KY HB536

Local governments may establish housing development districts of up to 1,000 contiguous acres for new construction or revitalization projects containing at least 15 housing units, with the option to exempt developments from planning/zoning review or create alternative permitting processes

Developers of approved projects receive annual housing incentive payments calculated as a negotiated percentage of property taxes paid, for up to 7 years (new construction) or 15 years (revitalization projects), beginning 6 months after project commencement

Property owners may request exclusion from a proposed district within 30 days of ordinance adoption, and local governments must amend district boundaries accordingly

The Cabinet for Economic Development must promote awareness of housing development districts to businesses and post annual reports by November 1 listing participating local governments and certified child care communities

The Department for Local Government must submit annual reports to the Legislative Research Commission beginning November 1, 2027, summarizing district activity including housing units constructed, incentive payments made, and participating taxing authorities