Asheville workers call on TDA to put tourism tax dollars toward affordable housing

ASHEVILLE - Service workers, community organizers and concerned residents gathered May 31 on the doorstep of Asheville's convention and visitors bureau calling for tourism tax dollars to be put to use to address Buncombe County's burgeoning housing crisis. The rally began over coffee and vegan pastries in the parking lot, and continued into the board meeting where several people spoke during public comment.

Though the conversation is familiar, a new funding pool represents fresh ground in the tug-of-war between the ever-growing tourism industry and local interests.

"If we can't live here anymore, we can't work here," said Jen Hampton, chair of Asheville Food and Beverage United, a worker-led coalition advocating for the city's service workers. Several other service workers spoke, and said high costs and lack of affordable housing are driving workers away.

“I have been at the mercy of this housing crisis, personally,” said Emmaleigh Argonauta in her address to the board. “We service workers are effectively invisible ... We have no protections when treated unfairly."

According to previous reporting from the Citizen Times, rents in the region have jumped 36% in less than two years, and the rent for the average Asheville area apartment sized at just under 1,000 square feet climbed from $1,243 in January 2021 to $1,686 in October 2022.

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The May 31 event was organized by Food and Beverage United, Buncombe Decides, Asheville For All and Asheville Democratic Socialists of America.

Their ask is twofold, and was presented to Buncombe County Tourism Development Authority board members at their monthly meeting along with more than 2,000 signatures.

The first of the coalition's asks was that the new TDA funding cycle known as the Legacy Investment From Tourism (LIFT) Fund, likely to total $10.2 million by the time grants are awarded in April 2024, would dedicate money toward affordable housing projects.

The second was for service workers to be represented on the committee that will ultimately make project recommendations to the TDA.

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The TDA is the public authority created to oversee the collection and investment of lodging taxes paid by visitors who stay overnight in Buncombe County, expected to total $37.6 million in net revenue for the coming fiscal year.

This is the first year since legislative changes increased the amount of funding that can be used for community capital projects from one-quarter to one-third.

Before the local bill's passage, the county's hotel and other room occupancy tax dollars were split 75%-25% between marketing and projects. Now the money will be split 66%-33%, with more money dedicated to projects that will keep visitors in the Asheville area longer, and less to advertising.

Also part of the legislative changes, for the first time, the 33% in lodging tax funding will be split equally into two separate funding structures: the Tourism Product Development Fund, which has existed for more than a decade, and the LIFT Fund.

Unlike the TPDF, the LIFT Fund's language suggests an aim to not only provide financial investment for tourism-related capital projects, but to benefit the community. To be a qualified project, says the legislation, it must be expected to increase patronage of lodging facilities, meeting facilities and convention facilities by attracting tourists, business travelers or both and benefit the community at large in Buncombe County.

Though it cannot be used for operational expenses, Hampton suggested the money could still be allocated toward projects that support affordable housing. For-profit entities are not eligible to receive funds.

Among potential applications of LIFT funds, according to a TDA guide, are enhancement of natural resources, expansion of necessary infrastructure and restoration and rehabilitation of an existing location.

"We know that the (Tourism Development Authority) alone cannot address this issue ... we're just asking you to commit to allocating some of these grants from the LIFT fund to the local nonprofits who are already doing the work to support affordable housing and address the housing crisis," Hampton told the board.

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Ben Williamson, one of the community organizers behind the rally, hoped the fund would be used to "address critical community needs," citing language surrounding "community benefits" and "expansion of necessary infrastructure" included in the legislation's text.

"Nothing is more important for tourism than to protect the workers that are earning those revenues everyday," Williamson said. "In terms of a return on investment of what affordable housing will lead to for our community, we feel like it’s the best direction for these funds to be spent."

He and others expressed a desire to collaborate with the TDA. Williamson said everyone wants a "healthy, vibrant community" where people can live and work, enjoying the city just as the tourists do.

“We feel like the TDA is already going in this direction, so we’re not out here (with) raised fists confronting the TDA," he said, "we’re really just trying to support and cheerlead and boost that effort we feel is already underway."

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LIFT Fund timeline

At the board meeting, Tiffany Thacker with Explore Asheville reviewed details of the LIFT Fund and the establishment of a committee that will review project applications and make recommendations to the TDA.

Similar to the TPDF Committee, it will consist of nine members, five of which must be owners or operators of hotels, motels or bed and breakfasts. According to Thacker's presentation, the other four seats "shall be made of up representatives with tourism, legal, financial, economic development, architecture or engineering expertise."

The application process to sit on the committee is open now, with applications due by July 7. A three-member nominating committee was appointed May 31, which includes Brenda Durden of Asheville Hotel Group, Ken Stamps of Navitat Canopy Adventures and Adventure Pisgah, and Fielding Lowe of Park National Bank.

Final LIFT committee members will be presented to the TDA for approval Aug. 30.

Applications for the LIFT Fund itself will open in October, with recommendations made in April.

Hampton said next steps include recruiting service workers to apply for the committee, and working with nonprofits and other local leaders to support affordable housing grant applications.

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How did the TDA respond?

Vic Isley, president and CEO for Explore Asheville and the BCTDA, responded to speakers in the minutes before adjournment.

“You are appreciated. We understand the need in the community, we live here and work here and raise families here, so we are, and the people around this table are, a part of this community," Isley said.

Isley noted that the LIFT Fund is new, and "Per the legislation, either a nonprofit partner or government entity can apply for funds. So, there would need to be a project brought forward through the LIFT process for consideration of the committee."

When asked by the Citizen Times if an affordable housing project is viable under legislative constraints, Isley said it is "too early to tell what specific projects will be put forward," but government and nonprofits are "encouraged" to submit their tourism-related capital project proposals.

Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email shonosky@citizentimes.com or message on Twitter at @slhonosky. Please support local, daily journalism with a subscription to the Citizen Times.

This article originally appeared on Asheville Citizen Times: Asheville workers rally at TDA meeting amid calls for housing, support