ASHEVILLE, N.C. (828newsNOW) — Buncombe County is changing the rules for its affordable housing programs, expanding assistance to homeowners facing foreclosure while adopting new requirements aimed at getting county housing loans repaid sooner.

The Board of Commissioners approved 15 revisions to the county’s Affordable Housing Services Program on Tuesday. The changes affect grants and loans used for housing assistance, affordable housing development and other programs.

Commissioners focused much of their discussion on a new requirement governing repayment of certain county loans.

Under the new policy, once a development has covered operating expenses, its first mortgage and required reserves, deferred developer fees may be paid.

After that, 50% of available cash flow would go toward repaying the county. The remaining half could cover other expenses, including management and investor fees, other debt and distributions to owners.

Commissioner Drew Ball questioned whether that requirement could make it harder for some affordable housing developers to use the county program.

Ball said he had spent the previous couple weeks talking with firms that finance affordable housing, housing service providers and the Asheville Housing Authority. He said he remained concerned about where the county’s repayment falls in the “cash-flow waterfall” — the order in which money generated by a development is distributed.

“I still have concerns around how this can make it difficult for developers, particularly developers that build significant numbers of units,” Ball said.

In explaining his concern, Ball pointed to Rocky River, a 120-unit affordable housing development that broke ground last year. He said he worried the repayment requirement could create problems for larger housing providers trying to use county funding.

Ball had opposed the provision when it went before the county’s Affordable Housing Subcommittee and suggested sending it back to the committee for more work. The subcommittee recommended the changes on a 4-0-1 vote.

Other commissioners argued the county needs to balance developers’ concerns with its responsibility to recover public money so it can be used again for affordable housing.

Commissioner Al Whitesides said he had concerns about previous arrangements that could leave county money tied up for years.

“I want to see it be repaid,” Whitesides said. “Sure, I understand that some of the groups do have some, you know, problems with it, but we can work through, you know, that.”

Commissioners also discussed trying the new repayment structure for the coming funding cycle and revisiting it after seeing how it works. Staff said the guidelines could be reviewed again after recommendations are made for the fiscal 2028 budget.

The changes go beyond developer loans.

The county’s tenant-based rental assistance program, which can help eligible renters with rent arrears, security deposits, utility deposits and moving expenses, will be expanded to include mortgage assistance for income-eligible homeowners. The changes also remove an existing $1,500 assistance threshold while keeping a maximum of $2,500. The goal is to help prevent evictions and foreclosures.

The county will also set a standard allowing up to 10% of grant funding to be used for administrative costs. The New Start program, created to support new or innovative housing efforts but which has not made an award since 2022, will be combined with the administrative grant program.

Developers seeking construction loans will also face more standardized underwriting requirements. Applicants will be expected to identify how they plan to pay for the entire project, with funding sources secured before the county commits its money.

County staff said the revisions are intended to make the programs clearer for applicants, ensure projects receiving county money are financially sound and allow money repaid to the county to be invested in affordable housing again.

Commissioners ultimately approved the revisions, with Ball voting no. Staff plans to use the new guidelines for the next application cycle, beginning with grant programs followed later by applications for construction loans.