Louisville to Pay $6M to Settle Affordable Housing Lawsuit

LOUISVILLE, Ky. — Louisville Metro has agreed to pay $6 million to settle a lawsuit filed by affordable housing developer LDG over a failed senior apartment project in Prospect. The developer sued in 2017 after Metro Council rejected its plan to build a 198-unit, four-story complex called Prospect Cove, citing alleged violations of the federal Fair Housing Act.

The settlement, signed on Aug. 1, also requires the city to pass legislation aimed at making it easier for affordable housing developers to navigate the approval process. LDG executive Christi Lanier-Robinson said the agreement “validates our longstanding position that the Louisville Metro Council violated the Fair Housing Act.” The developer continues to pursue its lawsuit against the City of Prospect.

Changes to Local Law
The settlement outlines four changes to Louisville law, including:

• Streamlined zoning approval: Metro Council no longer must vote on affordable housing proposals with unanimous Planning Commission support, unless two-thirds of Council members request it.

• Extended project deadlines: Affordable housing projects now have five years to show progress, up from the previous two-year requirement.

• Fair Housing Act training: Council members and staff will receive regular training.

• Rezoning fee waivers: Proposed fee waivers for certain affordable housing projects targeting low- and moderate-income residents.

The legislation drew criticism from former council aide Tina Burnell, who called the process “rushed” and “corrupt,” arguing that city officials ceded lawmaking authority to a private developer. Metro Council member Andrew Owen, who sponsored the legislation, countered that the changes were initiatives he planned to pursue independently and represent “small steps” to improve affordable housing development.

Mayor Craig Greenberg’s office emphasized that the focus remains on creating safe, quality, affordable housing, and the administration denies that lawmaking powers were handed to LDG. The proposed rezoning fee waiver is expected to be considered by Metro Council next month.