Council received updates on two related programs aimed at preserving housing and unlocking upstairs residential space in Lexington on April 3: a homeowner‑helper revolving loan concept under discussion by the Threshold group and a sprinkler incentive program the city’s EDA is preparing to administer.

Threshold’s proposal, as reported by Council Member (Miss) Alexander, adapts a model used in another state in which local funds form a revolving, zero‑percent loan pool to pay contractors directly for exterior and limited interior repairs that are necessary for safety, habitability or code compliance. The council previously set aside $250,000 for a homeowner‑helper program. Alexander said the Ohio example typically capped repairs near $15,000 per house, served elderly and disabled homeowners, and used liens that were repaid at sale or otherwise satisfied, with program proceeds returning to the revolving fund.

Why it matters: advocates framed the program as a tool to help low‑income, elderly, or disabled homeowners who cannot afford safety repairs and to prevent deterioration that could otherwise require code enforcement or result in loss of housing stock.

Separately, the EDA has drafted a sprinkler‑incentive program aimed at downtown property owners. City Manager Tom Carroll and staff described proposed terms the EDA is considering: a loan cap of $125,000 per project, a 10‑year payback period and effectively 0% interest. The program contemplates rolling certain water connection (tap) fees into the loan and offering a forgiveness or waiver of the tap fee if the borrower fulfills the loan obligations over the loan term. The city set aside $250,000 for the sprinkler incentive at the same time it reserved funds for homeowner repairs.

Staff said the sprinkler incentive has a potential early candidate: a Washington Street property with vacant storefront space and two upstairs apartments that could be activated if sprinklers are installed. Estimates for smaller downtown sprinkler retrofits mentioned at the meeting ranged from roughly $30,000 to $40,000 for the initial candidate, though engineering and detailed bids remain pending.

City Attorney: the city attorney cautioned that, under Virginia law, the city must identify an appropriate statutory authority for any program copied from another state; he said the EDA can serve as the practical conduit for the homeowner‑helper model in Virginia where a local housing authority does not exist.

Ending: Council and staff plan additional work with the EDA and Threshold to refine eligibility, lien and repayment mechanics, procurement of local contractors, and outreach. Staff said a draft marketing brochure for the sprinkler incentive will be refined and the EDA will consider formal program documents for future action.