Asheville staff outline $225 million CDBG-DR action plan, warn needs far exceed funds

City Community Development Manager James Shelton presented the city’s draft CDBG-Disaster Recovery (CDBG-DR) action plan, saying the federal grant of $225,000,000 will be used to support long-term recovery from Hurricane Helene.

Shelton told the council, “These funds are intended for long term recovery,” and cautioned that the city’s initial unmet needs assessment shows roughly $1,300,000,000 in community needs, driven largely by infrastructure and economic impacts. He said the city’s preliminary breakdown shows $859,000,000 in infrastructure unmet need, $465,000,000 in economic revitalization needs and $31,000,000 in housing needs — figures Shelton described as “preliminary and they will change.”

The nut graf: The presentation framed the grant as one of several recovery resources, explained HUD program rules the city must follow, and proposed program areas (housing, infrastructure and economic revitalization) plus a mitigation set‑aside. Council members pressed staff for maps, eligibility details and how the plan would prioritize low‑ and moderate‑income (LMI) communities.

Shelton outlined how the city will move from draft to final plan: community engagement sessions through early March, publication of a draft plan on March 4 for a 30‑day public comment period (AshevilleRecovers.org/CDBGDoctor), three focused feedback sessions on housing, economy and infrastructure during March, and a planned Council adoption on April 8 to meet HUD’s April 21 submission deadline. He emphasized that HUD expects jurisdictions to amend the plan as needed, calling this “a beginning” and asking council to weigh whether proposed program activities align with community input and council priorities.

Staff and consultant James Bridal of Hagerty Consulting described proposed program areas and constraints. Shelton said the three core program buckets are affordable multifamily construction and housing support services; infrastructure investments and emergency sheltering; and economic revitalization including small-business grants and workforce development. Bridal added that a fixed $29,000,000 portion of the allocation is set aside specifically for mitigation activities to enhance resilience across projects and that roughly $196,000,000 remains for other project funding.

Shelton also reviewed HUD’s “three‑way test”: (1) activities must tie back to the disaster impact; (2) activities must meet a HUD national objective (70% of dollars must primarily benefit low‑ and moderate‑income individuals); and (3) activities must be eligible types (housing, infrastructure, economic revitalization). He said mitigation is “baked into” the other buckets and can fund items such as stormwater management, generators, or resilient building features.

Council members asked several implementation questions: how food‑security projects or urban‑agriculture components might fit (Shelton said they could be included under infrastructure, affordable housing amenities, or economic revitalization depending on the activity), whether mitigation dollars could fund renewable/battery backups for community centers (consultant Bridal said those features can be incorporated if tied to disaster mitigation), and whether public housing authorities could participate (Bridal said a public housing authority technically could be a subrecipient under the city’s grant).

Several council members requested HUD‑eligible maps showing which census tracts qualify as LMI and how infrastructure investments would be scored against the 70% LMI requirement. Shelton said federal LMI maps will be used and that staff will provide the map links and examples (he identified River Arts District, parts of West Asheville and portions of the central business district as examples that include LMI tracts). Shelton also confirmed the action plan will include a staffing and financial‑management certification review to ensure the city can administer the grant.

The presentation closed with next steps and timelines: two remaining community engagement meetings the week after the briefing, draft plan posting March 4 with a 30‑day comment window, a financial management certification process in March, and Council action April 8 for HUD submission by April 21.

Looking ahead: Shelton repeatedly described the plan as an initial framework to be refined with public comment and directed staff to return with the draft plan, LMI maps and detailed program design during March so council can weigh allocation percentages and program rules before April adoption.