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What will this initiative do?
This initiative allows commercial properties in certain areas to be rezoned residential only if 30% affordable housing is built on-site. We value housing but also need commercial land to support our tax base. The proposed comprehensive plan would rezone large areas of Redtail Ridge and the McCaslin corridor from commercial to residential. If this happens, the city must ensure developers provide a public benefit.
To qualify for affordable housing, a resident would earn less than 80% of the area median income.
A city ordinance passed in 2021 requires developers to include affordable housing in new residential projects. However, no affordable units have been built because a loophole lets developers pay a fee instead. This initiative would close that loophole for these areas.
What Will the Ballot Say?
Shall the City of Louisville adopt an initiated ordinance amending Chapter 17.16 of the Louisville Municipal Code to prohibit residential rezoning of the following properties: Centennial Valley (consisting of the property within the 2015 Centennial Valley General Development Plan); Redtail Ridge (consisting of the property within the 2010 ConocoPhillips General Development Plan); and Avista Adventist Hospital (consisting of the property within the 2002 Avista Adventist Hospital General Development Plan); and to create an exception to such prohibition for the development of housing that includes 30% on-site deed-restricted affordable housing limited to households at or below eighty percent (80%) of the area median income (AMI)?
YES__X___
NO ______
Frequently asked questions
Why is it so important to vote YES?
Without this initiative, developers will likely build only market-rate and high-profit luxury units. Case in point: The least expensive townhouse in the new East Street Village is currently priced at $1.175 million.
What does "affordable to 80% AMI mean"?
This provision doesn't require deep affordability, just affordability for regular working families. A family of four earning 80% of the Area Median Income (about $120,480 /year) could afford a monthly payment of $3,012. A single person at 80% AMI ($84,400 /year) could afford about $2,110/month. Louisville can and should build for these needs.
Will this create more affordable housing?
Yes. This requires affordable housing to be included when large areas (Redtail Ridge and McCaslin) are rezoned from non-residential to residential. Developers will always argue that any regulation will “kill housing,” but this is a gross exaggeration. When cities set inclusionary housing requirements, construction continues—just with a fair share reserved for affordability. There are many ways the city can expedite construction or bring developers to these areas. For example, we can offer expedited approvals, density bonuses, or other incentives for development in these areas. Projects still move forward, but they may do so slower and in a way that includes everyone, not just the wealthiest.
Will this help us reach our affordable housing goal?
Yes. Louisville resolved support (Resolution 58-2017) for the countywide goal to achieve 12% permanently affordable housing stock by 2035. We are currently at just 3% and need 790 more affordable homes. 30% affordability in rezoned areas can help close that gap. YES on 300 guarantees a good-faith effort from the city to reach this goal.
Will increasing supply bring prices down?
No. Simply adding more housing supply will not bring down prices in Louisville—we can’t outbuild demand in such a highly desirable area. Proactive planning is the only way to secure affordability and an income-balanced community.
Case in point: The East Street development was touted for increasing supply--36 units are being constructed on a lot where nine homes were demolished-- but the new homes are affordable only with twice the area median income. The most profitable market is for luxury homes.
We have an inclusionary housing ordinance. Is this needed?
Yes. Louisville requires new residential developments to include 12% affordable housing. However, since this ordinance was passed in 2021, no affordable housing has been built. Instead, developers pay a fee of $9.26/ sq. ft. Considering the current cost of construction, the fee in lieu is a great deal for developers, but does little to bring affordable housing to Louisville.
As long as developers have the option to pay the fee-in-lieu, affordable units will not get built. Developers will continue to build market-rate housing and will find the greatest profits in high-end units. This initiative closes the loophole when certain areas are rezoned.
What happens if we rezone without this requirement?
If commercial land is rezoned to residential, without this measure, it will likely be sold at a profit, driving up the cost of the land and subsequently the cost of any newly built homes. This measure will only guarantee rezoning after a development application including affordability is submitted. A YES on 300 affects only these areas envisioned for rezoning, and will add 30% affordable homes to new developments.
What did we hear from residents when collecting signatures for the initiative?
The majority of residents we talked to wanted more affordable housing. They want purposeful and thoughtful development, not just more growth. They overwhelmingly did not want rapid growth of market rate or luxury housing.
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