A Push For Income Aligned Housing in Covington

We had a great compelling and engaging regular school board meeting on April 3rd where the school board was presented with a proposal to accept a PILOT agreement—that’s a Payment in Lieu of Taxes. In simple terms, it would allow our school district to receive a set payment from an entity instead of said entity paying to the school district scheduled tax payments…. which would affect how much funding goes to our schools."

I want to begin by acknowledging the thoughtful and well-structured presentation given by the developer, The Orleans Group and their financial partner, The Catalytic Fund. It is clear that there is a strong commitment to incorporating income-aligned housing options into Covington, and this proposal serves as a valuable starting point for an essential conversation about equitable housing in our community. The focus on ensuring that first responders and teachers have housing that aligns with their income is commendable, as we all recognize the importance of providing affordability to these critical members of our workforce.

However, there were key concerns that I felt must be addressed before I could move forward with this agreement. 

The first is the use of the Area Median Income (AMI) as a benchmark for calculating affordability. The presentation proposed cites an AMI of $74,000, which is accurate for the broader Cincinnati Metro area, but does not accurately reflect the realities of Covington specifically. In contrast, Covington’s actual AMI is $58,814. This discrepancy significantly impacts affordability calculations and skews the perceived accessibility of proposed rental rates for Covington families.

Moreover, using AMI as a baseline for affordability inherently places less emphasis on outlying data, including the many families in Covington schools who receive free or reduced lunch. This oversight means that while the proposed housing may seem income-aligned on paper, it does not effectively address the economic realities of the majority of Covington schools families.

To illustrate this issue with a practical example: While Covington’s AMI stands at $58,814 (2023 data), the average across all households is significantly lower, at approximately $36,000. Based on standard affordability calculations, this would suggest a maximum sustainable rent of around $900 per month to prevent housing insecurity. Adjusting for a 3% annual inflation increase, that figure only rises to $954. This stark contrast between AMI-based affordability and real-income affordability highlights the potential financial burden that this proposal, as currently structured, could place on many Covington residents.

Additionally, beyond the issue of using AMI, I also had concerns regarding which income demographics are being referenced in the report. The proposal relies on Cincinnati Metro income data rather than Covington-specific figures. 

As someone who grew up on West 15th Street, just a block away from the presenter's proposed development, I understand the importance of ensuring that these affordability calculations accurately reflect the needs of the residents who will actually be impacted by this project.

Because of these concerns—the use of an AMI benchmark that does not accurately reflect Covington’s economic landscape and the reliance on Cincinnati Metro income data instead of Covington-specific figures—I had to express my concerns for accepting this PILOT agreement in its current form. Until these fundamental issues are addressed, I couldn’t be, in good faith, certain that this development will truly serve the needs of our community’s most vulnerable families.

I’d like to make it clear…I'm not against helping developers. But I am against cutting deals that don’t truly help our community.

Since that April 3rd meeting, I’ve had a chance to speak directly with the developer and their financial partner and we’ve come to an amicable agreement that allows both sides to move forward in good faith and I look forward to continuing this discussion and working towards a solution that ensures genuine affordability and housing security for Covington residents.

Unfortunately, I was not able to attend the April 14th regularly scheduled board meeting where we actually approved the PILOT agreement, but I always encourage community input—and I welcome anyone to hit me up if you want more details.

I’m here to advocate for smart growth and strong schools. Let’s keep building a Covington that works for all of us and I’ll keep pushing for transparency, accountability, and decisions that actually serve Covington families. Stay informed. Stay involved.