Housing and Community Development Committee (Virtual) (Sep 15, 2026)

Meeting Overview The Housing and Community Development Committee held a virtual meeting on September 15, 2026, to review updates on affordable housing financing, federal grant program expenditures, and single-family zoning constraints. The committee, chaired by Vice Mayor Mosley with Councilwomen Turner and Smith present, focused on information sharing regarding three primary agenda items: a refinance update for Mountain Housing Opportunities (MHO), a fiscal year report on Community Development Block Grant Disaster Recovery (CDBGD) and HOME funds, and a review of RS-2 zoning districts. No formal votes or motions were taken during this session; all items were accepted as information only.

Mountain Housing Opportunities Refinance Jeffrey Barton, President and CEO of Mountain Housing Opportunities, provided an update on a complex refinance for a housing development that closed in August. The committee accepted this update as informational, noting the successful closure as a significant achievement given current financing difficulties. Committee members congratulated Barton on the partnership with Partner Community Capital and Dogwood Health Trust, acknowledging the city’s support in maintaining community benefits. No further action was required or taken regarding this item.

CDBGD and HOME Program Report Community Development Division Manager James Shelton, along with staff members Kaylee Pulliam and Sophia, presented a comprehensive report on the use of CDBGD and HOME funds for Fiscal Year 2026. The report highlighted $3.1 million in HOME investments and $4.6 million in CDBG investments expended in the last program year, covering tenant-based rental assistance, homeownership assistance, and public services. Staff addressed audit closeout procedures and progress toward meeting HUD’s investment timelines. Committee members sought clarification on how homeless shelter statistics are calculated and inquired about specific programs, such as crime awareness services for individuals convicted of domestic violence crimes. Councilwoman Sheneika Smith raised concerns about the high barriers for new organizations to access CDBG funding, noting that new participants are automatically categorized as "high risk." Shelton explained that this categorization is due to federal requirements and the lack of prior partnership history. The committee accepted the report as information only, with staff indicating they will return in future meetings to strategize on balancing anti-displacement goals with capacity building for new organizations.

RS-2 Zoning District Review Interim Director of Planning and Urban Design Chris Collins and Urban Planner Wadilia Stavinska presented data on RS-2 zoning districts, which cover 1,826 parcels and 2,567 acres within the city. The presentation revealed that 71% of RS-2 acreage is constrained by steep slopes, flood areas, or the Blue Ridge Parkway, leaving only about 13% of parcels (74 parcels, approximately 100 acres) fully developable. Committee members submitted written questions regarding how these constraints are calculated and whether the land is undevelopable or subject to stricter standards. Councilwoman Smith and Councilman Sage Stone discussed the prioritization of development, with Stone suggesting that data-driven decisions are needed to determine if housing should be prioritized in downtown areas rather than single-family lots in constrained zones. The committee accepted the presentation as information, asking staff to provide further data on potential unit counts for the unconstrained parcels.

Public Comment and Community Input Public comment was opened, with significant input received regarding homelessness and proposed changes to the Tenant Protection Ordinance (Section 4-209). Comments expressed concern about visible homelessness, related crime, and the impact on public safety. Regarding the Tenant Protection Ordinance, multiple commenters requested that the committee slow down the process to allow for more review and input from property managers, housing providers, and tenants to avoid unintended consequences. The committee did not take action on these comments during this meeting. Staff from the Homeless Strategy Division offered to share information about the Asheville-Buncombe Continuum of Care. The discussion on the Tenant Protection Ordinance is scheduled for a separate meeting on September 16, 2026.

Follow-ups and Next Steps Several follow-up actions were agreed upon by staff and committee members. Chris Collins of Planning and Urban Design agreed to map the 74 unconstrained parcels to determine the specific number of potential new homes or additional units that could be built, considering road frontage and setback requirements. James Shelton of Community Development agreed to return to the committee in future meetings to strategize on CDBG program implementation, specifically regarding how to balance anti-displacement goals with capacity building for new organizations. Ben Woody, the Committee Liaison, stated he would speak with the Planning and Zoning Chair, Ullman, to discuss sending the RS-2 zoning discussion to the Planning and Zoning committee for further input. The committee will continue to monitor these items as they move through the appropriate channels.