Hurricane Helene caused widespread devastation in Western North Carolina.

Asheville secures $225M in HUD disaster recovery funds

May 23, 2025

The U.S. Department of Housing and Urban Development (HUD) has approved the City of Asheville, North Carolina’s revised action plan for an allocation of about $225 million in Community Development Block Grant–Disaster Recovery (CDBG-DR) funds, according to a statement released by the city.

This approval comes after HUD rejected the initial plan in March for its DEI criteria. The Asheville City Council unanimously approved the revised action plan on April 8 and submitted it to HUD on April 9.

Several months of community engagement sessions, including a January survey on recovery priorities, six public input sessions in February and a 30-day public comment period with three feedback sessions in March, ultimately led to the plan’s approval. The city said community feedback played a key role in shaping the approved plan, like the reallocation of $5 million from the infrastructure program to the Small Business Support, Affordable Multi-Family Construction and Planning programs.

The funds are intended to help Asheville recover from the impact of Hurricane Helene, which hit the city in September 2024. The hurricane significantly damaged parks, roads, businesses and residential homes, including significant damage to Blue Ridge Parkway and 80% of the buildings in the River Arts District (RAD). The North Carolina Office of State Budget and Management (OSBM) estimated over $59 billion in damage in its Hurricane Helene Recovery Revised Damage and Needs Assessment, with Asheville being heavily affected.

The plan will distribute $125 million for infrastructure, repairing the damaged roads and water facilities. Additionally, $52 million will be dedicated toward economic revitalization along with $31 million for housing. The plan also outlined about $11.2 million for administration, $3.7 million for planning and $2 million for public services.

While the plan has been approved, the funds are not going to be dispersed until the HUD can certify that Asheville is prepared to manage the grant funds. The city has submitted all the required documentation and is waiting for certification from HUD. Following approval, HUD will issue a grant proposal requiring signatures from both the city and HUD.

The city is identifying projects that will begin once funding can be distributed. The city has prioritized the French Broad Riverfront Parks Recovery project and said additional programs will launch as they are developed.

The city said the first programs are expected to begin in the fall.


Photo Courtesy
Bill McMannis via Wikimedia Commons
Creative Commons Attribution 2.0

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