Missing Middle Housing in Kentucky

<font size="4" color="red"> What is Missing in Louisville's Housing?</font>

For too many households, the right type of house, in the right location, at the right price point can't be found because it no longer exists. The homogeneity of the type of housing currently allowed in neighborhoods is in sharp contrast to the increasing diversity of our households, the changing housing preferences and needs as a result of the aging of our populations. Duplexes, triplexes, cottage clusters, and other middle housing, can offer the needed smaller space, more affordable options in our existing neighborhoods.

AARP support expanding housing choice in terms of size and types of homes, encouraging walkable communities so people have easier access to amenities, services and supports, and prioritizing the preservation of neighborhood character and existing homes. Kentucky cities need options and solutions to address the housing crisis at hand, but one critical solution can be to simply allow more varied housing types in our neighborhoods.

Making Room: Housing for a Changing America, a publication by AARP Foundation and the National Building Museum, points to zoning as one of the most powerful tool a community has in terms of decisions about what gets built, and where.

The Basics: Missing Middle Housing

1. Is ideally located within a walkable area, close to amenities
2. Never exceeds the scale of a house (height, width and depth)
3. Mixes well with other building types
4. Features small but well-designed residences, often with floor plans similar to those common in single-family homes
5. Can be for sale or rent
6. Creates a sense of community within a building and in the neighborhood

Learn more: MissingMiddleHousing.com

<font size="4" color="red"> Learn More about Missing Middle Housing </font>

• 5 Questions for Architect Daniel Parolek about Missing Middle Housing
• Bring Back Missing Middle Housing
• Photo Gallery: Missing Middle Housing Type
• Housing For All Ages and All People
• AARP Kentucky is working to provide opportunities for you to choose how you live as you age. We are proud to have championed new Accessory Dwelling Unit (ADU) ordinances Louisville. The "by right" ordinance now allows people to create additional living spaces so people can live with their family as they age. Now you can convert your attics, basements, and garages into livable homes for your loved ones. AARP encourages you to discover how you can make room for family on your property.
• <font size="4" color="red"> NEW </font> Louisville Metro Planning & Design Services has developed a new comprehensive resource focused on "Middle Housing." The new guide details Louisville's housing history and present day range of house-sized choices with multiple units between single-family homes and larger apartment buildings.
• Visit the site, here: What is Middle Housing?
• What are Accessory Dwelling Units?
• An Accessory Dwelling Unit (ADU) is a fully self-contained home with its own kitchen, bathroom(s) and sleeping area on the same lot as the main house. They’re a smart match for smaller households and can be created through basement or garage conversions, additions, or new construction of back yard "tiny homes." Typically, most residential zones and requires that they be discreetly located to fit in well with the surrounding neighborhood.  Oftentimes, they’re invisible from the street. However, you should check local regulations to be sure your project is in compliance Creative design of ADUs can take many different forms and styles, they can fit discreetly into all sorts of communities, including suburban subdivisions, row-house streets (either with or without back alleys), urban neighborhoods — and, of course, large lots in rural areas. ADUs can help keep multi-generational families together or give homeowners a new option to rent part of their property in order to afford and maintain their primary residence.
• DETACHED ADU is a stand-alone home on the same lot as a larger, primary dwelling. Examples include backyard bungalows and converted outbuildings.
• ATTACHED ADU connects to an existing house, typically through the construction of an addition along the home’s side or rear. Such units can have a separate or shared entrance.
• GARAGE ADU makes use of an attached or detached garage by converting the space into a residence. Other options involve adding a second story ADU above or beside a garage or building a new structure for both people and cars.
• INTERNAL ADU is created when a portion of an existing home is partitioned off and renovated to become a separate residence.  This can be a LOWER-LEVEL ADU created through the conversion of a home’s existing basement (provided that height and safety conditions can be met).
• Read more about the approved ADU regulations in Louisville, below:
  • ADU Land Development Code Amendment  - Louisville, KY
  • Paying for Your ADU
  • The best way to finance your ADU will depend on the cost of your project and your financial position. Although ADUs are occasionally developed by professional builders into newly built homes, they are more often created by individual homeowners and financed through some combination of savings, second mortgages, home equity lines of credit (HELOC), and/or funds from family members. ADUs may also be financed using any loan designed for home addition or renovation projects, such as Fannie Mae’s “HomeStyle” renovation loan or FHA’s 203(k) rehab loan. If you have enough equity in your property, you may be able to use a HELOC to build your ADU. A HELOC is a revolving source of funds which you can access as you choose, and it is a second mortgage on your property. The Cash-Out Refinance Mortgage is a cash-out refinance, you turn a portion of your equity into cash, and start a new first mortgage with a higher principal amount. Similarly, you can use the loan proceeds from a Renovation Mortgage to finance your ADU. Different from a cash-out refinance, these loan products consider the “as-completed” value of your property, including the ADU, to determine how much you can borrow.
  • Two common renovation mortgages to help finance ADUs:
    • Download the FannieMae Homestyle Renovation loan details, here.
    • Read more about the Freddie Mac CHOICERenovation loan, here.
  • <font size="4" color="red"> ADU Housing Options in Louisville </font>
  • <font size="4" color="red"> Great Neighborhoods for All Ages-AARP Livability Index</font>
  • Need more local data about housing or transportation your community? Visit the Updated AARP Livability Index. The AARP Livability Index scores neighborhoods and communities across the U.S. for the services and amenities that impact you the most.