Louisville Launches ‘Anti-Displacement Tool’

The city of Louisville will begin using a new algorithmic tool to assess the potential for displacement of proposed housing projects, according to a Shelterforce article. “The tool analyzes whether a given project meets the neighborhood’s housing needs and income levels, ensuring that rents match local incomes. If the development does not meet these standards, then the city cannot subsidize it.”

City officials hope the tool will make development more equitable and ensure that city funding does not contribute to the displacement of long-term residents.

“Initially introduced as the ‘Historically Black Neighborhoods Ordinance,’ the bill was intended to address displacement from Black neighborhoods. But legislators and housing advocates changed the ordinance’s aim so that it could apply to any neighborhood with displacement concerns—and withstand potential legal challenges.”

Advocates hope the tool will also elevate affordable housing projects that need city funding. “The tool relies on Louisville’s own housing needs assessment, released in March 2024, which found that there were no homes affordable to more than half of the city’s lowest-income residents, those making 30 percent of the area median income. But there was an oversupply of homes for someone making 80 to 150 percent of the area median income.”

According to Shelrerforce, “Shelterforce/Next City tested the tool with a hypothetical project in Louisville’s Downtown area where one quarter of the units are affordable to extremely low-income people and half are market rate. The tool said the area already had a high displacement risk: half of residents who live there can only afford rent of around $500 a month. Because of this, the hypothetical building would not qualify for a city subsidy, according to the tool.”