Tools to determine risk of Louisville financing displacement behind schedule

Jecorey Arthur had yet to be sworn into the Louisville Metro Council in Dec. 2020, but he was already planning a piece of legislation that would be championed by local activists.

“I put out a Google document that was published for anybody to read and comment on and make suggestions on. And over the course of the years, people have been able to have input on that process,” said Arthur, a District 4 Independent.

That legislation, now known as the anti-displacement law, passed Metro Council in November with the support of all 25 council members in attendance, and across party lines.

It requires the city to determine if residential projects it provides resources for could displace existing residents. The law says factors like rising housing costs and non-renewed leases can push people out of their homes.

But the tools needed for the city to make those evaluations are behind schedule.

The ordinance required Louisville Metro’s Office of Housing and Community Development create a displacement assessment and results formula with the help of an academic institution by this past June.

The city began seeking proposals from schools in January, yet it took until late May before Boston University was awarded a contract, according to the city’s solicitation website.

Caitlin Bowling, a spokesperson for Louisville Metro’s Cabinet of Economic Development, said city officials are working with Loretta Lees, who heads the university’s Initiative on Cities. Boston University representatives did not respond to a request for comment.

OHCD director Laura Grabowski said the tools aren’t finalized and she expects city officials to submit them for Metro Council’s approval this fall.

“I think that we were probably a bit ambitious,” Grabowski said about the June deadline.

Some residents and activists have organized to oppose local projects and initiatives like Louisville’s West End Opportunity Partnership , a state-created effort to boost development in the predominantly Black and low-income area. Their fear is that Louisvillians could be priced out of their communities, and the local anti-displacement law aims to prevent the city from contributing to that or promoting gentrification.

Under the law, a developer who wants Louisville Metro support, such as by acquiring city land or tax incentives, would have to indicate on a displacement assessment that their housing costs are affordable in that market area. They’d also have to compare those costs to nearby and recent fair market rents or median property values.

OHCD would then review that data before attaching the assessment to the ordinance Metro Council would have to approve to give the developer those city resources.

Grabowski said she and other city officials and representatives, including Arthur, have met with Boston University multiple times.

“I don't think that we're too far behind schedule at this point,” she said. “You know, this is something that we don't want to rush. We want to make sure that it is an informed assessment and an informed matrix.”

The ordinance also requires Mayor Craig Greenberg to appoint members to an anti-displacement commission. Their job would include monitoring how displacement assessments are handled and recommending any ordinance updates.

The commission is taking online applications . Bowling said the mayor’s administration expects to present appointees to the council alongside the finished tools.

Before Metro Council passed the anti-displacement law last year, members of the administration asked council members to vote against it . Greenberg let the law go into effect without his signature, publicly criticizing it as a “one-size-fits-all solution” and stating he thought it would not meet its six-month deadline, among other arguments.

Kevin Trager, a spokesperson for the mayor’s office, declined to comment for this story.

Arthur said while the law’s implementation is behind schedule, it’s important to balance timeliness with a useful assessment.

“If we were totally in the shadows and in the dark, and [other stakeholders] weren't communicating with us about this, I’d be raising hell,” Arthur said. “But I'm working with them in good faith.”

A sale ahead

Arthur acknowledged that having to wait more for the finished tools means some potential developments might not be assessed for their displacement risk in time, which could lead to Metro Council voting on city-supported projects without knowing their impact.

That includes potential new housing units in Berrytown, a historically Black neighborhood in far-east Louisville. The city currently owns more than six acres of vacant land on North English Station Road that it’s looking for approval to rezone from single-family to a Planned Residential Development District, allowing denser housing on the property.

Grabowski said the city wants to sell the land to a developer who would, in exchange, build affordable housing on it. A recent housing report found that Louisville is behind in providing affordable units for the city’s lowest-income residents .

She said that, based on community feedback, the current goal is to build up to 39 housing units there, targeting home ownership rather than rentals.

“We don't, right this second, have a specific income group that we're expecting to target,” Grabowski said. “We just know that we want to focus on affordable homeownership right now.”

Bowling, with Louisville Metro, said that no affordability requirement for a developer has been set yet.

Jessica Bellamy, a cofounder and organizer with the Louisville Tenants Union, is concerned about the Berrytown property. She grew up in Smoketown, another historically Black neighborhood, and said rising housing costs in the community have priced out some residents.

Bellamy worked with Arthur in developing the anti-displacement law and is concerned the city will sell the Berrytown land before it’s able to assess the displacement risk. Single-family properties adjacent to the site were last assessed by the Jefferson County Property Value Administrator in 2022 and range from $125,000-$290,000.

“I am more worried about all of those residents, predominantly elders, who are living on fixed income…who are going to see their property taxes increase far beyond what they can afford,” Bellamy said.

There is some relief available for older homeowners in Kentucky struggling with rising property taxes. The homestead exemption , for residents aged 65 and older, reduces their tax burden.

Meryl Thornton, a member of the tenants union and Berrytown Neighborhood Association, said she would prefer to see fewer houses built on the property because she believes there’s too much traffic on North English Station Road. She also pointed out the lack of a sidewalk along the road to the property.

“Another concern I have is that, by Berrytown being a historically Black neighborhood, is there any effort to get minority developers to build the houses?” Thornton asked. “If it means putting in new streets, because basically it's another subdivision…will we have any input on naming the streets?”

The city’s Planning Commission will meet Tuesday evening at the Berrytown Community Center for a public hearing on the city’s rezoning request.