ASHEVILLE – The city has released its draft plan outlining how $225 million in federal disaster recovery funding might be spent, which includes millions allocated for infrastructure, economic recovery and housing, intended to address recovery needs that cannot be met by other sources.
While the plan will be amended over time, and describes broad program, not specific projects, there are significant allocations proposed for revitalization of flooded commercial districts, workforce development, small business support and affordable multifamily housing construction.
The city is asking residents to provide input on the plan through April 3.
The Community Development Block Grant – Disaster Recovery program provides funding to communities affected by major disasters. The allocation was announced during a January visit by Gov. Josh Stein and top officials with the U.S. Department of Housing and Urban Development, which sets the funding requirements.
“Our hope is that this plan reflects what our community has expressed and has experienced as a result of Helene, but it’s also a reflection of the long road that we have ahead of us,” James Shelton, the city’s Community Development Division manager, said March 4. The 125-page plan was released that evening.
“These dollars are intended to make us more resilient for future events that may happen, but also to make us a more vibrant Asheville and building upon who we already are as a community.”
The city will receive a direct allocation of $225 million, with the state receiving $1.4 billion. The action plan is required by HUD as one of the initial steps the city must take to access the funding.
This was a historically fast allocation of Community Development Block Grant – Disaster Recovery funding, the city said. Other disaster-stricken communities have waited years for this type of assistance. Grant dollars from the Asheville’s $225 million will generally stay within city limits, but certain infrastructure projects — like those related to the water system or emergency sheltering — might occur outside the city.
Read the draft plan: https://bit.ly/3F4bD6i
New data offers insight
The draft plan sketches a stark view of the impacts from Tropical Storm Helene, which struck Western Northern Carolina Sept. 27, and brought severe flooding, infrastructure damage, destruction, loss of life and widespread failure of essential services.
In Asheville, the infrastructure and economic impacts from Helene were “immediate and catastrophic,” the draft plan said. Approximately 80% of the River Arts District, a cultural and economic hub, was destroyed. Unemployment spiked, an already escalating affordable housing crisis was “worsened,” and tourism spending plummeted.
Central to the plan is an “unmet needs assessment,” required by HUD, which calculates dollar figures for recovery needs for each of the three sectors — housing, infrastructure and economic recovery — based on guidance from the federal department. In the context of disaster recovery, HUD defines unmet needs as those not covered by other sources, such as insurance or other federal programs.
Unmet needs in Asheville totaled $1.2 billion, with city infrastructure the most costly at $911.5 million, including water treatment plants, stormwater systems, public facilities, roads, bridges and more.
That is not the overall impact on the city by the storm, Shelton said, but is the need as determined by the program’s framework. For example, when considering infrastructure needs, it is the dollar figure remaining after other resources, like those through FEMA and the Hazard Mitigation Grant Program, are exhausted.
The more than a billion dollars in unmet needs eclipses the $225 million allocated to the city, but Shelton said that means “we have to be strategic.”
“We know that this program cannot act alone,” he said. “It is certainly not enough to meet the overall unmet need by itself, so those dollars will certainly have to work as … leverage funding to be a part of other programs.”
What is ‘Community Development Block Grant – Disaster Recovery funding?’
Shelton said that as a one-time funding opportunity, the best practice is to make strategic investments in long-term recovery capital projects using these disaster recovery funds, but there are also some service investments proposed.
A final action plan must be submitted to HUD by April 21. City officials have been clear: It is a long road. They expect to begin launching projects in fall 2025.
Shelton said they are “charging ahead” to meet HUD’s 90-day timeline. Most communities who receive these grants request extensions on their action plans, he said. “We’re not doing that.”
“I certainly share in the desire to want to move as quickly as possible, and I know that any delay has serious impacts for our community,” Shelton said.
By statute, at least 70% of these block grant funds must be spent for activities that benefit low- to moderate-income people or areas. That means those making 80% of the area median income or less — $74,800 a year for a family of four, $52,350 for one person.
Stan Gimont, with Hagerty Consulting, said in a February presentation to Asheville City Council that when considering the fund’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.
Impact of Trump administration?
To questions around impacts of the new Trump administration, which has instructed federal departments to eliminate staff positions and look for ways to slash budgets, with an expectation of significant cuts to HUD, Shelton said the uncertainty does give them some “anxiety.”
“But we were given every assurance from (HUD’s) Office of Disaster Recovery, which is out of HUD headquarters, that we are going to receive every assistance that we need to administer this grant in the long term,” he said. The city is working directly from representatives from the Greensboro field office.
Weigh in
People can provide comments and feedback on the draft plan online at ashevillerecovers.org/cdbg-dr/.
The city will also host three public feedback sessions, which will discuss the whole plan as well as one of the three categories of programs: housing, economic revitalization and infrastructure.
- March 19: Housing – 6-8 p.m., Harrah’s Cherokee Center Asheville, Banquet Hall.
- March 24: Economic Revitalization – 10 a.m.-noon, Radical Hotel, Golden Hour Restaurant.
- March 26: Infrastructure – 10 a.m.-12 noon, AB-Tech, Ferguson Auditorium.
What’s next?
- April 8: Asheville City Council will vote on the action plan submission to HUD.
- April 9: Action plan submitted to HUD.
- Once the plan is fully approved by HUD, within 45 days of submittal, the city anticipates receiving the grant agreement and beginning project implementation in summer-fall.
- Funds must be spent down within six years of receiving them.
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.
