Groundbreaking at The Railyard Marks a Major Step Forward for Workforce Housing in Lexington

Today, community leaders, state officials, project partners, and Fahe joined together at 1000 Delaware Avenue in Lexington to break ground on The Railyard, a mixed-income, mixed-use development that represents a major investment in expanding housing opportunity for the city. The event included remarks from Mayor Linda Gorton, Lieutenant Governor Jacqueline Coleman, Councilmember Liz Sheehan, and other state and local officials, followed by project partners 1000 Delaware LLC and Fahe’s own Executive Vice President of Lending, Laura Meadows. 

The Railyard will bring 32 new homes—including 12 income-restricted units reserved for households earning at or below 80% of Area Median Income—alongside two neighborhood-serving commercial spaces. The project transforms an underused infill site into a walkable, transit-accessible community space that contributes to local revitalization and aligns with Lexington’s long-term goals for sustainable growth. 

Fahe’s Role: Mission-Driven Capital That Brings Projects to Life 

Fahe is proud to support The Railyard with both construction and permanent financing, delivered in partnership with Lexington-Fayette Urban County Government. The permanent loan will utilize the U.S. Treasury Bond Guarantee Program, providing the long-term stability needed to keep units affordable for decades. This public–private partnership is precisely the kind of catalytic financing Fahe deploys to help first-time and emerging developers bring community-centered projects across the finish line. 

“This project brings together financing from Lexington-Fayette Urban County Government and Fahe on a development by 1000 Delaware LLC that will expand access to workforce housing and contribute to neighborhood revitalization and local economic growth,” said Fahe CEO Jim King. “We’re honored to be part of a partnership that is turning a shared vision into a lasting community asset.” 

Why The Railyard Matters 

The Railyard is a model for the kind of moderate-sized, mixed-income projects that Lexington needs, but that often struggle to secure financing from conventional lenders. Its location in a disadvantaged census tract, paired with its mix of affordable and market-rate units, demonstrates how intentional design and mission-aligned investment can expand opportunity for working families. 

In her remarks, Laura Meadows emphasized how the project reflects Fahe’s mission: 

“Fahe is committed to expanding opportunity across Appalachia and Central Kentucky. The Railyard stands out because it pairs public resources with mission-driven capital to support first-time and emerging developers, exactly what it takes to get projects like this to the starting line. This development strengthens housing choice for working families and shows what is possible when partners come together with a shared commitment to affordability.”  

The development also supports walkable living, access to Lextran bus routes, the future East Lexington walking/bike trail, and features such as a community garden and dog park. With a mix of residential and commercial space, it will contribute to neighborhood vitality and encourage local economic activity. 

A Partnership with Broad Support 

The Railyard has earned strong backing from city leadership, state government, civic organizations, and community advocates. Today’s ceremony brought together: 

• 1000 Delaware LLC (developer and sponsor) 

• Lexington-Fayette Urban County Government 

• Commonwealth of Kentucky leaders, including Lieutenant Governor Jacqueline Coleman and Senior Advisor Rocky Adkins 

• Partner organizations, including Fayette Alliance and Commerce Lexington 

• Fahe, as mission-driven lender and long-term partner in affordability 

This coalition reflects a shared belief: housing is essential infrastructure, and communities thrive when residents—especially workers who keep the city running—can find safe, affordable places to live. 

Looking Ahead 

Groundbreakings are about momentum, and today’s event signals that Lexington is moving forward with solutions that meet the needs of families, employers, and neighborhoods. As a regional CDFI serving communities across Appalachia, Fahe sees The Railyard as a blueprint for future developments: projects that are ambitious, community-driven, and built to last. 

Fahe looks forward to continuing this partnership and supporting more developments that expand opportunity, strengthen local economies, and help families build stability for the long term. 

Housing can’t wait—and today, Lexington took an important step toward ensuring it won’t have to.