KRS 100.322: Definitions for section -- Affordable housing developed by religious

institutions -- Applicability of chapter -- Requirements.

(1) As used in this section:

(a) "Affordable housing" means a residential dwelling unit reserved for a

household 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;

(b) "Homeless shelter" means a facility used primarily to provide temporary

shelter, including d ay shelters, overnight shelters, or temporary cooling or

warming shelters, for the homeless, and which may provide:

1. Overnight sleeping accommodations;

2. Meals; and

3. Ancillary social, educational, or health services;

(c) "Religious developer" means a religious institution or any property developer

working on behalf of a religious institution; and

(d) "Religious institution" means 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.

(2) 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:

(a) The development is located on property owned by the religious institution;

(b) The property where the development is to be located was purchased by the

religious institution prior to January 1, 2026, and owned by the religious

institution thro ughout the duration of the obligation in paragraph (g) of this

subsection;

(c) The development exclusively contains affordable housing;

(d) The property where the development is to be located:

1. Is on a parcel in a commercial or business zone;

2. Is on a parcel in a residential zone that is adjacent to a road classified as

part of the state primary road system pursuant to KRS 177.020 and is

adjacent to a parcel in a commercial, business, or industrial zone; or

3. Contains a structure that was used as a school prior to July 15, 2026, and

the development is for the conversion of that structure into affordable

housing;

(e) The development contains twenty-four (24) or fewer units;

(f) The development would not lead to more than twenty -four (24) affordable

housing units being located on that parcel, any contiguous parcel owned by

the religious institution, or cumulatively on parcels owned by the religious

institution within one-half (1/2) mile of the development;

(g) The obligation that units developed pursuant t o this section are affordable in

accordance with paragraph (c) of this subsection shall:

1. Remain in place for a period of fifteen (15) years from the date of the

certificate of occupancy or, if a certificate of occupancy is not required,

from the date of the final building permit inspection; and

2. Be recorded in a legally binding agreement or deed restriction.

The religious developer shall submit an annual report to the certifying

planning unit that the requirements of this paragraph are met for the pro perty;

and

(h) The religious developer has obtained all other permits, including building

permits, as required by law.

(3) If a development established pursuant to this section no longer meets the

requirements in subsection (2) of this section, the propert y owner shall seek all

approvals for the development from the planning unit that would be required for a

developer that did not qualify for ministerial review under this section.

(4) The Kentucky Housing Corporation may provide technical and advisory resou rces

to a religious developer to assist with the development and management of an

affordable housing development under this section.

(5) A religious institution that seeks to privately operate a homeless shelter designed to

provide temporary living accommo dations or a temporary cooling or warming

center during extreme weather events shall be considered a permitted use in all

commercial, business, or industrial zones if the religious institution has obtained all

other permits required by law.