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SB 321

Kentucky Senate•In Senate Committee

Summary

SB 321, aN ACT relating to affordable housing programs established by local governments, was introduced in the Senate on Mar 2, 2026 by Sen. Casey Chambers Armstrong (D) with 1 co-sponsor. It was referred to Committee on Committees, and last saw action on Mar 2, 2026: to Committee on Committees (S).

Record

Text

SB 321 has 1 co-sponsor.

sb321/introduced.txt
UNOFFICIAL COPY  26 RS BR 2340
AN ACT relating to affordable housing programs established by local governments.
 Be it enacted by the General Assembly of the Commonwealth of Kentucky:
SECTION 1.  A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO
 READ AS FOLLOWS:
 (1)    As used in this section:
(a)     "Affordable housing" means a residential dwelling unit which is reserved
via a deed restriction for a low-income household;
(b)     "Applicant" means one (1) or more persons or entities that apply to a local
government for funds from the program established under this section;
(c)     "Local government" means a city, county, consolidated local government,
urban-county government, charter county government, or unified local
government that establishes a program under this section;
(d)     "Low-income household" means an individual or family whose income
does not exceed eighty percent (80%) of the median income for the area as
set out by the United States Department of Housing and Urban
Development; and
(e)     "Program" means a revolving loan program fund established under this
section.
 (2)    A local government may establish a revolving loan program fund by enacting an
ordinance. The ordinance shall state the:
(a)     Amount that the local government will initially place in the fund;
(b)     Terms of any loans that the local government will issue as part of the
program;
(c)     Methods by which the local government will secure repayment of any loans
issued under the program aside from those set out in this section;
(d)     Process by which applicants may apply to the local government for program
funds; and
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 UNOFFICIAL COPY  26 RS BR 2340
(e)     Criteria the local government will use to select applicants to be issued loans
from the program.
 (3)    A local government may issue bonds, notes, or other debt obligations for the
purpose of funding a revolving loan program fund. The amounts in the fund may
be used to:
(a)     Issue loans to developers for the purpose of developing affordable housing
projects;
(b)     Issue loans to a low-income household for the purpose of repairing or
renovating a primary residence;
(c)     Defray administrative expenses, including overhead costs associated with
operating the program, which shall not exceed one percent (1%) of any
revenue placed in the fund; and
(d)     Refinance the bonds, notes, or obligations consistent with applicable law.
 (4)    A local government shall use revenue collected from the repayment of loans
issued pursuant to subsection (3) of this section, any interest earned and any fees
collected for the payment of any bond, note, or other obligation issued pursuant
to this section.
 (5)    The maximum term of any bond, note, or other debt obligation issued under this
section shall not exceed thirty (30) years from the date of first issuance.
 (6)    If an applicant fails to repay a loan, the local government may assess additional
interest of one percent (1%) per month, and a penalty of one percent (1%) per
month may be added to any outstanding amount owed by the applicant.
 (7)    A loan issued from the fund, and any interest accruing on the loan, shall
constitute a lien on the property for which a loan has been issued. The lien shall
be superior to a lien of any trust deed, mortgage, mechanic's lien, or other
encumbrance, but shall not be superior to any lien for the payment of taxes or a
lien possessed under KRS 65.8835. Amounts collected by a local government
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UNOFFICIAL COPY  26 RS BR 2340
shall not be allocated to the payment of a loan until all taxes, penalties, and
interest relating to ad valorem taxes imposed by any governmental entity have
been paid in full.
 (8)    If any loan is or becomes delinquent and the property subject to the loan has been
sold to the local government as a result of the delinquency, redemption of that
property is allowed upon payment, not later than one (1) year after the date of
sale, of the full amount of any outstanding loan amounts, plus interest and
penalties.
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Create a new section of KRS Chapter 65 to define terms; permit a local government to establish a revolving loan program fund to facilitate affordable housing; establish requirements for the fund; permit a local government to use bonding authority to support a fund; establish means and terms of repayment of bonds issued for a fund; permit a local government to use a fund to make loans for development of affordable housing and for rehabilitation of homes by low-income persons; allow local government to assess fines and fees for failure to repay loans as part of a program; create a lien in association with a loan issued under a program and set out priority of the lien.

Sponsors

Sen. Casey Chambers Armstrong (D) sponsors SB 321, and 1 member has co-sponsored it.

Committees

SB 321 went before 1 committee: Committee on Committees.

Committee on Committees
Committee on Committees
Referred to · Mar 2, 2026

History

SB 321 has taken 2 actions since Mar 2, 2026.

ChamberAction
Mar 2, 2026
Senate
introduced in Senate
Mar 2, 2026
Senate
to Committee on Committees (S)

Votes

SB 321 has not gone to a roll call.

Source: apps.legislature.ky.gov · legiscan.com