Fairstead has outlined a major rehabilitation program for Malabu Manor, an 80-unit affordable housing community in Lexington, Kentucky that serves seniors and residents with disabilities. The community, located at 137 Malabu Drive, is a key part of Fairstead’s broader effort to preserve long-term affordability for low-income residents across the state.
The rehabilitation will be supported by 9% Low-Income Housing Tax Credits awarded by the Kentucky Housing Corporation. In addition, the project has secured a $750,000 Green and Resilient Retrofit Program Elements grant from the U.S. Department of Housing and Urban Development. The HUD funding is designated to advance energy efficiency and climate resiliency measures throughout the property while also backing a comprehensive scope of physical improvements.
According to Fairstead, the capital plan for Malabu Manor includes both in-unit and exterior renovations that are intended to improve the community’s operational performance. Energy and resiliency upgrades funded through the federal grant will be paired with broader building and site enhancements, positioning the property for long-term stable operations while maintaining affordability for its senior and disabled residents.
Malabu Manor consists of two three-story residential buildings that together contain 79 homes, along with a single on-site administrative unit, for a total of 80 units. The community was acquired by Fairstead in 2022 as part of a long-term strategy focused on preserving and improving affordable housing across Kentucky rather than pursuing short-term repositioning or turnover.
Fairstead reports that it now owns and manages more than 1,600 housing units throughout Kentucky, and Malabu Manor is one of the properties being advanced under that platform. The current rehabilitation initiative illustrates the firm’s approach of combining public-sector programs, such as Low-Income Housing Tax Credits and HUD retrofit grants, with private capital to extend the useful life of existing affordable communities.
Additional financial partners on the Malabu Manor project include PNC Bank, Berkadia, and Kentucky Housing Corporation. While specific financing terms beyond the tax credit allocation and HUD grant were not disclosed, the participation of these parties underscores the mix of public and private support being deployed to carry out the rehabilitation. Collectively, these stakeholders are contributing to the recapitalization and physical modernization of a senior-focused affordable asset in Lexington.
