City Council Meeting: November 15, 2022
Subject: Rescinding the award of $1,000,000 from the City’s Housing Trust Fund
Staff Resource(s): Nikki Reid, Community & Economic Development Director
Sasha Vrtunski, Affordable Housing Officer
Action Requested: Adoption of a resolution to rescind the Housing Trust Fund award of $1,000,000
approved for Beaucatcher Vista LLC.
Background:
● City Council approved Beaucatcher Vista LLC’s Housing Trust Fund award for $1,000,000 on
May 26, 2020, Resolution #20-96.,
● The award was to develop forty affordable rental homes at 2 Restaurant Court (now addressed
as 16 Restaurant Court).
● Beaucatcher Vista LLC chose not to pursue the development of the project and no formal
agreements or payments were issued.
● Mountain Housing Opportunities currently has the 16 Restaurant Court property under contract
and intends to close on the property before the end of October 2022, for the purpose of
constructing multi-family affordable housing.
● The City Council approved a Housing Trust Fund loan of $850,000 for Mountain Housing
Opportunities to purchase the land on August 23, 2022.
● Beaucatcher Vista LLC has since requested to rescind their Housing Trust Fund award.
Council Goal(s):
● Quality Affordable Housing
Committee(s):
● Housing and Community Development Committee (HCD) August 16, 2022 voted unanimously to
approve Mountain Housing Opportunities’ application, acknowledging that this award from 2020
would be rescinded.
Pro(s):
● Funds will be available for future use in the Housing Trust Fund.
Con(s):
● None noted.
Fiscal Impact:
● No funds have been paid to Beaucatcher Vista LLC.
● This action will rescind the $1,000,000 awarded to Beaucatcher Vista LLC, and the funds will be
available for future use in the Housing Trust Fund.
Suggested Motion:
● Motion to authorize a resolution to rescind the $1,000,000 Housing Trust Fund loan previously
awarded to Beaucatcher Vista LLC.
Attachment(s):
● Resolution #20-96
● Email from Kirk Booth
● Resolution
RESOLUTION NO. 22-_________
RESOLUTION APPROVING THE RESCISSION OF THE HOUSING TRUST FUND LOAN PREVIOUSLY
AWARDED TO BEAUCATCHER VISTA, LLC
____________________________________________________________________________________
WHEREAS, on May 26, 2020, Resolution #20-96 the City of Asheville awarded a Housing Trust
Fund Award to Beaucatcher Vista LLC in the amount of $1,000,000, to be secured by a promissory note
and deed of trust, for the development of forty (40) affordable rental homes at 2 Restaurant Court; and
WHEREAS, Beaucatcher Vista LLC has informed the Community & Economic Development
Department that the property will be sold to Mountain Housing Opportunities for a different housing
development and therefore, requests a rescission of the HTF award; and
WHEREAS, the City has not executed any formal agreements nor has issued any payments of
Housing Trust Funds for this purpose; and
WHEREAS, upon rescission of the award to Beaucatcher Vista LLC, $1,000,000 will be available
for future Housing Trust Fund use;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASHEVILLE
THAT:
The Housing Trust Fund Award of $1,000,000 made to Beaucatcher Vista LLC is hereby
rescinded.
Read, approved and adopted this 15th day of November, 2022.
_____________________________________ _________________________________
City Clerk Mayor
Approved as to form:
_________________________________
City Attorney
