Allied Argenta has a tax increment financing, or TIF, agreement with the city, which it pursued to subsidize the improvements it promised to make. Under that agreement, Allied Argenta could recoup more than $700,000 over 20 years.
City officials say they haven’t started paying out the planned subsidy.
But residents say conditions in the affordable housing complex for seniors in the Russell neighborhood are worse since Allied Argenta bought the building.
They said there’s a spider infestation, a lack of security and a laundry room in need of repairs. They also said some updates are insufficient and of poor quality. Residents are calling for a way to hold Allied Argenta accountable, and they recently created a chapter with the Louisville Tenants Union.
Representatives for Allied Argenta did not respond to multiple requests for comment.
Union members want the developer to recognize the union, provide security and 24/7 maintenance support. They also want them to make repairs to the laundry room, address the spider infestation and offer five-year leases.
Council Member Jecorey Arthur, a District 4 Independent, sponsored the TIF ordinance in 2021 for Allied Argenta’s renovation plans.
He said there needs to be a policy holding developers who receive TIFs accountable, like requiring them to meet and negotiate with residents on an ongoing basis.
“If we could make that law and set that expectation for other council members, I think it would help long-term with tenant organizing, but right now, we do not have that as a policy,” Arthur said.
He said he’s prepared a letter to Allied Argenta calling on them to meet with residents in light of their complaints and demands, and said he will work on getting other Metro Council members to sign.
Arthur will retire from the council after this year, but said he would “love” to introduce legislation mandating ongoing communication between developers and residents.
“I know that's gonna be hell getting into Metro Council, but I'm willing to work on it. But that's not something that the tenant union and I have agreed to introduce yet,” he added.
Along with the TIF, Allied Argenta received a promise of $5.6 million in tax-exempt bonds from the Kentucky Housing Corporation. The company also received a $400,000 dollar loan from the city’s Affordable Housing Trust Fund.
Arthur said he’s not sure what penalties and requirements the Affordable Housing Trust Fund or the Kentucky Housing Corporation have in order to hold them accountable.
Spokespeople for the trust fund and the housing corporation did not respond to multiple requests for comment.
Caitlin Bowling, a spokesperson for the Louisville Metro Cabinet of Economic Development, said Allied Argenta must submit an annual report by next July along with a request for funding.
Bowling said that would help officials check if they’ve complied with the agreement in light of these complaints.
“Because obviously…we're wanting to make sure that they're in compliance with what they promised before any sort of Metro dollars are expended there on that rebate,” she said.
The TIF ordinance language outlining Allied Argenta’s renovation plans states the company would “renovate, improve and maintain an affordable housing option for Louisville metro by updating and continuing to maintain 71 moderately affordable housing units, including preservation of the existing structures and updating and modernizing the units which will reduce the property’s energy consumption and lower utility costs for the tenants, and will also result in free WiFi for all residents.”
From Louisville Metro’s perspective, it’s not clear yet whether Allied Argenta isn’t complying with the terms of the agreement. Bowling said that would depend on the review process that would be triggered by their annual report.
“We don't want to speculate, because we don't know. If they put it forward in six months, what will the building look like in six months compared to what it looks like today?” she said, describing a hypothetical situation.
She said, regardless of the subsidy agreement, the developer can be held liable for code violations.
Emily Martin, a spokesperson for Louisville Metro Codes and Regulations, said Allied Argenta has addressed some of the violations found by Code Enforcement.
Currently, Allied Argenta is facing penalties for two offenses: a citation for brown recluse infestation, and a violation for failing to register the property in the city’s rental registry.
“At this time, I would say that is the best way to hold them accountable to, you know, keep issuing those citations and then bring them to court,” Martin said.
Martin said Thursday that Allied Argenta is still working on remedying the spider infestation. Given the nature of the problem, Code Enforcement would grant more time to address the infestation, she previously said.
“Looking at this report, there definitely have been many more calls in 2024, but a lot of them we have been able to close because they've come into compliance so far,” she said.
Martin said there are upcoming code enforcement inspections at the property.
