Affordable Housing Fund Board in Lexington approves new allocations to support low-income populations

The Lexington Planning Commission held a work session on May 29, 2025, focusing on the Affordable Housing Fund and its governance. The session highlighted the structure and operational criteria of the fund, which is overseen by a board comprising 13 members, including bankers and city council representatives. The board's primary responsibility is to ensure that funding decisions are financially sound and beneficial for the community.

During the meeting, it was clarified that Council Member Whitney Baxter has replaced Vice Mayor Dan Woo on the board. The board must approve all funding allocations, and no funds are released without their consent. The process involves a thorough application review, where developers present their projects for consideration.

Key criteria for funding include the design and location of developments, financial feasibility, and the capacity of the development team. The board aims to support projects that are ready to proceed and have a solid management plan in place. The discussion emphasized the importance of creating long-term investments that would not fail shortly after completion.

The meeting also addressed the financial aspects of the Affordable Housing Fund, detailing the allocation of funds from both the general fund and ARPA (American Rescue Plan Act) dollars. It was noted that the fund has focused on serving lower-income households, with 85.8% of units funded designated for families earning at or below 60% of the area median income. The board has prioritized developments that include accessible units for seniors and permanent supportive housing, which combines living space with supportive services.

Challenges facing the fund were also discussed, particularly the impact of rising interest rates on debt service payments, which necessitate increased subsidy support. Additionally, the rising costs of property management due to staffing issues were highlighted as a significant concern affecting the overall housing market.

In summary, the work session underscored the ongoing commitment of the Lexington Planning Commission to address affordable housing needs while navigating financial and operational challenges. The board's structured approach aims to ensure that investments are sustainable and effectively serve the community's diverse housing requirements.