Asheville approves $9.5 million for 126-unit affordable housing project

Asheville City Council approved $9.5 million in federal disaster recovery money for Terrace at River Hills, a 126-unit affordable apartment project that city leaders say could help ease the pressure on working households squeezed by high rents and limited supply. If the final tax-credit approval falls into place, the vacant site could move toward construction relatively quickly, adding long-term affordable housing in a city where recovery dollars are being tied directly to daily housing needs.

The June 9 vote backed the top-ranked application in the city’s competitive CDBG-DR Affordable Multi-Family Housing Construction Program, submitted by Mountain Housing Opportunities and South Creek Development. The apartments are planned for households earning roughly 20% to 80% of area median income, with a minimum 35-year affordability commitment. City officials said that mix is designed to serve people who are often left out of Asheville’s market, from very low-income renters to households making too much to qualify for the deepest subsidies but still struggling to afford local rents.

The project still needs Low-Income Housing Tax Credit approval from the North Carolina Housing Finance Agency before construction can begin, but the city said the vacant site gives it an advantage over more complicated redevelopment deals. That speed matters in a housing market where Mountain Housing Opportunities has said more than half of Buncombe County renter households are cost-burdened, spending more than 30% of income on rent. Asheville has also been described in local reporting as having the highest cost of living in North Carolina, a pressure that Hurricane Helene only intensified.

The Terrace at River Hills award came through a highly competitive round. The city said 13 applications were submitted for the multifamily program, asking for more than $70 million to support nearly 1,500 proposed units. City recovery coordinator Bridget Herring has said expanding affordable housing is a critical part of Asheville’s Helene recovery, while Community and Economic Development Director Nikki Reid said the city is working to direct disaster recovery resources to the people who need them most.

The council action also builds on earlier housing awards. On May 12, Asheville approved disaster recovery funding for District East Commons and 319-B Biltmore, and those three projects together are expected to produce 331 affordable rental units. The city’s broader CDBG-DR action plan, approved by HUD in May 2025, sets aside $31 million for housing out of about $225 million in total disaster recovery money, after federal officials said more than 12,000 western North Carolinians were without safe housing.