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2026 QCT/DDA updates remove some downtown and Sandy Mush tracts; county staff warn of local impact on projects
Summary
Buncombe County staff reviewed 2026 Qualified Census Tract (QCT) and Difficult Development Area (DDA) maps and said some tracts near downtown and Sandy Mush lost QCT/DDA status compared with 2025; staff said loss of QCT/DDA designation can remove the 30% basis boost for affected projects but preliminary analysis showed Cox Avenue remained competit
Buncombe County staff on Oct. 8 presented updates to the 2026 Qualified Census Tract (QCT) and Difficult Development Area (DDA) maps used by federal and state programs to determine eligibility for a 30% basis boost under the low-income housing tax credit program.
Staff explained a QCT is defined by HUD as a tract where either at least 50% of households earn 60% or less of area median income (AMI) or where 25% or more of households fall under the federal poverty threshold. A DDA reflects areas where construction costs relative to incomes produce a high ratio making development more costly; HUD assigns DDA status to roughly the highest 20% of those ratios nationally.
Comparing 2025 and 2026 maps, staff said areas around downtown Asheville and the Sandy Mush area were removed from QCT designation in some tracts while Cox Avenue and Valley Street remained within qualifying tracts. Some southern Buncombe ZIP Code Tabulation Areas that were DDAs in prior maps also changed in the 2026 update. Staff said those changes matter because projects in QCTs or DDAs are eligible for a 30% basis boost used when calculating tax-credit allocations.
Staff said Harmony Housing's preliminary analysis suggests the Cox Avenue project would still score well under current QAP text despite map changes, but noted developers and funders should confirm impacts on each site because map changes can affect project feasibility.
Staff also reminded members that HUD and state programs will use whatever is current at the time they issue program calls and that CDBG-DR and QAP guidance are still being finalized, so eligibility and priorities could shift as program rules are adopted.
