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FRANKFORT, Ky. (Feb. 2, 2026) — Senate Bill 9, a priority piece of legislation filed today by Sen. Robby Mills, R-Henderson, builds on more than two years of work by the Kentucky Housing Task Force and delivers a practical, pro-growth solution to the commonwealth’s housing shortage
SB 9 cuts red tape and gives local governments and private developers new tools to build the roads, utilities and infrastructure needed to support large residential developments. If approved, it will help Kentucky meet the growing demand for housing as more families and businesses choose to move here.
“Kentucky is growing, and that’s a good problem to have,” Mills said. “But growth only works if we’re building enough homes to keep up. SB 9 is the result of years of work with the Housing Task Force to remove barriers, speed up development and give communities the flexibility they need to expand housing without raising taxes.”
The legislation allows cities and counties to create Residential Infrastructure Development Districts. It would allow infrastructure costs to be financed over time rather than forcing those costs upfront, an approach that can significantly lower the final price of housing and accelerate construction. Importantly, the bill keeps decisions local, requires public transparency and ensures only properties within a district bear the associated costs.
SB 9 also creates a new framework for Housing Development Districts, allowing local governments to partner with developers on qualifying residential projects of at least 15 units up to 1,000 acres. Local governments may establish a district by ordinance, with taxing authorities choosing whether to participate and developers applying directly to the local government for project approval.
Once approved, local governments may negotiate housing incentive payments based on a portion of property tax revenues. They would be awarded annually for up to seven years for new construction or up to 15 years for projects focused on revitalizing existing structures. The program remains locally driven, transparent, and flexible, with Area Development Districts able to administer the program at a local government’s request.
SB 9 reflects recommendations from the Kentucky Housing Task Force, which examined workforce housing shortages, affordability challenges and regulatory barriers across urban and rural communities. The bill is designed to support both new construction and redevelopment, helping communities grow responsibly while protecting taxpayers.
Mills said the bill also reflects the broader economic momentum Kentucky has seen in recent years.
“Thanks to the supermajorities in the General Assembly, Kentucky has created a pro-business, pro-growth environment that’s attracting new employers and new residents,” he said. “SB 9 makes sure our housing supply keeps pace with that success so families can live where they work and communities can continue to thrive.”
SB 9 is part of the Senate’s priority legislative agenda and represents a major step toward strengthening Kentucky’s housing market, supporting population growth and ensuring the commonwealth remains competitive for decades to come.
Watch Sen. Mills's press conference on SB 9 HERE.
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Sen. Robby Mills, R-Henderson, represents the 4th Senate District, including Henderson, Hopkins, Union, and Webster Counties. Mills serves as Senate majority caucus chair. As a Senate majority leadership member, he serves on the Legislative Research Commission, the Committee on Committees, and the Rules Committee. He is a member of the Senate State and Local Government Committee. He is also a member of the Senate Committees on Families and Children; Natural Resources and Energy; and Health Services. Additionally, he is a member of the Public Pension Oversight Board and the Budget Review Subcommittee on General Government.
For a high-resolution .jpeg of Mills, please visit: https://legislature.ky.gov/Legislators Full Res Images/senate104.jpg.
Please visit Legislature.ky.gov for more information on Senate Majority Caucus members and the 2026 Legislative Session, including committees, membership, legislation, and more.
Live legislative coverage is available at KET.org/legislature and via the Legislative Research Commission YouTube channel.
Access archived footage of legislative meetings at ket.org/legislature/archives.
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