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Metro Council members propose using $13 million in ARP funding to address redlining

The proposal shows that $7.5 million in ARP funds and another $5.5 from the mid-year adjustment to combat redlining's impact.

LOUISVILLE, Ky. — Louisville leaders gathered to announce their newest American Rescue Plan (ARP) grant proposal Monday.

In a press conference, Councilmember Keisha Dorsey (D-3) along with several other Metro Council members and Louisville leaders proposed $13 million in ARP funds to address redlining in the metro.

"We talk about investment in police, public works code enforcement and infrastructure, but that means nothing if we do not stabilize communities," Dorsey said. "That means nothing if we aren't able to put people in place that will take ownership not just of their homes but of their blocks, of their streets, of their sidewalks, of their neighbors."

In 1934, the Federal Housing Administration refused to insure mortgages in and near Black neighborhoods which later became known as "redlining." Using a color-coding system, any neighborhoods that were red were considered too risky to insure mortgages.

"If the government broke it, the government should fix it," Councilmember Jecorey Arthur (D-4) said during the press conference.

The proposal shows that $7.5 million in ARP funds and another $5.5 from the mid-year adjustment will be used to combat redlining's impact "through intentional home ownership opportunities."

The grant will help around 200 families disproportionately impacted by the pandemic, including people of color, front-line workers and those in low-to-moderate income households.

About $3 million would go to community partners who will work to make sure those families have additional funding so they can complete the project.

Lamont Collins, Louisville historian and founder of Roots 101 African American Museum, said this move is needed.

"I'm glad the forefront of what we're hearing now is about economic development and not the fear factor of safety in the inner city,"  Collins said.

However, he said he wonders what protections will be in place to make sure long-time residents aren't priced out if property values increase.

"What are we going to do for the hardships of the grandma or 'Big Mama' that lived in that house 30, 40 years," Collins said.

Council members and community partners say this proposal isn't the end; it's just the beginning of undoing historical wrongs.

"It's always a good day when we're doing things for the least, the lost, the often left behind, and the lonely, but today, I'm adding on to the marginalized and the neglected," Councilmember Paula McCraney (D-7) said.

If the proposal is fully funded, the project is estimated to be completed in 18 to 24 months.

You can read up on the 2019 Metropolitan Annual Housing Report which helped shape the proposal here.

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