| Last Action | 04/01/26: posted for passage for concurrence in House Committee Substitute (1) and Committee Amendment (1-title) |
|---|---|
| Title | AN ACT relating to housing districts. |
| Bill Documents |
Current
Introduced |
| Fiscal Impact Statement | Additional Fiscal Impact Statements Exist |
| Bill Request Number | 1742 |
| Sponsors | R. Mills, J. Higdon, M. Deneen, A. Mays Bledsoe |
| Summary of Original Version | Create new sections of KRS Chapter 65 to define terms; establish the process for a local government to establish a residential infrastructure development district and for dissolution of a district; authorize a local government to issue bonds and other obligations to pay for infrastructure costs within a residential infrastructure development district; authorize a local government to collect special assessments on property within the residential infrastructure development district to pay for infrastructure costs and use special assessment revenue for administrative costs unless restricted; establish that the special assessment constitutes a lien, address lien priority, require delinquent property taxes to be paid prior to a special assessment, and allow for redemption of property sold as a result of delinquent payment of a special assessment; permit local governments to act jointly to establish and maintain a residential infrastructure development district; define terms and allow a local government to establish a housing development district and a Housing Incentive Payment Program; allow a local government to exempt housing developments within a housing development district from planning and zoning following a public hearing; permit other local taxing authorities to participate in a housing development district; allow a local government to accept applications from developers to undertake projects within a housing development district; allow a local government to negotiate with a developer whose application it has accepted regarding rates associated with incentive payments to the developer; establish a means by which a developer shall be paid incentive payments by a local government; require area development districts to provide assistance to a local government in establishing a housing development district; require the Cabinet for Economic Development to promote awareness of the housing development district and incentive program and the Certified Child Care Community Designation program set out in KRS 199.891; require the cabinet to post information including a list of local governments that have established housing development districts and have obtained the certified child care community designation to its website; require local governments that have established housing development districts to provide information to the Department for Local Government regarding the district and utilization of the incentive program; require the Department for Local Government to submit a report to LRC summarizing information received from local governments regarding housing development districts; provide that the Act shall not be construed to prohibit a local government from establishing any other incentive program for housing development. |
| Index Headings of Original Version |
Housing, Building, And Construction - Housing development districts, establishment Housing, Building, And Construction - Residential infrastructure development districts, establishment Land Use - Housing development districts, establishment Local Government - Housing development districts, establishment Local Government - Residential infrastructure development districts, establishment |
| Jump to Proposed Amendments |
Senate Committee Substitute 1 House Committee Substitute 1 with Fiscal Impact Statements House Committee Amendment 1 House Floor Amendment 1 House Floor Amendment 2 House Floor Amendment 3 House Floor Amendment 4 |
| Votes | Vote History |
| 02/02/26 |
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| 02/04/26 |
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| 02/11/26 |
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| 02/12/26 |
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| 02/17/26 |
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| 02/18/26 |
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| 03/02/26 |
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| 03/13/26 |
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| 03/19/26 |
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| 03/24/26 |
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| 03/31/26 |
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| 04/01/26 |
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| Amendment | Senate Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions, except require a developer or property owner to obtain approval from a mortgage or lien holder, if applicable, for a parcel of property to be included within a residential infrastructure development district; limit a housing development district to no more than 20% agricultural use land upon the establishment of the district; require a local government to provide notice to each property owner of property to be included in a district relating to the right to exclude the property from the district. |
| Index Headings |
Housing, Building, And Construction - Housing development districts, establishment Housing, Building, And Construction - Residential infrastructure development districts, establishment Land Use - Housing development districts, establishment Local Government - Housing development districts, establishment Local Government - Residential infrastructure development districts, establishment |
| Amendment | House Committee Substitute 1 |
|---|---|
| Fiscal Impact Statement | Local Mandate to House Committee Substitute 1 |
| Summary | Retain original provisions, except require a local government to provide written notice of a public hearing regarding an exemption to planning and zoning for a housing development district; create a new section of KRS Chapter 65 to define terms; establish that an applicant has a vested right to the development standards in place at the time of application for a building permit, development plan, or subdivision plat upon the submission of the application to a relevant authority; establish vesting periods; allow for extensions to the vesting period; establish that the relevant authority may terminate the vested rights under specified circumstances; establish enforcement authority; amend KRS 100.347 to limit entities which have standing to challenge a final action of a planning and zoning authority; create a new section of KRS Chapter 198B to define terms; require regulatory authorities to provide information to prospective applicants regarding requirements to apply for a permit; require a regulatory authority to inform an applicant of whether the application is complete within 5 days and include whether the regulatory authority is able to perform plan review and inspection within specified time limits; require a regulatory authority to conduct plan review within 10 days of receipt of a complete application and inspections within 5 days of any request for an inspection being made; permit an applicant to use a qualifying third-party inspector; set out circumstances under which a regulatory authority may collect fees depending on use of a third-party inspector; set out what a third-party inspector may review and set out qualifications and requirements the third-party inspector must meet; require a regulatory authority to issue a permit within 3 business days of the completion of required plan reviews and inspections associated with an otherwise complete application; state that any ordinance, rule, or regulation contrary is void and unenforceable; state that a regulatory authority may issue a stop-work order if a condition of a project constitute an immediate threat to public safety and welfare; establish immunity for the regulatory authority for action of an applicant or third-party inspector; amend KRS 198B.060 to conform; amend KRS 381.785 to exclude from the definition of "planned community" groups with 4 or fewer residential lots; amend KRS 381.794 to exempt planned communities with 15 or fewer units from financial reporting and document retention requirements; amend KRS 381.9197 to exempt condominiums with 15 or fewer units from financial reporting and document retention requirements; create a new section of KRS Chapter 65 prohibiting a local government from adopting or enforcing certain restrictions on the occupancy of dwelling units; state that the prohibition does not affect a local government's ability to enforce safety codes including the state building code or any uniform code or administrative regulation related to fire safety or the construction or safety of buildings; create a new section of KRS Chapter 100 to prohibit a planning unit from adopting or enforcing certain ordinances related to vehicle parking; state that the prohibition does not alleviate obligations to provide accessible parking; create a new section of KRS Chapter 100 to define "commercial zone," "mixed-use residential development," and "multifamily residential development"; direct that mixed-use and multifamily developments are a permitted use in commercial zones; prohibit a planning unit from imposing certain requirements on those residential developments; create a new section of KRS Chapter 65 to define terms relating to short-term rentals; prohibit a local government from adopting or enforcing specific ordinances restricting the operation of a short-term rental; allow a planning unit to require registration for the operation of short-term rentals and enumerate the contents of a registration, procedures for registration, revocation of registration, and penalties for operating without registration when planning unit has adopted a registration ordinance; state that ordinances generally applicable to all dwellings that are necessary for public health or safety and do not treat short-term rentals differently than other residential properties are unaffected; state that any ordinance that conflicts with provisions of the section is void and unenforceable and that a party aggrieved by a violation of the section may be awarded attorney's fees and costs; state that the section shall not be construed to affect regulations of a homeowner's association or other similar property owner association; amend KRS 198B.030 to require the Department of Housing, Buildings and Construction to consider the effects of any proposed new or amended regulation on residential construction by conducting a cost-benefit analysis and an analysis to determine the impacts on the amount of residential construction; require the analyses to be submitted to the Housing, Buildings and Construction Advisory Committee and the Legislative Research Commission; amend KRS 211.203 to exempt pools that share a plat with a single-family residence that are rented to guests by the owner of the residence from regulation as public pools; create a new section of KRS Chapter 65 to define "local government," "low voltage battery-charged security fence," and "nonelectric perimeter barrier"; allow low voltage battery-charged security fences to be installed and operated on property that is not used as or exclusively zoned for residential purposes without the need to obtain any local government permit, approval, or other authorization, except for an alarm permit when required; specify that the bill does not impede a local government's usage of safety codes and generally applicable setback, height, and lot coverage requirements for nonelectric perimeter barriers; create new sections of KRS 383.200 to 383.285 to provide for expungement of records in eviction proceedings that are dismissed; prohibit minors from being named in an action for forcible detainer unless the minor is a leaseholder; provide for expungement of a minor's name from an order; amend KRS 383.240 to require the court to give notice to the parties that records will be expunged; amend KRS 383.250 to provide for sealing of records; amend KRS 367.310 to prohibit consumer reporting agencies from maintaining information in their files relating to dismissed eviction actions; provide that the expungement of dismissed eviction actions applies to actions initiated on or after the effective date of the Act. |
| Index Headings |
Land Use - Plan reviews and inspections, procedures and requirements Land Use - Planning unit, multifamily and mixed-use residential, regulations, prohibition Land Use - Property owner associations, financial reporting and audits, exemption Land Use - Short-term rental restrictions, prohibition Land Use - Third-party inspections, residential construction, allowing Landlord And Tenant - Forcible detainer, expungement Landlord And Tenant - Short-term rental restrictions, prohibition Local Government - Development plans, building permits, vested rights, establishment Local Government - Low voltage battery-charged security fence, permitted Local Government - Occupancies, dwellings, local government regulation, prohibition Local Government - Plan reviews and inspections, procedures and requirements Local Government - Planning unit, multifamily and mixed-use residential, regulations, prohibition Local Government - Planning unit, parking, regulations, prohibition Local Government - Short-term rental restrictions, prohibition Local Government - Third-party inspections, residential construction, allowing Planning And Zoning - Development plans, building permits, vested rights, establishment Planning And Zoning - Final action, standing, limitation Planning And Zoning - Plan reviews and inspections, procedures and requirements Planning And Zoning - Planning unit, multifamily and mixed-use residential, regulations, prohibition Planning And Zoning - Planning unit, parking, regulations, prohibition Planning And Zoning - Short-term rental restrictions, prohibition Planning And Zoning - Third-party inspections, residential construction, allowing Property - Development plans, building permits, vested rights, establishment Property - Low voltage battery-charged security fence, permitted Property - Property owner associations, financial reporting and audits, exemption Property - Single-family residence, swimming pool Public Safety - Public swimming pools, requirements, exemptions Safety - Low voltage battery-charged security fence, permitted State Agencies - Administrative Office of the Courts, expungement order, form State Agencies - Housing, Buildings and Construction, regulatory analysis, requirement Technology - Low voltage battery-charged security fence, permitted Local Mandate - Housing, Buildings and Construction, regulatory analysis, requirement Administrative Regulations And Proceedings - Housing, Buildings and Construction, regulatory analysis, requirement Advisory Boards, Commissions, And Committees - Housing, Buildings and Construction, regulatory analysis, requirement Audits And Auditors - Property owner associations, financial reporting and audits, exemption Children And Minors - Eviction, privacy protection Cities - Low voltage battery-charged security fence, permitted Civil Actions - Final action, standing, limitation Counties - Low voltage battery-charged security fence, permitted Courts, District - Forcible detainer, expungement Housing, Building, And Construction - Development plans, building permits, vested rights, establishment Housing, Building, And Construction - Occupancies, dwellings, local government regulation, prohibition Housing, Building, And Construction - Plan reviews and inspections, procedures and requirements Housing, Building, And Construction - Planning unit, multifamily and mixed-use residential, regulations, prohibition Housing, Building, And Construction - Property owner associations, financial reporting and audits, exemption Housing, Building, And Construction - Short-term rental restrictions, prohibition Housing, Building, And Construction - Third-party inspections, residential construction, allowing Land Use - Development plans, building permits, vested rights, establishment Land Use - Final action, standing, limitation Land Use - Occupancies, dwellings, local government regulation, prohibition |
| Amendment | House Committee Amendment 1 |
|---|---|
| Sponsor | P. Flannery |
| Summary | Make title amendment. |
| Index Headings | Title Amendments - SB 9/GA |
| Amendment | House Floor Amendment 1 |
|---|---|
| Sponsor | K. Holloway |
| Summary | Retain original provisions, except lower total capital cost requirement to establish a residential infrastructure development district to $2,500,000. |
| Index Headings |
Housing, Building, And Construction - Residential infrastructure development districts, total capital cost requirement, reduction Land Use - Residential infrastructure development districts, total capital cost requirement, reduction Local Government - Residential infrastructure development districts, total capital cost requirement, reduction |
| Amendment | House Floor Amendment 2 |
|---|---|
| Sponsor | T. Roberts |
| Summary | Retain original provisions, except state that the act shall not be construed to change eminent domain powers of local governments. |
| Index Headings |
Eminent Domain And Condemnation - Housing development districts, eminent domain power, no alteration Eminent Domain And Condemnation - Residential infrastructure development districts, eminent domain power, no alteration Housing, Building, And Construction - Housing development districts, establishment Housing, Building, And Construction - Residential infrastructure development districts, establishment Land Use - Housing development districts, establishment Local Government - Housing development districts, establishment Local Government - Residential infrastructure development districts, establishment |
| Amendment | House Floor Amendment 3 |
|---|---|
| Sponsor | K. Holloway |
| Summary | Retain original provisions, except lower total capital cost requirement to establish a residential infrastructure development district to $2,500,000. |
| Index Headings |
Housing, Building, And Construction - Residential infrastructure development districts, total capital cost requirement, reduction Land Use - Residential infrastructure development districts, total capital cost requirement, reduction Local Government - Residential infrastructure development districts, total capital cost requirement, reduction |
| Amendment | House Floor Amendment 4 |
|---|---|
| Sponsor | R. Roarx |
| Summary | Amend Section 18 to change the restrictions on a local government's ability to regulate short-term rentals by allowing the use of conditional use permits except in certain circumstances. |
| Index Headings |
Cities - Short-term rental, local government regulation Land Use - Short-term rental, local government regulation Local Government - Short-term rental, local government regulation Property - Short-term rental, local government regulation |
Last updated: 4/6/2026 4:32 PM (EDT)