Prospect affordable housing complex faces ongoing criticism from residents after settlement

LOUISVILLE, Ky. (WDRB) -- Metro Louisville reached a settlement in a lawsuit with a developer who claims the city violated federal housing laws. The lawsuit is in connection to an affordable housing proposal that still faces criticism.

Prospect Cove is the name of the proposed complex, which was first introduced eight years ago.

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

In 2017, The Planning Commission approved a zoning change for the complex, but Metro Council overruled city planners and rejected the zoning change.

LDG filed a lawsuit, claiming Metro Council violated fair housing laws.

In 2021, LDG filed new plans for Prospect Cove. The new proposal called for 178 units, about 20 less than the original plans.

In Dec. 2022, Metro Council approved the complex with the new plan, but almost three years later, Metro Council is paying $6 million in the lawsuit filed by LDG. It's a topic that continues to face criticism from people in Prospect.

"There's a whole lot of other areas that have public transportation, that are better suited, and I'm just against it primarily for that reason," Prospect resident Kent Keenan said.

Others who live in the area aren't completely against the idea.

"It gives people who don't have the resources, who don't have the family to get out of the bad areas because not everybody that lives in those poverty areas are bad people, most of them are good people they just have no way out," Jamie Clift said.

In a statement, LDG spokesperson Christi Lanier-Robinson said:

The settlement reached with Metro Louisville validates our longstanding position that the Louisville Metro Council violated federal housing laws when they denied the approval of Prospect Cove. While this settlement with Metro Louisville closes one chapter of this legal battle, the City of Prospect remains a party to the lawsuit, and we expect that this case will go to trial.

While engaging in a legal battle that spanned almost a decade was not an endeavor we would have chosen, it was a path that we needed to pursue. For far too long, the construction of affordable housing has been stalled by bureaucracy and actions that violate fair housing laws designed to protect families. That is why we pushed for modifications to the development process including eliminating the need for the council to approve zoning changes that receive near unanimous approval by the planning commission, extending the approval period of development plans to five years, annual training on fair housing laws and other modifications that will lead to a more transparent process and will result in fewer Louisvillians burdened with the soaring costs of housing.

LDG was founded more than 30 years ago based on our belief that everyone deserves a quality place to live. That is why we are committed to directing funds received through this settlement to produce more housing options. From the housing provided at Arthur Street Hotel for those experiencing homelessness, which is part of our philanthropic work, to the developments we have built and will continue to build throughout the city, we remain committed to providing high-quality housing that residents can be proud to call home.

According to Louisville Business First, LDG is still pursuing the Prospect development but declined to share any other details at this time.

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