ASHEVILLE, N.C. (828newsNOW) — During the city council meeting last night, Tuesday, June 9, Asheville officials approved $9.5 million in disaster recovery funding to put the construction of Terrace at River Hills, a 126-unit affordable housing development, into motion.

Where will Terrace at River Hills be located?

The new development will take shape at 110 River Hills Road, amid the River Hills Shopping Center located just past the end of South Tunnel Road.

Terrace at River Hills was submitted by the developers Mountain Housing Opportunities and South Creek Development and identified as the top application out of 13 submissions for city funding. The $9.5 million ticket was provided by the Affordable Multi-Family Housing Construction Program, a tenet of federal Community Development Block Grant – Disaster Recovery, or CDBG-DR, funding.

The development includes a minimum affordability commitment of 35 years, and will offer a mix of affordability options to households earning an Area Mean Income of between 80%, $65,550 a year for a two-person household, and 20%, less than $24,600 for a two-person household. 

While the site is poised for speedy construction once fully approved, it has one more hurdle to clear: Low-Income Housing Tax Credit approval, granted by the North Carolina Housing Finance Agency.

Affordable housing Asheville-wide

Terrace at River Hills joins two other affordable housing projects approved by Asheville City Council on May 12, 2026: the $1.39 million District East Commons, which will house 93 units, and the $7 million 319-B Biltmore, which will support 112 units. All together, the developments will create over 300 affordable housing options across Asheville.

The goal of the projects is to provide “long-term affordability and help address housing challenges worsened by Tropical Storm Helene,” the city wrote in a press release.

“Expanding affordable housing is a critical part of Asheville’s recovery from Tropical Storm Helene,” said Bridget Herring, city recovery coordinator, in the release. “This investment helps address housing needs that were intensified by the storm while creating long-term affordable housing opportunities for residents. Projects like Terrace at River Hills move us closer to our recovery goals and strengthen our community for the future.”