Housing (Homeownership)

Create new sections of KRS Chapter 198A to define terms; establish a revolving account to be known as the first-generation homebuyer trust fund; establish eligible activities and uses of the trust fund; require Kentucky Housing Corporation to operate a forgivable loan program for eligible first-generation homebuyers applicants, administer the fund, and submit annual reports to the Legislative Research Commission.

Amend KRS 171.396 to define and redefine certain terms; allow the certified rehabilitation credit cap to be allocated as 15% for owner-occupied residential property and 85% for property other than owner-occupied residential property, including workforce housing; require that projects approved as workforce housing maintain affordability for individuals earning 80% of the county level area median income or less; amend KRS 171.397 to state that the provisions established in this statute pertain to applications received before April 30, 2026; create a new section of KRS Chapter 171 to apply to applications received after April 30, 2026 with certain changes; current credit program cap of $100 million is maintained; with a split of $50 million into 2 separate credit allocation application rounds; expand the credit to apply to certain taxes imposed in KRS Chapter 136; require the Kentucky Heritage Council to work with the Kentucky Housing Corporation to ensure the workforce housing property maintains area median income affordability requirements for 5 years within completion of the certified rehabilitation; create a new section of KRS Chapter 198A to require the corporation to work with the Kentucky Heritage Council for these purposes; amend KRS 141.0205; 141.382; and 171.3961 to make conforming changes.

Create a new section of KRS Chapter 100 to define terms; prohibit a local government from requiring the operator of a short-term rental to obtain a conditional use permit, imposing density-based restrictions on short-term rentals, prohibiting the operation of a short-term rental in a residential zone, regulating the time or place a property may be used as a short-term rental, limiting the number of properties a person can operate as short-term rentals, imposing a residency requirement on operators of short-term rentals, restricting short-term rental platforms, or prohibiting a tenant from offering a leased property as a short-term rental with permission of a landlord; allow a planning unit to require permitting for the operation of short-term rentals and enumerate the contents of a permit application, procedures for application, revocation of a permit, benefits of permit, and penalties for operating without a permit when planning unit has adopted a permitting ordinance; state that ordinances generally applicable to all dwellings that are necessary for public health or safety and do not treat short-term rentals differently than other residential properties are unaffected; state that any ordinance that conflicts with provisions of the Act is void and unenforceable and that a party aggrieved by a violation of the Act may be awarded attorney's fees and costs; state that the Act shall not be construed to affect regulations of a homeowner's association or other similar property owner association.