FRANKFORT, Ky. (LEX 18) — A Kentucky state lawmaker filed a bill on Monday that could help expand home construction across the state.
Senate Bill 9 is being presented as a practical, pro-growth solution to Kentucky's housing shortage. The lawmaker behind it says this will get more builders building and hopefully more Kentuckians into home ownership.
"Having a house that they can afford, that they invest in and have equity in is really good for every Kentuckian," Senator Robby Mills said.
Mills says that is the goal: more homes and more homeowners in Kentucky. He says that's only possible if a lot more building starts happening.
Statistics show that in 2024, Kentucky was already short more than 206,000 housing units. By 2029, that gap is expected to grow to 287,000 units. Mills says it'll take some time, but Kentucky can build itself out of this shortage.
"I think it's going to take a little bit for us to get out. But I think the danger is not doing anything," Mills said.
Mills says SB 9 will get progress going. The legislation allows cities and counties to create Residential Infrastructure Development Districts, and would allow infrastructure costs to be financed over time rather than forcing those costs upfront, according to Mills.
"These pieces of infrastructure can be hundreds of thousands, if not millions of dollars to get the water and sewer to these developments," Mills said.
Mills says these costs often either scare developers away from building altogether or cause housing prices to go up significantly. With this bill, homeowners will pay these costs off over time through a special assessment fee. He says that may actually lower the price of homes upfront, and he believes it could get a lot more renters into homes of their own.
"Folks who are paying $1,600, $1,700 a month in rent — we need to get them into home ownership. We need to move them into paying something that they're actually going to have some equity in in the future. That's good for Kentuckians. That's good for Kentucky. That keeps people here. That keeps our population growing," Mills said.
The bill also creates a new framework for Housing Development Districts, allowing local governments to partner with developers on qualifying residential projects of at least 15 units up to 1,000 acres. Local governments may establish a district by ordinance, with taxing authorities choosing whether to participate and developers applying directly to the local government for project approval.
Once approved, local governments may negotiate housing incentive payments based on a portion of property tax revenues, Mills said. They would be awarded annually for up to seven years for new construction or up to 15 years for projects focused on revitalizing existing structures.
