ASHEVILLE, N.C. (828newsNOW) — More than $69 million in federal disaster recovery funds will support 10 projects expected to provide 828 affordable rental units across Western North Carolina, state officials announced Tuesday.
Gov. Josh Stein, the North Carolina Department of Commerce and the North Carolina Housing Finance Agency announced the projects through the Rental Production Program for Disaster Recovery.
The projects will provide new or rehabilitated multifamily housing in Ashe, Buncombe, Burke, Caldwell, Cleveland, Haywood, Henderson, Rutherford, Transylvania and Watauga counties.
The funding comes through the federal Community Development Block Grant Disaster Recovery program and is intended to increase the supply of affordable, resilient rental housing in communities affected by Hurricane Helene.
“Getting families back into safe housing that they can afford is critical to the recovery from Hurricane Helene,” Stein said in a news release. “This program will ensure these 828 apartments remain financially accessible to people living in the 828 area code for the next 30 years.”
The program combines CDBG-DR funds administered by the state Department of Commerce’s Division of Community Revitalization with the Housing Finance Agency’s Low-Income Housing Tax Credit program, when applicable.
The competitive program provides low-cost financing to help developers close funding gaps for multifamily affordable housing projects. Eligible projects can include new construction, acquisition or rehabilitation.
To qualify, projects must have a connection to Tropical Storm Helene’s impacts, meet a federal CDBG-DR national objective and comply with federal, state and local requirements.
The 828 units funded through the program must remain affordable for at least 30 years. Developers receiving the financing will be subject to income limits, rent restrictions and other program requirements. The Department of Commerce will monitor the projects throughout the affordability period.
“Housing is a critical building block for western North Carolina economic recovery,” NC Commerce Secretary Lee Lilley said in the release. “Our partnership with the North Carolina Housing Finance Agency will help meet the growing need for housing for working families in the west.”
State officials cited the region’s housing challenges, saying renters in Western North Carolina face some of the highest housing cost burdens in the state.
The latest awards are part of Renew NC, the state’s long-term disaster recovery effort. Renew NC is funded through a $1.4 billion CDBG-DR grant from the U.S. Department of Housing and Urban Development.
Stein recently signed a state budget that appropriates more than $700 million for Hurricane Helene recovery. That includes $40 million for Renew NC’s Temporary Relocation Assistance program, which helps families find housing while their homes are being rebuilt, and $35 million in grants for volunteer organizations involved in housing repairs and reconstruction.
Stein also issued an executive order earlier this year directing state agencies to work together to increase housing supply, affordability and access.
The rental housing projects funded through the latest awards must have all required documentation submitted and nonadministrative funds committed by Oct. 30, 2030. All project activities must be completed and funds spent by Jan. 28, 2031.
The state also announced Wednesday the launch of the Renew NC Workforce Housing for Ownership Program. The program will fund homes for purchase by households earning up to 80% of their area’s median income in 16 federally designated disaster-impacted counties.
The two programs expand the state’s efforts to increase affordable rental and homeownership opportunities as Western North Carolina recovers from Helene.