Asheville staff propose $19.2M CDBG-DR reallocation to speed single-family storm recovery

City housing staff on May 7 told the Asheville City Council at a virtual agenda-briefing that they plan to pursue a substantial amendment to the citys CDBG-DR action plan to move $19,200,000 into the states Renew NC single-family rehabilitation and reconstruction program.

The staff proposal, presented by Elma (housing staff), would reallocate $9,200,000 from the citys affordable multifamily construction allocation and $10,000,000 from the CDBG-DR infrastructure allocation (staff identified the latter as estimated design costs for the North Fork water project that could be reimbursed later through FEMA/HMGP). "Staff proposed pursuing a substantial amendment to the CDBG Doctor action plan to reallocate $19,200,000 to the Renew NC program," Elma said during the briefing.

Why it matters: Renew NC reconstruction projects follow HUD rules that require bringing a home to decent, safe and sanitary standards; staff said rising construction costs prompted the state to raise the maximum reconstruction award from $375,000 to $450,000 and to increase the rehabilitation threshold from $50,000 to $100,000. Those changes mean more severely damaged houses are likely to move into the reconstruction category, increasing per-household costs.

What staff reported: the state has set aside $60,000,000 across participating counties for temporary relocation assistance for families while reconstruction occurs. Renew NC received 285 applications from Asheville; 124 households were initially deemed eligible and 87 of those meet phase-1 priority criteria (60% AMI or less plus an elderly, disabled, or child occupant). With the citys current $3,000,000 allocation, staff said only about eight to 10 households could be served; the proposed reallocation would increase single-family funding to roughly $22.2 million and is estimated to serve 55—65 households in Asheville, according to staff estimates.

Trade-offs and council concerns: council members asked whether pulling $10 million from infrastructure is prudent given large unmet infrastructure needs. "The infrastructure need from the unmet needs assessment was $911,000,000," a councilmember noted; staff acknowledged the shortfall and said they identified the design dollars as low-risk to reallocate because they anticipate HMGP reimbursement. Councilmembers also raised questions about how bond funds, local loan pools and administrative/planning dollars could be used instead of reducing water-system allocations.

Process and timing: staff outlined a timeline that would start with a draft amendment published May 15 (triggering a 30-day public comment period), an informal Housing Recovery Board comment period in early June, a council public hearing June 9 and a council vote as early as June 23, after which the amendment would be sent to HUD for approval.

What happens next: staff will publish the draft amendment if council signals enough support, respond to public comments during the 30-day period, and return to HCD and council for formal hearings and votes. Several councilmembers asked staff to provide additional details about contractor participation, local subcontracting opportunities, and how the citys bond-funded home-repair programs (and locally run programs such as Archers repairs) would interact with Renew NC applicants.

Quotations: Elma (housing staff) said: "Staff proposed pursuing a substantial amendment to the CDBG Doctor action plan to reallocate $19,200,000 to the Renew NC program." Nikki Reed (housing/bond staff) described bond allocations and noted the city had previously used bond dollars and local partners to repair about 60 homes with $1.4 million.

Next procedural step: Council will consider the multifamily awards and receive more detailed staff reports on the proposed substantial amendment on May 12 and staff will publish the draft amendment on May 15 if the administration proceeds.