City moves to roll out $4.7 million in HOME-ARP funds; two funding rounds planned for spring 2026

James Shelton updated the committee on HOME and HOME-ARP funds at the Nov. 18 meeting. Shelton said the city receives about $1,000,000 annually in HOME dollars and described the FY25-26 allocations: $300,000 for tenant-based rental assistance, $400,000 for down-payment assistance, and $587,000 for homeowner rehabilitation. He reminded the committee that because the city participates in the Asheville Regional Housing Consortium the HOME awards benefit the broader four-county consortium (Madison, Buncombe, Henderson and Transylvania counties) and not only the city proper.

Shelton reviewed the one-time HOME-ARP allocation of $4,700,000, adopted by council in March 2023 and approved by HUD. "That allocation took that $4,700,000 and dedicated $1,000,000 to support services," Shelton said, describing supportive services as case management, mental-health and substance-abuse services, homelessness prevention and housing counseling. He said more than $3,000,000 is targeted to new construction or preservation of deeply affordable rental units for qualifying populations, and roughly $700,000 was set aside for administration and planning.

Shelton said the city has contracted with ICF Incorporated to assist with rolling out HOME-ARP; the contract was funded from the planning/administration portion and is approximately $400,000 over three years. Two separate funding rounds are anticipated in spring 2026: one for supportive services and one for affordable-rental construction. Shelton said staff will run the HOME FY25-26 partner application cycle through Dec. 10, bring recommendations to the consortium on Jan. 14 and to council on Jan. 27 to authorize contracts.

Shelton also noted a spin-down deadline in 2030 for HOME-ARP funds; staff emphasized the need to move funding into well-structured projects that meet qualifying-population criteria.