The Gastonia City Council on Oct. 7 approved several housing actions aimed at using federal HOME program dollars to support affordable housing and property disposition in the Highland neighborhood.

Danette, a housing staff member, told the council that under HUD federal regulations, “24 CFR 92, the HOME consortium is required to set aside at least 15% of HOME allocation for housing sponsored, owned, or developed by a CHDO, or Community Housing Development Organization.” The council authorized staff to release a CHDO request for proposals (RFP) to identify an eligible nonprofit developer; the RFP is scheduled to be advertised Oct. 10 with proposals due Nov. 20.

Council members debated whether to prioritize rehabilitation over new construction. Several speakers urged focusing on rehab to preserve existing housing stock and reduce future demolitions. Staff said the RFP will require site control and that applicants may propose either construction or rehabilitation projects; the city will evaluate proposals accordingly.

The council also approved an amendment to the city’s affordable homebuyer assistance policy, designating $328,000 of HOME funds for a pilot that increases down payment and closing-cost assistance to a maximum of $15,000 per household. Staff said the $15,000 cap is temporary and the program would revert to a $7,500 cap once the pilot funds are exhausted. The motion to adopt the amendment passed unanimously.

On property disposition, the council accepted a resolution to procure appraisal services for 17 city‑owned Highland lots that were acquired with federal funds; staff said federal and program rules require appraisals to establish values and to support affordability terms when the lots transfer to developers or homeowners. That motion also passed unanimously.

Council received a brief update on a proposed safe-parking pilot hosted at Mount Zion Restoration Church; the city manager and staff reported that the committee asked staff to continue conversations with community partners and the church, with further information to return to committee.

Committee members and staff emphasized that HOME CHDO set‑asides are time-limited and that failing to run a CHDO competition can cause the community to lose future HOME allocations. Staff said they would vet applicants’ capacity and that organizations such as Habitat for Humanity remain eligible if they meet CHDO requirements and choose to apply.

The council’s actions authorize staff to post the CHDO RFP and advance a small pilot to increase homebuyer assistance as the city seeks partners to develop affordable housing in target neighborhoods.