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Fairstead, a leading national real estate company committed to creating, preserving and improving high-quality affordable housing, today announced plans to rehabilitate Malabu Manor, an 80-unit affordable housing community located in Lexington, Kentucky serving seniors and residents with disabilities.
The rehabilitation is financed through 9% Low-Income Housing Tax Credits (LIHTCs) provided by the Kentucky Housing Corporation (KHC).The project is also supported by a $750,000 Green and Resilient Retrofit Program (GRRP) Elements grant from the U.S. Department of Housing and Urban Development (HUD), which will support energy and climate resiliency improvements across the property, in addition to comprehensive in-unit and exterior upgrades designed to improve operational performance and enhance resident experience.
“Through the strategic use of Low-Income Housing Tax Credits and the Green and Resilient Retrofit Program, we are proud to bring a fully modernized Malabu Manor to our residents,” said Fairstead Developer Lee Jaffe. “At Fairstead, we don’t just invest in buildings; we invest in people, and today’s announcement reflects our unwavering dedication to the Commonwealth of Kentucky.”
Fairstead acquired Malabu Manor in 2022 as part of a long-term strategy to preserve housing affordability for low-income residents across Kentucky. Today, Fairstead owns and manages more than 1,600 units across Kentucky.
Located at 137 Malabu Drive, Malabu Manor comprises two, three-story residential buildings totaling 79 homes and one on-site administrative unit. All residences are reserved for households earning up to 60% of the Area Median Income (AMI).
Fairstead’s revitalization plan consists of extensive in-unit, exterior and property‑wide upgrades, including:
Updated interiors across all residential apartments.
Energy efficiency upgrades across mechanical, electrical and plumbing systems.
Renovation and reconfiguration of common areas, including the community room, laundry room and on-site office.
Building exterior and site infrastructure improvements.
Security and access control improvements.
The $750,000 GRRP grant awarded by HUD will support energy and resilience-focused improvements at the property, including backup generators designed to maintain critical building systems during grid outages and inclement weather events, as well as energy-efficient appliances throughout. This funding aligns with Fairstead’s broader commitment to energy conservation and climate resilience in affordable housing preservation, building on similar efforts at communities vulnerable to severe weather, flooding and extreme rainfall.
Residents will also benefit from refreshed amenities, including a business center, library, outdoor gazebo, dog park run and free Wi-Fi and Cable TV.
Resident services and programming will remain available through an app-based platform, providing families with convenient access to supportive services, community programming and resources designed to promote overall health and well-being.
Additional financial partners for the project include LIHTC investor PNC Bank, lender Berkadia, and Kentucky Housing Corporation.
“PNC is proud to support Fairstead’s rehabilitation of Malabu Manor, which will preserve much-needed affordable housing while improving quality of life for seniors and residents with disabilities,” said PNC Executive Vice President and Manager of Tax Credit Originations John Nunnery. “Investments like this strengthen communities by helping to ensure safe, stable housing remains accessible, while also supporting long-term sustainability through energy-efficient and resilient upgrades.”
“Bringing more affordable housing to Lexington is the product of true partnership,” said Matthew Napoleon, Senior Managing Director at Berkadia. “When public leaders, capital providers and community voices move in the same direction we create stable homes and open new opportunities for residents.”
“We are proud to support Fairstead on the revitalization of Malabu Manor,” said Terry Helton, Director Multifamily Programs at Kentucky Housing Corporation. “This investment delivers critical upgrades to an aging property while ensuring families can continue to afford to live in a safe, stable community. The project reflects our shared commitment to expanding and preserving high‑quality affordable housing across Kentucky.”
Renovations at Malabu Manor will commence in June 2026, with construction continuing through December 2026.
Fairstead recently acquired City View Park, a 503-unit affordable community in Louisville, Kentucky. Nationally, the firm owns and manages 30,000 predominantly affordable rental homes across 28 states. Fairstead’s ethos centers around the belief that housing should be thoughtfully designed, professionally managed and responsibly operated to bring long-term value to communities, partners and residents alike.
