2026-09-10 · Kentucky · Legislation

What happened. Kentucky enacted a “yes in God's backyard” law. House Bill 333 was signed by the Governor on 7 April 2026 as 2026 Ky. Acts ch. 37, and creates a new section of KRS Chapter 100. It carries no emergency clause and no delayed date, so it took effect on the 2026 session's default effective date, 15 July 2026.¹

The core provision

“Affordable housing developed by a religious developer shall be considered a permitted use and shall not be subject to permitting, review, or other regulation under this chapter, except for ministerial review by a planning unit for compliance with the following requirements…”

The conditions are narrow and cumulative. The development must be:

• on property owned by the religious institution, purchased before 1 January 2026 and owned throughout the affordability period;
• composed exclusively of affordable housing — units reserved for households at or below 80% of HUD area median income;
• 24 units or fewer, counted cumulatively across contiguous parcels or parcels within half a mile; and
• on a parcel in a commercial or business zone; or in a residential zone that is adjacent to a state primary road under KRS 177.020 and adjacent to a commercial, business or industrial parcel; or containing a structure used as a school before the Act's effective date, being converted to affordable housing.

Affordability must be locked for fifteen years and recorded “in a legally binding agreement or deed restriction,” with annual reporting.

A separate subsection makes a religious institution's homeless shelter, or a temporary cooling or warming centre, a permitted use in all commercial, business or industrial zones where other required permits are obtained.

“Religious developer” and “religious institution”

A religious developer is “a religious institution or any property developer working on behalf of a religious institution.” A religious institution is “a bona fide church, religious denomination, or religious organization, determined by the Internal Revenue Service to be tax exempt pursuant to Section 501(c)(3) of the Internal Revenue Code.”

1. 2026 Ky. Acts ch. 37 (HB 333) — enrolled Act, full text and conditions ↩
2. HB 333, Kentucky General Assembly 2026 Regular Session — bill record and action history ↩
3. 2025 Ky. Acts ch. 154 (HB 160) — the contrasting preemption with an express covenant carve-out ↩
4. Panaretos v. Villas at Claymont Springs Community Ass'n, Inc. (Ky. App. 5 Dec. 2025) — a lot may carry two sets of recorded covenants ↩