ASHEVILLE, N.C. (828newsNOW) — The Housing Authority of the City of Asheville has announced a sweeping restructuring that will reduce its workforce by more than half over the next 18 months as the agency works to restore its finances and focus more directly on providing affordable housing.
HACA currently employs 112 full-time workers and 27 resident stipend employees. By the end of 2027, officials expect the agency’s full-time workforce to shrink to fewer than 50 employees, with final staffing levels determined as the restructuring continues.
The changes come after agency leaders said HACA depleted about 75 percent of its financial reserves over the past two years, prompting a review of operations and long-term sustainability.
“We have a responsibility to be good stewards of public resources,” Chief Executive Officer Ella Santos said in a statement. “Every dollar we spend should help us provide better housing, serve more families, and strengthen the long-term future of this organization.”
Rather than maintaining large in-house departments, HACA plans to retain employees with expertise in affordable housing operations, compliance, development and asset management while contracting with outside firms for services such as human resources, communications, maintenance and inspections.
Officials said the restructuring is expected to generate annual savings equal to about 2 percent of the agency’s $55 million budget and restore cash reserves to 2023 levels once fully implemented.
The announcement builds on changes HACA began earlier this year. In April, the agency eliminated 34 positions and transitioned its after-school and summer programs to community organizations, saying the move allowed it to focus more directly on its core housing mission while continuing to provide services for resident families through community partners.
HACA manages approximately 1,525 affordable housing units across Asheville.
Santos said the restructuring reflects changes taking place at housing authorities across the country as agencies respond to rising costs, aging housing stock and increased expectations from the U.S. Department of Housing and Urban Development.
“Across the country, housing authorities are rethinking how they operate to better meet the needs of residents,” Santos said. “By partnering with experts in specialized areas, we can focus more of our resources on housing quality, asset preservation and resident success while positioning HACA for long-term sustainability.”
Housing authority leaders said many agencies have shifted toward partnership-based operating models since HUD introduced the Rental Assistance Demonstration program, commonly known as RAD, which allows housing authorities to leverage outside partnerships while preserving long-term affordability.
Although HACA converted its properties through the RAD program more than a decade ago, officials said the latest restructuring further aligns the agency with operating models adopted by many housing authorities nationwide.
As one example, HACA pointed to the Housing Authority of the City of El Paso, Texas, which manages about 15,000 housing units with 64 employees.
Officials also cited other housing authorities that have expanded the use of public-private partnerships and outsourced maintenance or operational services in an effort to improve efficiency and preserve affordable housing.
Santos said the goal is to position HACA for long-term success rather than reacting to financial pressures after they become more severe.
“Our goal is to be proactive rather than reactive,” she said. “We want to build an organization that is prepared for the future, focused on its mission and capable of serving Asheville residents for decades to come.”