City revises $225M draft Helene recovery plan after HUD rejects DEI elements

By Justin Berger

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    ASHEVILLE, North Carolina (WLOS) — Asheville Mayor Esther Manheimer said the city has revised the Community Development Block Grant Disaster Recovery draft action plan they plan to submit to the United States Department of Housing and Urban Development (HUD) after Secretary Scott Turner declared the plan “not acceptable” due to “DEI criteria.”

“We have modified the action plan to reflect his concerns, and we’ve been told the changes that we’ve made were acceptable,” Manheimer said.

Before touring Helene storm damage in Fletcher on Tuesday, Secretary Turner made comments on Asheville’s draft action plan on Fox Business.

“This draft action plan that the city of Asheville presented at first has elements of DEI in their draft action plan. And that is not acceptable to HUD. It’s not acceptable to the President according to his executive order to get rid of all DEI,” Turner said.

The 125-page draft action plan concerns more than $225 million in Helene relief. Sec. Turner’s comments concern the following sentence on page 76 regarding small business support:

“Within the Small Business Support Program, the City will prioritize assistance for Minority and Women Owned Businesses (MWBE) within the scoring criteria outlined within the policies and procedures.”

“(Asheville), like many cities, has a program around contracting with minority- and women-owned businesses,” Manheimer said Tuesday evening. “Apparently, the reference to that existing program is not something that they want to see in the action plan.”

Seven percent of the proposed HUD funding, totaling $15 million, was earmarked for small business support.

Both Rep. Chuck Edwards and Mayor Manheimer said the city is not at risk of losing the funding.

“We’re being reassured,” Manheimer said. “They’re very eager and continue to be eager, this administration, to help support the recovery of WNC, including Asheville, and we’re very appreciative of that.”

Residents have until April 3 to weigh in on the proposal.

There is an online portal, and three public meetings will be held later this month.

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