Leveling the Playing Field: New Kentucky Law Prohibits Differing Treatment of Manufactured Homes from Single-Family Homes
Effective July 1, 2026, a new law in Kentucky prohibits local governments from excluding manufactured homes in single-family zoning districts. The intention of this law is to balance local governments’ concern for protecting property values while also providing quality and affordable housing for their residents. While this new law has received some criticism, the immediate effect of this law will likely ease hurdles for builders of manufactured homes throughout Kentucky and provide more homebuying opportunities for Kentuckians.
Key Changes to KRS 100.348
This new law amends KRS 100.348, a statute that addresses standards for manufactured homes and the ability of local jurisdiction to regulate such homes. The amended language prohibits local governments from implementing regulations, which exclude “qualified manufactured homes”1 from residential zoning districts that (i) permit single-family residences, (ii) impose greater burdens on such homes or otherwise conflict with KRS 227.570, or (iii) require multiple types of permanent foundation systems. In short, rules applicable to new site-built homes must be similar to manufactured homes.
What Regulations Can Local Governments Still Enforce?
Local governments may still implement reasonable standards for qualified manufactured homes. Ordinances may regulate the roof pitch, square footage of livable space, type and quality of exterior finishing materials, foundation skirting, attached structures, setback requirements, lot dimensions, and orientation of the structure on the lot. However, these standards cannot be stricter than such impositions on non-manufactured, on-site homes.
Additional Protections and Flexibility for Manufactured Homes
Moreover, it is important to note that qualified manufactured homes will not be held “lesser” standards than on-site homes. For example, qualified manufactured homes must still meet all housing codes, which are otherwise pertinent to on-site residential homes. Furthermore, any restrictive covenants of record—whether via a recorded deed or declaration of covenants, conditions, and restrictions—will not be affected by this new law. For example, if a homeowners association has certain restrictions against manufactured homes, this statute does not declare these restrictions void. The statute only applies to local zoning regulations and ordinances, so developers and homeowners associations for condominiums and planned communities may continue to implement restrictions and guidelines pertaining manufactured homes within their communities.
Similarly, restrictions designed to protect historic properties or historic districts are not affected by this law. Put another way, neighborhoods are not required to have qualified manufactured housing or a certain number of such housing as a result of this law. Instead, the act protects qualified manufactured homes in residential zoning districts that permit single-family residences from being treated differently than on-site homes existing within such single-family districts.
Another notable change for qualified manufactured homes is they now may be located in a manufactured home land lease community. Also, the concrete-only requirement for manufactured homes has been removed. Instead, qualified manufactured homes are to be constructed with materials compatible with the surrounding residential structures and comply with other regulations provided in KRS 227.570.
Additionally, this law allows for smaller manufactured homes to be placed on lots where larger homes cannot be accommodated. If a manufactured home does not meet the minimum width of 20 feet or minimum total living area of 900 square feet to be considered a “qualified manufactured home”, it may be treated as a “qualified manufactured home” if:
“(a) The setback requirements or lot dimensions would not reasonably accommodate a home meeting these minimum dimensions;
(b) The home is the maximum width and square footage that could reasonably fit on the lot while complying with all applicable setback requirements and other zoning regulations; and
(c) The home otherwise meets all other requirements of a qualified manufactured home under this section.” KRS 100.348.5
Concerns and Criticisms
Despite the intent of this law to create more affordable housing and provide more housing options for homebuyers, some have expressed concern over the effects of this law. While both the Kentucky Association of Counties and Kentucky League of Cities are encouraged by the effort to address housing supply and affordability, they have expressed concerns that removing previous regulations for manufactured homes could negatively impact property values, which could lead to a decline in property tax revenues. While reduced property tax revenue could impact all Kentucky cities, smaller cities could be disproportionately affected.2
Criticism is also directed at the lack of attention on townhomes, multiplexes, and other dense housing units (a.k.a. “middle housing”), and apartment units. For example, the Kentucky League of Cities noted that although home construction has recovered since the 2008 financial crash, apartment and middle housing construction have fallen behind.3 Efforts have been made to enact legislation that address the addition of apartments and middle housing, but as of the date of this article, no legislation has become law.4
Local Governments Begin Compliance Efforts
Regardless, this new law has taken effect and all localities must comply. Several jurisdictions across norther Kentucky have taken steps to comply with this Act by amending their own ordinances to, among other things, amend their definition of “Qualified Manufacture Homes” including “Qualified Manufactured Homes as part of their Single-Family Detached Dwelling, and ensure compliance with HB 160.5
Conclusion
The effects of this law on property values and other matters remain to be seen. In the interim though, this law changes the landscape for developers of manufactured homes in Kentucky. With the new language added to KRS 100.348, manufacturers can now build homes and place them in single-family zoning districts where previously such manufactured homes may have been prohibited.
If you have any questions about Kentucky House Bill 160, or other related real estate matters, please feel free to contact Austin M. Tinsley at 513-768-9709 or amtinsley@strausstroy.com. Austin regularly handles both commercial and residential real estate transactions, and is licensed to practice law in Ohio, Kentucky, and Indiana.
Sources:
1 “Qualified manufactured home” means a manufactured home that meets all of the following criteria:
- Is manufactured on a date not to exceed five (5) years prior to the date of installation and has all parts that operate only during transport removed;
- Is affixed to a permanent foundation and is connected to the appropriate facilities and is installed in compliance with KRS 227.570;
- Has a width of at least twenty (20) feet at its smallest width measurement or is two (2) stories in height and oriented on the lot or parcel so that its main entrance door faces the street; and
- Has a minimum total living area of nine hundred (900) square feet.” See KRS 100.348(2)(d).
2 Preemptive Manufactured Housing Bill Passes House Committee, KENTUCKY LEAGUE OF CITIES (February 12, 2025), https://www.klc.org/News/12799/preemptive-manufactured-housing-bill-passes-house-committee.
3 Id.
4 See, e.g., Piper Hansen and Hannah Pinski, KY cities could have more options to incentivize affordable housing under new bill, LEXINGTON HERALD LEADER (February 3, 2026, 10:54 AM) https://www.kentucky.com/news/politics-government/article314547240.html.
5 Andy Videkovich, AICP, Director of Planning, Staff Recommendations for the December 04, 2025, Public Hearing, PLANNING AND DEVELOPMENT SERVICES OF KENTON COUNTY (November 21, 2025), https://kcpcky.org/wp-content/uploads/2025/11/PC-25-0012-TX-Text-Staff-Report.pdf; see also Kenton Hornbeck, Union to comply with law on zoning for manufactured homes, LINK NKY (March 3, 2026), https://linknky.com/news/2026/03/03/union-manufactured-homes-zoning/ ; Gracie Vanover, Erlanger considers changes to zoning for manufactured homes, LINK NKY (July 16, 2025), https://linknky.com/news/2025/07/16/kenton-county-zoning-update-house-bill-160/.
