Affordable Housing Project Proposed Near New Leicester Highway

New Affordable Housing Project Proposed in Asheville

A new affordable housing project is being proposed near New Leicester Highway in the Asheville area, aiming to provide over 150 affordable apartment units. The initiative, led by Mountain Housing Opportunities (MHO), plans to construct 159 multi-family apartment units at 415 Old County Home Road. This location is close to Papa's Pizza on New Leicester Highway and is expected to serve residents who meet specific income criteria.

According to the U.S. Department of Housing and Urban Development (HUD), the units will be considered affordable if rented to individuals or families earning at or below 80% of the area’s median income. For a family of four, this translates to an income of $74,500 or less. Some units may even be more affordable, targeting those earning between 30% and 60% of the area’s median income.

MHO spokesperson Lukas Ray emphasized that all 159 units will be 100% affordable, with some falling below the 30% AMI threshold. However, the exact distribution of these units has not been finalized yet, as the proposal is still in its preliminary stages. The project also includes a long-term commitment to affordability, with the units set to remain available at reduced rates for 45 years, according to a staff report.

Features and Benefits of the Project

The proposed development includes several key features designed to enhance the quality of life for future residents. It will provide access to a nearby Asheville Rapid Transit stop, making it easier for residents to commute within the region. Additionally, the site will include a playground for children, and the construction will take into account environmental preservation by building around existing wetlands on the property.

The current one-story ranch-style home on the property is slated for demolition if the proposal is approved, as indicated in the site plans submitted by MHO. This move aims to create space for the new housing units while maintaining the natural landscape of the area.

Expansion of Affordable Housing Efforts

Mountain Housing Opportunities is actively expanding its efforts to provide affordable housing across the Asheville region. Through two ongoing projects, the nonprofit is constructing 264 new affordable apartments in Asheville, Arden, and Waynesville. MHO was recently selected to build the affordable homeownership component of Buncombe County's Ferry Road project, further demonstrating its commitment to addressing housing needs in the area.

In addition to rental units, MHO is working on 120 new affordable homes that will be sold in communities such as Black Mountain and Leicester. These efforts highlight the organization's focus on both rental and ownership opportunities for low- and moderate-income residents.

Regional Support for Affordable Housing

Local officials are also showing increased support for regional affordable housing initiatives. The city of Asheville has proposed allocating half of the recently approved $20 million affordable housing general obligation bond to a fund managed by a regional community development nonprofit. This fund could provide low-interest loans for major affordable housing projects across Western North Carolina.

The Asheville-area Fair Market Rent, which is projected by HUD, was the highest in the state for four years before declining to the sixth highest in 2025. For a one-bedroom apartment in the Asheville Metropolitan Statistical Area, the projected Fair Market Rent is $1,347 per month.

Timeline and Next Steps

If approved, the project on Old County Home Road is expected to take several years before construction begins. According to Ray, there is a tentative timeline suggesting that the project could close and break ground at the end of 2026 or the beginning of 2027, with completion anticipated by late 2028.

Currently, the property is owned by Gakia LLC, an Asheville-based limited liability company. The proposal will be reviewed during the Aug. 13 Buncombe County Board of Adjustment meeting, marking a crucial step in the approval process.