Groundbreaking Settlement Secured for LDG Development in Fair Housing Act Case

Dinsmore & Shohl LLP successfully represented long-time client LDG Development, a leading affordable housing developer based in Louisville, Kentucky, in an eight-year legal battle against Louisville Metro Government over the city’s 2017 rejection of LDG’s proposed affordable housing development, Prospect Cove Senior.

LDG sought to develop the 198-unit, affordable apartment complex for senior citizens on the corner of River Road and Timber Ridge Drive, near Prospect, Kentucky. Louisville Metro Council denied the proposed development following strong public opposition from the City of Prospect and local residents.

LDG alleged that the denial violated the federal Fair Housing Act. After extensive litigation, Dinsmore’s team, led by attorneys Cliff Ashburner, Tanner Watkins, Kenyon Meyer and Juels White, successfully negotiated a settlement agreement with Louisville Metro Government that provides both monetary relief to LDG for the costs it incurred due to the years of delay and systematic reform for affordable housing development in the city of Louisville.

The agreement includes a $6 million settlement payment and a series of policy reforms that will remove barriers for future affordable housing developments and streamline the approval process. These reforms include:

• Amendments to the Land Development Code to reduce Metro Council’s role in zoning changes when the Planning Commission unanimously approves a proposal.
• An extension of project expiration timelines for affordable housing developments from two to five years.
• Mandatory Fair Housing Act training for Metro Council members and staff.
• A proposed waiver of rezoning application fees for qualifying affordable housing projects.

In the resolution that the city adopted to effectuate these changes to Louisville’s planning and zoning policies, Metro Council writes, “Metro Council acknowledges the presence of evidence that could support a finding of a violation of the Fair Housing Act and is acting to address significant concerns about equitable development of affordable housing raised by the litigation in LDG Multifamily, LLC v. Metro Council et al., 17-CI-006262.”

This settlement marks the first time the City of Louisville has paid any sum of money to resolve a Fair Housing Act dispute. Even more, this settlement is one of the first instances in the entire country in which a city has paid to resolve a Fair Housing Act dispute.

“This win for our client, LDG, represents a major step forward for affordable housing both in our city and across the nation,” said Tanner Watkins. “We’re proud to be a part of it.”

While LDG’s settlement with Louisville Metro Government marks an unprecedented victory for affordable housing developers nationwide, LDG’s fight is not yet finished. The same Dinsmore team that secured this landmark settlement will continue representing LDG as it pursues its Fair Housing Act action against the City of Prospect, which is set to go to trial in March of 2026.