MHO received a highly competitive 9% Low-Income Housing Tax Credit (LIHTC) award for its Star Point development in Asheville, NC. In addition to obtaining what will equate to nearly $10 Million in federal tax credit equity, Star Point also received a loan of $1.2 million from the North Carolina Housing Finance Agency (NCHFA). The tax credit equity and the loan are essential to advancing the project. The City of Asheville and Buncombe County have also committed loans in support of the development, and Dogwood Health Trust provided a pre-development grant.
Tax Credit Awards are administered annually on the state level and are the main funding source for developing affordable housing in North Carolina and across the US. Star Point is the only development in Buncombe County to receive a 9% LIHTC award in 2023, and is one of just 25 new construction projects Statewide.
Located off Tunnel Road in inner east Asheville, Star Point is a 60-unit development planned on a 1.3-acre site on Restaurant Court behind the Mountaineer Inn. This community will house renters earning below 30% to 60% of the area’s median income and feature a mix of 1- and 2-bedroom apartments. Twelve units will be set aside to serve young adults aging out of foster care. Youth aging out of foster care are particularly vulnerable to poverty, housing instability, and homelessness.
“Many thanks to NCHFA for recognizing Star Point as a perfect location for affordable housing,” said Geoffrey Barton, MHO President & CEO. “There is a huge need for affordable housing in every corner of our community, but we are particularly excited to bring 60 affordable rental apartments to the Tunnel Road corridor. This is a great location because of its proximity to jobs, transit, and a wide range of retail establishments. And of course we look forward to providing stability for young adults aging out of foster care, a particularly vulnerable population with very limited housing resources.”
"Statewide data helps illustrate the challenges youth face in North Carolina when they age out of foster care services at 21 years old: 28% are parents, 31% are homeless, and only 14% are able to obtain housing assistance," said Sarah Dickerson, ESTA Director at Eliada. "Projects like Star Point are essential to addressing housing insecurity for these young adults and their families, especially as our region continues to experience a critical shortage of affordable housing. Eliada looks forward to adding this collaboration with Mountain Housing Opportunities as one more resource that stabilizes and supports post-foster care youth in our community."
Construction is slated to begin on Star Point in 2024. Federal tax credits and other financing awarded by NCHFA in 2023 will build 3,997 affordable apartments in 29 North Carolina counties and will support over 15,000 jobs.