(1) Notwithstanding any statute, administrative regulation, or common law to the contrary, appropriations from the general fund, any restricted fund, or the road fund shall not be expended by any state or local officer, official, employee, or agency for any initiatives to provide permanent housing to homeless individuals if those initiatives lack behavioral and rehabilitative requirements. Behavioral and rehabilitative requirements shall at a minimum include requirements that the initiative facilitate appropriate treatment of any mental health conditions or substance use disorders and prohibit criminal activity.
(2) This section shall not apply to statutorily created housing programs or to domestic violence shelters as defined in KRS 511.085.