ASHEVILLE – To receive its direct allocation of $225 million in federal disaster recovery funds, the city is hurdling toward an April deadline for an action plan that will outline how the dollars will be spent, with millions that must go to addressing housing, infrastructure and economic revitalization.
The funds, provided through the Community Development Block Grant – Disaster Recovery, were announced during a January visit of Gov. Josh Stein and top officials with the U.S. Department of Housing and Urban Development, which sets the requirements around the funding.
City staff is required to develop an action plan detailing the types of programs and initiatives to be carried out with the funding. Public engagement will happen ahead of the April 21 deadline.
The city’s Community Development Division Manager James Shelton updated Asheville City Council at its Feb. 6 briefing, and said as a one-time funding opportunity, the best practice is to make strategic investments in long-term recovery capital projects.
Of the $225 million, $195.7 million will be used to address unmet needs around housing, infrastructure and economic revitalization; $29.3 million will go toward hazard mitigation, making projects more resilient for the future. A portion of the dollars will also be used for planning and administrative costs.
For perspective, the city’s total annual budget adopted last year was about $251 million.
By statute, at least 70% of CDBG-DR funds must be spent for activities that benefit low- to moderate-income individuals or areas.
The action plan is a “beginning,” Shelton said, and can be reevaluated over time. “We all know the road ahead for recovery is long.”
Allowed uses?
Stan Gimont, with Hagerty Consulting, said when considering the CDBG-DR’s allowed uses, it must tie back to the disaster; meet a national objective, like addressing urgent needs; and fit into one of the four main categories: housing, infrastructure, economic revitalization and mitigation.
Tropical Storm Helene devastated areas of Western North Carolina. More than 100 lives were lost, and homes, businesses and land ravaged. Economic repercussions continue to reverberate throughout the region. A revised damage and needs assessment from the N.C. Office of State Budget and Management estimated $59.6 billion in damage across North Carolina.
The city has provided an early estimate of $1 billion in damages to all public infrastructure within its limits, and millions of dollars in lost revenue.
In Buncombe County, unemployment remains among the highest in the state. In the immediate aftermath of the storm, it rocketed to 10.4%. Before Helene, it was the lowest at 2.5%.
The Buncombe County Tourism Development Authority reported in January that gross lodging sales had declined 74% in October, meaning the community only saw tourists spend $19 million in lodging during a month that is typically known for being lucrative for local tourism-based businesses. In 2023, October had the most lodging sales for the year, with over $73 million in sales.
Weigh in on the $225M in CDBG-DR
The city will host six public meetings during February to allow for input on needs related to Helene recovery. Feedback will influence the action plan draft, outlining how the $225 million in CDBG-DR funds in Asheville will be invested.
The draft action plan will be published in March for public comment and submitted to HUD for approval in April.
Public Meeting Schedule:
- Feb. 10: 3-4:30 p.m. – Virtual.
- Feb. 12: 4-5:30 p.m. at West Asheville Library.
- Feb. 18: 6-7:30 p.m. – Virtual.
- Feb. 19: 6-7:30 p.m. at Skyland/South Buncombe Library.
- Feb. 24: 6:30-8 p.m. at Grant Southside Community Center
- Feb. 26: 6-7:30 p.m. at East Asheville Library
Meeting information and registration is available at https://publicinput.com/cdbg-dr.
Then what?
- March 4: Draft action plan published for public comment.
- March: Three public feedback sessions, each with a single focus on housing, economic recovery and infrastructure.
- April 8: City Council votes on action plan submission to HUD.
- April 9: Action plan is submitted to HUD
Once the plan is fully approved by HUD, Shelton said staff anticipates receiving the grant agreement and beginning project implementation in summer and fall 2025. The city is required to spend the funds within six year of receiving them.
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Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email [email protected] or message on Twitter at @slhonosky. Please support local, daily journalism with a subscription to the Citizen Times.
