Rotary Club of Louisville
West Louisville Housing Fund

The Rotary Club of Louisville (“Club”) West Louisville Housing Initiative (“WLHI”) was conceived by the Club’s Community Impact Committee and its Policies & Justice Subcommittee as part of an ongoing effort to identify critical issues in the Louisville community and to develop corresponding solutions. During hundreds of hours of meetings with significant input from community leaders and activists – home ownership in west Louisville kept rising to the top among issues brought forward. Club members learned:

• Up to 80% of residents in West Louisville are renters, often paying up to three times more in rent than they would in mortgage payments
• Due to the now illegal practice of redlining, coupled with current banking regulations, many west Louisville residents have not qualified for conventional bank mortgages, even though they can afford the monthly payments
• The lack of opportunity to invest in a home prevents west Louisville residents from building generational wealth
• Statistics prove that home ownership improves safety as well as educational and health outcomes

Club leaders took action to facilitate a solution to improve access to capital for home mortgages, developing the West Louisville Housing Initiative. Highlights:

• Following a competitive RFP process, Park was selected as fiduciary partner. Park will administer all aspects of the program and has pledged to match 20% of what Rotary raises, up to $3 million
• Rotary will raise $5 million in contributions to a restricted fund through the Club’s associated 501(c)(3) foundation, Rotary Fund of Louisville, Inc., providing a potential tax deduction to donors
• As funds accumulate, they will be transferred from the restricted fund to a dedicated account managed by Park which will fund 30-year home mortgages to qualified low- and moderate- income buyers who purchase homes located in low- and moderate-income census tracts in the nine traditional neighborhoods of West Louisville
• Park’s CDFI designation will allow banks who wish to contribute to the fund to receive Community Reinvestment Act (CRA) consideration
  Park will be responsible for promoting the loan program, qualifying potential buyers, and closing and administering the loans
• Buyers will make monthly payments to Park which will replenish the dedicated account, creating a revolving fund that will continue to provide loan opportunities for additional buyers
• A portion of the funds will be set aside for down payments, and the program will include a financial literacy component along with a three-year home warranty insurance policy

The WLHI is the first of its kind in the United States.

It will create systemic change by providing a pathway to homeownership where access to capital is needed the most and will minimize or eliminate most all fees that increase the cost of homeownership.

It differs from other worthy housing programs such as Habitat for Humanity, or other down payment programs, in that it provides an entire 30-year mortgage – including the down payment – to qualified buyers.

The WLHI is being led by Rotarians Luke B. Schmidt, Community Impact Committee Chairperson, Denise Sears, CIC Policies & Justice Subcommittee Chairperson, along with David Shadburne, Park Community Credit Union Executive Vice President.

Rotary Club of Louisville President Walt Kunau presided during a media event on Monday, September 26, 2022 at the Louisville Knot sign in downtown Louisville, where the Club announced the transition from the “quiet” phase of the fundraising campaign to the public launch. Presentations are in the works with leading businesses, all banks doing business in Jefferson County, and with local foundations.

Kimberly Halbauer, Rotarian and Regional President of Fifth Third Bank, announced a donation of $500,000. “Fifth Third Bank is proud to be part of transformational programs like Rotary’s West Louisville Housing Initiative. I invite other banks to come together and contribute to this initiative which will change lives and outcomes in the West End,” said Halbauer.

Fifth Third’s donation brings pledges received to almost $1.2 million.

Mayor Greg Fischer, one of the earliest supporters, remarked, “This is exactly the type of private effort that we need in Louisville. This will provide capital where it’s needed the most and will help many in our community to begin building generational wealth. I encourage other banks and businesses to step forward and support this initiative.”

Metro Council President David James has also been a steadfast supporter. “I applaud the leadership of the Rotary Club of Louisville and Park Community Credit Union for bringing this first-of-its-kind program to Louisville. Metro Council supports private initiatives such as this,” said James.

David Shadburne, Rotarian and Executive Vice President of Park Community Credit Union stated, “Park is committed to west Louisville and bringing opportunities where historically they have been limited. We have a long history of building relationships and providing investments in this area. We’re proud to partner with the Rotary Club of Louisville in what will be a groundbreaking opportunity to put more west Louisvillians in their first homes.”

Closing out the event, Jean West, Chairperson of the Rotary Fund of Louisville, and the Club’s immediate past president, commented, “This program has been close to my heart for more than two years. While its focus is on west Louisville, the benefit will be felt throughout our entire community and serve as a national model. Stay tuned; there is more to come!”

To learn more, contact Delene Taylor, Executive Director, at (502) 589-1800 or rotary@rotary45.org.