Buncombe County leaders seek tourism tax dollars for affordable workforce housing project

ASHEVILLE, N.C. (WLOS) — A day after workers in the tourism industry called for Asheville-area leaders to boycott the lodging tax, Buncombe County leaders confirmed they're applying for tourism tax dollars for workforce housing.

Buncombe County Commission Chair Brownie Newman said Tuesday the board planned to ask for $6 million from the Tourism Development Authority to go toward the estimated $30 million Ferry Road project. The project would have 600 units of homes and rental apartments at reasonable prices.

“The county commission hasn’t discussed this (officially) yet,” said Newman, who’s been meeting with TDA staff, TDA CEO Vic Isley and TDA committee members for months. “We will be discussing it at one of our next two meetings. The staff will present the application they’re prepared to submit. Commission will discuss and vote. I anticipate they will support it.”

Newman confirmed he’s had at least two face-to-face conversations with Isley about the importance TDA help in supporting workforce housing for those who work in hotels, restaurants or shops, catering to tourists.

“We had meetings (with the TDA) to discuss the county’s strategy,” he said.

GROUPS THINK MILLIONS IN HOTEL TAXES SHOULD GO TOWARD AFFORDABLE HOUSING

Newman has announced he won’t seek another term on Buncombe County Board of Commissioners. But, he's made The Ferry Road workforce housing project his legacy issue. He said the majority of people who need affordable housing are those working in Asheville largely in the tourism industry. Newman spearheaded the successful bond referendum passed by county taxpayers supporting affordable housing. He said affordable housing prices would be in the $400-$800 range for a one-bedroom at Ferry Road. The formulas can be complicated with a mix of pots of money, including federal tax breaks for developers who build.

TDA leaders said one stipulation for the LIFT Fund is that any housing project has to already be in the works to be considered. In that sense, Ferry Road will qualify, Newman said.

City leaders, including Mayor Esther Manheimer, are already publicly supporting Newman’s plan to tap into the millions that come in from lodging and Airbnb taxes tourists pay in overnight stays.

For years, Manheimer has been outspoken in her criticism of the way a North Carolina statute requires the TDA to spend its funds primarily on projects and marketing to draw tourists to the area.

“I think the amount of money that legislatively is required to go to marketing for tourism in our community might have made sense in the 80s, when this tax was initially created,” Manheimer said. “But now that it’s grown to a $40 million pot of money, it doesn't make sense for two-thirds of it to be spent on marketing outside Buncombe County to bring tourists to Buncombe County.”

ASHEVILLE BUNCOMBE REGIONAL SPORTS COMMISSION REJECTS MERGER WITH TOURISM AUTHORITY

During Tuesday's Asheville City Council meeting, Councilwoman Sage Turner planned to make an open request that the city add affordable housing to its request for money from the TDA’s LIFT Fund like the county is doing. But Manheimer was less than optimistic the city could land any money in this initial round since it doesn’t have an affordable housing project that technically is already in the works beyond owning land.

“The fact the room tax cannot be used to help support the city with all the impacts tourism brings to a city is ridiculous,” Manheimer said.

Isley declined to respond to questions about her meeting with Newman.

Isley sent the following statement through TDA spokeswoman Ashley Greenstein:

We look forward to seeing what projects are brought forward by nonprofit and government partners for the inaugural LIFT Fund cycle. Once the application phase concludes Dec. 1, the LIFT Fund Committee will thoroughly assess all submissions in this competitive grant process, offering recommendations to the BCTDA based on each project’s merit and alignment with program guidelines. It’s too early to determine what will or won’t be considered at this point.”