| Last Action | 02/12/26: posted for passage in the Regular Orders of the Day for Tuesday, February 17 2026 |
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| Title | AN ACT relating to housing districts. |
| Bill Documents | Introduced |
| 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 |
Area Development Districts - Housing development districts, assistance, requirement Bonds, Public - Residential infrastructure development districts, bonding authority Education, Elementary And Secondary - Housing development districts, participation Housing, Building, And Construction - Housing development districts, establishment Housing, Building, And Construction - Residential infrastructure development districts, establishment Interlocal Cooperation - Housing development districts, establishment Interlocal Cooperation - Residential infrastructure development districts, establishment Land Use - Housing development districts, establishment Liens - Residential infrastructure development districts, special assessment, creation of lien Local Government - Housing development districts, establishment Local Government - Residential infrastructure development districts, establishment Local Government - Housing Incentive Payment Program, establishment Property - Housing development districts, establishment Property - Residential infrastructure development districts, establishment, creation of lien Reports Mandated - Department for Local Government, housing development districts, report Reports Mandated - Cabinet for Economic Development, housing development districts, report Special Districts - Housing development districts, participation Special Purpose Governmental Entities - Housing development districts, participation State Agencies - Cabinet for Economic Development, housing development districts, promotion of program State Agencies - Department for Local Government, housing development districts, report Taxation, Property - Housing development districts, establishment Taxation, Property - Residential infrastructure development districts, special assessment, creation of lien |
| Jump to Proposed Amendments | Senate Committee Substitute 1 |
| 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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| Amendment | Senate Committee Substitute 1 |
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| 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 |
Last updated: 2/13/2026 4:10 PM (EST)