July 4, 2025

Lexington Takes Bold Steps to Address Affordable Housing Crisis

News Summary

Lexington, Kentucky’s Urban County Council has approved a comprehensive spending plan of $540.2 million, allocating over $8 million to the Affordable Housing Fund. Facing a significant shortage of affordable units, the city emphasizes the need for substantial investments. Recent renovation projects and new development proposals are underway, illustrating a collaborative effort to improve housing access for residents. Key initiatives include the revitalization of Briarwood of Lexington and a partnership to build additional units for seniors, showcasing Lexington’s commitment to addressing its housing challenges.

Lexington, Kentucky is implementing significant measures to tackle its escalating affordable housing crisis. The Urban County Council unanimously approved a comprehensive spending plan of $540.2 million on June 12, 2025, which includes more than $8 million dedicated to the Affordable Housing Fund. This initiative comes amid a pressing housing shortage of over 22,500 affordable units within the city.

Mayor Linda Gorton, currently in her second term, has emphasized the rising housing costs affecting residents across the country, including those in Lexington. Despite the city’s generally favorable ratings regarding the cost of living, the need for affordable housing has grown increasingly urgent. In response, Lexington allocates 1% of its previous year’s revenues to the Affordable Housing Fund, which this year amounts to nearly $5 million. The fund was originally established in 2014 as the city’s commitment to support low-income residents in obtaining suitable housing.

Among the notable achievements in affordable housing is the recent renovation project at Briarwood of Lexington, which successfully revitalized 204 affordable apartment homes for seniors and individuals with disabilities. Conducted by The Glick Company from Indianapolis, each renovated unit received approximately $45,000 in upgrades, including new appliances and fixtures. The renovations were financed through a blend of tax-exempt bonds, low-income housing tax credits, and resources from the Affordable Housing Fund. To minimize disruption, residents were temporarily accommodated in hotels during the brief renovation period.

In addition to the renovation efforts, the Urban County Council is considering a new development proposal for a 12-acre site in northwest Lexington, which includes plans for 179 apartment units along with a senior living facility. The site previously housed the Transylvania University baseball field and has garnered mixed public opinions due to concerns regarding potential traffic increases and disruptions to the existing neighborhood, predominantly inhabited by working-class families. The council’s decision to approve a zone change for this development has paved the way for these plans to proceed, despite one council member opposing the motion.

To support the new development, the general assembly has allocated $10 million for necessary stormwater and sewer infrastructure projects, ensuring that the new housing units can be integrated effectively into the area. Moreover, a $9.5 million public-private partnership played a crucial role in the renovation of Briarwood, showcasing the city’s commitment to enhancing affordable housing options.

Further collaborative efforts are evidenced by a partnership between Woodland Christian Church and Winterwood Inc., which aims to construct 38 affordable housing units for seniors. This ambitious $13 million project is accompanied by plans to transform the church into a multi-purpose space for worship and cultural events. Mayor Gorton views this initiative as exemplary of how community partnerships can effectively address Lexington’s growing housing needs.

As the city progresses with its housing initiatives, the Lexington Housing Advocacy and Community Development Commissioner has highlighted the necessity of utilizing federal funds for ongoing local projects, particularly in light of recent cuts to federal housing funding. These actions collectively represent Lexington’s determined strategy to combat its housing crisis and ensure that affordable living options remain available for all its residents.

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Author: STAFF HERE BOWLING GREEN WRITER

The BOWLING GREEN STAFF WRITER represents the experienced team at HEREBowlingGreen.com, your go-to source for actionable local news and information in Bowling Green, Warren County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the National Corvette Homecoming, International Festival, concerts at SKyPAC, and sports events at Beech Bend Park. Our coverage extends to key organizations like the Bowling Green Area Chamber of Commerce and the African American Museum Bowling Green Area, plus leading businesses in automotive, apparel, and healthcare that power the local economy such as General Motors Corvette Assembly Plant, Fruit of the Loom, and Med Center Health. As part of the broader HERE network, including HERELexingtonKY.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.

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