Introduced

Passed House

Passed Senate

Became law

Adjourned sine die. The bill was pending when the session ended, so it did not pass.

Last action · February 9, 2026

To Local Government (H)

Introduced February 2, 2026

House

Adjourned Sine Die

2026 Regular Session

HB536

AN ACT relating to housing development districts.

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…

Area Development Districts Housing, Building, and Construction Land Use Local Government Property Reports Mandated State Agencies Taxation, Property Education, Elementary and Secondary Interlocal Cooperation Special Districts Special Purpose Governmental Entities

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This bill would allow local governments in Kentucky to create special housing development districts and offer financial incentives to developers who build housing within them. Local governments could also choose to exempt these housing projects from certain planning and zoning rules after holding a public hearing. The bill sets up a reporting system so the state can track how these districts are being used across Kentucky. Who it may affect: local governments, housing developers, and residents in areas where new housing districts may be established.

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