ASHEVILLE, N.C. (828newsNOW) — Buncombe County is considering increasing rental assistance as demand for a newly expanded housing program quickly outpaces last year’s application totals, with renters accounting for about three-quarters of applications so far.

County officials told the Affordable Housing Subcommittee on Aug. 4 that about 1,147 applications had been submitted for the county’s new Transitional Assistance Program by early August. About 75 percent of the applicants were renters.

Officials said the county had already received more applications than it did during all of the previous fiscal year.

The program expanded this year to include renters in addition to homeowners. The county also removed a previous disqualification for people who had received a tax exemption, potentially making about 3,500 additional people eligible.

The program is funded by Buncombe County and the city of Asheville and will remain open until available money is exhausted.

“We are receiving a ton of applications,” one official told the subcommittee.

Rental assistance could increase

County staff also are considering increasing the amount available through the county’s tenant-based rental assistance program.

Currently, households can receive up to $1,500 in rental assistance, with a higher maximum of $2,500 in certain eviction situations.

Staff said those limits were established in 2022 and have become less adequate as rents have increased.

One proposal would establish a single maximum assistance amount of $2,500 per household.

No final amount was approved. Staff asked the subcommittee to consider what increase would make the most sense while balancing the need for assistance with available funds.

The proposal also would expand the program beyond renters by allowing the same assistance to be used for mortgage payments. The goal would be to help homeowners avoid foreclosure as well as help renters avoid eviction.

The change would rename the program the Rental and Mortgage Assistance Program.

The assistance would continue to cover eligible expenses such as security and utility deposits and moving costs.

County considers new rules for affordable housing developers

The subcommittee also reviewed a series of proposed changes to Buncombe County’s Affordable Housing Services Program, which provides loans and grants for affordable housing projects.

Staff said many of the proposed changes would formalize practices the county already uses when evaluating projects.

One goal is to make sure county money goes toward projects that are financially viable and have a clear path toward completion.

Under the proposed changes, developers would have to identify funding sources sufficient to show a complete capital stack when applying for county assistance.

The county’s money is intended to serve as gap financing, meaning other sources of funding should already be identified.

By the time a project is ready for a county loan agreement, those other funding sources would need to be committed in writing.

Staff said the county wants to avoid committing money to projects with large funding gaps and an expectation that developers will find additional money later.

The county also is considering formalizing underwriting standards, including a 1.15 debt-service coverage ratio, a 7 percent vacancy rate and assumptions that project revenues will increase 2 percent annually while expenses increase 3 percent.

Another proposed change would require developers to defer at least 10 percent of their proposed developer fee.

The county currently gives preference to projects that defer developer fees but does not establish a minimum.

The proposal also would require deferred developer fees to be paid before year 15.

Staff said the proposed changes are intended to make the county’s expectations clearer and align them with industry standards used in affordable housing financing.

Developers raise concerns about cash-flow proposal

One of the more significant proposals drew concerns during public comment.

County staff proposed requiring 50 percent of available cash flow from certain affordable housing projects to go toward repayment of the county’s loan after operating expenses and senior debt are paid and deferred developer fees are addressed.

The proposal would not require a fixed payment if a project does not generate sufficient cash flow. Instead, the county would receive 50 percent of available cash flow under the proposed structure.

A developer who spoke during public comment questioned whether the provision could make it harder to finance affordable housing projects that rely on multiple sources of funding.

She pointed to Starpoint, an approximately $16 million affordable housing project that received about $1.4 million from Buncombe County, $1.3 million from Asheville and $1.2 million through the N.C. Housing Finance Agency.

Those sources of funding can also look to project cash flow for repayment, she said.

County staff acknowledged that multiple lenders seeking portions of the same cash flow could create complications for developers.

The proposed provision was modeled after the city’s Community Development Block Grant-Disaster Recovery multifamily housing program, which also uses a 50 percent cash-flow repayment structure.

Staff said 13 applications were submitted to the city’s program and three projects were funded.

The subcommittee did not make a final decision on the county’s proposed cash-flow provision. Staff said they would continue examining how the change could affect affordable housing projects.

County wants to separate household aid from housing construction

Staff also proposed dividing the Affordable Housing Services Program application process into two categories.

One would focus on household impact, including programs that directly assist individual residents through things such as emergency repairs or rental and mortgage assistance.

The second would focus on unit development, including construction of affordable housing and down-payment assistance that helps make a home affordable.

Staff said the change could make it easier to compare similar projects when deciding how to distribute limited funds.

Subcommittee members expressed support for the concept and agreed to continue developing the proposal.

Staff also proposed allowing applicants to submit their applications a week early for a technical review. The review would look for missing attachments, misunderstandings of instructions and other problems before the application deadline.

The proposed policy changes are expected to return to the subcommittee for formal recommendations in September, with consideration by the full Buncombe County Board of Commissioners potentially coming in October.

Other housing assistance

The meeting also highlighted several other county efforts aimed at helping residents remain housed.

Mountain Housing Opportunities received nearly $49,500 in fiscal 2026 to provide home repairs for residents 60 and older. The program was expected to serve 25 households but ultimately assisted 13 because rising repair and labor costs meant households needed more expensive work.

The federal funding has a $7,000 maximum per project.

Repairs included accessibility improvements, flooring and carpentry, plumbing, roofing and electrical work.

A county commissioner questioned whether those federal funds could be combined with other resources to help more residents as repair costs rise.

The county also said about $151,000 in opioid and substance-use funds was spent during the past year to help people access or maintain regular or recovery housing.

Officials said housing continues to be the top social need identified among people receiving those services.

The county is also supporting an expansion of Transformation Village that could add up to 64 additional spaces for women and mothers with children who need supportive services. An invitation for bids is open through Aug. 31.

Library adds social worker

Buncombe County Public Libraries also plans to hire a full-time social worker at Pack Memorial Library.

The position is intended to help people experiencing housing instability and connect them with county and community services.

The library previously had a Homeward Bound caseworker at Pack Memorial about 20 hours a week. That contract ended in June.

The new full-time position is expected to cost about $95,000, including benefits.

The library was in the process of interviewing candidates and hoped to have the position filled within about a month.

Library officials said the position will work alongside the library’s safety associate and help residents navigate services related to housing, behavioral health and other needs.

The discussion reflects the county’s effort to make it easier for residents to connect with multiple housing and social-service programs through a more coordinated system.