Housing and Community Development Committee (Virtual) (Feb 17, 2026)

The City of Asheville’s Housing and Community Development Committee held a virtual meeting on February 17, 2026, to review housing recovery programs, housing trust fund loans, and grant reimbursements. The committee addressed four primary agenda items: the approval of previous minutes, an update on the CDBG-DR Housing Program, a request to rescind funding for the Stewart Street project, and a grant reimbursement for the Asheville Buncombe Community Land Trust.

The committee unanimously approved the minutes from its January 20, 2026, meeting. Following this procedural step, the committee reviewed an update on the Community Development Block Grant Disaster Recovery (CDBG-DR) Housing Program. Nikki Reed, Community Economic Development Director, presented data on the program’s current status, noting that a $10 million Notice of Funding Opportunity for multifamily housing is active, and $3 million is dedicated to the Renew NC single-family home repair program. Reed reported that $18 million remains in the program, currently allocated to multifamily housing but potentially subject to reallocation in April. The committee discussed prioritization strategies, confirming alignment with the state’s focus on Phase 1, Priority 1 applicants. The committee unanimously agreed to provide feedback to the state on prioritizing households below 30% Area Median Income (AMI) and considering displacement risk and home value, as suggested by the Housing Recovery Board.

Regarding the Stewart Street Housing Trust Fund, the committee voted unanimously to rescind a previously approved loan to Reasonable Development. Staff recommended this action because the developer proposed significant changes to the project scope, shifting it away from the original homeownership model and requesting deed restriction changes that did not align with city policy. Councilwoman Sage Turner and Councilwoman Sheneika Smith acknowledged the challenges in achieving affordable homeownership and supported the staff’s recommendation to rescind the loan. If the rescission is finalized by City Council, the $1,052,850 in funds will be returned to the Housing Trust Fund for potential reallocation to other projects, such as home repair. The developer retains the option to reapply for funding in the second half of 2026 with a revised proposal.

The committee also addressed a grant for 32 Olive Street, voting unanimously to approve a reimbursement of $43,500 to the Asheville Buncombe Community Land Trust (ABCLT). Staff explained that ABCLT had purchased the property in September 2025 using a short-term credit line before the grant agreement was finalized in January 2026. The reimbursement covers the purchase price for this home, which is intended to become permanently affordable housing. Staff noted that the funds were already approved by City Council in June 2025, and the reimbursement resolves a procedural miscommunication regarding the timing of the purchase.

No members of the public signed up to speak during the public comment period.

Staff explicitly agreed to several follow-up actions during the meeting. Staff will provide feedback to the state regarding prioritization within the CDBG-DR program, specifically focusing on lower AMI levels and displacement risk. Additionally, staff will compile a comprehensive "Landscape of Funding" report comparing city, county, and other organizational resources against identified needs. This report, along with further data analysis of the Renew NC program and a review of multifamily housing applications, is scheduled to be presented at the committee’s April meeting to inform discussions on the potential reallocation of the remaining $18 million in CDBG-DR funds. Staff also agreed to review grant agreement procedures to prevent similar reimbursement situations in the future.

These decisions reflect the committee’s focus on aligning local housing priorities with state disaster recovery programs and ensuring the responsible use of city funds. The rescission of the Stewart Street loan allows the city to redirect significant resources toward other housing needs, while the reimbursement to ABCLT facilitates the creation of permanent affordable housing. The upcoming April meeting will be critical in determining how the remaining disaster recovery funds are distributed between single-family and multifamily housing initiatives.