LEXINGTON, Ky. — The Social Services and Public Safety Committee heard updates Monday on Lexington's Affordable Housing Fund, which has now supported the preservation or construction of 3,826 units since 2015 but continues to fall short of addressing the region's severe housing crisis.

The fund's report, presented by Affordable Housing Manager Richard McQuady, showed that Lexington's Affordable Housing Fund has leveraged nearly half a billion dollars in private investment and other subsidy dollars since 2014. Since fiscal year 2015, the local government has allocated $36 million to support those projects, with an average cost of $15,474 per unit.

The fund targets households earning at or below 80% of the area median income, with particular focus on lower-income residents. For a family of four, that threshold is $81,900 annually. Data shows the fund has prioritized housing for those earning 60% or below area median income, with over 1,200 units preserved and 660 existing units restricted for affordable housing.

Despite these gains, Lexington faces a critical shortage. In 2024, an affordable housing needs assessment found that Lexington needs about 17,000 more housing units for residents making 80% or lower of area median income. The assessment noted that 54.3% of renters in Lexington are housing cost-burdened, spending more than 30% of their income on housing.

Mayor Linda Gorton recently highlighted projects under construction including Wellington Park Apartments for seniors and The Lofts at Woodland, demonstrating continued momentum despite challenges. The city's FY 26-27 proposed budget includes just over $5 million for affordable housing, the first time this investment has exceeded that threshold.

The committee also reviewed the fund's application and evaluation process, which includes assessment of development need, design quality, financial feasibility, team capacity, and readiness to proceed. Outside funding sources, including federal housing credits and private investment, supplement the city's contributions to reduce housing costs for tenants and homeowners.