March 26 – Ed Holmes, Affordable Housing in Lexington

Being the informed citizens that Rotarian tend to be, it is likely no surprise to our membership that America has an affordable housing crisis. According to the National Low Income Housing Coalition (NLIHC), there is a national shortage of over seven million affordable homes for more than 10.8 million extremely low-income families. Why does this matter? Again according to the NLIHC, housing is “the key to reducing intergenerational poverty and increasing economic mobility.”

Today’s presenter, Ed Holmes, will make it clear that Lexington/Fayette County is not immune from this crisis. As you will hear, we have a housing gap of over 22,549 units!  He will dig into the extent of the problem and a “path forward.”

Holmes is a certified planner with more than forty-five years of experience in sustainable redevelopment, master planning, environmental justice, and land-use planning. As founder and president of EHI Consultants, established in 2001, he has led major planning and redevelopment initiatives across Kentucky and the southeastern United States. His work focuses on neighborhood revitalization, farmland preservation, and equitable community development. Under Mr. Holmes’ leadership, EHI has received recognition from the Kentucky Chapter of the American Planning Association (KAPA), the American Society of Landscape Architects (ASLA), and the Kentucky Small Business Development Agency, which honored the firm with its 2011 Pacesetter Award. In 2017, EHI was selected for the Goldman Sachs 10,000 Small Businesses Program. He received the KAPA Bill Bowdy Award for Outstanding Lifetime Achievement in Planning in 2018.

Selected Planning Projects of his include:

• LFUCG Neighborhood Small Area Plans (East End, Winburn, Armstrong Mill) – Lexington, KY
• African American Downtown Interpretive Signage Project – Lexington, KY
• Thelonious Monk Multi‑Use Trail – Rocky Mount, NC
• Southend/Davis Park Urban Village Plan – Lexington, KY
• West Side Neighborhood Plan – Paris, KY
• Red River Neighborhood Plan – Clarksville, TN

Public Leadership

• Cabinet Secretary, Kentucky Public Protection & Regulation Cabinet (1993–1997)
• Vice Chair, Kentucky Public Service Commission (1997–2001)

Ed has served on a variety of boards including the LFUCG Planning Commission, Campbellsville University Board of Trustees, Fifth Third Bank Advisory Board, Lexington Industrial Foundation, and the Lexington Civic Center Board.

Ed is a Lexington resident and received his B.A. in Urban Planning and Design from the University of Cincinnati.

Rotary in Review

AFFORDABLE HOUSING IN LEXINGTON: AN OVERVIEW

At our Club’s last meeting in March, we heard about an issue affecting Lexington, as well as communities across the country to varying degrees: affordable housing or, rather, the lack of it. Addressing this issue for us was Ed Holmes, a Lexington-based certified planner with over thirty-five years of experience focusing on incorporating sustainable planning strategies into redevelopment, master planning, environmental justice, and land use plans.

Mr. Holmes used the findings of an affordable housing study to highlight a significant gap in Lexington’s housing needs. In addition to defining the affordable housing gap, he addressed the specific efforts and challenges facing Lexington and the housing strategies that are currently being explored to address the problem. He concluded with a look into the future, addressing trends, future considerations, and presenting some next steps and action items.

Affordable Housing Gap

• Lexington faces a significant gap in affordable housing, estimated at 22,000 to 23,000 units.
• The rental housing gap is approximately 13,000 units, making up about 74% of the need.
• Homeownership gap accounts for 20% of the housing needs, continuing to grow.
• The cost of rental units in Lexington has surged, with figures as high as $1,800 monthly, reflecting a 44% increase over recent years.
• A substantial portion of residents earning 80% or less of the median income are unable to find affordable housing.

City Investments and Challenges

• The city’s affordable housing fund invested $47 million, resulting in 3,400-3,500 newly built or rehabilitated units.
• Despite this allocation, the impact remains limited against a background of ballooning costs.
• Average cost per unit from city funds has increased, necessitating more strategic approaches to affordability.

Existing Housing Strategies

• Proposals include expanding workforce housing, prioritizing rental unit development, and promoting public-private partnerships.
• Encouraging increased density and zoning reforms are considered pivotal.
• Addressing regulatory and infrastructure improvements, such as reducing parking requirements and allowing for mixed-use developments.
• Recent city measures to allow more flexible density options are a part of efforts to enhance affordability.

Notable Trends

• Significant proportion of renters are cost-burdened, many paying over 50% of income on rent.
• Student housing has increased, contributing to overall housing demand.
• Corporations purchasing property impacts affordable housing availability, though no regulatory measures are yet in place.

Future Considerations

• Focus on the “missing middle,” where current housing does not cater to moderate-income earners.
• Proposals for zoning reforms, including the possibility of incentivized or inclusionary zoning offerings.
• Discussions around innovative financing mechanisms like tax increment financing and leveraging public-private partnerships.
• Addressing regulatory pressures and community opposition, particularly with urban infill and density projects.

Next Steps/Action Items

• Expand workforce housing options to support middle-income earners in need of affordable rent and ownership.
• Increase development of rental units, ensuring regulatory and infrastructure improvements facilitate this growth.
• Enhance public-private partnerships to streamline the development process and increase affordable housing stock.
• Explore zoning reforms, allowing for developments like duplexes, triplexes, and other mid-density solutions.
• Investigate possibilities for inclusionary zoning, incentivizing developers to integrate affordable units in broader plans.
• Diversify funding streams to include a mix of local, state, and federal resources, expanding leveraging efforts like successful models in other regions.

– Jim Richardson