Staff recommends CDBG funding for lead service‑line work and steers HOME dollars to affordable rental construction

James Shelton, the city’s community development division manager, presented the draft FY2026–27 annual action plan for the Community Development Block Grant (CDBG) and HOME programs and opened a 30‑day public comment period that will close June 5.

Shelton said the city expects roughly $1.04 million in CDBG funds and about $1.07 million in HOME funds for the coming year (figures as presented during the meeting). The Housing & Community Development Committee recommended a set of awards that would direct CDBG money to several activities and—most prominently—earmark approximately $500,000 to the Asheville Water Resources Department to inventory and undertake replacement of private lead service lines on homeowner connections. Shelton said the EPA has issued a mandate for lead service-line replacement and staff expect a multi‑year need extending into the 2030s; the recommended CDBG award is intended to focus on low‑ and moderate‑income households and be an anti‑displacement measure.

On HOME funding, Shelton said the consortium recommended steering HOME dollars to affordable rental construction (projects of five units or more, affordable to households at 60% AMI or less). He noted the HOME allocation typically serves as gap financing (often 10–20% of a project’s capital stack) and that staff will align application timing with the North Carolina Housing Finance Agency tax-credit cycle this fall, with award recommendations to council in early next year.

Council members asked for more information about projects not funded in this cycle; Shelton said some historical partners were not recommended this year because staff prioritized the lead-service-line activity and capacity to administer awards. He said staff will provide a fuller listing of applicants and explain what went unawarded.