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A priority bill filed by Senator Robby Mills of Henderson, Senate Bill 9, aims to address Kentucky’s housing shortage by reducing development barriers and creating new tools to support residential growth across the state.
The legislation is the result of more than two years of work by the Kentucky Housing Task Force and is designed to help communities keep pace with growing demand as more families and businesses move into the commonwealth.
SB 9 would allow cities and counties to create Residential Infrastructure Development Districts, giving local governments and developers new ways to finance roads, utilities and other infrastructure over time instead of requiring large upfront costs. Supporters say this approach could lower housing prices and speed up construction while keeping decisions local and ensuring transparency. Only properties within each district would carry the associated costs.
The bill also establishes Housing Development Districts, enabling local governments to partner with developers on qualifying residential projects of at least 15 units and up to 1,000 acres. These districts could be created by local ordinance, with developers applying directly for project approval. Local governments would have the option to offer incentive payments tied to a portion of property tax revenue — for up to seven years for new construction, and up to 15 years for redevelopment projects.
Mills says the bill is designed to remove regulatory barriers, accelerate development, and give communities flexibility to expand housing without raising taxes. He also tied the legislation to Kentucky’s recent economic growth, saying the state’s pro-business environment is attracting new residents and employers, making housing development a growing priority.
SB 9 reflects recommendations from the Kentucky Housing Task Force and focuses on both new construction and redevelopment, with an emphasis on workforce housing, affordability and local control. The bill is part of the Senate’s priority legislative agenda and is positioned as a long-term strategy to strengthen Kentucky’s housing market and support sustainable population growth.
