U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Consolidated Plan Contact
The Lexington-Fayette Urban County Government's 1995 Consolidated Plan represents the
jurisdictions goals and objectives for addressing housing and community development
needs. This executive summary provides an overview of the plan including Lexington-Fayette County's housing and community development problems, the proposed strategic
plan for the next five years to address these problems, and the action plan for 1995 which
will carry out this strategy.
The goals in the Consolidated Plan include the provision of safe and affordable housing for
low and moderate income persons and for persons with special needs; elimination of slum
and blight areas; public improvements and neighborhood revitalization in low and moderate
income neighborhoods; restoration and preservation of buildings and sites in the community
with special significance- and provision of public safety and human services projects that
will positively impact physical and economic conditions for all segments of the population.
The Consolidated Plan includes an action plan that describes how funds available through
the Community Development Block Grant (CDBG) program, the HOME program, and the
Emergency Shelter Grant (ESG) program will be allocated. These funds, $4,189,000, plus
$522,250 in program income and local match, for a total of $4,711,250, will support the
activities to be funded for the 1995 program year which begins July 1, 1995 and ends June
The Consolidated Plan was developed with active citizen participation, including an active
citizen body responsible for overseeing the development of the plan, the Commission on
Housing and Support Services and its subcommittees. Two public hearings were conducted
during the development of the plan to garner citizen input, with the complete plan available
to the public on May 10, 1995. A summary of the plan was published in The Lexington
Herald-Leader on May 11, 1995, with copies available at all branches of the public library
and other locations.
Lexington is a regional center for employment, shopping, and services, and has experienced
a 10.3% population increase since 1980. Map 1 shows points of interest in the area. The
unemployment rate for Fayette County in January 1995 was 3.0%.
In 1990, twenty-four (24%) percent of all households in Lexington-Fayette County had
incomes below 50% median family income. There are thirty census tracts that represented
an area of low income concentration, with these areas predominantly being in or near
downtown Lexington (see Table 9 for Census Tracts with more than 5 1 % low and
moderate income persons). African-Americans are the only significant minority in the
community, comprising 13.3% of the population. Map 3 shows the areas of minority
Since 1958, new urban developments, including residential uses, have been limited to the
Urban Service Area. Much of the new residential development has been concentrated in the
southern portion of the Urban Service Area, with this trend expected to continue with only
a slight shift to the southwest. Sewer improvements in the north may allow residential
development to occur in this area. The limitations of the Urban Service Area, especially
with regard to an affordable land supply, make Lexington a fairly expensive housing market.
HOUSING AND COMMUNITY DEVELOPMENT NEEDS
The needs section of the plan outlines the needs of various groups for housing in the
jurisdiction and the community development needs to be addressed. Among the most needy
are the elderly owner households with incomes below 50% of median, small renter households
with incomes 0-50% of median, moderate income renters, special needs populations, persons
with HIV/AIDS, and low-income households with lead-based paint hazards. Map 2 outlines the
low and moderate income areas in the city.
The median price of a single family home in 1994 was $86,359. Many of the low income
households in Lexington-Fayette County cannot afford the monthly mortgage payment
($765.00) necessary to purchase a home at this price.
The greatest need exists for the II, 748 renter and owner households with incomes from 030%
of median for the community. These households have a high cost burden, with 70% of
households paying more than 30% of their income for housing and more than one-half of these
households have housing costs which exceed 50% of their income.
There is a need for a continuum of housing units with a supportive component for 515 persons
who are either developmentally disabled or physically disabled, and housing units with varying
degrees of support services for persons with HIV/AIDS.
In mid-July 1993, a survey was done which numbered Lexington's homeless population at
approximately 755 persons. Lexington-Fayette County has eight emergency shelters which
have a capacity of 178 persons. Transitional housing is also needed as 263 beds are currently
available, with an estimated 306 additional beds needed.
There is a need for continued public improvement projects such as sidewalks, curbs and
gutters; improvements to parks and recreational facilities; public services to improve the quality
of life for low income persons; and economic development activities to expand economic
- Community Development Needs
In Lexington-Fayette County, it is estimated that 30,825 to 37,675 housing units, occupied by
low and very low income households, have lead paint and are a potential hazard. This is
approximately one-third of the 97,742 housing units in the community.
HOUSING AND COMMUNITY DEVELOPMENT STRATEGIC PLAN
The strategic plan identifies priorities and the basis for allocating funds within a geographical
area over the next five years.
Housing and Community Development Resources
Lexington-Fayette Urban County Government will rely primarily on federal funding through the
CDBG, HOME and ESG programs to carry out the plan. Local program income and matching
funds will also be used. The jurisdiction will also respond to NOFAs from the federal
government and will take advantage of all applicable state and local programs.
Priority # 1: Increasing SupplylOpportunities of Affordable Housing
- Priority Housing Objectives
- Among the five year goals outlined in the plaa the jurisdiction has proposed to construct
12 5 new units of rental housing, rehabilitate 15 vacant, unoccupiable units, provide I 00 units
for sale to first-time homebuyers and other low and moderate income homebuyers.
- Priority #2: PreservationlRehabilitation of Housing Currently Available
- The five year goal is to rehabilitate 450 units of owner-occupied housing, rehabilitate 25
rental units, reduce or abate lead-based paint hazards in 30 units, bring 700 units per year up
to code, and construct curbs, gutters, sidewalks, and storm drainage improvements in selected
low and moderate income neighborhoods (as a stimulus to private investment in rehabilitation
of existing housing and construction of new housing).
- Priority Homelessness Objectives
- Priority #1: Homelessness PreventionIHousingfor the Homeless
- The five year goal is for new construction and rehabilitation, rental and utility assistance
and supportive housing programs for the homeless and for individuals and families at-risk of
- Priority #1: Housing for Persons with HIVIAIDS
- The five year goal is to provide transitional and supportive housing for persons with
- Priority #2: Housing for Persons with Serious Mental illness and Dual Diagnoses
- The five year goal is to develop supportive/supervised housing resources for persons who
require 24/hour supervision or supportive services.
- Non-Housing Community Development Needs
- Priority #1: Increasing Economic Opportunities
- Provision of job training and educational services, and a loan program for small business
entrepreneurs, with special emphasis on businesses that will employ low and moderate income
individuals or that will be located in low and moderate income neighborhoods. Map 4 indicates
the percentages of unemployment by Census Tract in the area.
- Priority #2: Historic Preservation
- The five year goal is to preserve historic buildings and features in the community that
are important to its culture. Structures or sites must be on or eligible for the National Register
of Historic Places.
- Priority #3: Parks and Recreation
- The five year strategy is to continue to rehabilitate or renovate existing parks,
neighborhood centers, and other recreational facilities,to provide recreational activities for
- Priority #4: Youth
- The five year goal is to provide funds to expand youth activities in the community,
including improved job skills and placement, and recreational activities.
BARRIERS TO AFFORDABLE HOUSING
The major barriers to the development of affordable housing are the lack of available land
and the high cost of land in the community. The high land cost in new areas of the
community preclude the development of housing for low income households without the
use of subsidies. These are deterrents to the development of low/moderate cost housing in
Lexington-Fayette County. Except for the relatively small number of new units subsidized
through federal programs or constructed by nonprofit organizations, with special financing
for low-income purchasers, there have been few lower-cost units added to the housing
supply. Other than public housing, there is little housing for families with incomes under
30% of median.
In established neighborhoods, developments meet with considerable opposition unless the
new development will result in housing which costs at least as much as those in the
neighborhood. In near-downtown areas of the community, lots are available at a reasonable
cost, but the lots are small and have title and other problems which hinder their use for new
housing. None of the policies would be considered excessive, exclusionary, or
discriminatory but are presented in this document to provide a complete picture of the
policies and regulations in place which affect housing in the community.
Land Use Controls
Lexington-Fayette County has long been aware of the problems associated with
uncontrolled sprawl development particularly the negative aspects of urban growth on the
rural area. Since 1958, this problem has been addressed by the Urban Service Area
concept. This land use policy, which divides the county into an Urban Service Area and a
Rural Service Area, has effectively prevented urban-oriented activities from spreading into
the rural areas.
By limiting development to only a portion of Lexington-Fayette County, land which may be
developed tends to be costly. However, land in the Rural Service Areas is also more
expensive than rural land in the surrounding counties. Thus, the Urban Service Area policy
does not alone account for the high cost of land in Lexington-Fayette County. The high
cost of land for new development tends to encourage redevelopment of property and a high
level of maintenance of existing dwellings.
Subdivision Regulations: The Subdivision Regulations establish the minimum standards for
the construction of public improvements associated with all new development including
residential development. These standards are designed to provide improvements that are
both durable (will last at least 15-20 years) and which meet the needs of the unique
environmental conditions in Lexington-Fayette County. The Subdivision Regulations provide
for the construction of public streets by the developer which tends to hold down costs.
The Zoning Ordinance establishes the boundaries and the regulations for each zone. The
regulations are applied uniformly throughout the zone. Some of the aspects of the Zoning
Ordinance which aid in the provision of affordable housing are:
- Planned Unit Developments which are established to provide an alternative to
traditional zones. Customary restrictions such as lot size, minimum front yard, and
minimum street widths are relaxed or altered based on the size and scale of the project.
- Zones for small lots are established. In the R-IE zone, which is single family
residential zone with the least lot size, the minimum lot size is 4,000 square feet. In the R-3 and R-4 zones, two of the apartment zones, single family homes may be constructed on
lots as small as 2,000 square feet. This is a significant reduction in the otherwise required
lot size and has allowed small developments to be built in the downtown area where much
of the land is already zoned R-3 or R-4.
- Clustering of structures is allowed to off-set the requirements for floodplain,
environmentally sensitive areas.
- Modular homes allowed in all residential areas. This has allowed companies to
provide lower priced homes in several locations in the community.
Lexington-Fayette County Housing Authority Policies
The Housing Authority applies for all HUD funding for units that Lexington is eligible to
receive. This provides the Housing Authority with the maximum opportunity to provide
public housing, and Section 8 units, to the community. The Housing Authority participates
in the vacant lot program. This has allowed the LFUCG to provide the lots needed for new
public housing sites, thereby reducing the overall cost of each unit. New additions to the
public housing stock and replacement units for planned demolition are scattered sites
throughout the community. It is the desire of the Housing Authority to disperse the units of
public housing throughout the community and to reduce the concentration of units in any
Building Codes and Code Enforcement
The LFUCG's Division of Code Enforcement is assigned the duty of providing on-going
Housing Code enforcement. Enforcement is conducted County-wide, however, six (6)
neighborhoods have been targeted for concentrated code enforcement, Code Enforcement is
a part of a total housing strategy. Any units that are demolished as a result of Code
enforcement are replaced. The Division of Code Enforcement works closely with the
Division of Community Development to encourage housing rehabilitation and neighborhood
improvement. Neighborhoods and sites (apartment complexes) have been chosen to
stabilize and preserve housing. While rents may increase due to code enforcement
requirements, the number of standard units available to low-and-moderate income fa@lies is
increased. Landlords are forced to keep rents competitive since the increased supply leads
to more competition for renters.
ONE YEAR ACTION PLAN
The action plan identifies the proposed uses of $4.7 million from the three grant programs,
program income, and funds from local sources.
Overview of Proposed Activities
A large majority of the projects are in the most needy neighborhoods: those Census Tracts with
a minimum of 51% low and moderate income households. Housing rehabilitation and public
improvement projects comprise approximately 69% or $2,158,000 of the CDBG allocation.
The remainder goes to parks and recreational activities, public safety and human services
projects, and administrative costs. HOME funds will be utilized for First-Time Homebuyer
programs, production of rental units, and substantial and moderate rehabilitation. ESG monies
will fund six agencies/service -providers including services for abused women, runaway and
homeless youth homelessness prevention programs, and supplemental basic shelter operations
for two shelters. Map 5 indicates where some formula program funded projects are located.
MAP 1 depicts points of interest in the
MAP 2 depicts points of interest, and low-moderate income
MAP 3 depicts points of interest, low-moderate income
areas, and minority concentration levels.
MAP 4 depicts points of interest, low-moderate income
areas, and unemployment levels.
MAP 5 depicts points of interest, low-moderate income
areas, and proposed HUD funded projects.
To comment on this Consolidated Plan, please contact Ms. Irene Gooding Grants
Coordinator Lexington Division of Community Development 200 East Main Street Lexington,
KY 40507 PH: (606) 258-3070
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