Council authorizes CDBG-DR amendments to raise home reconstruction cap to $450,000 and lower service grant minimum

Asheville City Council voted to authorize the city manager to submit substantial amendments to the city's Community Development Block Grant Disaster Recovery (CDBG-DR) action plan. The action will align the city's maximum reconstruction award with the State of North Carolina's Renew NC program and change the minimum award size for a public-services program.

James Shelton, community development division manager, told the council that HUD and the city's action plan allow amendments as new information emerges. "The state has amended their maximum for reconstruction to $450,000 per home to reflect the true cost of construction," Shelton said, adding that the city has allocated $3 million to the state-run program and the state will administer hard-construction costs.

Shelton said the council is also proposing to reduce the minimum project award for the housing and economic security support services program from $500,000 to $250,000 to widen the pool of eligible organizations. He described the change as a substantial amendment because it affects program benefits and eligibility and therefore triggers the city's citizen participation plan, which includes a 30-day public comment period currently open through Nov. 9.

During a brief question-and-answer, council members raised a discrepancy between dates posted on the website; Shelton confirmed staff would correct the record and that the public comment period remains in effect. Following the public hearing, a council member moved and the council voted to authorize the city manager to submit the amendments to HUD for approval.

The next procedural step is for staff to collect public comments through the comment period, respond to them in the amendment package, and submit the amended action plan to HUD. Shelton said the amendment and submission are also intended to help restore full HUD staff engagement during the federal agency's staffing issues.

Actions recorded: Council authorized the city manager to submit amendments to the CDBG-DR action plan to (1) raise the maximum reconstruction award under the state Renew NC program to $450,000 per home and (2) lower the minimum project award for the housing and economic security support services program to $250,000. The motion was moved and seconded and passed on a voice vote; no roll-call tally was recorded in the transcript.

What happens next: Staff will collect public comments through Nov. 9, incorporate feedback, and submit the amended plan to HUD for review and approval.