‘The Eclipse’ Shines Bright in Louisville

Louisville could use a lot more low-income rental housing — nearly 30,000 units by 2029, according to the Kentucky Housing Corporation (KHC). “There is a huge need in Louisville for affordable housing units,” says Terry Helton, managing director for multifamily at KHC. Helton notes that this need is particularly acute for the lowest-income Louisvillians, with 22,000 units needed for households at or below 50 percent of Area Median Income (AMI).

Steadily, local forces have been mobilizing to chip away at Derby City’s housing gap, with current Louisville Mayor Craig Greenberg’s “My Louisville Home” initiative aiming to build 15,000 affordable units by 2027. Helton estimates that about 5,000 units of that goal have been achieved thus far.

Now, a new 280-unit housing development — The Eclipse — takes another substantial bite out of the deficit.

Uplifting a City

Located in the historic Russell neighborhood, the full-city-block, four-story development looks to have a significant impact on a section of the city long searching for a boost. Nationally active, locally based firm LDG served as the developer, and the project opened on October 16. “Louisville is very important to us and we want to provide quality housing to its residents,” says Ramona Vasta, development manager at LDG.

Russell “is one of the oldest neighborhoods in Louisville,” Helton says. “Back in the 1940s it was known as the Louisville Harlem for its strong African-American presence. There were lots of restaurants and theatres. It started to decline in World War II.”

Immediately west of downtown, Russell has access to several interstate highways and a transit route. “It’s an older neighborhood that the city is trying to revitalize,” Helton says.

All 280 units are in one enormous building with attached sections. Helton described it as “a square with a community area in the middle of it.”

Vasta notes that for The Eclipse, LDG is focusing on being a good neighbor to the residents of Russell. “We show up at community events and we sponsor events,” she says. LDG also made a donation of $100,000 for the renovation of the local Elliott Park, formerly known as Eclipse Park. “We’re very excited to be in that neighborhood.”

In another nod to Russell, LDG is including local art for decorations throughout the building.

The Eclipse represents growing momentum for Russell, which recently celebrated the opening of the first hospital to serve the neighborhood in over 150 years (Norton West) and a new four-acre park.

More Than Just Units

The building has a diverse layout, with 84 one-bedroom units, 112 two-bedrooms, and 84 three-bedrooms.

Average median income restrictions run from 30 percent to 80 percent AMI. 119 of the units are designated for 30 percent AMI households, which then receive project-based vouchers through the Louisville Metro Housing Authority. The remaining units are rented up to 80 percent AMI, and income averaging is used to keep the total AMI below 60 percent.

The Eclipse project had its genesis through a 2020 KHC Notice of Funds Availability for tax-exempt bonds, Helton says. Positive points for the bid by LDG Development were the number of units and their location in the Russell neighborhood.

Amenities include a community room, an outdoor sitting area, a fitness center and a business center. Design is by Xpert Design and Construction. “It’s a gorgeous complex,” Helton says. “It’s really nice. They do really great work.” Nearby there are a grocery store, shopping centers, parks and hospitals.

Additionally, LDG has partnered with a Bezos Academy (founded by Amazon’s Jeff Bezos), located one block away from the development. The Academy is a tuition-free preschool for 80 children aged three to five, chosen on a lottery basis and open to neighborhood children as well as those living in The Eclipse. The school provides three meals a day and snacks to the children.

Total development cost was $76 million. KHC issued $43 million in tax-exempt bonds for The Eclipse project, producing nearly $31 million in four percent Low Income Housing Tax Credit equity. Other sources of finance were general partner equity, a bridge loan, a permanent loan, and a $4 million gap loan from the Louisville Affordable Housing Trust Fund.

Huntington Bank was the equity investor, with participation from Stock Yards Bank. Construction lenders were Huntington Bank and Fifth Third Bank, while JLL Real Estate Capital provided the permanent mortgage.

According to Helton, The Eclipse was 45 percent leased up as of October.

Lou 2.2

The Eclipse is just one component of LDG’s “Lou 2.2” program, an ambitious plan to build 2,200 new housing units across the city in ten large developments.

In addition to The Eclipse, other Lou 2.2 projects include the 343-unit Prestonian (which opened on October 29) and the 250-unit Grey on Ali, a forthcoming redevelopment of a former Greyhound bus terminal.

Vasta notes the firm has been based in Louisville for 35 years and that Lou 2.2 is another cornerstone of a longstanding hometown commitment. “It’s an attempt to put a dent in the shortage,” she says

Lou 2.2 is a holistic effort to provide citywide services beyond housing, includes things like summer school, after school programs and a food pantry. Vasta says that Lou 2.2 is designed to provide housing in every zip code of the city and for every type of housing, including single-family and town homes in addition to rentals.

The 2,200 unit number is a floor, not a ceiling. “We won’t stop there,” Vasta says. “Once the goal is accomplished, we’ll keep building.”