2026-09-10 · Kentucky · Legislation · Did not pass

What happened. Senate Bill 233 — the only bill of Kentucky's 2026 Regular Session written specifically about community associations — passed the Senate without a single dissenting vote and then died in the House without a committee assignment. It is not law, and the financial-reporting duties it would have lifted remain in force.

The bill would have exempted the smallest associations in the Commonwealth — planned communities of fourteen or fewer lots, and condominiums of fourteen or fewer units — from the statutory financial-record and financial-report standards that currently apply to every association regardless of size.¹

The record, action by action

SB 233 was introduced on 24 February 2026 by Senator Gerald Neal, joined by Senators Robin Mills and Greg Elkins. It went to Committee on Committees, then to State & Local Government on 9 March, was reported favorably on 11 March, took its second reading and went to Rules on 12 March, and was posted for passage in the Regular Orders of the Day.

On 16 March 2026 at 2:41 p.m. the Senate passed it on third reading, 34 yeas, 0 nays, 4 not voting.² It was received in the House on 17 March and referred to Committee on Committees.

That is the last action on the bill. It was never assigned to a House standing committee, never heard, and never voted on. The 2026 Regular Session adjourned sine die, and the bill died where it sat.

What the bill actually said

The text is short. It added an identical new subsection (4) to two statutes — one governing planned communities, one governing condominiums.

To KRS 381.794, the Planned Community Act's financial-report section:

“Subsections (1) to (3) of this section shall not apply to an association for a planned community containing fourteen (14) or fewer lots, but an association for a planned community containing fourteen (14) or fewer lots may voluntarily elect to adopt the standards set out in subsections (1) to (3) of this section in its governing documents.”

And the same sentence, with “condominium” and “units” substituted, to KRS 381.9197, the Kentucky Condominium Act's records-and-financial-report section.³

Nothing else in either statute was touched. The bill created no new duty, no filing, and no penalty — it was a size threshold and an opt-in, and that is all.

The duties it would have lifted, which still apply

Because the bill failed, the existing tiers stand. For planned communities under KRS 381.794, an association must keep records detailed enough to produce GAAP financial statements, and must have a financial report prepared within 180 days of fiscal year end, at a standard set by revenue: a statement of cash receipts and disbursements below $125,000; a compilation from $125,000 to under $300,000; a review by a CPA from $300,000 to under $1,000,000; and a full audit at $1,000,000 or more.

For condominiums under KRS 381.9197 the clock is 150 days and the thresholds sit lower: cash receipts and disbursements below $100,000; a CPA compilation from $100,000 to under $250,000; a review from $250,000 to under $500,000; an audit at $500,000 or more.

1. SB 233, Kentucky General Assembly 2026 Regular Session — bill record, sponsors, summary and complete action history ↩
2. SB 233 Senate vote history, 16 March 2026 — 34 yeas, 0 nays, 4 not voting ↩
3. SB 233/GA — the version that passed the Senate, full text ↩
4. KRS 381.794, Financial records — Financial report — Standards for report (current text) ↩
5. KRS 381.9197, Association records — Financial report (current text) ↩
6. SB 9 House Committee Substitute 1, 1 April 2026 — sections 12–14 carry the association provisions at a fifteen-lot threshold ↩