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Jury Orders Prospect to Pay $36 Million After Blocking Senior Housing Project

A Jefferson County jury found the city's actions violated the Fair Housing Act, opening a path for LDG Development to move toward building Prospect Cove while legal options remain.

Overview

  • A Jefferson County jury awarded LDG Development $36 million in a discrimination suit over Prospect’s rejection of a proposed senior housing complex.
  • The suit traces to a denied zoning change for the 200-unit Prospect Cove project that LDG first sought in 2016 and later revised before winning Metro approval.
  • Louisville Metro previously settled its portion of the case for $6 million and agreed to land-development code changes and Fair Housing Act training for staff.
  • The jury’s award included damages for punitive penalties, increased construction costs and lost profit, and LDG says part of the award will fund the project while Prospect says it disagrees and is reviewing next steps.
  • LDG expects to begin construction by late 2026 or early 2027, a shift that could affect local housing supply and set a legal precedent for how municipalities weigh size and community objections against fair housing rules.