Housing office reports ESG cycle complete; 322 clients served and plans for rapid rehousing and shelter project

At the June 1 council meeting, the city epartment overseeing housing and homelessness reported that it had expended its first Emergency Solutions Grant (ESG) round and served 322 clients from July 1 through May 31, 2026.

The office also reported outcomes from its rapid-rehousing program: 57 households served in the ESG period, including 20 households aided with move-in assistance and eight receiving ongoing rental assistance. Staff highlighted that move-in assistance has helped households stabilize without ongoing subsidy in many cases and noted referrals from Scott County schools contributed to the caseload.

Staff discussed client-length-of-stay data at the cityunded low-barrier shelter: most stays were short (0 days) while a small number of clients (six) remained 181 days or more because of severe medical or disability needs requiring additional advocacy and placement work.

On larger housing initiatives, staff said they are researching a Scott County adaptation of an existing affordable-housing model in Lexington and hope to present details in a work session. They are also working with the Gathering Place on a CDBG-funded low-barrier shelter building and seeking ways to close the remaining funding gap through grants and private donations. Staff noted COC (Continuum of Care) rapid-rehousing funding remains delayed and tied up in court; they will monitor that notice-of-funding timeline.

Next steps: the housing office will continue pursuing ESG 2026 funds and competitive COC and CDBG opportunities, refine project proposals for the gathering-place shelter, and return to council with more detailed funding and project timelines.