UDO section 7-11-8) were intended to eliminate the requirement for new sidewalks when a building was vacant for a period of more than 180 days; (3) The ordinance re-adopted UDO section 7-11-8 in its entirety, but only included subsections 7-11-8(a) and (b), while inadvertently removing sections 7-11-8(c), (d), (e), and (f); and (4) This proposed zoning text amendment will restore the sections removed inadvertently to what existed prior to the adoption of Ordinance 5127, while retaining the intended change to not require sidewalks when the use of a building has ceased for a period of more than 180 days. He said that on June 4, 2025, the Planning & Zoning Commission (PZC) recommended approval (Vote 6:0) with the condition that an additional criterion for sidewalk fee-in-lieu eligibility be added to include instances where a conditional zoning application is seeking a technical modification to sidewalk construction and agrees to the payment of fee-in-lieu. He reiterated the pros and cons and how the amendment was consistent with the Living Asheville Comprehensive Plan. He said that staff concurs with the Planning & Zoning Commission and recommends approval of the proposed zoning text amendment. The text amendment provided does not include the additional fee-in-lieu criterion proposed by the Planning & Zoning Commission because the City Attorney’s Office has concluded it would not be a legally permissible part of the conditional zoning process. In response to Councilwoman Roney, City Attorney Branham said that the current City ordinance regarding sidewalks describes when sidewalks are required to be implemented as part of the development or provides the option to do a fee-in-lieu under certain circumstances. There are situations where sidewalks are not required and he believed the question was can the City ask for a fee-in-lieu where a sidewalk would not otherwise be required. When the ordinances do not require a sidewalk, asking an applicant to pay a fee-in-lieu would be beyond our legal authority. Vice-Mayor Mosley opened the public hearing at 5:36 p.m., and when no one spoke, she closed the public hearing at 5:36 p.m. Vice-Mayor Mosley said that members of Council have previously received a copy of the ordinance and it would not be read.
Community Development Division Manager James Shelton said that this is (1) a public hearing; (1) resolution authorizing the submission of the 2025-2029 Consolidated Plan and the 2025-2026 Annual Action Plan for the Community Development Block Grant Program (CDBG) and HOME Investment Partnerships Program (HOME) to the U.S. Department of Housing and Urban Development, as well as substantial amendments to previous Annual Action Plans; authorizing the City Manager to execute all documents necessary to give effect to this resolution; and (3) budget amendments in the amount of $1,022,202 for CDBG and $1,245,387 for HOME. This public hearing was advertised on June 13, 2025. Background:
The City of Asheville is an entitlement community and participating jurisdiction with the US Department of Housing and Urban Development and receives formula funding through the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME).
The City receives these allocations annually through a federal formula allocation process.
CDBG funds support housing and community development activities within the City of Asheville. HOME funds support affordable housing activities within the four-county Consortium region including Buncombe, Madison, Transylvania, and Henderson Counties.
All funded activities must meet the goals and priorities as outlined in the City’s Consolidated Plan 2025-2029.
In order to remain in compliance with HUD and to outline the CDBG & HOME priority needs and strategic goals, City Council must authorize the submission of the 2025-2029 Consolidated Plan
In order to access these funds for community development projects, the City Council will need to authorize staff to submit the FY25-26 Annual Action Plan to HUD, which will provide a concise summary of the projects and activities that will be used to address the priority needs and specific goals identified by the Consolidated Plan.
Also, staff are requesting authorization to submit substantial amendments to several projects from prior years’ Action Plans in order to effectively repurpose funding from projects that have not been realized.
On May 15, 2025 HUD released the 2025-2026 formula allocations for the CDBG and HOME programs.
The City was awarded $972,202 in CDBG funding and estimates $50,000 in Program Income and $15,000 in cancelled FY 24/25 funding. The total amount of CDBG funding available is $1,037,202.
The City was awarded $1,051,896 in HOME funding and has $193,490 in uncommitted Program Income. In addition, there is $200,000 of rescinded project funding available for a total of $1,445,386. Committee(s):
The Housing and Community Development (HCD) Committee reviewed this item at their meeting on Tuesday, June 17 and voted 3-0 approval to move forward to City Council.
Asheville Regional Housing Consortium Board
On June 11, 2025, the Consortium Board approved strategies and allocations for FY 25-26 HOME funding. Pro(s)
Approval of the Consolidated Plan and Annual Action Plan paves the way for HUD funding to be utilized by partners in the City of Asheville and the region, with funds to be used to create affordable housing and jobs and to make positive impacts in our low and moderate income communities. Con(s)
It is not always possible to fund all of the applications received, and many agencies funded will receive less than the requested amounts.
It is necessary to be strategic in project selection as CDBG funding for FY 2025-2026 has decreased from previous fiscal years.
Fiscal Impact:
The Annual Action Plan is fully funded from federal CDBG and HOME entitlement grants, unspent funds from prior-year allocations, and estimated program income.
Staff costs to administer the program are paid from federal sources.
The FY 2025-26 budgets for both the CDBG and HOME programs require budget ordinance amendments to be adopted by City Council.
The development of the 2025-2029 Consolidated Plan was funded through the Community & Economic Development contracted services account via the General Fund. Mr. Jacob Compher, Land of Sky Regional Council on behalf of the Community Development Division, provided the following key takeaways from his and Community Development Division Manager James Shelton’s presentation: (1) The Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs are U.S. Department of Housing & Urban Development funding opportunities that supports community development and affordable housing activities
Estimated available grant funding for 2025
2026
CDBG = $1,037,202; HOME = $1,745,386; and (2) Staff is seeking council’s approval of the 5 year Consolidated Plan, 2025
2026 CDBG Annual Action funding recommendations, and substantial amendments for approval by HUD. The purpose of the Consolidated Plan is that it describes needs and priorities for housing and community development activities for the next five years, strategies to be pursued, and performance targets to be achieved. The Guide on how HUD (Housing and Urban Development) funds will be distributed: The Consortium will receive $1,051,896.04 million HOME = HOME Investment Partnerships Program; and The City of Asheville will receive $972,202 CDBG = Community Development Block Grant. He reviewed the HOME funding uses and projects, along with some HOME project examples. He then explained the distribution of HOME funds; along with the CDBG funding uses and projects. He explained the plan process, the plan timeline, public surveys, and stakeholder meetings. He described the framework of organizations that will carry out the plan. Regarding the Asheville Region Housing Needs Assessment, Mr. Compher reviewed the determining needs and priorities; renter assistance priorities; homeowner/buyer assistance priorities; and homeowner/buyer assistance priorities. The recommendations are (1) Set realistic/attainable short-term housing goals… …that support the preservation and development of residential units; (2) Reassess, enhance leverage existing government housing incentives to encourage or support the preservation of existing housing and the development of new residential units; and (3) Explore and support housing policies, programs and incentives to support the preservation of existing housing and the development of new residential units… …initiatives should focus on those programs that support low-income households (seniors and families), workforce households, and first-time homebuyers. Mr. Compher then reviewed the 2020-2024 Consolidated Plan priorities. Regarding the CDBG & HOME funding recommendations, Community Development Division Manager James Shelton said the following chart contains the CDBG substantial amendments: 2024
2025 Action Plan Original Funded New Funded Project Amount Amendment Amount Cancel project and allocate Fair Housing $15,000 funding to FY 25/26 projects $0 Cancel project and move funding to Homeward Bound Technical Assistance $24,000 Coordinated Entry $0 Homeward Bound of WNC
Add $24,000 for new budget line Coordinated Entry $37,900 item for “Contracted Services” $61,900 For the 2025-2026 CDBG funding, the funding available is: Estimated CDBG Funding FY 25/26 Allocation $ 972,202 Estimated Program Income $ 50,000 Cancelled 2024
2025 Funding Available $ 15,000 Total $ 1,037,202 Available to Award Public Services Cap 15% $ 155,580 Planning & Admin Cap 20% $ 207,440 Available for Non-Public Services $ 674,182 Total $ 1,037,202 Funding recommendations will be based on: (1) Clearly demonstrating CDBG eligibility and community need; (2) Organizational capacity as demonstrated by prior effective use of funds and historical performance; (3) Funding fewer activities at higher amounts to reduce administrative burden
Staff continue to contribute significantly to Helene recovery efforts on top of regular duties; (4) Allocating remaining Non-Public Services dollars for public facility investments (i.e. community centers, infrastructure); (5) Maintain strategic cushion below the 15% Public Services; and (6) Maintain 20% Planning and Administration funding necessary to manage the CDBG Program. The CD Division met HUD’s timely drawdown of funds requirement for the first time in 4 years this year. Regarding public services funding recommendations, the below allocations were unanimously approved by the Housing and Community Development (HCD) committee on 6/17/2025: Amount Funded Applicant Description Requested Amount Appalachian Mountain Community Resource Advocates to connect $87,464 $12,000 Health homeless with services Domestic Violence Intervention Program (DVIP) SPARC Foundation $24,999 $20,000 and Strong Fathers Individual counseling and group workshops for OnTrack $39,000 $28,000 financial literacy Pisgah Legal Legal assistance to prevent homelessness $60,000 $37,000 Helpmate Emergency Salary and benefits for our Shelter Case $72,174 $38,000 Shelter Manager/Facilities Manager $135,000 Total Funded Amount (13.0%) Regarding non-public services funding recommendations, the below allocations were unanimously approved by the Housing and Community Development (HCD) committee on 6/17/2025: Amount Applicant Category Description Funded Amount Requested Housing case management Helpmate Housing Services $65,000 $65,000 services Homeward Bound Rental Assistance Rapid Rehousing $144,364 $144,364 of WNC Microenterprise Business coaching, classes Mountain BizWorks $154,000 $154,000 Assistance and business assistance Sprinkler system for code Safe Shelter Public Facilities $185,000 $185,000 compliant bed expansion Contingency for public facilities City of Asheville Public Facilities
$146,398 and improvements Total Funded Amount $694,762 The chart below shows the 2025-26 HOME funding: Estimated HOME Funding FY 25/26 Allocation $ 1,051,896 Uncommitted Program Income $ 193,490 Rescinded Project Funding Available $ 500,000 Total $ 1,745,386 Available to Award CHDO Operating Reserve
5% of Allocation $ 52,595 Planning & Admin Cap
10% of Allocation $ 105,189 Available for Projects $ 1,587,602 Total $ 1,745,386 Below are charts for the substantial amendments for HOME: 2023
2024 Action Plan Original Funded New Funded Project Amount Amendment Amount Cancel project and add $300,000 to HAC-Apple Ridge LDG Development
Meribel and $200,000 to FY25/26
HOME $500,000 programs $0 2021
2022 Action Plan New Original Funded Funded Project Amount Amendment Amount Asheville Buncombe Change activity to be only for $202,500 Community Land Trust $202,500 home repair (no change) Permanently Affordable Homes
HOME 2020
2021 Action Plan Original Funded New Funded Project Amount Amendment Amount Asheville Buncombe Community Land Trust Permanently Affordable Change activity to be only for $59,463 (no Homes
HOME $59,463 home repair change) Regarding the HOME Program funding, the Asheville Regional Housing Consortium (HOME Consortium/ARHC) unanimously approved the below funding allocations on 6/11/2025: Project Description Funded Amount Assistance to Community Housing Development CHDO Operating Reserve Organizations (CHDOs) for operations (5% of $52,595 allocation) City of Asheville HOME staff salaries and planning Planning and Administration $105,189 costs (10% of allocation) Tenant Based Rental Funding for security deposits, monthly rent, and $300,000 Assistance (TBRA) utility assistance Additional funding to existing new affordable rental HAC
Apple Ridge housing construction project that was previously $300,000 awarded $600,000 (non-substantial amendment) Down Payment Assistance Assistance to homebuyers for purchasing a home $400,000 (DPA) Rehabilitation of owner-occupied single family Homeowner Rehabilitation $587,602 housing units Total Funded Amount $1,445,386 Mr. Shelton said the next steps are that City Council approves submission to HUD of: 2025
2029 Consolidated Plan; 2025
2026 Annual Action Plan; and Substantial Amendments. Staff submits plans and amendments to HUD by July 13, 2025. Vice-Mayor Mosley opened the public hearing at 5:51 p.m., and when no one spoke, she closed the public hearing at 5:51 p.m. Vice-Mayor Mosley said that members of Council have previously received a copy of the resolution and ordinance and they would not be read.
The project scope consists of resurfacing 21 streets for a total of 4.32 miles and upgrading of 26 ADA ramps in the work zone.
An inventory of the streets was provided..
The project was advertised on April 25, 2025, and bids were opened on May 15, 2025.
Work is anticipated to start September 1, 2025.
The following bids were received: Tarheel Paving and Asphalt, Inc. of Hendersonville, NC $1,850,118.10 French Broad Paving, Inc. of Marshall. NC $2,143,558.00 APAC-Atlantic, Inc., Asheville Division of Asheville, NC $3,857,947.45
Vendor Outreach Efforts:
Staff performed outreach to minority- and women-owned businesses through solicitation processes which include posting on the State’s Interactive Purchasing System and requiring prime contractors to reach out to Minority & Women-Owned Business Enterprise (MWBE) service providers for subcontracted services.
Staff also checked the NC Historically Underutilized Business and NCDOT MWBE databases for potential contractors along with the City of Asheville ABI database.
Two companies from an identified disparity group (Black American and Native American) were found in the ten-county area and staff directly contacted those companies.
Neither company submitted a bid.
Two women-owned businesses were also directly contacted and neither company submitted a bid.
One woman-owned company (Appalachian Paving and Concrete of Swannanoa, NC) will be operating as subcontractor on the project.
Tarheel Paving and Asphalt anticipates expending 18.0 percent of the total dollar amount of the contract with this company. Pro(s):
The award of this contract will result in the resurfacing of 4.32 miles of City streets.
ADA ramps in the work zone will be upgraded. Con(s):
Construction will cause temporary disruptions in the impacted neighborhoods.
Fiscal Impact:
Funding for this contract is provided in the Fiscal Year 2025 Streets Program.
The Sanitation Division and their contractor(s) provide waste collection services on private roads within City limits.
Chapter 15 Solid Waste Management of the City’s Code of Ordinances currently does not define the parameters within which private roads may be serviced.
A Private Road Agreement between the City and the owners of the road is generally required in order for the City (or their contractors) to provide service on privately owned roads.
In order to align with state law, and in collaboration with the City’s Legal and Risk personnel, the Private Road Agreement was revised, and language defining the parameters within which private roads may be serviced will be added to Chapter 15 Solid Waste Management, specifically, a new subsection will be added to Section 15-39(a)(5).
The new ordinance language will clarify that, if the Public Works Department is asked to provide solid waste collection services along a private road, and determines in its sole discretion that it is feasible to provide such services along the private road, it shall be the affirmative obligation of the owner of the road to keep it in a state of good repair, and free from any and all obstructions.
No substantive changes are being made to waste collection services; the City is simply revising the ordinance to align with practice and state law. Pro(s):
Clarifies and codifies City practice regarding the practice of waste collection on private roads. Con(s):
The City is preparing to implement a sidewalk project along Patton Avenue between Druid Drive and Louisiana Avenue.
In 2021, NCDOT requested the City include concrete curb and gutter as part of the City’s design and construction project, and entered into a funding agreement with the City for reimbursement of said curb and gutter installation. The reimbursement from NCDOT to the City was in an amount not to exceed $90,000.00.
On January 25, 2022, the City Council approved Resolution No. 22-16 authorizing the City Manager to enter into the requested Funding Agreement with NCDOT.
The project was bid twice in May 2023, but received no interested bidders. Staff decided not to move forward with the project at that time.
The project was successfully rebid in March 2025, and the City awarded the contract to the lowest, responsive, responsible bidder (Appalachian Sitework Inc; 04/08/2025; Resolution No. 25-78).
The cost for curb and gutter has increased in the three years since the original NCDOT funding agreement was approved. City Staff and NCDOT have agreed to enter into a new funding agreement with a higher cost reimbursement in the amount of $150,000. Committee(s):
None Pro(s):
NCDOT will reimburse the City for the cost of the additional curb and gutter requested by NCDOT, including the City's project management overhead costs.
Fiscal Impact:
Funding for this contract is included in the adopted Capital Improvement Program (CIP).
The Funding Agreement with NCDOT will benefit the City up to $150,000 of construction cost.
Charlotte Street is a busy, frequently traveled north / south route, connecting north Asheville through the edge of downtown.
Several multi-family housing units located off of Martin Luther King, Jr. Drive (MLK) have been developed over the past few years, increasing the amount of traffic turning from MLK onto S. Charlotte Street, and increasing the pedestrian traffic needing to cross at the intersection.
In order to provide safe vehicular and pedestrian turning and crossing, the City of Asheville engaged traffic engineering firm Ramey Kemp Associates to provide construction documents for traffic and pedestrian signal pole installation at the intersection.
Construction is expected to start in late 2025 or early 2026 as the signal poles have a long leadtime, typically 6-9 months.
Vendor Outreach Efforts:
Staff performed outreach to minority and women owned businesses through solicitation processes which include posting a bid for construction on the NC electronic Vendor Portal (eVP) and requiring prime contractors to reach out to Minority & Women-Owned Business Enterprise (MWBE) service providers for subcontracted services.
Two bids were received. No MWBE service providers submitted bids. The following companies submitted bids:
Haynes Electric Utility, a division of MB Haynes Corporation of Asheville, NC for $399.350.00
Stansell Electric Company of Nashville, TN for $473,250.00 Committee(s):
None Pro(s):
Adding traffic signals at this intersection will provide safer, more consistent turning for vehicles during the heaviest traveled times including morning and evening rush hour and Asheville Tourists games.
Adding pedestrian signals at this intersection and safe, consistent crossing for pedestrians, especially during heavily traveled times like the Asheville Tourists games Con(s):
Impacts to the community during construction
Fiscal Impact:
Funding for this contract is already included in the Transportation Capital Improvement Program (CIP).
Through the Elective Pay program the Internal Revenue Service (IRS) allows tax-exempt and governmental entities to claim clean energy tax credits.
The IRS required the City, as a non tax entity, to define our “tax year” which was determined to be the fiscal year.
In fiscal year 2024 (July 2023
June 2024), the City placed the following assets in service: four Ford Lightning electric vehicles and one 62kW photovoltaic system at Broadway Public Safety Station.
The eligible tax credit amount is $59,098.
Tax credit funds received will be deposited into the Green Savings Fund for future reinvestment in clean and renewable energy projects and purchases.
The Elective Pay program was enabled through the Inflation Reduction Act and is subject to change.
Staff will continue to monitor this opportunity and pursue clean energy tax credits using Elective Pay for eligible projects. Committee(s):
None Pro(s):
Ongoing investment in clean and renewable energy projects supports implementation of the Municipal Climate Action Plan, specifically high impact activities #1 “Continue Installation of Renewable Energy Resources on Municipal Property and # 12 “Utilize Green Fleet Policy for Fleet Electrification”. Con(s):
N/A Fiscal Impact::
Tax credit funds will offset the cost of future clean and renewable energy assets investment.
N.C. Gen. Stat. § 20-141 gives the City the authority to regulate speed limits within its corporate limits.
City staff received requests from constituents to consider changes to speed limits.
City staff performed appropriate traffic engineering reviews along fifteen streets where speed limit changes are recommended within the Burton Street Neighborhood.
The speed limit on the following streets will be set at 20 miles per hour:
Atlanta Avenue
Baker Avenue
Boyd Avenue
Bryant Street
Buffalo Street
Clay Street
Downing Street
Edgar Street
Fayetteville Street
Ivy Street
Mardell Circle
Martin Avenue
Ohio Street
Saratoga Street
Texas Street
Safety concerns have been raised about speeding in the Burton Street Neighborhood.
A strategy to promote consistent speed limits is part of the adopted Burton Street Neighborhood Plan.
More than half of the public streets within the Burton Street Neighborhood do not have a speed limit assigned in City Code.
The speed limit changes are recommended in order to establish lower, safer speed limits that are consistent with the context of these streets.
A consistent 20 mph speed limit is recommended for public streets internal to the Burton Street Neighborhood that do not currently have a codified speed limit, along with three other residential streets that are currently codified for 25 mph.
The Asheville Police Department has reviewed the subject actions and they concur with them.
Once the subject action is approved and prior to the installation of appropriate signs on the City-maintained streets, Transportation Department staff will coordinate outreach and public education with the Communication & Public Engagement Department (CAPE) and the Asheville Police Department.
Subpart A, Article II, Section 18 of the City of Asheville’s Charter requires revising or amending ordinance sections by repealing the original ordinance sections completely and replacing them with revised or amended ordinance sections.
Staff is therefore requesting a repeal and replacement of the relevant ordinance sections to accomplish these speed limit changes.
A short version of the ordinance changes is included with this staff report. Committee(s):
MMTC
not presented due to no scheduled meetings.
The speed limit consistency approach for the Burton Street Neighborhood was presented at the May 8, 2025 City Council Briefing Pro(s):
City staff have been able to respond favorably to constituent requests.
Provides a more appropriate posted speed limit in commercial and residential areas.
Provides more appropriate posted speed limits for pedestrians, transit, and bicycle riders. Con(s):
None
Fiscal Impact:
The cost of installing and maintaining speed limit signs is included in the Transportation Department operating budget.
Affordable Housing Officer Sasha Vrtunski said that this is the consideration of a resolution approving of a $250,000 grant for the purchase of 32 Grail Street and 32 Olive Street by the Asheville Buncombe County Land Trust (ABCLT) to allow the homes to be sold to qualifying households at or below 80% AMI and be permanently affordable. ABCLT Background
The Asheville Buncombe Community Land Trust (ABCLT) was formed as the result of a series of community conversations that started in 2015 around building permanently affordable housing created and directed by the community.
In 2017, City Council allocated $1 million of the $25 million affordable housing bond dollars to the ABCLT to produce affordable homes.
The ABCLT formed a board, created policies, and ultimately received its non-profit status in 2019. Use of the 2016 Bond Funds
In 2021, the ABCLT and the City signed an agreement for the $1 million of bond funds to produce eight (8) permanently affordable homes.
Since then, the ABCLT has used those funds to purchase four homes and two parcels of land for future homes.
Proceeds from home sales are recycled into future purchases.
In general, home acquisition and rehabilitation costs have risen dramatically over the past five years, with the median sales price almost doubling since 2020.
This has forced ABCLT to use more resources for each home purchased. Property Purpose Funds Spent 401 Caribou Affordability gap $83,641 26 Hildebrand Affordability gap $209,969 90 Wyatt Acquisition* $50,000 94 Wyatt Acquisition* $50,000 173 Fayetteville Acquisition* $310,000 41 Grail Acquisition* $315,000 Total Spent $1,018,610 Although the funds are drawn down in acquisition, a CLT proforma is determined by funding the ‘affordability gap’ of the homeowner. Acquisition funds are recycled until they are all applied to an affordability gap when the home is sold. 32 Grail Street Background
In 2021, an Opportunity Zone investor bought the house at 32 Grail Street, an adjacent lot, and Cappadocia Church, with plans to demolish the house and the church.
The Preservation Society of Asheville and Buncombe County (PSABC) purchased the property in 2022 with input and support from the neighborhood.
The 1910 house needed many major repairs and would have typically been demolished because of its condition.
1,600 sq ft 4-bed, 2-bath home, built around 1910, down the street from Stephens-Lee.
Purchased by the Preservation Society for $200k, with $475k invested for rehabilitation.
Rehabilitation has included restoring all original doors, period-appropriate front stairs, foundation repairs, new roof, and HVAC system.
ABCLT is ready to purchase the home for $350,000 and sell to a qualifying family for $200,000, with a deed restriction to ensure permanent affordability. 32 Olive Street Background
The home was built in 1922 in the Southside Neighborhood.
Mountain Housing Opportunities (MHO) received this home from WNC Housing, a housing non-profit organization that no longer exists.
MHO is selling the home to ABCLT for $200,000, below the market price.
After acquiring the property, ABCLT will make the necessary renovations and then sell it to a qualifying family for $185,000, with a deed restriction to ensure permanent affordability. Funding Request
The Asheville Buncombe Community Land Trust is requesting $250,000 to help fill the gaps for two home purchases in Legacy Neighborhoods.
$206,500 for 32 Grail Street
$43,500 for 32 Olive Street
Both homes will be sold to qualifying home buyers at very affordable prices: 32 Grail at $200,000 and 32 Olive Street $185,000.
By ABCLT policy, qualifying home buyers must have incomes at or below 80% AMI, however the average income of existing ABCLT homeowners is 55% AMI.
The Preservation Society is contributing $100,000 towards 32 Grail Street.
ABCLT is pursuing additional funds for both homes from other sources. Project Financing 32 Grail Street: Development Costs Acquisition (by Preservation Society) $200,000 Additional Development Costs (Rehabilitation) $506,000 Total Development Cost $706,000 Development Income Sales revenue (Purchase price for new homeowner) $200,000 City Funds $124,500 Requested City Funds $206,500 PSABC contribution $100,000 Grants submitted $75,000 32 Olive Street: Development Costs Property Purchase Price $200,000 Rehabilitation Price $103,500 Total Costs $303,500 Funding Sources Sales Revenue (purchase price) $185,000 Requested City Funds $43,500 Grants submitted $75,000 $303,500
Council Goals:
An Equitable and Diverse Community
A Well-Planned and Livable Community
Quality Affordable Housing
Fiscal Impact:
Approval of the $250,000 grant would be sourced from the 2016 bond funds, and would decrease funds available in the Housing Trust Fund, leaving a balance of $1,320,000. Committee(s):
The Housing and Community Development (HCD) Committee reviewed this item at their meeting on Tuesday, June 17 and voted 2-1 to move forward to City Council. Pro(s):
Both homes will be permanently affordable and located in high-opportunity areas, both extremely close to downtown.
Meets the City’s stated goals of anti-displacement, preserving naturally occurring affordable housing, and partnering with local agencies and neighborhoods to do so.
Both projects preserve historic homes in neighborhoods that lost many historic homes through urban renewal. Con(s):
The request for 32 Grail Street is a substantial investment for a unit serving only one low-income household at a time.
The City funds will not totally fill the gaps on these two projects, and additional funds will still be needed.
Staff Recommendation:
Staff recommends awarding the Asheville Buncombe Community Land Trust (ABCLT) a $250,000 grant from the 2016 bond to fund homes at 32 Grail Street and 32 Olive Street. These homes will be permanently affordable and sold to qualifying households at or below 80% AMI. Ms. Vrtunski said that the following are the key takeaways from her presentation: (1) The Asheville Buncombe Community Land Trust is requesting $250,000 to help fill the gaps for two home purchases in Legacy Neighborhoods; (2) The ABCLT is the only community land trust in the region and creates permanently affordable housing for qualifying households. This requires more investment than typical affordable housing programs; (3) These projects fall under the Affordable Housing Plan goals of funding anti-displacement work, building community partnerships, and preserving naturally occurring affordable housing; and (4) If approved, the $250,000 grant would be funded from 2016 Bond funding. She explained how the Community Land Trusts work noting (1) Land owned by a CLT is taken out of the private real estate market and is community owned; (2) Homeowners are able to build equity and may move into the private market if they choose to buy a different home; and (3) A CLT home is inheritable asset providing for generational wealth-building. The ABCLT background is that (1) The ABCLT formed as the result of a series of community conversations that started in 2015 around building permanently affordable housing created and directed by the community; (2) In 2017, City Council allocated $1 million of the $25 million affordable housing bond dollars to the ABCLT to produce affordable homes; (3) ABCLT formed a board, created policies and ultimately received its non-profit status in 2019; (4) In 2021, the ABCLT and the City signed an agreement for the $1 million of bond funds to produce eight (8) permanently affordable homes; (5) Since then, the ABCLT has used those funds to purchase four homes and two parcels of land for future homes; and (6) Proceeds from home sales are recycled into future purchases. The following chart is the ABCLT use of 2016 Bond funds: Property Purpose Funds Spent 401 Caribou Affordability gap $83,641 26 Hildebrand Affordability gap $209,969 90 Wyatt Acquisition* $50,000 94 Wyatt Acquisition* $50,000 173 Fayetteville Acquisition* $310,000 41 Grail Acquisition* $315,000 Total Spent $1,018,610 Although the funds are drawn down in acquisition, a CLT proforma is determined by funding the homeowner’s affordability gap. Acquisition funds are recycled until they are all applied to an affordability gap when the home is sold. In general, home acquisition and rehabilitation costs have risen dramatically over the past five years, with the median sales price almost doubling since 2020. This has forced ABCLT to use more resources for each home purchased. The funding request is (1) The Asheville Buncombe Community Land Trust is requesting $250,000 to help fill the gaps for two home purchases in Legacy Neighborhoods
$206,500 for 32 Grail Street; and $43,500 for 32 Olive Street; (2) Both homes will be sold to qualifying home buyers at very affordable prices: $200,000 for 32 Grail and $185,000 for 32 Olive Street; (3) By ABCLT policy, qualifying home buyers must have incomes at or below 80% AMI, however the average income of existing ABCLT homeowners is 55% AMI; (4) The Preservation Society is contributing $100,000 towards the cost of 32 Grail Street; and (5) ABCLT is pursuing additional funds for both homes from other sources. She then showed a map of the two locations: 32 Grail Street in the East End/Valley Street area; and 32 Olive Street in the Southside neighborhood. The background of 32 Grail Streets is (1) In 2021, an Opportunity Zone investor bought the house at 32 Grail Street, an adjacent lot, and Cappadocia Church, with plans to demolish the house and the church; (2) The Preservation Society of Asheville and Buncombe County (PSABC) purchased the property in 2022 with input and support from the neighborhood; and (3) The house, built in 1910, needed many major repairs and would have typically been demolished because of its condition. The rehabilitation summary is (1) 1,600 sq ft 4-bed, 2-bath home, built around 1910, down the street from Stephens-Lee; (2) Purchased by the Preservation Society for $200k, with $475k invested for rehabilitation; (3) Rehabilitation has included restoring all original doors, period-appropriate front stairs, foundation repairs, new roof and HVAC system; and (4) ABCLT is ready to purchase the home for $350,000 and sell to a qualifying family for $200,000, with a deed restriction to ensure permanent affordability. The background of 32 Ollive Street is (1) Home built in 1922 in the Southside Neighborhood; (2) Mountain Housing Opportunities (MHO) received this home from WNC Housing, a housing non-profit organization that no longer exists; (3) MHO is selling the home to ABCLT for $200,000, which is below the market price; and (4) After acquiring the property, ABCLT will make the necessary renovations, then sell it to a qualifying family for $185,000, with a deed restriction to ensure permanent affordability. The sources and uses of 21 Grail Street are as follows: Development Costs Acquisition (by Preservation Society) $200,000 Additional Development Costs (Rehabilitation) $506,000 Total Development Cost $706,000 Development Income Sales revenue (Purchase price for new homeowner) $200,000 City Funds $124,500 Requested City Funds $206,500 PSABC contribution $100,000 Grants submitted $75,000 $706,000 The sources and uses of 32 Olive Street are as follows: Development Costs Property Purchase Price $200,000 Rehabilitation Price $103,500 Total Costs $303,500 Funding Sources Sales Revenue (Purchase price for new homeowner) $185,000 Requested City Funds $43,500 Grants submitted $75,000 $303,500 She then went over a chart of the detailed costs for 32 Grail Street
total as of June 18, 2025 is $470,202.88. Ms. Vrtunski then reiterated Council goals; fiscal impact; and pros and cons. Staff then recommended Council (1) award a grant of $250,000 from the 2016 bond to the Asheville Buncombe Community Land Trust (ABCLT) to fund homes at 32 Grail Street and 32 Olive Street. These homes will be sold to qualifying households at or below 80% AMI and be permanently affordable; and (2) approve a $250,000 grant to the Asheville Buncombe Community Land Trust to fund the purchase of 32 Grail Street and 32 Olive Street for permanently affordable homeownership to qualifying households. In response to Councilwoman Ullman, Ms. Vrtunski said that if the ABCLT does not get the additional grants, the City will not disburse the funds until everything is ready to close. Councilwoman Roney said that she had the opportunity to visit 32 Grail Street again this week, it’s just around the corner from and housed faculty members of the historic Stephens-Lee school that is now a community center in East End/Valley Street and was anticipated for demolition due to being in such bad disrepair. Protecting vulnerable neighborhoods from gentrification can include: Investing in property repair and preservation; Securing affordability; Partnerships with neighborhoods and non-profits; Place-making, historic designation, and preservation of cultural identity; and Multigenerational families and/or businesses staying or being able to return. Along with preservation and adding to our small but growing ecosystem of permanently affordable housing, these are among the reasons she is thrilled that these properties in East End/Valley Street and Southside are on our Council agenda tonight! Grail Street also represents a first partnership between The Preservation Society of Asheville & Buncombe County and Asheville-Buncombe Community Land Trust, and she hoped there’s more partnerships to come. Four individuals were very supportive of the City approving a grant for the purchase of 32 Grail Street and 32 Olive Street by the Asheville-Buncombe County Land Trust. Vice-Mayor Mosley felt this was an excellent opportunity for the rehabilitation of these two structures. Vice-Mayor Mosley said that members of Council have been previously furnished with a copy of the resolution and it would not be read.
Affordable Housing Officer Sasha Vrtunski said that this is the consideration of a resolution approving a Development and Lease Agreement with Laurel Street Residential LLC for the development of mixed-income and affordable housing at 319 Biltmore (3 & 4 John Walker Avenue) and allocate funding for the affordable units. Background:
As part of the affordable housing bond initiative, the City began the development of City-owned land for affordable housing in 2018.
The City hired Lord Aeck Sargent (LAS) to conduct a site suitability assessment for City-owned properties. LAS presented their final report to the City Council in December of 2018. That study recommended that the 319 Biltmore site include housing for a mix of incomes.
In winter 2020, the City released a request for proposals (RFP) for the development of the 319 Biltmore property. Nine proposals were received, and Homes Urban was selected as the top-ranked firm. Following the scoring process, the City initiated negotiations with Homes Urban.
In February 2022, Homes Urban withdrew its proposal. The City then approached Laurel Street Residential (LSR), the second-ranked firm.
The City signed a Letter of Intent with LSR on February 21, 2022, and began negotiating terms of an agreement.
In August 2022, City Council approved a purchase and sales agreement for Laurel Street Development to construct a mixed-income development. This development included:
Total of 221 units in 2 buildings (originally 215, but updated to 221 with the zoning approval)
30% of the units would be affordable, 20% at 60% AMI, 10% at 80% AMI
Affordability period of 30 years
No additional funding for the affordable units, beyond the value of the land.
In August 2022, City Council approved Resolution No. 22-184 authorizing the sale of the city-owned property located at 319 Biltmore Avenue to Laurel Street for the above-described affordable housing development. Private negotiation of the sale was authorized pursuant to NCGS §157-9 because it was agreed that the proposed development would contain at least 20% of the units affordable to households at 60% AMI and below for a period of at least 30 years.
In June 2023, City Council approved Conditional Zoning (Ordinance No. 5024) for the site (RES-EXP CZ).
In January 2024, Laurel Street (LSR) applied for a County Affordable Housing Services Program loan; funding was not approved until May 2024.
During 2024 and 2025, LSR has continued to work on its plans.
In Fall 2024, LSR approached City staff to collaborate on a revised proposal to meet City expectations. 319 Biltmore: Updated Proposal Summary Entire Project: 221 units
Phase I
109 units with 33 project-based vouchers
Phase II
112 units
4% LIHTC
162 units (73% of total) are affordable
29% of total units serve those at 30% AMI
Ground lease up to 99 years
40-year affordability period
Ground Lease rather than Purchase—At the end of the 99-year lease, the Land and buildings will revert to the City. Phase I Specifics (3 John Walker Avenue):
$3,000,000 City Housing Trust Fund loan (from the current balance of $1.57M and new bond funds)
Up to $100,000 Tax Grant/year for 20 years.
Start construction in 2026 Phase II Specifics (4 John Walker Avenue):
$7 million gap to be filled by other sources (City/State CDBG-DR)
Up to $100,000 Tax Grant/year for 20 yrs
No HTF funds
Start construction in late 2026/early 2027 Project Timelines Distribution of Units by Income 30% AMI 60% AMI 80% AMI Market Total Phase I 33 0 17 59 109 Phase II 31 46 35 0 112 Total 64 46 52 59 221 Total % of units 29% 21% 23% 27% 100% Current Context for Affordable Housing Development
Development costs are increasing, markets are uncertain, and the new Federal budget could cut HUD funding.
Even with the new Affordable Housing Bond dollars, there are not enough resources to fund new projects without additional subsidies from other sources.
City CDBG-DR and State CDBG-DR funds will be crucial to making housing projects viable.
Over the past five or more years, the City and County have often been co-funders of affordable housing projects. In some cases, the funding was close to equal, and in other cases, the County took a larger role.
Buncombe County has expended most of their bond funds and will likely use the remaining dollars for the projects on County-owned Land (e.g. Coxe Ave). The new County budget, similar to the City budget, does not have general fund allocations to affordable housing in FY 26. Usually several million dollars of the County’s budget is dedicated to affordable housing projects.
The County’s changed role, combined with the City’s CDBG-DR funds, means that the source of subsidy and decision-making will shift to the City in large part, and also include the State for projects starting in 2025 and moving forward.
Staff has compiled a comparison of projects to understand the role of public dollars in bringing affordable housing to fruition. Project Comparison To understand whether the proposed funding request is a good deal for the City, staff gathered information about several projects that have been recently funded or are being considered for funding. In the table below, there are two 9% LIHTC projects, one 4% LIHTC project, and one project that incorporates both types of tax credit deals. Coxe Ave (Bunc Co) Pine Lane Fairhaven 319 Biltmore (both 4% and Apts (4% Summit Starpoint (Mixed income 9% LIHTC) LIHTC) (9% LIHTC) (9% LIHTC) & 4% LIHTC) Affordable units 206 units 126 units 77 units 60 units 162 units Estimated Funding Sources (loans, tax equity, fees) $57,700,000 $38,383,761 $21,226,548 $13,693,541 $60,193,716 Public Funding/Gap $16,800,000 $10,397,065 $3,117,000 $2,401,420 $15,700,000* Total Development Cost $74,500,000 $48,780,826 $24,343,548 $16,094,961 $70,193,716 Public Funding as % of total (City, County, Fed) 22.55% 21% 12.80% 15% 22.37% Per unit Total Cost (all units) $361,650 $387,149 $316,150 $268,249 $317,619 Subsidy per Affordable unit $81,553 $82,516 $40,481 $40,024 $96,914* Coxe Avenue estimates do not include the cost of land, nor tax exemption as part of the subsidy LUIG/Tax Exemption for Coxe Avenue, Fairhaven Summit, and 319 Biltmore is not included in the subsidy shown. Without the land used as a subsidy, the subsidy per affordable unit for 319 Biltmore is $61,728. Comparison Highlights
When compared to other projects, 319 Biltmore aligns with them, especially larger 4% developments.
Similar or lower cost per unit
A similar percentage of public subsidy is needed overall
319 Biltmore subsidy estimate includes the cost of land.
Without the land, the subsidy per unit is $61,728
The most relevant comparable development is the County’s project at Coxe Avenue, and subsidy levels are in line with those projections. Analysis Summary
Construction costs have escalated dramatically since 2022.
Phase I will cost more for the City in the short term, but allows the project to move forward, and LSR to work on the LIHTC portion (Phase II), which will not have additional City bond or Housing Trust Fund monies.
The new proposal provides more units of affordable housing than the previous proposal.
LSR is an experienced, qualified developer and is ready to proceed once City financing is approved.
The land lease structure means that at the end of the lease, the land and improvements (buildings) will revert to the City’s ownership.
Following TS Helene and the resulting reduction in both affordable and market-rate housing stock, it is essential that the City maintain progress on the affordable housing pipeline to mitigate further damage to the market.
Fiscal Impact:
Approval of a Development and Lease Agreement will obligate the City to lease the land to LSR for 99 years.
Deal approval would allocate $3 million of Housing Trust Fund/ Affordable Housing Bond funds to the project through a loan with a 20-year term and 2% interest only through cash flow.
Approval of the deal includes tax grants for both parcels, for up to $100,000/year for 20 years.
The project will very likely apply for CDBG-DR funds for multifamily construction through the City and the State of NC. Committee(s):
The Housing and Community Development (HCD) Committee reviewed this item at their meeting on Tuesday, June 17 and voted 3-0 approval to move forward to City Council.
Pros:
The City will gain approximately 162 new affordable housing units for a period of 40 years.
Approval of the proposal will allow the developer to proceed with Phase I, which will start construction in Q1/Q2 of 2026. It will also allow the developer to proceed with Phase II and begin preparing the Low-Income Housing Tax Credit application.
Staff has worked with an experienced consultant who has confirmed this is an advantageous deal for the City and the community.
The proposal is in line with other current projects regarding subsidies and costs.
The ground lease means that the land and buildings will come back to the City and be available for rehabilitation or redevelopment at that time.
Cons:
Funds used for 319 Biltmore will not be available for other projects.
The deal structure means that the City is putting HTF funds up front when the majority of the affordable units are in Phase II.
The project will need additional funds for Phase II. Those funds will not come from City tax dollars, but likely from Federal resources (CDBG-DR). The CDBG-DR funding process will be competitive. Staff Recommendation: Staff recommends approval of the development proposal which includes: a 99-year lease for City owned Land, 40 year affordability, $3M gap funding at 2% interest only from cashflow for 20 yrs, and a 20-year tax grant as a reimbursement of City portion of property tax paid for each of the two parcels in the development.
The HTF gap funding request will help close a funding gap due to cost escalation as a result of current market conditions and hurricane impact.
The total public subsidy needed for the project is in line with comparable developments.
Phase I has 50 affordable units (including 33 units serving those at 30% AMI), and can be started and be placed in service at the end of 2026/early 2027.
The total number of affordable units planned for Phase I and II (50+112=162) is 2.5 times the original 66 units approved in 2022.
Phase I doesn’t rely on 4% tax credits, and will therefore get under construction much faster.
Mixed-income development adjacent to Maplecrest Apartments aligns with the initial vision for the property.
Complies with Policies for Implementing Affordable Housing on City-owned Land.
Provides affordability across 1, 2, and 3-bedroom units, allowing opportunities for families.
Affirms the 2022 Council decision to sell the property, but now as a ground lease. Per NC Statutes, lease of city-owned property for longer than 10 years must be treated as a sale of property. Ms. Vrutnski said the following are the key takeaways from her presentation: (1) Staff and Laurel Street Residential are presenting a new development deal that addresses current housing challenges, provides more affordable units, and gets the first phase underway in 2026; (2) The affordable housing funding landscape has changed since TS Helene and the City will have a much larger role in projects for the next 2-4 years; (3) It is essential to continue development of affordable housing to assist with recovery from Hurricane Helene. Costs will continue to rise, and time is of the essence; and (4) The revised deal for 319 Biltmore has been vetted by an outside expert, and is recommended by staff, and is in line with other current affordable housing projects and the associated subsidies. Regarding affordable housing
changing environment, (1) Costs are increasing, markets are not certain, and there are potential cuts to HUD funding in the new budget; (2) Even with the new AH Bond dollars, there are not enough resources to fund new projects without additional subsidy from other sources.; (3) City CDBG-DR and State CDBG-DR funds will be crucial to making housing projects viable; (4) Over the past five or more years, the City and County were often co-funders of affordable housing projects. In some cases the funding was close to equal, in other cases, the County took a larger role
Buncombe County has expended most of their bond funds and will likely use the remaining dollars for the projects on County-owned Land (e.g. Coxe Ave). The new County budget, similar to the City budget does not have general fund allocations to affordable housing in FY 26; (5) The County’s changed role combined with the City’s CDBG-DR funds, means that the source of subsidy and decision-making will shift to the City in large part, and also include the State for projects starting in 2025 and moving forward; and (6) Staff has put together a comparison of projects to understand the role of public dollars in making affordable housing come to fruition. Deal structuring in affordable housing, (1) Public subsidies are usually between 10%
20+% of a project’s total cost: (2) 4% LIHTC projects require more public subsidy than 9% projects; 3) 9% tax credits are used for smaller projects (currently 50 units or less); and (4) Affordable housing developers have to find multiple sources of funding to create a capital stack that allows the project to “pencil.” (a) Lenders require a certain amount of cash flow and debt coverage; (b) Projections include increases in rent over time, but must also provide for operations, maintenance and reserves; (c) Investors require a rate of return and the developer must also make a profit to pay employees and continue their work in the next project; and (d) Costs are increasing, but rents are not escalating in the current market, which increases the gap for projects. The chart below shows a project comparison
public subsidy needed: Coxe Ave (both 4% and Pine Lane Apts Fairhaven Summit Starpoint 9% LIHTC) (4% LIHTC) (9% LIHTC) (9% LIHTC) Affordable units 206 units 126 units 77 units 60 units Estimated Funding Sources (loans, tax equity, fees) $57,700,000 $38,383,761 $21,226,548 $13,693,541 Public Funding/Gap $16,800,000 $10,397,065 $3,117,000 $2,401,420 Total Development Cost $74,500,000 $48,780,826 $24,343,548 $16,094,961 Public Funding as % of total (City, County, Fed) 22.55% 21% 12.80% 15% Per unit Total Cost (all units) $361,650 $387,149 $316,150 $268,249 Per Affordable unit Subsidy $81,553 $82,516 $40,481 $40,024 Note: Coxe Avenue estimates do not include cost of land, nor tax exemption as a part of the subsidy LUIG/Tax Exemption for Coxe Avenue and Fairhaven Summit is not included in the subsidy shown She showed a chart of the housing needs assessment for 2025. She said (1) Market -Rate: Brand new data shows that the overall vacancy rate for surveyed Asheville multifamily rental units is 4%, which is up from 2.8% in 2019; and (2) Subsidized: Affordable units continue to be in high demand with long wait lists (a) Vacancy rate of 1.4% for tax credit projects; and (b) Vacancy rate of 0.2% for projects with government subsidies (this includes projects where 50% of the residents are at or below 50% AMI). Regarding 319 Biltmore, (1) 2019
City Purchased 319 Biltmore 5.3+/- acre site for $5,300,000, appraised at $5,700,000; (2) 2020
City issued RFP to leverage City owned land for the development of multi-family, mixed use rental development (a) At least 20% of total units must be targeted to 60% AMI Households per policy; and (b) Must include a long-term deed restriction: a minimum of 20 years with a preference for 30 years to preserve affordability; (3) 2020
City began negotiations with the first ranked firm, Homes Urban; (4) Homes Urban ultimately withdrew from the project in early 2022; (5) February 2022
Staff began negotiations with Laurel Street Residential (LSR); (6) August 2022
Council approved resolution for 221 unit-development with 66 affordable units; (7) June 2023
Conditional zoning approved; (8) January 2024
LSR applied for County AHSP loan funding was not approved (May 2024); (9) 2024-2025
LSR working on technical review; and (10) Fall 2024
April 2025
LSR approached City staff to collaborate on revised proposal to meet City expectations Regarding LSR, (1) LSR has over 14 years of experience developing high quality affordable and workforce housing; (2) Since its founding in 2011, LSR has developed more than 4,490 units in the South East (NC, SC, GA and VA) with additional 1,065 units under construction or in the pipeline; and (3) LSR is a key partner for municipalities collaborating to provide a comprehensive range of housing focused on community need. The following is the proposal summary: Entire Project: 221 units
Phase I
109 units with 33 project-based vouchers
Phase II
112 units
4% LIHTC
73% of total units are affordable (162)
29% of total units serve those at 30% AMI Phase I & II
Ground lease up to 99 years, minimum 75 years
40-year affordability period
Land and buildings will revert back to the City Phase I
Specifics:
$3,000,000 City HTF gap funding (from the current balance of $1.57M and new bond funds)
Up to $100,000 Tax Grant/year for 20 years
Start construction in 2026 Phase II Specifics (TBD):
$7 million gap to be filled by other sources (City/State CDBG-DR)
Up to $100,000 Tax Grant/year for 20 yrs
No HTF funds
Start construction in late 2026/early 2027 The chart below shows the Area Medium Income (AMI) distribution for Phase I and II: 30% AMI 60% AMI 80% AMI Market Total Phase I 33 0 17 59 109 Phase II 31 46 35 0 112 Total 64 46 52 59 221 Total % of units 29% 21% 23% 27% 100%
73% of total units are affordable (162)
29% of total units serve those at 30% AMI The timeline of Phase I and Phase II are as follows: Phase I
December 2026 – Closing, Permitting, Construction Potential Source of Gap Funding
Dogwood Foundation/Self-Help AH Loan Fund
City CDBG-DR
State CDBG-DR Regarding the ground lease’s key elements, (1) Disposition of 319 Biltmore was approved in August 2022 by Council Resolution. Laurel Street is going above and beyond the requirements of that resolution; (2) All leases greater than 10 years are treated as a sale of property under NC law; (3) Land and buildings will revert to the City at the end of the 99 year lease term; (4) The ground lease will outline the use of the property
which will be for affordable and limited market rate housing. Any changes to the use of the property must be re-negotiated with the City; (5) Ground lease will require the property be maintained and kept in good condition; and (6) There will be performance benchmarks built into the ground lease: (a) Date for the construction of Phase I; (b) Date for the construction of Phase II; and (c) If Phase II does not get built, the City would revise the ground lease, take back the property, and then pursue the development of that parcel separately. The project comparison is as follows: (1) When 319 Biltmore is added into the Project Comparison, it is in line with other projects, especially larger 4% projects (a) Similar or lower cost per unit; and (b) Similar percentage of public subsidy needed overall; (2) 319 Biltmore estimates include the cost of land; (3) Without land, the subsidy per unit is $61,728; and (4) The most relevant analogue is the County’s project at Coxe Avenue and subsidy levels are in line with those projections. The chart below shows the project comparison: Coxe Ave Fairhaven 319 Biltmore (both 4% and Pine Lane Apts Summit Starpoint (Mixed income & 9% LIHTC) (4% LIHTC) (9% LIHTC) (9% LIHTC) 4% LIHTC) Affordable units 206 units 126 units 77 units 60 units 162 units Estimated Funding Sources (loans, tax equity, fees) $57,700,000 $38,383,761 $21,226,548 $13,693,541 $60,193,716 Public Funding/Gap $16,800,000 $10,397,065 $3,117,000 $2,401,420 $15,700,000* Total Development Cost $74,500,000 $48,780,826 $24,343,548 $16,094,961 $70,193,716 Public Funding as % of total (City, County, Fed) 22.55% 21% 12.80% 15% 22.37% Per unit Total Cost (all units) $361,650 $387,149 $316,150 $268,249 $317,619 Per Affordable unit Subsidy $81,553 $82,516 $40,481 $40,024 $96,914* Coxe Avenue estimates do not include land cost, while 319 Biltmore does include land costs. LUIG/Tax Grants/Exemptions for Coxe Avenue, Fairhaven Summit and 319 Biltmore are not included in the subsidies shown. The analysis is (1) Construction costs have escalated dramatically since 2022; (2) Phase I will cost more for the City in the short term, but allows the project to move forward, and LSR to work on the LIHTC portion (Phase II), which will not have additional City bond or Housing Trust Fund monies; (3) The new proposal provides more units of affordable housing than the previous proposal; (4) LSR is an experienced, qualified developer, and is ready to proceed once City financing is approved; (5) The land lease structure means the City will become the owner of property and improvements at the end of the lease; and (6) Following TS Helene and the resulting reduction in both affordable and market-rate housing stock, it is essential that the City maintain progress on the affordable housing pipeline to mitigate further damage to the market. Staff’s recommendation is (1) Approve development proposal: (a) A ground lease of up to 99 years for City owned Land, 40-year affordability period; (b) $3M gap funding at 2% interest only from cash flow for 20 years; and (c) Tax grant as a reimbursement of City portion of property tax paid; and (2) Reasons for the recommendation: (a) The HTF request will help close a funding gap due to cost escalation as a result of current market conditions and hurricane impact; (b) Total public subsidy need for the project is in line with comparable developments; (c) Phase I has 50 affordable units (including 33 units serving those at 30% AMI), and can be started and placed in service Q3/Q4 2027; (d) Total planned affordable units for entire Phase I & II (50+112=162) exceeds the original 66-unit City requirement; and (e) Phase I does not rely on 4% tax credits, and will therefore begin construction much sooner. She then reiterated Council’s goals; fiscal impact; and the pros and cons. Staff’s suggested motion is to recommend that the Asheville City Council authorize the City Manager to negotiate and enter into a Development and Lease Agreement with Laurel Street Residential for the development of 319 Biltmore, which will include 162 units affordable for 40 years and a ground lease up to 99 years. Additionally, we recommend that City Council approve a $3 million loan to LSR and a tax grant for each parcel up to $100,000 per year for 20 years. Mr. Lee Cochran thanked City Council for their support for this project. Vice-Mayor Mosley said that members of Council have been previously furnished with a copy of the resolution and it would not be read.
Vice-Mayor Mosley, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing members to the Asheville-Buncombe Historic Resources Commission. The terms of Sara Groce and Amy Moxley, as members on the A-B Historic Resources Commission expire on July 1, 2025. The following individuals applied for the vacancies: Kim Dills, Amy Gharst, Nicholas J. Harden, Carole H. Martin and Robert Mays. The Chair and the staff liaison of the Historic Resources Commission recommend reappointment of Amy Moxley and appointment of Amy Gharst.