The Asheville City Council has approved a resolution to allocate $10 million from the 2024 Affordable Housing Bond to the Western North Carolina (WNC) Affordable Housing Loan Fund. This move is part of the council’s ongoing efforts to increase affordable housing within Asheville’s city limits. The allocation marks the first phase in distributing the $20 million that voters authorized through the bond measure in November 2024.
Self-Help Credit Union will manage these funds under a loan agreement, taking responsibility for underwriting, servicing, and administration. By leveraging city funds, Self-Help Credit Union aims to expand gap financing for affordable multifamily projects within Asheville.
The WNC Affordable Housing Loan Fund was established in early 2024 through a partnership between Self-Help Credit Union and Dogwood Health Trust. The fund offers low-interest loans to developers focused on creating and preserving affordable rental housing.
City participation in the fund is expected to significantly increase the number of supported projects, making public dollars more effective in addressing local housing needs. With Self-Help staff managing underwriting and loan administration, city staff can redirect their efforts toward other priorities outlined in the Affordable Housing Plan.
“Self-Help staff will take over all underwriting and loan administration duties, allowing City staff to focus resources on additional Council priorities in the Affordable Housing Plan.”
Affordable housing projects often face challenges securing low-interest gap financing. By joining forces with Dogwood Health Trust and contributing zero-percent interest capital, Asheville can combine its resources with private funds to offer developers an interest rate currently set at 2.45%. This approach helps close funding gaps that might otherwise delay or halt affordable housing developments.
“Since low-interest gap financing is challenging for many projects, by joining the WNC Affordable Housing Loan Fund, the City can strategically partner with Dogwood, leveraging the City’s 0% interest capital with private funds to offer projects an impactful low interest rate (currently 2.45%), closing funding gaps that can otherwise stall affordable housing projects.”
