Strategy HC2.4: Create Housing Trust Funds in Henderson, Madison, Haywood, and Transylvania Counties. Expand Housing Trust Funds in Asheville and Buncombe County by identifying or creating a source for recurring funds.
Housing trust funds are separate funds established by states or localities to provide a stable source of revenue reserved solely for affordable homes. Because they are created at the state or local level, program activities and eligibility requirements vary from place to place in response to local needs and priorities. Certain types of dedicated funding sources for housing trust funds—notably, real estate transfer taxes, linkage fees, and document recording fees—generate more revenue for affordable housing when there is an uptick in housing market activity and when home prices increase. For this reason, housing trust funds that rely on these or other similar funding sources can help communities to harness the power of hot housing markets to raise funds for affordable homes.