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AN ACT relating to housing development districts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) For purposes of this section: 5
(a) "Cabinet" means the Cabinet for Economic Development; 6
(b) "District" means a housing development district as described in this 7
section; 8
(c) "Local government" means a city, county, charter county government, 9
consolidated local government, urban-county government, or unified local 10
government; 11
(d) "Project" means a housing development within a housing development 12
district that contains at least twenty-five (25) housing units, which may 13
include multifamily housing, and that meets the requirements set out in this 14
section and any additional requirements adopted by a local government; 15
and 16
(e) "Taxing authority" means a school district and any special purpose 17
governmental entity with ad valorem taxing authority that operates within 18
the jurisdiction of a local government that has established a housing 19
development district as set out in this section; 20
(2) A local government may establish a housing development district by adopting an 21
ordinance containing: 22
(a) A map and a description of the area to be included within the district; 23
(b) A description of the process by which a developer may apply to construct 24
housing within the district; 25
(c) A statement regarding whether development within the district is exempt 26
from permitting or review by the planning unit or subject to alternative 27 UNOFFICIAL COPY 25 RS BR 350
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procedures for permitting or review which shall be set out in the ordinance; 1
and 2
(d) Any additional requirements that the local government chooses to adopt 3
regarding the district, projects within the district, and qualifications that 4
developers must meet to be eligible for participation in the housing incentive 5
payment program set out in this section. 6
(3) If a local government chooses to utilize the exemption to planning and zoning or 7
alternative process in subsection (2)(c) of this section, it shall conduct a public 8
hearing regarding the exemption or alternative process and a separate vote of the 9
legislative body of the local government shall be required to adopt the exemption 10
or alternative process. 11
(4) Local governments may act jointly, via an interlocal agreement, to establish a 12
district. The interlocal agreement shall contain the information set out in 13
subsection (2) of this section, and each local government shall be required to 14
adopt an ordinance as set out in subsection (2) of this section. 15
(5) Any taxing authority may elect to participate in the housing incentive payment 16
program by having its board enact a resolution declaring its intent to participate. 17
(6) (a) Following the creation of a district, a local government may accept 18
applications from developers for a project. 19
(b) A local government shall have the sole discretion to approve or deny an 20
application, but a local government shall not approve a project unless it 21
determines that the project will not commence without its inclusion in the 22
district and access to the housing incentive payment program funds set out 23
in subsection (7) of this section. 24
(c) If a local government approves an application, it shall: 25
1. Negotiate with the developer to determine a percentage of the property 26
tax that will be used to calculate the housing incentive payment 27 UNOFFICIAL COPY 25 RS BR 350
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described in subsection (7) of this section; and 1
2. After agreeing to a percentage, transmit the application along with a 2
document setting out the percentage of the property tax that will be 3
used to calculate the housing incentive payment to the cabinet. 4
(7) (a) Participating local governments and participating taxing authorities shall 5
each award a housing incentive payment to a developer of a project on an 6
annual basis for a period of five (5) years beginning six (6) months from the 7
commencement of the project. The annual housing incentive payment from 8
each participating local government and each participating taxing authority 9
shall be calculated by first determining the total property tax that would be 10
owed to all taxing districts for each home that is part of the qualifying 11
project within the district that has sold, using the first assessed value of 12
each property following its initial sale, and applying the percentage agreed 13
to by the participating local governments and the developer as set out in 14
subparagraph (6)(c)1. of this section. 15
(b) In a district established jointly as set out in subsection (4) of this section, 16
each local government shall pay a housing incentive payment to the 17
developer consistent with the distribution agreed to by the participating 18
local governments in the interlocal agreement. 19
(c) Any private or nonprofit entity may contribute money to a local government 20
to award as additional housing incentive payment amounts for a project 21
within a district. 22
(8) A local area development district shall, upon the request of a local government, 23
assist with the establishment of a district as set out in subsection (2) of this 24
section and with the administration of the housing incentive payment program as 25
set out in subsection (7) of this section. 26
(9) (a) The cabinet shall develop and implement strategies and programs to 27 UNOFFICIAL COPY 25 RS BR 350
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promote awareness of the housing development district program and 1
housing incentive payment program set out in this section among 2
businesses or employers to whom they provide services or with whom they 3
conduct business. 4
(b) The cabinet shall provide a report to the Legislative Research Commission 5
on an annual basis regarding utilization of the housing development district 6
program that contains a summary of the information it has received in the 7
preceding year pursuant to subsection (6)(c)1. of this section. 8