A heavily remixed plan for the former Ramada Inn site got the green light at last night’s Asheville City Council meeting.
Changes under the new plan include:
- No funding from city taxpayer dollars or Asheville's COVID relief funds.
- No housing set aside for the general homeless population.
- No longer requiring the property to be a 100% permanent supportive project.
For years, the East Asheville property has gathered dust – and scrutiny – while city leaders and developers struggled to transform the site into housing for Asheville’s homeless population. In early 2024, previous developer Shangri-La was foreclosed on and its mortgage lender, Stormfield Capital, acquired the property.
The latest version of the plan, proposed by California developer Friendship For Affordable Housing, is different from the one that drew criticism from some Asheville City Council members in August. Council members passed the new plan on Tuesday in a 4-3 vote, with Antanette Mosley, Kim Roney and Sheneika Smith voting no.
Friendship’s plan no longer involves a $1.5 million funding request from the City of Asheville, something that made council member Sage Turner feel “more comfortable.”
The estimated $18 million renovation project cost will be footed by Friendship. The company will contract with Over-Brook Management for property management and security services.
The new plan replaces 50 slots originally intended for housing homeless residents. Instead, those 50 units will be reserved for low-income residents with housing subsidy vouchers. Eligibility will be for people who earn under 50% of the Area Median Income – which is $46,750 annually for a household of four in 2024.
Another 50 units, funded through the federal HUD-VASH program, will only serve homeless Veterans. Charles George VA Medical Center will provide onsite supportive services for the Veterans.
An additional 13 units will also be used for an unspecified type of affordable housing, according to Friendship.
To move the project forward, the city council had to vote to change the site’s deed restriction, which previously mandated that developers could only build permanent supportive housing units on the property.
The deed restriction was added to the site in 2021, after the city failed to drum up funds for an emergency shelter. The City Council then voted to assign its purchasing rights of the Ramada property to former developer Shangri-La. Under old proposals, Asheville leaders had tentatively approved funding supportive services for homeless people living at Ramada via part of the city’s federal COVID relief funds.
Not everyone was happy about the deed change Tuesday. Chlo Kramer, who is currently homeless, urged the city not to make the change.
“This is the first bid on this property and it’s not the best one you're gonna get. Vote no. Don’t change the deed,” Kramer said during a public hearing.
Eleanor Ashton, a retiree who used to work at Homeward Bound, said the 50 income-restricted units would come at a steep cost. Homeward Bound was previously involved in discussions for the Ramada project when developers were still planning units for non-Veteran homeless people.
“Yes, it will provide 50 units, but at what cost? It shouldn’t be at the cost of our unhoused neighbors,” Ashton said. “Permanent supportive housing is not easy to come by.”
Councilwoman Maggie Ullman countered that the costs were worth the benefits of the project.
“I know we’re not all the way there and that’s disappointing and frightening but I still think 50 [homeless units for Veterans] is such a big jump from zero,” she said.
Public records show that Asheville has a disproportionately large population of homeless Veterans; the city recorded 191 in its latest Point In Time count.
Friendship said it plans to acquire the property next month and it expects to open for residents in December 2025.
What about the $1.5 million?
The new direction of the Ramada project frees up $1.5 million in public funds that were previously set aside for permanent supportive housing services, including $500,000 in American Rescue Plan Act, or ARPA, money.
Because those ARPA funds were previously authorized for homelessness services, the money must be allocated to homeless services by December 31, 2024, according to the city.
The Asheville-Buncombe Continuum of Care at its Sept. 12 meeting recommended that the city use the money for emergency cold weather shelter facilities and supportive services.
Council members voted to allocate $278,000 to Code Purple (overflow cold weather shelter) and the remaining $222,000 for emergency shelter and supportive services.
The other $1 million initially targeted for the Ramada’s future does not have time restrictions and may be distributed during the city’s next budget cycle.
Other tidbits:
- A plan for a mixed-use “urban village” in Montford received unanimous approval from council. The site, next to Isaac Dickson Elementary on Hill Street, was previously in a historic Black neighborhood that got demolished during urban renewal in the 1960s. New plans include more than 300 apartment units, 20,000 square feet in commercial space and 800 parking spaces.
- Developers will have more incentive to protect big, old trees thanks to changes in Asheville’s tree canopy ordinance. The update includes simpler zoning rules and a new “Heritage Tree” classification that promotes the preservation of very large canopy trees.
Every second and fourth Tuesday, Asheville City Council meets at the Council Chamber on the 2nd Floor of City Hall, 70 Court Plaza beginning at 5:00 p.m. See the full recording of the Sept. 24 meeting and the agenda.
