3.1 The city is seeking to increase the supply of affordable housing while creating a mixed-income residential development that will provide opportunities for a range of income affordability. In its 2023 Frankfort and Franklin County Housing Needs Assessment, Points Consulting found that 546 additional multifamily housing units and 475 affordable subsidized housing units will be needed before 2040 to meet the area’s growth. While subsidized housing units are not possible under current financing restraints, the City of Frankfort is interested in projects that utilize income averaging. Income averaging was implemented by Congress in 2018, which permits LIHTC developers to include higher rent apartments (70 and 80% rents) provided there are an offsetting number of extremely low-income units (30% rents) if the average income of everyone in the building(s) is 60% of AMGI or less. 3.2 Frankfort and Franklin County Housing Market Demand Study 2023 by Points Consulting Franklin County had a steady trend of population growth from 2013 until 2022 when the population declined for the first time. Growth has been largely driven by positive levels of net immigration, which have remained above 200 in most years since 2015. However, net immigration declined by nearly 50% in 2022. Natural population increase, on the other hand, has remained negative since 2019, with a sharp decrease in 2021 and 2022, as deaths have outpaced births (Source: US Census Bureau, Population and Housing Unit Estimates, 2022). Nevertheless, Franklin County is flanked by several of the highest-growth counties in the state. With quality economic development and land-use management, it could experience a similar boom between 2025 and 2035. Frankfort is unusually high in renter-ship (54% of units), while Franklin County has a more typical split between owners (63%) and renters (37%). In Frankfort, 40% of renters are cost-burdened: • 2,682 households pay 30-50% of income toward rent • 2,349 households pay 50%+ Franklin County, and especially the City of Frankfort, has lower occupancy rates per household, which may signal opportunities for small units such as lofts, condominiums, and one-bedroom apartments.
