The purpose o this report is to assess the needor aordable housing in Louisville and establishthe priorities or the Louisville Aordable HousingTrust Fund and its projects.91,999 Louisville amilies live in unaordable hous-ing -- the equivalent o illing the KFC YUM! Cen-ter to capacity more than our times. Withoutaordable housing, amilies are unstable. Theycannot thrive or plan or the uture. They may notbe able to meet basic needs. They are at risk o oreclosure, eviction, and homelessness. Studieshave documented the link between housing insta-bility, physical and mental health, and educationalattainment.Although the cost o housing is lower than manyother metropolitan areas, Louisville has a persis-tent shortage o housing that is decent and aord-able to low- and moderate-income people. Thereis a deicit o at least 57,974 aordable housingunits in Louisville, according to the Louisville Met-ro Government’s
Five Year Strategic Plan
.Working amilies in Louisville increasingly cannotaord basic housing in Louisville. Some Louisvilleamilies have incomes so low the market cannotproduce any housing they can truly aord. The ris-ing cost o utilities and transportation, aordablehousing segregation away rom areas o opportu-nity, and a lack o jobs with suicient wages con-tribute to the problem.Many homeowners have lost their homes to ore-closure or are at risk o it, leaving neighborhoodswith vacant, uncared-or properties. Most ore-closures have been o moderately-priced homesintended to be “aordable” but were not trulyaordable to Louisville amilies. And increasinglystringent lending requirements will place home-ownership out o reach or even more Louisvilleamilies in the uture.The Louisville Aordable Housing Trust Fund, es-tablished by Louisville Metro County Ordinance40.41-40.45, was created to help solve this com-munity problem by providing a reliable stream o unding or the creation and preservation o de-cent housing aordable to people at or below 80%o Area Median Income (AMI), with a set-aside orthose at or below 50% AMI. By leveraging exist-ing unds and working with nonproit and or-proithousing developers and service providers, theLAHTF can help the city achieve the vision o sae,decent, sustainable, aordable housing or Louis-ville.Projects will be prioritized based on ability to le-verage unds and meet speciic needs identiiedin this assessment, including: making existinghomes aordable and sustainable; developing a-ordable rental housing or ELI and VLI amilies;creating additional high-quality workorce hous-ing near places o employment; increasing homeownership opportunities or LI and VLI amilies;preventing people rom losing existing, otherwise-aordable homes; and promoting housing choice.The gap between what someone can aord to payor housing and what is available is widening. Fed-eral unding or aordable housing has decreasedwith the responsibility increasingly placed on localgovernments. Yet only 1.8% o Louisville’s budgetis invested in housing and amily services.The LAHTF was capitalized with an initial invest-ment o $1 million. However, the city has not yetestablished a source o revenue or the Trust. Thecity must ulill its commitment to establish $10 mil-lion annually in dedicated ongoing public revenueor the LAHTF i housing is to be made aordableor Louisville amilies.