ASHEVILLE, N.C. (828newsNOW) — Asheville wants to make federal housing money available for temporary rent assistance while giving priority to people experiencing homelessness.

City Council held a public hearing Tuesday on proposed changes to the city’s HOME-ARP plan, which covers a one-time $4.7 million federal award Asheville received in 2021.

The money came through the American Rescue Plan but is separate from the better-known ARPA funding distributed during the COVID-19 pandemic.

Asheville administers the money for the Asheville Regional Housing Consortium, which includes Buncombe, Henderson, Madison and Transylvania counties. The federal funding must be used by 2030.

Under the existing plan, a little more than $3 million was set aside for affordable rental housing, including construction, acquisition or rehabilitation. Another $1 million was designated for supportive services, including case management, mental health and substance use services. A little more than $700,000 was set aside for administration and planning.

City staff are now proposing several changes to how the money can be used and who receives priority.

Rent help and a priority for homelessness

One of the biggest changes would allow the $1 million supportive-services allocation to also pay for temporary rental and financial assistance.

City officials stressed that the money would not provide long-term rent subsidies. Instead, it could help someone through an immediate housing crisis, with rental assistance paired with case management and other services aimed at getting people into stable housing.

The city also wants to give preference to individuals and families experiencing homelessness, particularly those experiencing homelessness for the first time.

Other eligible groups would still be able to receive assistance. They include people at risk of homelessness, people fleeing domestic violence, dating violence, sexual assault, stalking or human trafficking, and others at significant risk of housing instability.

Another proposed change would use the region’s coordinated entry system to connect people with assistance.

The system is intended to give people experiencing homelessness a central place to connect with housing and other services rather than requiring them to seek help from multiple agencies.

How much goes directly to people?

Tuesday’s discussion also turned to a more basic question: How much of the money will ultimately go toward rent, deposits and other direct help, and how much will pay for staff and case management?

One council member questioned whether money going to nonprofit partners should be used to hire additional case managers rather than provide more direct assistance.

“I want to see what they’re spending the money on,” the council member said, pointing to needs such as deposits, application fees, food assistance and help getting into treatment.

City staff said the roughly $700,000 set aside for administration and planning can reimburse the city for staff time spent running the program.

Case management provided by outside organizations would come from the separate $1 million supportive-services allocation.

Exactly how that $1 million will be divided has not yet been determined because partner organizations have not been selected.

Organizations seeking funding would have to submit proposals showing how they plan to spend the money, including what would go toward salaries and services. Those applications would be reviewed before funding decisions are made.

The proposed changes are intended to establish those rules before that process begins.

Tuesday’s meeting was a public hearing, and City Council took no final action on the proposed changes.

The public comment period on the amended HOME-ARP plan runs through Oct. 2.