Local Leaders Highlight Success of Lexington’s Transformational Affordability Housing Partnership to State's Housing Task Force

LEFT TO RIGHT: Central Bank Chairman/President & CEO, Luther Deaton, Winterwood Development President & CEO, Mike Hynes, and AU Associates Owner/President, Johan Graham, testified before the state's Housing Task Force.

​On October 21st, the Kentucky General Assembly’s state Housing Task Force held its last fact-finding meeting. This is the second year this task force has been organized, demonstrating the legislature’s priority interest in learning about the Commonwealth’s housing issues, roadblocks, and possible solutions.  The Legislative Interim, which occurs between state Legislative Sessions, emphasizes policy development, stakeholder input, and preparation. Interim activities are led by approximately 16 standing Interim Joint Committees, formed by merging House and Senate standing committees. These committees provide continuity on core policy areas, meeting monthly to review legislation implementation and draft bills. This past May, legislative leaders announced five joint task forces to tackle emerging issues, each co-chaired by one House and one Senate member, with bipartisan participation. These groups aim to deliver reports and bill drafts by early 2026, including Kentucky’s Housing Task Force.

​Chaired by Senator Robby Mills (Henderson) and Representative Susan Witten (Louisville), Commerce Lexington testified on October 21st to highlight the progress and success of Lexington’s Transformational Affordability Housing Partnership. Led by Commerce Lexington’s Chief Policy Officer, Andi Johnson, Central Bank Chairman/President & CEO, Luther Deaton, EHI Consultants President, Ed Holmes, AU Associates Owner/President, Johan Graham, and Winterwood Development President & CEO, Mike Hynes, testified before the task force on this revolutionary public, private partnership.  

Ed Holmes, President of EHI Consultants, and Commerce Lexington's Chief Policy Officer Andi Johnson highlighted the success of Lexington’s Transformational Affordability Housing Partnership.

​The group started by highlighting Lexington’s challenges with building more housing to meet the city’s and region’s needs. Lexington faces an over 22,000 housing unit shortfall due to limited land availability, high purchase development costs, access to capital, and affordability challenges. However, business, community, and city leaders convened to identify a solution to address each of these hurdles. A unique housing partnership was formed by five local banks, housing developers, and community organizations with a solution to the affordable housing shortage in Lexington. 

The five local banks started by creating a capital investment fund with $3 million in startup capital. The bank partnership purchased the former Transylvania University baseball field near the Paris Pike, I-75/I-64 intersection, made up of 12 acres. Five affordable housing developers partnered with the banks with plans to build 242 multi-family and single-family housing units. The banks held the land with no interest, so the affordable housing developers could then purchase it for development. In turn, this project would fulfill a federal requirement for banks to meet their Community Reinvestment Act credits.

During the 2024 Legislative Session, Commerce Lexington advocated for a $10 million investment from the Kentucky General Assembly to build out public infrastructure for the project including roads and wastewater infrastructure. This $10 million investment leveraged over $64 million in total investments, expediting site-readiness infrastructure to accelerate meeting affordable housing needs. 

To wrap up the presentation, Mr. Deaton, Graham, and Hynes highlighted the importance of the partnership, state investment, and possible state housing policy solutions for the legislature to consider next Legislative Session. Commerce Lexington endorsed a few proposals including the creation of a Kentucky bank $20 million statewide capital fund, to support affordable housing projects with the state offering effective tax credit programs that leverage private investment to expand or incentivize development in communities with the greatest need. In addition, Commerce Lexington called for support to establish housing development districts and/or provide financing options to local governments, working with home builders, for residential infrastructure developments. Lastly, the Chamber asked legislators to avoid policies that increase costs for homebuilders and buyers.