ASHEVILLE – City officials are weighing how to allocate $18 million in remaining federal disaster relief funds earmarked for housing recovery following Tropical Storm Helene in late 2025. The core question facing the Asheville City Council is whether to shift resources away from planned multifamily housing construction and toward a state-run program focused on repairing and rebuilding single-family homes. This decision impacts thousands of residents still grappling with the storm’s aftermath and highlights the complexities of distributing disaster aid effectively.
The $18 million represents a portion of the $225 million in Community Development Block Grant – Disaster Recovery (CDBG-DR) funding allocated to Asheville by the U.S. Department of Housing and Urban Development (HUD) to address unmet needs after Helene. The storm caused nearly $60 billion in damages across Western North Carolina and impacted over 12,000 homes in Buncombe County alone, according to city data. The initial plan, as of February 2026, designates $10 million for multifamily construction and $3 million for the state’s Renew N.C. Single-family repair program, leaving the remaining $18 million under consideration.
A Growing Gap in Single-Family Repair Funding
The debate over reallocation stems from a significant funding gap identified within the Renew N.C. Program. As of February 12, 2026, the program had received 284 applications in Asheville, with 46 designated as “phase 1, priority 1.” These priority applications represent households earning 60% or less of the area median income – roughly $39,113 annually for a single person or $44,700 for a two-person household – and include seniors, children, and/or disabled family members. The average reconstruction award is estimated at $250,000, meaning these initial priority applicants alone would require approximately $12.25 million in funding.
Currently, the allocated $3 million falls far short of meeting the documented need. CDBG-DR program manager Elma King described the situation as a “significant funding gap” during a City Council committee meeting on February 17, 2026. The potential for additional eligible applications further exacerbates the shortfall, prompting discussions about redirecting funds from other areas.
HUD Scrutiny of Asheville’s Disaster Relief Plan
The allocation of these funds hasn’t been without external oversight. In early 2026, U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner publicly denounced the city’s initial draft disaster plan, citing the inclusion of Diversity, Equity, and Inclusion (DEI) criteria in the distribution of funds. According to a HUD statement, the plan prioritized certain residents over others based on DEI factors, which Secretary Turner deemed unacceptable. HUD informed Asheville that the plan would not be approved in its current form, and the city subsequently assured the department it was updating the plan to ensure compliance with President Trump’s executive orders against DEI preferences.
This intervention underscores the heightened scrutiny surrounding the distribution of federal disaster relief funds and the importance of adhering to federal guidelines. The situation highlights the political landscape surrounding disaster recovery and the potential for federal oversight in local aid distribution.
Balancing Multifamily Needs with Individual Homeowner Recovery
The debate over reallocation isn’t simply a matter of dollars and cents; it reflects differing priorities in addressing the housing crisis exacerbated by Tropical Storm Helene. Advocates for multifamily construction argue that increasing the housing supply is crucial for long-term affordability and addressing the broader housing shortage in Asheville. Shifting funds away from these projects could delay the creation of much-needed rental units.
Conversely, proponents of prioritizing single-family home repair emphasize the immediate needs of homeowners struggling to rebuild their lives. For many, repairing or rebuilding their homes is not just a matter of shelter but also of preserving their financial stability and community ties. The Renew N.C. Program offers direct assistance to these homeowners, providing funds for reconstruction and repair. Applications for the program are now open across the state.
Further discussion on the allocation of the remaining $18 million is scheduled for April. The City Council will need to weigh the competing needs and priorities as it seeks to ensure that disaster relief funds are used effectively to help Asheville residents recover from the devastating impact of Tropical Storm Helene. Residents can find updates on the city’s disaster recovery efforts on the Asheville city government website.
Disclaimer: This article provides information for general knowledge and informational purposes only, and does not constitute financial or legal advice.
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