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KY SB321

Bill

Status

Introduced

3/2/2026

Primary Sponsor

Casey Chambers Armstrong

Click for details

Origin

Senate

2026 Regular Session

AI Summary

  • Local governments in Kentucky (cities, counties, consolidated/urban-county/charter county/unified local governments) may establish revolving loan program funds for affordable housing through ordinance
  • Fund loans can be issued to developers for affordable housing projects and to low-income households (income at or below 80% of area median income per HUD) for repairing or renovating primary residences
  • Administrative expenses are capped at 1% of fund revenue; local governments may issue bonds, notes, or debt obligations with maximum 30-year terms to capitalize the fund
  • Loan defaults may result in 1% monthly interest and 1% monthly penalty on outstanding amounts; loans create a property lien superior to mortgages and mechanic's liens but subordinate to tax liens
  • Properties sold due to loan delinquency may be redeemed within one year of sale upon full payment of outstanding loan amounts, interest, and penalties

Legislative Description

AN ACT relating to affordable housing programs established by local governments.

Local Government

Last Action

to Committee on Committees (S)

3/2/2026

Committee Referrals

Committee on Committees3/2/2026

Full Bill Text

No bill text available