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…

Introduced: February 2, 2026

Last action: February 9, 2026

To Local Government (H)

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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 those districts. It also would allow housing projects in these districts to be exempted from standard planning and zoning rules after a public hearing, and requires state agencies to track and report on how these districts are being used. Who it may affect: local residents, homebuilders and developers, and local government officials in communities that choose to establish these districts.

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