Louisville pays $6M to settle discrimination complaint over affordable housing in Prospect

LOUISVILLE, Ky. (WDRB) -- An eight-year-old vote by Metro Council just cost Louisville taxpayers $6 million.

The city sent the money to LDG Development to settle a discrimination complaint.

The developer wanted to build a 200-unit affordable housing complex in Prospect off River Road and Timber Ridge Drive.

The Planning Commission approved a zoning change for the complex, called Prospect Cove, but Metro Council overruled city planners and rejected the zoning change in October 2017—caving to fears from neighbors in the wealthier suburb. Some voiced concerns that low-income residents may bring crime to the area.

LDG filed a lawsuit, claiming Metro Council violated fair housing laws. A Jefferson County judge later upheld the council's rejection, concluding that the council based its vote, among other things, on the scale of the complex and thus wasn't an "arbitrary" move. LDG asked the judge to reconsider the ruling in that case.

In 2021, LDG filed new plans for Prospect Cove. LDG was able to submit similar plans because at least two years had passed since the original plans were submitted, according to the Louisville Forward economic development agency. The new proposal called for 178 units—about 20 less than the original plans. While the plans called for the building to remain the same height of 45 feet, the new plans called for three stories instead of four as outlined in the original plans.

The changes in the new plans were meant to address some concerns previously raised by Prospect residents about the scale of the project.

In December 2022, five years after rejecting the initial plan, Metro Council gave LDG the green light for Prospect Cove. In January 2023, the city of Prospect filed a lawsuit in an effort to stop the complex from being built. That case is ongoing.

The case has bounced around in court since 2017 until the settlement was reached last month.

The settlement also takes some zoning approvals out of the council's hands and requires Metro Council members and their staff to take mandated trainings on fair housing.

Previous Coverage:

Prospect sues to stop low-income apartment development

Judge rules Louisville panel erred in approving affordable housing near Prospect

Prospect considering court challenge to affordable housing approval

Metro Council approves controversial low-income housing plan for Prospect

Prospect affordable housing plan sent to Metro Council for final approval

Developer rekindles fight with Prospect over affordable housing plan

Developer files new plan for income-based Prospect Cove apartment complex

Judge upholds rejection of low-income housing in Prospect

Developer plans to build affordable housing complex for Beecher Terrace residents in Prospect

Developers sue Louisville Metro Council over rebuffed low-income apartments near Prospect

Metro Council shoots down planned affordable housing complex in Prospect