Gov. Stein Administration Launches $70 Million Affordable Housing Program for Western North Carolina's Helene Recovery

The administration of Josh Stein announced the launch of a new $70 million housing recovery program aimed at rebuilding and expanding affordable rental housing across western North Carolina communities impacted by Hurricane Helene.

The North Carolina Department of Commerce Division of Community Revitalization opened the first round of applications on June 25 for the Renew NC Multi-Family Construction and Repair Program, which will provide federal disaster recovery funding for the construction of new apartment developments and rehabilitation of damaged rental properties with five or more units.

"Hurricane Helene destroyed thousands of rental properties. Western North Carolinians need safe places to live," Stein said in a statement on Thursday. "Through this new Renew NC program, we will build safe, affordable rental housing that will provide families with stable homes and strengthen the long-term resilience of the region."

The new initiative marks the third major housing recovery program launched under the state's Renew NC disaster recovery effort, which is administering $1.4 billion in federal Community Development Block Grant-Disaster Recovery funding allocated by the U.S. Department of Housing and Urban Development.

The program is open to projects located in 30 designated Hurricane Helene recovery areas, including Rutherford, Polk, Buncombe, Henderson, McDowell, Burke, Cleveland, Avery, Mitchell, Haywood, Transylvania and Watauga counties.

According to state officials, eligible projects may receive between $500,000 and $15 million in funding. The program will support:

• Construction of new multifamily rental housing developments;

• Substantial rehabilitation of existing apartment complexes;

• Site preparation and infrastructure improvements;

• Architectural, engineering and other development costs; and

• Required environmental, accessibility and construction compliance measures.

The funding is intended to increase the supply of affordable rental housing in communities where Hurricane Helene destroyed or damaged thousands of housing units and exacerbated existing housing shortages.

"Expanding access to quality rental housing is critical to western North Carolina's economic recovery and future growth," said North Carolina Commerce Secretary Lee Lilley. "With more affordable housing, we're building better, more durable communities and creating stronger foundations for economic opportunity."

The program includes a non-Low-Income Housing Tax Credit track designed for projects that do not qualify for or receive tax credit financing through the North Carolina Housing Finance Agency.

Eligible applicants include for-profit and nonprofit housing developers, public housing authorities, local governments and joint ventures among those entities.

Applicants receiving awards must agree to maintain affordable rental rates for at least 20 years following construction or rehabilitation.

"This is our third Renew NC program dedicated to supporting housing recovery in western North Carolina following Hurricane Helene," said Stephanie McGarrah, deputy secretary of community revitalization. "With the Multi-Family Construction and Repair Program, we're excited to extend the reach of disaster recovery to families in need of safe and affordable housing."

Applications opened June 25 and will remain open through 5 p.m. Nov. 2. State officials said proposals will be evaluated competitively based on factors including community need, applicant capacity, project readiness, leveraged funding and anticipated long-term outcomes.

The multifamily program follows the launch of Renew NC's Small Rental Rehabilitation Program, which provides $57.4 million to help landlords repair or replace rental properties containing four or fewer units damaged by Hurricane Helene. The state's Commercial District Revitalization Program also remains open through Aug. 4 for local governments and nonprofit organizations seeking to restore storm-damaged business districts.

Additional information about the multifamily housing program and other Renew NC recovery initiatives is available through the state's recovery website.