On July 28, the legislature’s Housing Task Force convened for its July meeting to explore potential legislative solutions to Kentucky’s growing housing challenges ahead of the 2026 session, which starts in January.
The first three speakers presented under the theme “Pro-Growth Housing Policies,” offering ideas focused on reducing barriers to housing development to expand Kentucky’s housing supply and enhance Kentucky’s economic development outlook. Suggested solutions from these presenters included the following points.
Kentucky Chamber of Commerce- Create a ‘Residential Infrastructure Assistance Program” similar to Indiana’s
- Explore and encourage local land-use and zoning reforms
- Consider how government regulations impact housing and implement reforms
- Continue to invest in infrastructure and support local communities, developers and home builders with infrastructure costs
- Support regional approaches to solving housing challenges.
- View their presentation here.
- Create a public-private partnership between the legislature and KBA with a state match of the KBA’s commitment of $20M to affordable housing in the form of tax credits for new housing. Click here for more details.
- A representative of this think tank reviewed land use reform enacted by other states. View their presentation here.
- Their “menu of options” included allowing residential lots in commercial zones, permitting ADU’s (accessory dwelling units) statewide, preempting local prohibitions and allow for independent private third-party review of permits to speed up local approvals.
Lastly, a presentation was given on Kentucky’s historic rehabilitation tax credit:
- A representative of Antecedent Develpment provided suggestions for improving this tax credit’s process and increasing its use to address the housing shortage through rehabilitation of existing but aging housing stock and addressing the rising costs of housing.
- Fixes included increasing the current $100 million cap, reallocating the currently separated pools for residential and commercial projects to fit the need of either as market demands and availability of each type change annually.
- View their presentation here.
The next meeting of the task force is scheduled for Aug. 25, 2025.
