Kentucky Lawmakers Focus on Housing Crisis as Task Force Prepares for Final Session

FRANKFORT, Ky. — Kentucky lawmakers are prioritizing the state’s housing crisis as they convene with the Kentucky Housing Task Force. Meeting for the second-to-last time during the interim session, the task force reviewed strategies to address a significant shortage of housing across the state.

Currently, Kentucky faces a shortage of 206,207 housing units, which is projected to escalate to 287,120 units by 2029. These figures were presented by Wendy Smith, deputy executive director of the Kentucky Housing Corporation (KHC), highlighting a widespread issue that affects both urban and rural communities.

Smith emphasized the need for legislative solutions such as zoning incentives, state housing tax credits, and state funding for housing infrastructure. She noted that federal funding alone is insufficient, and referenced similar successful programs in states like Indiana and Ohio. “It slows us down and we can’t be nearly as nimble in designing our programs as we could be if it was state dollars,” she stated.

The housing crisis in Kentucky is largely attributed to a decline in homebuilders following the 2008 recession. Smith pointed out that the state has not rebounded to its previous construction rates since then. Developers cited multiple factors such as a lack of available land, rising construction costs, and limited access to funds as barriers to producing affordable housing. They urged lawmakers to consider implementing tax credits and increasing funding for affordable housing initiatives.

Heath Duncan, executive director of Habitat for Humanity Pennyrile Region, noted that inflation has significantly impacted construction costs. “Pre-COVID, we could build a Habitat house for $80-90k. Today, that same house with the same materials costs $130,000,” he explained.

Darryl Neher, CEO of Lexington Habitat for Humanity, highlighted the importance of state funds in transforming a former baseball field into an affordable housing complex. Meanwhile, George Eklund from the Coalition for the Homeless described the growing homelessness crisis, stating that in Louisville alone, while 1,600 people were housed last year, approximately 4,500 individuals experienced homelessness for the first time.

The KHC study revealed that in the past year, 65 housing supply bills were enacted across 20 states, showing a nationwide trend towards addressing housing shortages. The final meeting of the housing task force for this interim session is scheduled for November 12.