Will create 1,500 housing units over two years
LOUISVILLE, Ky. (May 19, 2015) — Mayor Greg Fischer on Friday proposed a $12 million initiative called Louisville Creating Affordable Residences for Economic Success, or Louisville CARES, which would create 1,500 housing units over two years, construction jobs throughout the community and security and stability for many Louisville families.
“Having decent, safe and affordable housing is the most basic need for families,” Fischer said. “Yet, in Louisville, that home is out of reach for too many of our families, too many of our citizens and too many of our children. Louisville CARES is a down payment on a long term plan to address that challenge.”
Fischer noted that 60,000 households in Louisville are in need of housing because they are currently spending more than 30 percent of their income on housing. Of those, 24,000 are spending more than 50 percent on housing. The Mayor cited other data the shows the deep need:
- 21,000 households are on a waiting list for housing assistance, and 1,700 households lack complete kitchen or complete plumbing.
- On any given night, 1,200 residents are homeless; annually, 8,600 residents experience homelessness.
- In the 2013-14 school year, over 6,800 JCPS students experienced severe housing instability, meaning they shared others’ housing, including relatives and friends due to a loss of housing, economic hardships or related reasons.
Louisville CARES is part of Fischer’s 2016-17 fiscal year budget proposal to be presented on May 28. The program will build affordable housing in Louisville and specifically help families who are paying more than 50 percent of their income on rent. Details of the program include:
- The initiative includes a $10-11 million revolving loan pool that non-profit and for-profit developers can tap to help build multi-family housing across the city. In addition, the city will set aside $1 million to buy land for construction of housing near major employment centers, so that people can live near where they work.
- Over two years, the funding is expected to create 750 new units of affordable housing, opening up an additional 750 units to other families as people move into that new housing.
- Funds for this initiative come from a proposed dedication of $1.3 million in general fund revenues, as well as a proposed $10-11 million bond to be paid off over 30 years.