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KY SB9

KY SB9
AN ACT relating to housing districts.

summary

Introduced
02/02/2026
In Committee
03/02/2026
Crossed Over
02/18/2026
Passed
Dead

Introduced Session

Potential new amendment
2026 Regular Session

Bill Summary

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.

AI Summary

This bill establishes two new types of districts to encourage housing development: Residential Infrastructure Development Districts and Housing Development Districts. For Residential Infrastructure Development Districts, local governments can establish these districts, which must be at least five acres and require significant infrastructure investment, by approving a developer's petition. These districts allow local governments to issue bonds to pay for necessary infrastructure like roads and utilities, and to collect special assessments, which are charges on properties within the district, to repay those bonds. These special assessments function as a lien on the property, meaning they take priority over most other debts, though they must be paid after property taxes. Local governments can also use a portion of these special assessments for administrative costs. Jointly, multiple local governments can establish and manage these districts. For Housing Development Districts, local governments can create these districts, which can be up to 1,000 acres, and offer a Housing Incentive Payment Program to developers. This program allows developers to receive a portion of the property taxes generated by their housing projects for a set period, encouraging new construction or revitalization. Local governments can exempt housing developments within these districts from certain planning and zoning requirements after a public hearing. Other local taxing authorities, like school districts, can also participate in these incentive programs. The Cabinet for Economic Development and the Department for Local Government are tasked with promoting these districts and programs, collecting data on their use, and reporting on their effectiveness.

Committee Categories

Government Affairs

Sponsors (4)

Last Action

to Local Government (H) (on 03/02/2026)

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