In response to the devastation caused by Hurricane Helene, North Carolina is rolling out a new initiative to assist owners of small rental properties in need of repairs. The program aims to restore units while ensuring they remain affordable for tenants.
The $57.4 million program is now accepting applications. It offers grants of up to $1.5 million to eligible property owners on a first-come, first-served basis. This effort is part of Renew NC, a broader state-run housing rehabilitation initiative. Funding is primarily sourced from the Department of Housing and Urban Development’s Community Development Block Grant, which sanctioned $1.4 billion in recovery aid earlier this year.
The scheme is designed for rental properties with four units or fewer, with a stipulation that owners must lease the units at an “affordable” rate for a decade. This requirement ensures long-term affordability for households impacted by the hurricane.
Hurricane Helene was particularly destructive, having destroyed nearly 1,000 homes and severely impacted the habitability of about 30,000 more across the state.
This rental repair initiative follows another program launched by Renew NC earlier this summer, which allocated $800 million for single-family home repairs.
What Defines “Affordable” Rent?
According to Renew NC, the repaired rental properties must be leased to households earning at or below 80% of the area median income (AMI) for the next ten years. The AMI is set by HUD and varies depending on location and household size.
For instance, in the Asheville area, 80% AMI equates to $52,150 for a single-person household and $74,500 for a four-person household. In Yancey County, the figures are slightly lower, with $50,000 for a one-person and $64,250 for a four-person household.
Moreover, repaired units must align with HUD’s High HOME Rent Limits. In Asheville, this means rent cannot exceed $1,121 for a one-bedroom or $1,706 for a four-bedroom unit, although these limits vary by location and household size.
For further details on the Small Rental Rehabilitation Program and application procedures, refer to the Renew NC website.
