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Committee approves bill to let vetted local entities buy delinquent tax certificates for vacant Louisville homes
Summary
The Senate committee advanced Senate Bill 129, which lets registered local agencies, quasi‑governmental entities and long‑established nonprofits purchase delinquent tax certificates on vacant or abandoned residential properties in Louisville Metro after a 90‑day period, aiming to return blighted properties to productive use.
Senate Bill 129, a measure aimed at returning vacant and abandoned residential properties in Louisville Metro to productive use, advanced out of the Senate Standing Committee on Economic Development, Tourism and Labor after a committee substitute was adopted and members voted in favor.
The bill creates a qualified third‑party purchaser process that allows certain entities to buy certificates of delinquency on residential property 90 days after a certificate is created. "This is another, a step in doing this," Senator Mike Mills said, describing the measure as part of broader General Assembly efforts to remove blight and put properties back on the tax rolls. "This is just another, small way that we can get properties back functioning in our, in our largest state, in the Commonwealth and get affordable housing to those folks," Mills said.
The measure requires third‑party purchasers to register with the Kentucky Department of Revenue and limits eligibility to specific entities operating in Louisville Metro: political subdivisions of the Commonwealth, state or local agencies, boards or commissions operating in Louisville Metro, quasi‑governmental entities created by or operating in Louisville Metro, and nonprofit organizations that have been registered with the secretary of state for at least five years. The Department of Revenue must keep a list of registered entities and issue regulations establishing procedures for the purchase and sale of certificates of delinquency. Entities that buy certificates remain subject to existing collection and foreclosure requirements to protect property owners.
Senator Yates, who served as president of the Louisville Metro Council, urged support while noting current tools are not fully effective. Senator Boswell cautioned that some vulnerable owners can be harmed in delinquent‑tax processes, citing examples in which small tax debts grew substantially during enforcement. "We do need to make sure that our elderly and those with disabilities are taken care of," Chair Tom Wheeler said while voting in favor.
The committee adopted the committee substitute and then approved the bill with a roll‑call vote. Recorded yes votes during the committee roll call included Senators Boswell, Funke Frohmire, Girdler, Howe, Maiden, Nunn, Thomas, Wilson, Wise, Yates and Chair Wheeler. The committee recorded no opposing or abstaining votes on the transcript.
The bill was presented to the committee as a tool to allow qualified local entities to clear up blighted properties and potentially expand affordable housing opportunities, particularly in areas such as the west side of Louisville where delinquency diversion programs have concentrated blighted parcels. Supporters said registration and regulation by the Department of Revenue will create accountability for purchasers; proponents also said purchasers will be required to follow the same collection and foreclosure rules that apply to other third‑party purchasers.
Committee members who questioned the bill focused on protections for vulnerable property owners and on ensuring the procedure does not unduly strip homeowners of small property interests without safeguards.
Senate Bill 129 now moves forward with a favorable committee recommendation.
