Brevard council approves Azalea annexation, rezoning and city pledge as county commits $3.55M for sewer to support affordable housing

Brevard City Council on March 16 approved annexation of three city‑owned parcels on Azalea Avenue and adopted a conditional rezoning to enable Azalea Place, a proposed 60‑unit affordable rental development. The council also accepted Transylvania County’s $3.55 million offer toward construction of an Azalea Avenue sewer extension and pledged up to $535,000 from the city’s current wastewater fund surplus to keep project timelines aligned with housing finance deadlines.

Planning Director Paul Ray told the council the annexation and rezoning are intended to make city‑owned land developable for affordable housing and to support Fitch Irick Corporation’s application for low‑income housing tax credits. Emily Brewer, senior planner, described the Azalea Place conditional zoning ordinance, which allows up to 18 dwelling units per acre (up from the 15 du/acre base), tweaks buffer and retaining‑wall standards for the steep site, and requires sidewalk along Old Hendersonville Highway.

Bond counsel Kristen Kirby of McGuireWoods explained a separate financing tool being discussed this evening for a different project, Cascade Ridge, a proposed 84‑unit development by Woda Cooper Companies. Kirby said tax‑exempt multifamily housing revenue bonds are a conduit financing mechanism that allows a private borrower to access tax credits and low‑cost capital while keeping repayment obligations tied to the project rather than the city. "These bonds do not create a debt of the city or a pledge of your faith and credit or taxing power," Kirby told council, noting the borrower ultimately repays debt and indemnifies the city for issuer‑related risks.

Council members cited acute local need during discussion. "About 50% of renter households in Brevard are earning $35,000 or less," Councilman Aaron Baker said, summarizing a recent housing study staff had circulated. Several members urged action on pedestrian safety and sewer capacity as the project moves toward final approvals.

To address utilities, County Manager and county staff have allocated $3.55 million from a legislative appropriation to construction of the sewer extension. City Manager Wilson Hooper said the county commitment would be used for construction but that a limited set of involuntary or voluntary elements (service taps and in‑home plumbing connections for about 125 properties) are not eligible for the county funds; staff will pursue grants to restore those elements to the scope. Hooper asked the council to pledge up to $535,000 of the water/sewer fund’s estimated current‑year surplus to lock in the county offer and maintain the North Carolina Housing Finance Agency schedule. Council voted to accept the county offer and to pledge the city funds.

The inducement resolution and conduit bond mechanics for Cascade Ridge were discussed but not finalized; staff and bond counsel said additional approvals, a public hearing and coordination with the North Carolina Housing Finance Agency would be required before any bond issuance or final approvals. Council also approved an annexation ordinance and the Azalea Place conditional zoning ordinance tonight, clearing key procedural steps for the developer to pursue tax credit applications and related financing.

Next steps: staff will continue pursuing grant funds to restore voluntary scope elements for the sewer project, Fitch Irick will proceed with the required tax‑credit application materials, and the council will see subsequent public hearings and final bond or closing documents as those steps come due.