Asheville wants to tweak its plan for a pandemic-era homelessness prevention grant — none of which, well over five years after its announcement, has yet been spent on preventing homelessness.
The $4.7 million award came in April 2021, part of roughly $5 billion allocated nationwide through the U.S. Department of Housing and Urban Development as part of the American Rescue Plan Act. A HUD news release announcing the funds said they would “deliver near-term relief to people experiencing or at risk of experiencing homelessness” in the wake of COVID-19.
Asheville first adopted a strategy for the “HOME-ARP” money in March 2023, following federally required planning and public input. Roughly $3 million was slated for affordable housing, with $1 million allocated
for supportive services such as case management and substance abuse treatment. (About $705,000 would fund administrative costs.)
In response to questions from the Citizen Times, however, Asheville officials confirmed that none of the money has been deployed. Meanwhile, Buncombe County’s homeless population has increased from 527 in 2021 to 824 this year.
“Progress stalled due to a combination of staffing transitions and regional disaster response,” city spokesperson Meredith Friedheim wrote in an email. “Vacancies in the Community Development Division Manager role delayed implementation until the city onboarded James Shelton in September 2024, at which point response and recovery efforts for Hurricane Helene paused further plan advancement.”
Although the city did open applications for housing projects funded by HOME-ARP in March, no contractor submitted a bid. “Staff regrouped to identify plan adjustments that will strengthen the overall program, and the city remains on track to issue a second call for projects later this year,” Friedheim wrote.
Asheville is not alone in taking substantial time to spend HOME-ARP money. Gastonia, for example, identified a developer for a $2.4 million transitional housing development in late 2025 but hasn’t finalized a contract. Raleigh is also currently considering changes for over $3.6 million of its unspent funds.
Federal guidelines don’t require the money to be spent until 2030. However, a July 2024 update from HUD said local officials should “ensure [HOME-ARP funds] are spent promptly.”
What could change with HOME-ARP in Asheville?
Shelton presented a series of draft HOME-ARP plan adjustments to Asheville City Council on Tuesday, Sept. 22. He explained that the changes were focused on the supportive services side of the plan.
Asheville would newly allow HOME-ARP money to cover “short- to medium-term rental assistance,” said Shelton. The city would specifically prioritize people who had become homeless after Helene; in February, over a quarter of unsheltered county residents said they’d lost housing due to the storm.
Those in need would also be able to access the funds through the Coordinated Entry system, a centralized process that Buncombe homelessness services providers use to manage cases. Sarah Newberry, grants director for Homeward Bound of WNC, told the Citizen Times that the nonprofit’s AHOPE Day Center in downtown Asheville was an entry point for many of those seeking services.
Other organizations offering Coordinated Entry include the Asheville Buncombe Community Christian Ministry, Charles George VA Medical Center, Eliada Homes, Haywood Street Congregation, Helpmate, Safe Shelter, and Sunrise Community for Recovery & Wellness.
Public comment on the changes is open through 5 p.m. Friday, Oct. 2. Residents can share their opinions at CommunityDevelopment@AshevilleNC.gov or by mail to P.O. Box 7148, Asheville, NC 28802.
Council members are slated to vote on the changes at their next meeting Tuesday, Oct. 13.
Daniel Walton is the City Government Watchdog Reporter for the Asheville Citizen Times. Email him at dwalton@gannett.com.
This article originally appeared on Asheville Citizen Times: Asheville got $4.7M to prevent homelessness. None has been spent
