summary
Introduced
02/02/2026
02/02/2026
In Committee
02/09/2026
02/09/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Create a new section of KRS Chapter 65 to define terms; permit 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 district from planning and zoning following a public hearing; permit other local taxing authorities to participate in a district; allow a local government to accept applications from developers to undertake projects within a 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 district; require the Cabinet for Economic Development to promote awareness of the 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 a district and have obtained the certified child care community designation to its website; require local governments that have established a district 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 districts; provide that the Act shall not be construed to prohibit a local government from establishing any other program for housing development.
AI Summary
This bill allows local governments to establish "housing development districts" and a "Housing Incentive Payment Program" to encourage housing development and revitalization. These districts are defined geographic areas, up to 1,000 acres, within which developers can undertake projects, meaning housing developments with at least 15 units. Local governments can choose to exempt projects within these districts from standard planning and zoning reviews, or implement an alternative process, following a public hearing and vote. Other local taxing authorities, like school districts, can also participate in these districts. Developers can apply to local governments for projects within a district, and if approved, the local government will negotiate terms for incentive payments, which are a percentage of property taxes paid by the developer for the project. These incentive payments can last up to seven years for new construction and up to fifteen years for revitalization projects. Area development districts are required to assist local governments in establishing these districts, and the Cabinet for Economic Development will promote awareness of the program and post information about participating local governments on its website. Local governments must also report data on their districts and incentive programs to the Department for Local Government, which will then submit an annual report to the Legislative Research Commission. The bill clarifies that it does not prevent local governments from establishing other housing development programs.
Committee Categories
Government Affairs
Sponsors (4)
Last Action
to Local Government (H) (on 02/09/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/26RS/hb536.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb536/orig_bill.pdf |
Loading...