Regional Consortium Sets July Timeline for $4.7M HOME-ARP Awards

The Asheville Regional Housing Consortium's long-delayed HOME-ARP program is finally taking applications. The window for rental housing aimed at people who are homeless, at risk of homelessness or fleeing domestic violence closes Friday, May 15, and award recommendations are targeted for a July 15 special meeting. Members also previewed a leaner 2026 HOME round that comes with a new rule: one award, with no top-offs.

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• HOME-ARP rental round closes May 15. Just over $3M is on the table, with about 23 applications started.
• About $1M in 2026 HOME funds opens in November as a one-time award with no top-offs, timed to state tax credit cycles.
• Single audit flags skipped HOME subrecipient monitoring during the Helene recovery year. A HUD-accepted fix is underway, and a re-audit is mandatory.

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HOME-ARP Money Nears the Finish Line

1 big thing: After years of shifting timelines, the consortium's roughly $4.7M HOME-ARP allocation is moving toward real projects.

The basics: HOME-ARP is a special round of federal HOME housing funds created under the American Rescue Plan Act. James Shelton, Community Development Division Manager for the City of Asheville, stressed that it is HOME money, not ARPA money. That distinction matters because the funds follow HUD's HOME program rules.

Why it matters: The dollars are restricted to specific groups. Shelton described them as "for qualified populations, for people who are either experiencing homelessness, at risk of homelessness, or fleeing domestic violence, or who are victims of domestic violence."

Where things stand: Stephanie Carl, a representative of consultant ICF, reported that the rental housing application opened and closes this Friday. She laid out a cautious timeline: "we will be looking to possibly have something to the funding committee by June with approval in July, depending on what comes in."

• Rental construction: Shelton said just over $3M has been noticed for affordable rental construction.
• Supportive services: A separate $1M notice for supportive services is coming later this summer. Carl said the program design has been drafted.
• Eligible services: These could include mental health support, substance abuse support, rental assistance or financial assistance.

Board Chair Sage Turner, who also serves on Asheville City Council, welcomed the progress. "It's been a long time coming. It's moved around a few times. I'm thankful to get us to an application cycle and some decisions," said Turner.

The applicant math: Turner asked about the size of the applicant pool. Shelton said about 23 applications had begun, but he cautioned that many are submitted only on the last day.

Sam Starbaum, a City of Asheville representative, asked for historical context. "I think we typically get somewhere between 7, 8, 9, 10 actual applications for our HOME rental construction funding," said Shelton. He said ICF expects fewer completed applications this time because of the program's extra requirements.

The hurdles: Each project needs a support letter from its Continuum of Care, the regional body that coordinates homelessness services. Projects in Asheville and Buncombe County need a letter from the Asheville-Buncombe CoC. Projects in the other three counties need one from the Balance of State CoC. Shelton said few applicants had secured those letters so far. He added that serving these populations requires a deeper per-unit subsidy, which means fewer units per dollar.

Decisions and stakeholder impacts: No vote was taken. Three members agreed to return to the funding committee:

• Emily Brewer
• Jonathan Jones of Buncombe County
• Lee Stevens of Henderson County

Brewer suggested keeping one representative per county, and staff will recruit a Madison County member. Nonprofit and for-profit developers that build for homeless residents and domestic violence survivors are the direct beneficiaries. Applicants without CoC letters face a tight clock.

What's next: The funding committee reviews applications in June. The consortium will then meet virtually on July 15 to consider its recommendations and forward them to Asheville City Council for contracting authorization. Turner separately said members would come back together in August to make it official, so the final approval sequence may still shift.

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One Shot at 2026 HOME Funds

Why it matters: The consortium is changing its funding approach. The 2026 round is smaller, arrives on a new calendar and will be awarded once.

Where things stand: Kaylee Pulliam, Community Development Analyst I for the City of Asheville, said applications for multifamily new construction will open in November and stay open through December. A funding committee meeting will follow in January. The pot totals about $1M:

• $806,000 from HUD's 2026 HOME award, net of administrative and staff costs
• $278,000 rolled over from 2025

A separate annual set-aside of about $161,000 for community housing development organizations would be added if an eligible group applies. Pulliam said HUD's updated HOME final rules make it easier for more organizations to qualify for that set-aside. She also flagged HUD's interest in "priority zones."

Turner asked whether the award marks a drop. "It's fairly consistent, but it is slightly below what we have received in previous years," said Pulliam. The gross award was a little over $1M before administrative costs.

The tax credit play: Shelton explained the reason for the November timing. A November cycle lets the consortium recommend awards and lets City Council issue conditional award letters. Developers can then take those letters to the North Carolina Housing Finance Agency, which awards Low Income Housing Tax Credits (LIHTC), in the April–May window. The letter "makes their project that much more likely to be awarded the tax credits," said Shelton. He said the consortium will also discuss running an anticipatory 2027 cycle alongside the 2026 round.

The disaster recovery wrinkle: Turner said she learned at a council meeting the night before that state disaster recovery money for LIHTC projects is likely to go outside the city, because Asheville received its own disaster recovery funds. "There's been a major land grab around the region as soon as some of the DR money was designated for this," said Turner.

No more top-offs: "We probably won't have the funds to top off or add any additional funds to this award," said Pulliam. Turner reinforced the point by citing a recent project: "So that is something I want to make clear, like we did with Apple Ridge." That Henderson County project's award grew from $600,000 with a $300,000 increase approved this year.

Decisions and stakeholder impacts: This item was informational, and no vote was taken. Developers must fully fund their projects up front and cannot count on returning for gap money. Projects outside Asheville may benefit as state disaster recovery dollars flow into the surrounding region.

What's next: Applications open in November, and a funding committee meets in January.

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Audit Flags Missed Monitoring in Helene Year

Why it matters: Findings on federal housing money invite HUD scrutiny and trigger repeat audits.

Where things stand: The city's annual single audit sampled both HOME and CDBG, the Community Development Block Grant program. For the 2024–25 program year, the city did not set up its customary risk-based monitoring plan for subrecipients, the nonprofits and agencies that receive the grant money. That was the Helene recovery year, when both Shelton and Pulliam were new to their roles.

"We did not perform monitoring for subrecipient eligibility determinations and did not verify subrecipients were audited as required by the uniform guidance in Section 200.303," said Shelton.

He said the finding was reported to HUD and City Council, and that HUD verified the corrective action plan meets its standards. Under the plan, staff will set up a monitoring plan and conduct risk-based monitoring this program year. Shelton also noted the city front-loads documentation before making any payment.

Turner asked, "Will the monitoring go back in time?" "We're just correcting going forward," said Shelton. He added that HOME must be audited again in the next single audit, which covers the 2025–26 program year.

The agenda referenced two issues across HOME and CDBG, but only the HOME monitoring finding was described at the meeting.

The other side: Turner, who said she is the city's audit liaison, said the audit findings during her six years on council have been HUD-related. "Because this is a beast working with HUD, the constant changes, the programmatic details," said Turner. She said this is why administrative funds are set aside, and she congratulated staff on having only one finding.

Decisions and stakeholder impacts: This item was informational, and no vote was taken. Subrecipients should expect closer file reviews of eligibility determinations and audit status.

What's next: HOME faces a mandatory re-audit covering the 2025–26 program year.

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Minor Items

• Marshall and Mars Hill: Every member government signed the amended joint cooperation agreement. Staff will submit it to HUD by June 30, and the towns join July 1, 2026, with one voting seat each.
• Apple Ridge: The Housing Assistance Corporation project closed Feb. 18, 2026, with $940,000 in 2024 HOME funds. It includes 60+ units, five of them HOME-assisted.
• 2025 awards: Funds went to three tenant-based rental assistance projects, one down payment assistance program and two homeowner rehabilitation programs. Each carries a two-year spend-down window. Three partners will sign contracts in May, and others will wait until August.
• 2023 projects: Mountain Housing Opportunity's Lakeshore Villas is leasing up. The Community Housing Coalition of Madison County and Helpmate are finishing their 2023 work.
• Minutes: January 14 minutes were approved by voice vote with no opposition recorded. The agenda listed the year as 2025, while the chair said 2026.

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Looking ahead: The consortium holds a virtual special meeting July 15 on HOME-ARP recommendations. Its next regular meeting, also virtual, is Aug. 12, 2026, when Marshall and Mars Hill will be formally welcomed.