Summary (Updated 6/29/26): City Council approved the Oak Hill affordable homeownership proposal while directing staff to continue exploring ways to reach households with even lower incomes. Read more in the Report Back below.

Summary (Original): Council will consider a proposal to use city-owned land and public housing funds to create 42 affordable homeownership units at Oak Hill. We view the proposal as a promising use of public land but believe Council should receive a clear public explanation of what options were considered to serve lower-income households and why the proposed affordability mix represents the best achievable outcome.

The Facts: The City is proposing to sell approximately 3.7 acres of city-owned land at 29 Oak Hill Drive to a development partnership for $1 and provide a $1.6 million construction loan to support development of 42 townhomes for affordable homeownership.

Under the proposal, 10 homes would be affordable to households earning up to 80% of Area Median Income (AMI), 10 homes would be affordable to households earning up to 100% AMI, and 22 homes would be affordable to households earning up to 110% AMI. The project would include deed restrictions designed to preserve affordability for 20 years, along with down-payment assistance for qualifying buyers.

The Housing and Community Development Committee recently discussed whether some units could be made affordable to households earning 60% of AMI or below. Staff have indicated they are exploring options and will provide additional information to Council.

You can see the staff report on this issue here and the presentation slides here.

Our Assessment: Overall, this proposal deserves support.

The project is notable because it focuses on ownership rather than rental housing. Homeownership remains one of the most important pathways to long-term housing stability and wealth building, yet it has become increasingly inaccessible for many Asheville residents. Creating opportunities for moderate-income households to purchase homes can help keep working families in the community.

At the same time, this proposal involves both publicly owned land and public financing. Whenever public resources are used, residents have a legitimate interest in understanding how affordability decisions were made and who ultimately benefits.

The Housing and Community Development Committee recently asked whether some units could be made affordable to households earning 60% of AMI or below. We know from previous studies, like the one done by Thrive Asheville, that “affordable housing” that targets 80% AMI and above actually increases racial disparities in housing access. With that in mind, the public deserves a clear answer. Before approving the agreement, Council should receive a transparent explanation of what options were considered, what additional resources would be required to reach lower-income households, and why those options were or were not included in the final proposal.

This is not an argument that the project should be rejected. It is an argument that public investments should be accompanied by public accountability. If the proposed affordability mix is the best achievable outcome, residents deserve to understand why. If additional affordability is possible, residents deserve to know that as well.

Things to do: No action needed at this time. Last week, we encouraged you to contact City Council and ask them to publicly explain what options were considered to serve households at lower income levels and why the proposed affordability mix represents the best use of public land and public housing dollars.

Report Back

Council approved the proposed Oak Hill development, which will create 42 permanently affordable townhomes through a partnership between the City and a private developer. The questions we asked last week were not addressed, but this project will come back to City Council as it progresses.

The project combines city-owned land, construction financing, and down payment assistance to make homeownership possible for households earning approximately 80% to 110% of area median income.

Several council members praised the project’s innovative financing model while also encouraging staff to continue exploring ways to make future phases affordable to households with even lower incomes. While the financing package has now been approved, the project itself is not yet entitled for construction. It must still complete the City’s conditional zoning process, giving the Planning & Zoning Commission, City Council, and the public another opportunity to review the site’s design, transportation impacts, and other development details before final approval. We anticipate that there will be future opportunities to advocate for improvements to this project, and will keep you informed.

Total GAP Supporter Actions Taken: 10

Recipients and Responses:

Asheville City Council

• Mayor Esther Manheimer: No response
• Vice Mayor Antanette Mosley: No response
• City Council Member Bo Hess: Responded “Thanks for sharing!”
• City Council Member Kim Roney: No response
• City Council Member Maggie Ullman:  No response
• City Council Member Sage Turner: No response
• City Council Member Sheneika Smith: No response