funding agreement with Step Up on Second Street, Inc. for the provision of supportive services
for future residents of permanent supportive housing at 148-150 River Ford Parkway; (3)
Authorize contract amendments with Five P Mountain, LLC and Sunrise Community for Recovery
& Wellness for room nights and supportive services for current shelter participants extending the
contract terms through March 31, 2022; and (4) Authorize a budget amendment in the Special
Revenue Fund in the amount of $1,056,000 from American Rescue Plan (ARPA) funding to fund
the grant agreement with Step Up on Second Street, Inc. for $500,000, the contract amendment
with Five P Mountain, LLC for room nights until March 31, 2022 in the amount of $366,000 and
the contract amendment with Sunrise Community for Recovery & Wellness for accompanying
supportive services in the amount of $190,000.
Background:
● Earlier this year, the City entered into a contract to purchase real estate at 148 and 150
River Ford Parkway (aka the Ramada) for the purpose of creating an Emergency Shelter
to serve the unsheltered homeless population.
● The contract expires Dec 15, and the City must give notice to purchase or withdraw the
offer.
● Funding and community partners have requested a more extensive planning process in
order to achieve long-term success in the development of a new emergency shelter.
● Partners have also indicated the need for additional permanent supportive housing for
homeless veterans and people who are chronically homeless, and the Ramada property
is also a superior site for permanent supportive housing.
● Staff has identified a path forward that seeks to provide an opportunity to accomplish
multiple goals to include:
○ Goal 1 - continue to work with funding partners and the community on a new
consultant-led planning process for the development of an emergency shelter in
a different location, yet to be determined
○ Goal 2 - pursue positive outcomes for 80 people currently sheltered at Ramada
and continue that operation through March, using that time to work on housing
solutions for each participant
○ Goal 3 - Transfer the Ramada purchase contracts to a private entity / non-profit
partnership to re-purpose for permanent supportive housing instead of the shelter
use
● To implement Goal 2, the City will extend its existing contracts with Five P Mountain, LLC
and Sunrise Community for Recovery & Wellness through March 31, 2021 and will seek
partnership funding to share in these costs.
● To implement Goal 3, the City will assign its contractual rights to purchase the Ramada
property to a private entity known as Shangri-La Industries, Inc.
● This firm uses purpose-driven, low-return, private sector financing to acquire and rehab
hotels into housing units and secures project-based housing vouchers to cover the
carrying costs and long-term capital maintenance. In exchange for this contract
assignment, Shangri-La Industries will execute a deed restriction with the City of
Asheville for a period of 50 years for permanent supportive housing.
● Their non-profit partner, Step Up on Second Street, Inc., provides on-site case
management services for residents, including mental health services, counseling,
substance use recovery support and linking to community resources.
● This for-profit / non-profit partnership is part of a national strategy to provide permanent
supportive housing for individuals experiencing chronic homelessness and this
experienced partnership has rolled out successful hotel conversions for permanent
supportive housing in California.