Gaston has no homeless shelter. So why hasn’t Gastonia spent its federal money for one?

Nearly two years after receiving millions in federal money to establish a homeless shelter, Gastonia has not spent the money, has no shelter and has no concrete plans to create one.

The city blames federal red tape and a lack of contributions from other Gaston County towns. In the meantime, the Salvation Army shut down the county’s only shelter in August and Gaston’s nearly 400 unhoused people have nowhere to go.

In 2021, the city of Gastonia was awarded $2.8 million in HOME-ARP funds from the U.S. Department of Housing and Urban Development. The money, part of the American Rescue Plan Act of 2021, was intended to help reduce homelessness and increase housing stability across the country during the COVID-19 pandemic. In 2023, HUD approved the city’s plans to allocate the majority of the funds to creating a homeless shelter.

The city hopes to use the funds ahead of a September 2030 deadline, but has no specific plans. The county and 13 other towns have not backed the project financially, and little progress has been made in determining who would operate a shelter if one did get built. Meanwhile, Gaston is the only county in the Charlotte region without a homeless shelter.

This comes amid recent calls from the community to provide the homeless with a shelter and amid a grassroots movement to brainstorm potential solutions. In addition to the Salvation Army’s closure last summer, Gaston County shuttered a department dedicated in part to homeless services.

On Feb. 4, the City of Gastonia voted unanimously to buy the Salvation Army building using $2,277,000 from its general fund. The city and the Salvation Army say the shelter closure was not related to Gastonia’s eventual purchase of the building. The city is still determining how it will use the building, city spokeswoman Dandria Bradley said.

City leaders say they hear the concerns from the community. But they want the public to understand that the process is complicated and will take time.

“We didn’t get here overnight. We’re not going to solve it overnight,” said Gastonia City Council member Donyel Barber.

Homeless relief money

The $2.8 million in federal money has strict guidelines and can be used only to:

• Build or repair affordable housing

• Provide Tenant-Based Rental Assistance (TBRA) vouchers

• Provide homeless prevention and housing counseling services

• Create shelter space or Non-Congregate Shelter (NCS)

Non-congregate shelters are shelters with private rooms such as a hotel or dormitory.

Only the homeless, domestic violence victims, military veterans and those on the brink of housing insecurity are able to use these services.

Before the funds could be used, the city had to pass an allocation plan that was crafted with community feedback. Over three months in 2023, the City of Gastonia did multiple surveys, meetings and presentations with the community and local government leaders.

Overwhelmingly, the community responded that the greatest need was another shelter, according to the fund allocation plan. At the time, the Salvation Army shelter was running at significantly reduced capacity due to the pandemic.

The majority of the $2.8 million was dedicated to the acquisition or development of a non-congregate shelter. The rest would be used for support services, administrative costs and to support the non-profit that would run the shelter.

‘One hurdle after another’

While the funds sit untouched, many questions remain.

One of the biggest lies around cost. In today’s market, it’s unclear if $2.2 million will be enough to obtain a facility without money from another municipality, non-profit or some sort of grant, said Danette Dye, Gastonia’s director of housing and community engagement.

Aside from some administrative costs, the federal funding is just for the building. Once established, the shelter will also need a consistent source of funding to keep it up and operational, she said. Dye said it’s not yet clear how much more money the city would need.

So far, neither Gaston County nor any of its municipalities has committed to help fill these gaps, Dye said.

“We invite everyone to have a seat at the table to be able to make sure it’s successful,” she said. “And that it’s beneficial for not just Gastonia but for the county as well.”

Gaston County Commissioners Chairman Chad Brown said as of now, the county isn’t willing to provide any financial support for the project until Gastonia comes up with a sustainable plan. Brown said the county could have higher priorities.

“They’re using money that’s given to them. We’re using taxpayer money,” he said. “So we’ll figure out where we are with the safety concerns, the school concerns, economic development concerns, and then have a spot at the table.”

The city also has yet to identify a non-profit to run a shelter. This non-profit must have the capacity to run the shelter up to HUD standards such as an understanding of who’s eligible to use the shelter and how administrative funds can be used.

While some non-profits have expressed interest, Dye said the city has not come to an agreement with any group.

Limited finances and stringent rules around the federal funding have also created roadblocks in selecting a location, council member Barber said.

Since 2021, the city pursued two potential locations for a shelter that fell through, she said.

One location was the Express Inn and Suites on Bessemer City Road in Gastonia off Highway 85. It’s known to locals as the “Pastel Hotel” for its bright color palette. Just as the city was making headway, the owner nearly doubled the price, she said.

Also in 2021, the city pursued another location but found out that the land’s proximity to the highway wouldn’t comply with federal noise regulations.

Barber said she wants to assure the community that the city has pursued potential options, but that the process is complicated.

“It’s been one hurdle after another,” she said.

‘It’s not just a Gastonia issue’

Gaston’s local government officials plan to talk this month about how to meet the needs of the county’s unhoused community, Barber said. She hopes that will lead to tangible action steps and partnership between municipalities.

“It’s not just the Gastonia problem,” she said. “... It’s going to take the entire 13 municipalities. It’s going to take all of us working together to come up with a plan to address these critical issues that we have in our community.”

Dwayne Burks, the director of Gateway Gaston, said he hopes the community and those with lived experience will be able to attend these meetings to give their input.

“I would love to see citizens from all over the county, as well as all the municipalities in the county, sit down and (say) ‘Let’s take six months and let’s put a plan together,’” he said. “ Then we’ll figure out where to fund it, how to fund it and all that. Let’s start with a plan.”

Burks and Pastor Rodney Freeman of the Bountiful Blessings Food Pantry said in recent weeks, they’ve seen a large grassroots movement On March 23, more than 70 people gathered at First Baptist Church in Gastonia to talk about ways to support the unhoused, including a shelter, affordable housing and resources.

Freeman said the community truly wants to be involved. If the shelter were to be complete today, he believes there’d be someone there to run it.

“Out of all the municipalities in Gastonia, I promise you, there’s some homelessness somewhere,” he said. “What are we gonna do as a county to address this issue? Because it’s county wide.”

NC Reality Check reflects the Charlotte Observer’s commitment to holding those in power to account, shining a light on public issues that affect our local readers and illuminating the stories that set the Charlotte area and North Carolina apart. Have a suggestion for a future story? Email realitycheck@charlotteobserver.com

This story was originally published April 3, 2025 at 6:00 AM.