By: TW Shortt, CRB
Kentucky Real Estate Broker
The Kentucky General Assembly was active during its most recent session, passing many new laws. One of those laws, House Bill 333, stands out as an opportunity for certain churches and religious organizations.
There could be a reasonable argument that HB 333 was written with a particular project or influential constituent in mind. Whether that is true or not, the law now applies statewide. It may have a practical application here in Hardin County for a church that has considered developing housing for its senior members.
HB 333 creates a special exception for qualifying religious institutions seeking to develop small affordable housing projects on certain church-owned property. In some cases, the development may be treated as a permitted use instead of going through the usual discretionary zoning process.
In plain language, this law may help grease the wheels of local approval.
A Possible Local Opportunity
Many churches own more land than they currently use. Some have several acres around the church, an unused school building, excess parking areas, or other property that may be suitable for development.
A church may also have older members who want to remain close to their church family but no longer need or can maintain a larger home. A small senior apartment development could allow those members to live near familiar friends, worship services, transportation, and community support.
A practical project might include 12 to 24 one-bedroom apartments for income-qualified seniors. It could also include accessible entrances, a community room, laundry facilities, walking areas, and a pickup area for transportation.
The strongest application of the law would be independent senior apartments rather than a nursing home or a full assisted-living facility. Nursing homes and assisted-living operations are subject to separate healthcare, staffing, safety, and licensing requirements.
The Law Has Important Limits
HB 333 does not allow every church to build housing anywhere it chooses.
The church must be a qualifying tax-exempt religious organization. The property must also meet certain ownership, zoning, location, and development requirements.
One of the most important limitations is that the church must have purchased the property before January 1, 2026. That means a church buying property now may not qualify for the special treatment.
The property must also fall into one of the categories covered by the law. This may include commercially zoned property, certain residential property near a state’s primary road, and commercial or industrial land, or a former school building that will be converted into housing.
The development must be limited in size and must consist entirely of affordable housing. The residents must meet income qualifications, and the affordability restrictions must remain in place for 15 years.
The church would need a system to verify income, control rents, maintain records, and report compliance.
Local Rules Do Not Completely Disappear
The law may reduce the ability of a planning commission or local government to deny the basic land use. However, it does not eliminate building codes, fire-safety requirements, water and sewer rules, stormwater controls, accessibility standards, utility requirements, or emergency vehicle access.
The project must still be carefully planned, financed, engineered, and constructed.
Most churches are not experienced housing developers. A church considering this type of project should work with an attorney, an architect, an engineer, an affordable-housing developer, a lender, a real estate professional, and a property-management company.
Worth a Serious Look
Church-sponsored senior housing will not be right for every congregation. It creates financial obligations, management responsibilities, and long-term legal requirements.
However, churches have traditionally helped meet both the spiritual and practical needs of their members. Providing safe, affordable housing for older residents could be a natural extension of that mission.
HB 333 is an exception specifically designed for churches and religious organizations. For a qualifying church that already owns a large or underused property interest, it may offer a path around some local zoning obstacles.
It is not automatic approval, but it may make a worthwhile project easier to move forward.
For churches, developers, community leaders, and real estate professionals in Hardin County, HB 333 is worth looking at.
This article is for general information only. Any church considering a housing development should obtain legal, tax, zoning, and development advice before acting.
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