Housing (Historic Preservation)

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.

Amend KRS 171.396 to define and redefine certain terms; allow the certified rehabilitation credit cap to be allocated as 15% for owner-occupied residential property and 85% for property other than owner-occupied residential property, including workforce housing; require that projects approved as workforce housing maintain affordability for individuals earning 80% of the county level area median income or less; amend KRS 171.397 to state that the provisions established in this statute pertain to applications received before April 30, 2026; create a new section of KRS Chapter 171 to apply to applications received after April 30, 2026 with certain changes; current credit program cap of $100 million is maintained; with a split of $50 million into 2 separate credit allocation application rounds; expand the credit to apply to certain taxes imposed in KRS Chapter 136; require the Kentucky Heritage Council to work with the Kentucky Housing Corporation to ensure the workforce housing property maintains area median income affordability requirements for 5 years within completion of the certified rehabilitation; create a new section of KRS Chapter 198A to require the corporation to work with the Kentucky Heritage Council for these purposes; amend KRS 141.0205; 141.382; and 171.3961 to make conforming changes.

Create a new section of KRS Chapter 198A to establish the abandoned home pool fund to be administered by the Kentucky Housing Corporation to purchase and improve vacant and abandoned homes for rental to eligible individuals and families; specify application process and eligibility criteria.