ADU Pass
Franklin County
ADU Pass helps homeowners in Franklin County, Kentucky navigate the permit paperwork for building an accessory dwelling unit. We cover 1 city and 1 ZIP code in this county.
Map
County ADU details
County ADU ordinance
Franklin County (state-capital county; ~52,000 residents — central Kentucky / Bluegrass region; encompassing Frankfort and unincorporated tracts in the Kentucky River valley and surrounding hills) regulates land use in unincorporated areas through the Frankfort/Franklin County Zoning Ordinance, administered by the Frankfort/Franklin County Planning Commission (a joint city-county planning agency under KRS 100.117). Kentucky has no statewide ADU preemption — Kentucky's stateAduLaw is netEffect 'no-statewide-law'. The joint zoning ordinance permits 'accessory residential dwellings' in agricultural and large-lot residential districts (A-1, R-1, R-2) by right on parcels of typically 1+ acres subject to size limits (commonly 1,000 sq ft or 50% of principal dwelling), one-per-lot limit, and parking. Smaller residential districts treat ADUs as conditional uses requiring Board of Adjustments approval.
County assessor
Assessment policy: Franklin County Property Valuation Administrator (Kentucky uses 'PVA' rather than 'Assessor') assesses real and personal property under KRS 132.020. Kentucky uses 100% market-value assessment with quadrennial revaluation. New ADU construction is reassessed at market value as of January 1 following completion. Kentucky's Homestead Exemption (KY Const. § 170, KRS 132.810) provides $46,350 (as of 2026, indexed periodically) off the homestead's assessed value for owners 65+ or disabled. An ADU rented separately may carve out a non-homestead component.
County overlays (3)
Known county issues (3)
- other — ADU researchers benefit from the joint structure (consistent process, shared staff). Most unincorporated Franklin parcels are agricultural or large-lot residential well-suited to the by-right ADU pathway.
- other — ADU economics on karst parcels are skewed by septic cost; pre-permit site evaluation is essential.
- other — Floodplain construction in Franklin County is meaningfully constrained by both BFE +1 ft local freeboard and the geographic extent of the Kentucky River SFHA.
Kentucky state — ADU law and programs
State financing programs
Kentucky does not operate an ADU-specific statewide loan, grant, or forgivable-loan program. The Kentucky Housing Corporation (KHC) is the state housing finance agency and administers first-time-homebuyer mortgage products, the Welcome Home Grant (down-payment assistance), the KHC Down Payment Assistance Program (up to $12,500 second mortgage), and Mortgage Credit Certificates. None target ADU construction directly. ADU costs may be financed through standard renovation or construction-loan products under KHC programs when the ADU is part of a qualifying primary-residence transaction.
Federal (United States) — ADU-relevant rules and programs
Federal ADU law
The United States has no federal statute that directly regulates accessory dwelling unit entitlement or design. Land-use authority over ADUs resides with states and local governments under the traditional police power. Federal engagement is limited to financing (Fannie/Freddie/FHA/VA/USDA), flood insurance (FEMA/NFIP), and discretionary housing programs (HUD), which are recorded in sibling sections of this file.
Federal financing programs
Federal housing-finance agencies and GSEs set nationwide underwriting rules that govern whether an ADU can be financed, appraised, and counted toward mortgage qualifying income. The relevant actors are Fannie Mae, Freddie Mac, FHA (HUD), VA, and USDA Rural Development.
Federal tax credits
There is no ADU-specific federal tax credit. ADUs may incidentally qualify for existing federal energy-efficiency and clean-energy tax credits when the ADU construction includes qualifying measures.
Federal housing programs
HUD administers several discretionary programs that can fund ADU-related activity at the grantee's election, but none is an ADU-specific program.