Council authorizes up to $9.5M in CDBG‑DR funds for Terrace at River Hills, a 126‑unit affordable complex

Asheville City Council authorized an additional CDBG‑DR multifamily award, not to exceed $9.5 million, to Mountain Housing Opportunities (MHO) and South Creek Development for Terrace at River Hills, a proposed 126‑unit affordable rental development on a vacant, shovel‑ready site.

Nikki Reid of the Housing & Economic Development Department told council the project ranked highest under the city’s multifamily CDBG‑DR NOFO and requires a city funding commitment to proceed to 100 percent construction documents and competitive bids. The project proposal includes a mix of unit sizes, a 35‑year affordability period and disaster‑resilience elements aligned with the Enterprise Green Communities standards.

Developer remarks and capacity: Jeffrey Barton, president and CEO of Mountain Housing Opportunities, described MHO’s long track record of housing production and disaster response in the region and said the organization has built and repaired housing across Buncombe County since 1988. “Since Helen, MHO is not just building homes. We’re building hope and we’re rebuilding community,” Barton told council, noting recent completed projects and the organization’s resident‑services work.

Staff noted key conditions: the award is an authorization "not to exceed" $9.5 million and staff will undertake an open‑book underwriting process that reviews contractor bids, final site plans, reserves and other line items to avoid unnecessary costs. Staff also said resilience requirements in the NOFO were applied to standardize scoring across applications but can be right‑sized if a particular measure does not fit a site; council members asked staff to ensure flood‑proofing or other resilience additions are appropriate and not needlessly expensive for non‑flood‑plain sites.

Vote and next steps: The council vote approving the authorization was recorded 6–1. Staff will proceed with detailed underwriting and, contingent on that work and final contract terms, execute agreements consistent with the authorization and federal CDBG‑DR rules. The city’s award is intended to leverage state Low‑Income Housing Tax Credit resources and other financing layers to complete the full capital stack.

Why it matters: Terrace at River Hills would add 126 deed‑restricted affordable apartments with long‑term affordability covenants at a moment when both homeowner repair programs and multifamily production are competing for limited disaster‑recovery funds. The project’s shovel‑ready status and MHO’s development track record were cited by staff as reasons to prioritize awarding funds to this development now, while the city can still direct other CDBG‑DR resources toward single‑family needs if council so chooses.

The city’s decision is framed by ongoing recovery urgencies, HUD program rules and an effort to balance investments that repair damaged homes and create new long‑term affordable units; staff will return to council with final underwriting and contract documents.