Asheville City Council has approved $9.5 million in federal Community Development Block Grant – Disaster Recovery (CDBG-DR) funding to advance the Terrace at River Hills affordable housing development, which will add 126 affordable rental housing units and is positioned to move quickly into development.
The funding, awarded through the City’s CDBG-DR Affordable Multi-Family Housing Construction Program, supports developments that provide long-term affordability and help address housing challenges worsened by Tropical Storm Helene.
“Expanding affordable housing is a critical part of Asheville’s recovery from Tropical Storm Helene,” said Recovery Coordinator Bridget Herring. “This investment helps address housing needs that were intensified by the storm while creating long-term affordable housing opportunities for residents. Projects like Terrace at River Hills move us closer to our recovery goals and strengthen our community for the future.”
The award to Terrace at River Hills builds on City Council’s May 12 approval of federal CDBG-DR funding for two affordable housing developments. The City awarded $1.39 million to District East Commons, supporting 93 affordable rental housing units, and $7 million to 319-B Biltmore, supporting 112 units. Together with Terrace at River Hills, these investments will help create 331 affordable rental housing units across Asheville.
Terrace at River Hills
Terrace at River Hills, submitted by developers Mountain Housing Opportunities and South Creek Development, was identified as the top-ranked application through the City’s competitive funding process. The Terrace at River Hills 126-unit development includes a minimum 35-year affordability commitment and must receive Low-Income Housing Tax Credit (LIHTC) approval from the North Carolina Housing Finance Agency (NCHFA) before construction can begin.
The development will offer a mix of affordability levels available to households earning 20-80% of Area Median Income (AMI). Because the site is vacant and does not depend on the approval of other funding sources beyond LIHTC, the project is positioned to begin construction quickly.
Meeting the demand
The demand for CDBG-DR Affordable Multi-Family Housing Construction funding significantly exceeds available resources. A total of 13 applications were submitted to the City’s Affordable Multi-Family Housing Construction Program, requesting more than $70 million in CDBG-DR funding to support nearly 1,500 proposed housing units.
The additional award reflects the City’s commitment to expanding affordable housing opportunities and addressing unmet housing needs resulting from Tropical Storm Helene. Combined with previous CDBG-DR housing awards approved in May, the City continues to advance projects that increase Asheville’s affordable housing supply and support long-term recovery.
About the City of Asheville’s CDBG-DR Program
On January 16, 2025, the U.S. Department of Housing and Urban Development allocated $225,010,000 in CDBG-DR funds for the City of Asheville’s recovery from Tropical Storm Helene. CDBG-DR is a federal disaster recovery program that provides funding to communities affected by major disasters. These funds must be used to address unmet disaster-related needs, particularly in housing, economic revitalization, and infrastructure restorations.
Learn more about the City of Asheville’s CDBG-DR program and read the City’s Action Plan at ashevillerecovers.org/cdbg-dr.