The Kentucky Housing Task Force continues to gather information about the specific needs of cities and counties to meet their housing issues and what, if any, solutions are available to a perceived need for all types of housing.
Lexington Mayor Linda Gorton testified before the Task Force on Monday on the need for additional affordable housing for low-income individuals and the work being done to meet the needs at the local level.
In 2014, the Lexington-Fayette Urban County Government established the Lexington Affordable Housing Fund; some $48 million in funds have been raised since then and used to leverage $430 million from public and private sources to fund the construction and preservation of 3,504 subsidized affordable housing units.
Housing research has not been updated in 10 years, and Gorton said they are currently conducting housing needs assessments in Lexington and Fayette County. The housing needs review should be completed in mid-October.
As that review is being conducted, the city is expanding to meet housing needs.
One percent of the Lexington Fayette general fund is dedicated to affordable housing; that is nearly $5 million in the fiscal year 2025 budget. Gorton said they have also created the Department of Housing Advocacy and Community Development; as well as hiring housing advocates, which help low-income residents find housing.
Gorton told task force members Lexington needs the General Assembly’s assistance and support to grow the local developer core, especially in the low-income space. She said they are also exploring an affordable housing tax credit.
Sen. David Yates, D-Louisville, told Mayor Gorton government can’t build housing, but they can incentivize developers. As building costs have increased, it has become more challenging to make money on affordable housing as a developer without an incentive, Yates said.
Sen. Robby Mills, R-Henderson, added that the presentations from Lexington and last month’s testimony from Louisville show lots of thought being put toward affordable housing in metro areas.
The task force also heard testimony on planning and zoning statutes from an attorney.
“I think the key on zoning, is that it is local, and every community fights the battle of where the balance is,” Sen. Mills said.
“I think that’s best solved on a case-by-case basis in the community.”
The Kentucky League of Cities Board of Directors has voted to engage on the important topic of housing and be prepared to be a primary participant in conversations regarding the housing shortage. KLC supports housing policies that ensure land use laws and planning and zoning regulations are made at the local level so that they are based on both local goals and values. KLC opposes any effort to preempt or mandate outcomes in local land use decisions and supports local policies that create additional housing options that reflect local values and goals and will leverage state programs and funding to move forward more quickly.
The next Kentucky Housing Task Force will be on September 23.
