Kentucky Housing Opportunity Act proposes tapping rainy day fund to address housing shortage
By Clay Wallace
February 20, 2025 at 10:37 PM EST
Originally pitched as the "Homenibus" bill, KHOA would use $100 million from the state's rainy day fund to increase housing supply and expand affordable housing options.
According to the Kentucky Housing Task Force report released last year, the commonwealth faces a shortfall of about 206,000 units - and the housing that is available is often not affordable. The cost of a new starter home in Kentucky now ranges from $260,000 to $400,000. There are multiple causes affecting the shortage - from the post-2008 slowdown in new construction to restrictive zoning laws.
Earlier this year, the Kentucky House Democratic Caucus announced one of their priorities would be to address the housing shortage through a “Homenibus” bill. That’s taken the form of House Bill 583, also known as the Kentucky Housing Opportunity Act, introduced by Representative Joshua Watkins of Louisville.
“This isn't about a temporary fix, but about creating long-term solutions that will serve Kentuckians for generations," said Watkins.
The bill has four aims: to increase the housing supply by tapping the multi-billion dollar rainy day fund for $100 million dollars of initial funding, to prevent homelessness by providing rental assistance and supportive services for those in financial distress, to enhance infrastructure and development support by subsidizing essential infrastructure, and to expand affordable housing with diverse options for individuals and families.
“This bill is for every Kentuckian who has ever felt the anxiety of an unaffordable rent increase or the despair of a housing search that comes up empty," said Watkins. "It's for our young people who are just starting out, our elderly who deserve peace in their retirement, and our families striving to provide stability for their children.”
Earlier this year, the Kentucky House Democratic Caucus announced one of their priorities would be to address the housing shortage through a “Homenibus” bill. That’s taken the form of House Bill 583, also known as the Kentucky Housing Opportunity Act, introduced by Representative Joshua Watkins of Louisville.
“This isn't about a temporary fix, but about creating long-term solutions that will serve Kentuckians for generations," said Watkins.
The bill has four aims: to increase the housing supply by tapping the multi-billion dollar rainy day fund for $100 million dollars of initial funding, to prevent homelessness by providing rental assistance and supportive services for those in financial distress, to enhance infrastructure and development support by subsidizing essential infrastructure, and to expand affordable housing with diverse options for individuals and families.
“This bill is for every Kentuckian who has ever felt the anxiety of an unaffordable rent increase or the despair of a housing search that comes up empty," said Watkins. "It's for our young people who are just starting out, our elderly who deserve peace in their retirement, and our families striving to provide stability for their children.”