Covington is working on a deal to sell two vacant city-owned lots in the Wallace Woods neighborhood for single-family home construction.
A proposed purchase agreement came before the Covington Board of Commissioners this week. The agreement was placed on the consent agenda for next week’s legislative meeting, meaning it will likely pass.
The two lots are adjacent at 2116 and 2118 Donaldson Avenue in Wallace Woods. The development proposal comes from an LLC called Betz and Sons, the owner of which is a Walton resident named Daniel Betz. Betz hopes to construct two custom-built homes on the parcels. Contract documents indicate that Betz and Sons will purchase the lots for $1.
The project proposal submitted to the city shows designs for two-story homes with three bedrooms, two bathrooms and no basements.
Design documents for the custom built homes slated for construction on Donaldson Avenue. Drawings by Betz and Sons, LLC. Drawings provided | The City of Covington 
Design documents for the custom built homes slated for construction on Donaldson Avenue. Drawings by Betz and Sons, LLC. Drawings provided | The City of Covington 
Design documents for the custom built homes slated for construction on Donaldson Avenue. Drawings by Betz and Sons, LLC. Drawings provided | The City of Covington 
Design documents for the custom built homes slated for construction on Donaldson Avenue. Drawings by Betz and Sons, LLC. Drawings provided | The City of Covington
The deal marks the latest in the city’s ongoing effort to increase its affordable housing stock. Just last month, the commissioners rubber stamped the addition of five new prefabricated homes in the Eastside neighborhood.
Our region, according to a housing strategies report released in 2025, lacks sufficient housing for young adults forming their first household; for essential workers like nurses, teachers and first responders; and for older adults. A teacher with a median annual income of $43,740, for example, can afford only 26% of the rental and 16% of the for-sale housing in the region, according to the report. For a restaurant server, only 1% of the region’s rental housing is affordable.
An older person relying on Social Security can also afford only 1% of rental housing in the region, according to the report.
The report, called Home for All: Northern Kentucky Housing Strategies, came to be thanks to more than 90 leaders and experts from across NKY who spent hours studying the region and its urgent housing challenge. Their goal was to close the housing gap across income levels and provide a place for everyone.
Click here to learn more about the shortage and how NKY leaders and community members are stepping in to find solutions.
Understanding NKY’s housing shortage
Betz told LINK nky he’s been in the custom home building business for about 12 years and he’s trying to build homes that are “simple” and “elegant,” yet “affordable.”
“There aren’t a lot of houses in this kind of market that are available,” Betz said, adding that he hoped his houses would be affordable enough to “have a mortgage payment that’s similar to what (people are) paying in rent.”
City documents indicate the houses will be marketed to buyers at 80% or less than the area’s median income, as measured by the U.S. Department of Housing and Urban Development (HUD). For a single-person household, that would be $61,550 or below, according to HUD. For a four-person household, that would be $87,900 or below.
Depending on their situations, buyers may also be eligible for a low-interest, forgivable loan from the Northern Kentucky HOME Consortium to help cover down payment and closing costs. You can learn about that program here.
