Lexington could double its funding for affordable housing next year
Lexington could double the amount of money it spends on affordable housing by next year.
The Lexington-Fayette Urban County Council voted unanimously Thursday to set a goal of 1% of the prior year’s revenues aside for affordable housing. A council committee gave unanimous approval to the new funding target in March.
The city typically sets aside $2 million per year for affordable housing.
Under the proposal, that funding could jump to between $4.5 to $5 million. The recently passed budget for the fiscal year that began July 1 is $507 million. The total projected revenue is more than $461 million. The remaining money comes from other one-time money such as other city saving accounts.
The city has had surpluses of more than $20 million over the past several years.
The 1% goal will not take effect until the budget that begins July 1, 2024.
A group of several dozen Lexington churches known as BUILD, Building a United Faith Lexington through Direct Action, has pushed the council to up its funding to the affordable housing program. BUILD was also instrumental in getting the city to create the affordable housing fund in 2014.
Lexington Councilman James Brown pushed the council to pass the 1% goal.
Gail Swanson, co-chair of BUILD, said the group wanted a dedicated funding source for affordable housing. However, a dedicated tax was not politically feasible. Instead, with Brown’s guidance, the group settled on the 1% goal. BUILD hopes the city will one day commit $10 million a year to affordable housing.
But the 1% goal is a great first step, she said.
“We have a council who is progressive, who is willing to make Lexington a better place. They are willing to listen to what people tell them they need,” Swanson said.
BUILD has community listening sessions to determine what issues to back. Housing, mental health and safety have been the top concerns for years. Without stable housing, people can’t get mental health treatment and don’t feel safe, Swanson said.
“We will see tremendous change in our community if we address these three immediate needs,” Swanson said. “I am looking forward to see what this city council does. We may see more progress in this area then we have seen in the past.”
Accurate data on how many people need affordable housing in Fayette County is lacking. The last major study was conducted in 2013. There is some data that shows thousands of Fayette County families spend more than 50% of their total income on rent or mortgages.
In recent years, the city has upped the amount it has committed to affordable housing thanks to federal coronavirus relief funding. Since 2021, the city has allocated more than $15 million into the fund.
That money is matched with private, federal and state funding to create affordable housing.
At a June 20 opening of a 201-unit affordable housing complex off of Russell Cave Road, Mayor Linda Gorton said since 2014 the city has allocated $34 million to affordable housing which has been matched with $395 million in other funding.
To date the city has preserved or created 3,200 affordable housing units. In the early days of the affordable housing program, much of the money went to preserving and upgrading the city’s current affordable housing units.
Now, the program is focused on adding more units.
By the end of the summer, the city will have added 650 units, including the new Alcove At Russell and two new, large affordable housing complexes.
The 1% goal is not a mandate. Council can waive that goal or target.
