HUD allocates $225 million in disaster recovery funding directly to Asheville

Today, the U.S. Department of Housing and Urban Development (HUD) announced an unprecedented allocation of over $1.6 billion in Community Development Block Grant-Disaster Recovery (CDBG-DR) funding to aid North Carolina in recovering from the devastating impacts of Hurricane Helene. Of this, $225 million will be directly allocated to the City of Asheville, with the remaining $1.4 billion supporting statewide recovery initiatives. HUD Acting Secretary Adrienne Todman, Governor Josh Stein, and Mayor Esther Manheimer, co-chair of the Rebuilding Western North Carolina Advisory Committee along with Senator Kevin Corbin, gathered with local officials and community leaders to share this monumental news.

Mayor Manheimer emphasized the critical importance of this funding for Asheville’s recovery. “This direct allocation to Asheville demonstrates the federal government’s understanding of our city’s unique recovery challenges and the urgency of rebuilding. These funds will give us the opportunity to repair and enhance infrastructure, address housing, and support business recovery. Restoring our city’s infrastructure is a top priority and rebuilding stronger will ensure our long-term resilience. I am committed to using these funds strategically and equitably to create a stronger, more sustainable future for Asheville and Western North Carolina.”

The announcement was made during a visit to Mountain BizWorks, where federal, state, and local leaders met with small business owners and community organizations to discuss recovery efforts. Acting Secretary Todman emphasized HUD’s commitment to long-term resilience and equitable recovery across all impacted communities. “Americans have witnessed way too many disasters, and each one is becoming stronger than the next. As we build, we have to build back smart, we have to build back boldly,” said Todman. “So we are not just responding to what happened, but we are also preparing for the future.”

Governor Josh Stein highlighted the critical timing in securing this flexible funding as temperatures plummet and the need for secure housing becomes paramount, stating, “More than 12,000 North Carolinians are still displaced from their homes today. Even as we get through the immediate challenge of keeping people safely housed, we must consider not only their lives but their livelihoods.” Stein added, “I look forward to prioritizing with the leaders of WNC as we determine where and how these funds can have the maximum impact on people’s lives and livelihoods.”

The CDBG-DR funding comes in addition to the FEMA recovery funds that are providing 100% to 90% reimbursements to the city for activities like debris removal and repairs to utilities, parks, and roads. The $225 million in HUD funding will be instrumental in addressing critical recovery needs, including housing repair, infrastructure restoration, and economic revitalization. Details on program implementation and community engagement opportunities will be announced in the coming weeks.

“We will continue advocating for additional support from our state and federal partners to help our region rebuild stronger,” said Manheimer. “This funding is an important first step, and we are deeply grateful for Acting Secretary Todman’s support as well as Governor Stein’s laser focus on prioritizing the recovery of WNC in his new administration.”

About the CDBG-DR Program

HUD’s CDBG-DR program provides flexible funding to help communities recover from disasters and build resilience against future impacts. This allocation represents one of the largest disaster recovery investments ever made in North Carolina.

For more information about the recovery efforts or to stay updated on available resources, visit https://publicinput.com/ashevillerecovers.