KY SB142

Creates the "abandoned home pool fund" as a revolving account in the State Treasury to rehabilitate vacant and abandoned properties, funded by $25,000,000 General Fund appropriation in fiscal year 2026-2027, plus ongoing revenue from a new $2 fee on recorded documents and mortgages

Kentucky Housing Corporation will administer loans and grants to eligible 501(c)(3) nonprofits with at least 5 years of housing development experience to acquire and rehabilitate properties vacant for at least one year

Eligible renters must have household income at or below 120% of area median income and complete HUD-certified homeownership counseling; rent payments are calculated by dividing total project cost into 240 equal monthly payments at no more than 3% interest

After completing 240 monthly payments (20 years), the eligible entity transfers property title to the renter; renters who are evicted or abandon after 48+ payments receive 20% of their amortized equity back from the fund

Increases county clerk recording fees from $33 to $35 for most documents and from $63 to $65 for mortgages, with $2 of each fee directed to the new abandoned home pool fund; takes effect July 1, 2026