Kentucky Housing Task Force Issues Final Report, Recommendations

Kentucky faces a severe housing shortage after decades of underbuilding, driving up prices, and leaving many households cost-burdened. To address this, the Kentucky Housing Task Force — created in 2024 and continued in 2025 — has been developing possible solutions. 

The 12-member task force recently released recommendations focused on regulatory reform and increased state support. Proposed regulatory changes include updates to building codes, local land-use policies, and permitting processes to speed approvals, protect developers’ rights, and encourage development compatible with existing neighborhoods. 

The task force also identified the need for greater state intervention through an expanded Affordable Housing Trust Fund, a strengthened Rehabilitation Tax Credit, and new funding tools. These could include higher real estate transaction fees to keep pace with inflation, broader incentives for rehabilitating historic properties, a residential infrastructure revolving loan fund, and a state low-income housing tax credit. 

In summary, the recommendations call for easing multi-family housing regulations, pausing cost-increasing code changes, streamlining local planning, increasing support for affordable housing programs, and exploring new state investments in infrastructure and tax credits. 

Legislators shared that these measures aim to create a more supportive environment for housing development, meet Kentucky’s growing needs, and promote economic growth. Readers can view the full list of recommendations here. 

The Kentucky League of Cities is reviewing this report to understand the potential impact these recommendations could have on our cities. KLC is working with legislators to address concerns posed by this list of recommendations and will continue to communicate with our members regarding any changes or movement. Please reach out to KLC’s Director of Government Affairs Gracie Kelly to express comments, questions, or concerns regarding these released recommendations.