Buncombe County plans $26M affordable housing funding gap negotiations

Buncombe County officials are gearing up for a significant push towards affordable housing, with plans to negotiate a memorandum of understanding with a selected developer aimed at creating over 600 much-needed housing units. During a recent briefing, county representatives highlighted a potential funding gap of approximately $26 million, which translates to about $84,000 per affordable unit. This gap arises from a mix of reliable county funding and less certain external sources, including a workforce housing loan program that is currently not budgeted for next year.

The county is considering a purchase price of around $4.2 million for market-rate land, with negotiations expected to include a ground lease at a nominal cost for the affordable housing components. However, officials cautioned that the housing market remains unpredictable, and costs could shift as negotiations progress.

The upcoming June 17 meeting will see the county requesting authorization for the county manager to enter negotiations with the developer. This memorandum of understanding will outline responsibilities and establish milestones before moving towards a formal development agreement. The county's commitment to addressing the affordable housing crisis is clear, as they aim to provide essential housing solutions for low to moderate-income households in the community.