Tropical Storm Helene increased the need for affordable housing in Asheville. In response, the City Council approved $8.39 million in Community Development Block Grant–Disaster Recovery (CDBG-DR) funding for two multi-family projects. Totaling 205 units, these developments represent a major step toward recovery in alignment with the City’s affordable housing goals.
The funding, awarded through the City’s CDBG-DR Affordable Multi-Family Housing Construction Program, will support developments that prioritize disaster resilience, long-term affordability, and mixed-income communities. Each development carries a minimum 35-year affordability commitment. These projects must also obtain tax credit approvals from the North Carolina Housing Finance Agency (NCHFA) before they can begin.
“Addressing the housing losses from Helene represents a significant milestone in our recovery efforts,” said Recovery Coordinator Bridget Herring. “By integrating resilience directly into our construction, we are not only rebuilding but improving, while simultaneously making progress on the City Council’s longstanding commitment to providing high-quality affordable housing.”
District East Commons
District East Commons, located at 1311 Tunnel Road, will transform an underutilized former commercial site into a 93-unit affordable housing community for seniors. Developed by Commonwealth Development Corporation, the project emphasizes infill redevelopment and improved land use along the Tunnel Road corridor.
The project is designed to withstand a 500-year flood event, with no development activity occurring in the 100-year and 500-year floodplains. All finished building areas and mechanicals will be elevated approximately 30 feet above the current floodway elevation. The project preserves 3.5 acres of natural shoreland buffer and 99% of existing tree canopy, significantly supporting floodwater absorption and long-term regional flood mitigation.
The City awarded $1.385 million to support the project. The development will offer a mix of affordability levels available to households earning 20-80% of Area Median Income (AMI) and construction is expected to proceed following the securing of additional state funding.
319-B Biltmore
The 319-B Biltmore project, located at 4 John Walker Avenue, represents the second phase of a larger redevelopment effort on City-owned land. Developed by Laurel Street, the project will add 112 affordable housing units in a new mixed-use building featuring community amenities and commercial space.
City Council approved $7 million in funding for this shovel-ready project, which builds on a previously funded first phase that delivered 109 workforce and affordable units. 319-B Biltmore will offer a range of affordability levels from 20-80% of AMI.
Meeting Community Needs
The approved funding is part of the City’s broader CDBG-DR Action Plan, which allocates resources to address housing challenges exacerbated by Tropical Storm Helene. While the City is committed to allocating additional funds for high-demand single-family home repairs, leaders stress the continued importance of new affordable rental housing investments.
Together, these investments represent a significant step forward in expanding Asheville’s affordable housing supply while supporting long-term community resilience and recovery.
About the City of Asheville’s CDBG-DR Program
On January 16, 2025, the U.S. Department of Housing and Urban Development allocated $225,010,000 in CDBG-DR funds for the City of Asheville’s recovery from Tropical Storm Helene. CDBG-DR is a federal disaster recovery program that provides funding to communities affected by major disasters. These funds must be used to address unmet disaster-related needs, particularly in housing, economic revitalization, and infrastructure restorations.