For AI agents: read the machine-readable documentation index at /llms.txt or the single-file full reference at /llms-full.txt.
Form a Business

LOW-COST HOUSING

KRS tit. XVII, ch. 198A
in effect

KRS 198A.010 Definitions for chapter

198A.010. Definitions for chapter As used in this chapter, the following words and terms, unless the context clearly indicates a different meaning, shall have the following respective meanings: (1) "Area median income" means the greater of the statewide median family income or the median family income for the area in which the residence is located, as calculated each year by the federal Department of Housing and Urban Development for use in determining eligibility for housing programs; (2) "Bonds" or "notes" means the bonds or bond anticipation notes authorized to be issued by the corporation under this chapter but shall not include any fund notes; (3) "Commonwealth" means the Commonwealth of Kentucky; (4) "Corporation" means the Kentucky Housing Corporation created by this chapter; (5) "Sponsors" means persons, corporations, associations, partnerships, or other entities, consumer housing cooperatives and limited dividend housing corporations, associations, partnerships, or other entities organized pursuant to the Kentucky Revised Statutes for the primary purpose of providing housing to persons and families of lower and moderate income, and shall include without limitation organizations engaged in the production, origination, and development of residential housing units intended to qualify for financial assistance pursuant to Section 8 of the United States Housing Act of 1937, as amended; (6) "Development costs" means the costs approved by the corporation as appropriate expenditures and credits which may be incurred by sponsors of residential housing, prior to commitment and initial advance of the proceeds of a construction loan or of a mortgage loan, including but not limited to: (a) Payments for options to purchase properties on the proposed residential housing site, deposits on contracts of purchase, or, with prior approval of the corporation, payments for the purchase of properties; (b) Legal and organizational expenses, including payments of attorney's fees, project manager, clerical, and other staff salaries, office rent, and other incidental expenses; (c) Payment of fees for preliminary feasibility studies and advances for planning, engineering, and architectural work; (d) Expenses for tenant surveys and market analyses; (e) Necessary application and other fees; and (f) Credits allowed by the corporation to recognize the value of service provided at no cost by the sponsors, builders, and/or developers; (7) "Fund notes" means the notes authorized to be issued by the corporation under the provisions of KRS 198A.080; (8) "Governmental agency" means any city, county, or other political subdivision of the Commonwealth, the Commonwealth and any department, division, or public agency thereof, the federal government or any political subdivision of any other state, any public housing authority or any nonprofit corporation or other entity legally empowered to act on behalf of any of the foregoing to perform the duties of a public housing authority, or any two (2) or more thereof; (9) "Housing development fund" means the housing development fund created by KRS 198A.080; (10) "Insured construction loan" means a construction loan for land development or residential housing which is secured by a mortgage either insured or guaranteed by or for which there is a commitment to insure or guarantee by: (a) The United States of America or any agency or instrumentality thereof; or (b) Any other entity which has been duly approved for the insuring of such loans by the United States of America or by the Commonwealth of Kentucky or any agency or instrumentality thereof; (11) "Insured mortgage" or "insured mortgage loan" means a mortgage loan for land development for residential housing or for residential housing either made, insured, or guaranteed by or for which there is a commitment to make, insure, and guarantee by: (a) The United States of America or any agency or instrumentality thereof; or (b) Any other entity, including private mortgage insurance, which has been duly approved for the insuring of such loans by the United States of America or by the Commonwealth or any agency or instrumentality thereof and shall also refer to and mean any loan for residential housing not secured by mortgage which is insured or guaranteed to at least eighty-five percent (85%) of its principal amount by the United States of America or any agency or instrumentality thereof; (12) "Land development" means the process of acquiring land primarily for residential housing construction for persons and families of lower and moderate income and making, installing, or constructing nonresidential housing improvements, including water, sewer, and other utilities, roads, streets, curbs, gutters, sidewalks, storm drainage facilities, and other installations or works, whether on or off the site, which the corporation deems necessary or desirable to prepare the land primarily for residential housing construction; (13) "Obligations" means any bonds, bond anticipation notes, or fund notes authorized to be issued by the corporation under the provisions of this chapter; (14) "Persons and families of lower and moderate income" shall include only those individuals whose family income combined does not exceed the income requirements defined under Section 143 of the Internal Revenue Code of 1986, as amended; (15) "Residential housing" means a specific work or improvement undertaken primarily to provide dwelling accommodations for persons and families of lower and moderate income, including the acquisition, construction, or rehabilitation of land, buildings, and improvements, and other nonhousing facilities as may be incidental; and (16) "Tenant programs and services" means services and activities for persons and families living in residential housing, including the following: (a) Counseling on household management, housekeeping, budgeting, and money management; (b) Child care and similar matters; (c) Access to available community services related to job training and placement, education, health, welfare, and other community services; (d) Guard and other matters related to the physical security of the housing residents; (e) Effective management-tenant relations, including tenant participation in all aspects of housing administration, management, and maintenance; (f) Physical improvements of the housing, including buildings, recreational and community facilities, safety measures, and removal of code violations; (g) Advisory services for tenants in the creation of tenant organizations which will assume a meaningful and responsible role in the planning and carrying out of housing affairs; and (h) Procedures whereby tenants, either individually or in a group, may be given a hearing on questions relating to management policies and practices, either in general or in relation to an individual or family. Effective: March 15, 2011 History: Amended 2011 Ky. Acts ch. 23, sec. 1, effective March 15, 2011. -- Amended 2002 Ky. Acts ch. 61, sec. 1, effective March 15, 2002. -- Amended 1988 Ky. Acts ch. 215, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 87, sec. 1, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 99, sec. 1, effective March 23, 1982; and ch. 182, sec. 1, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 220, sec. 1, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 364, sec. 1. -- Amended 1974 Ky. Acts ch. 383, sec. 1. -- Created 1972 Ky. Acts ch. 70, sec. 3.

KRS 198A.015 Kentucky Housing Corporation's status as a de jure political subdivision

198A.015. Kentucky Housing Corporation's status as a de jure political subdivision The General Assembly of the Commonwealth of Kentucky hereby finds and determines that in order to comply with technical income tax rules and regulations proposed to be adopted by the Department of the Treasury, Internal Revenue Service, with regard to the issuance of securities by states and political subdivisions thereof, it is appropriate and proper that the Kentucky Housing Corporation's status as a de jure political subdivision of the Commonwealth of Kentucky be confirmed by adoption of appropriate clarifying amendments to the Kentucky Revised Statutes. Effective: March 29, 1976 History: Created 1976 Ky. Acts ch. 200, sec. 1, effective March 29, 1976.

KRS 198A.020 Policy and purpose

198A.020. Policy and purpose (1) The General Assembly hereby finds and declares that as a result of the spread of slum conditions and blight to formerly sound urban and rural neighborhoods and as a result of actions involving highways, public facilities and urban renewal activities there exists in the Commonwealth a serious shortage of decent, safe and sanitary residential housing available at prices or rentals which can be afforded by persons and families of lower and moderate income. This shortage is severe in certain urban areas of the state, is especially critical in the rural areas, and is inimical to the health, safety, welfare and prosperity of all residents of the Commonwealth and to the sound growth of Kentucky communities. (2) The General Assembly hereby finds and declares further that private enterprise and investment have not been able to produce, without assistance, the needed construction of decent, safe and sanitary residential housing at low prices or rentals which persons and families of lower and moderate income can afford, or to achieve the urgently needed rehabilitation of much of the present supply of residential housing available for persons and families of lower and moderate income. It is imperative that the supply of residential housing for persons and families of lower and moderate income affected by the spread of slum conditions and blight and for persons and families of lower and moderate income displaced by public actions or natural disaster be increased; and that private enterprise and investment be encouraged to sponsor, build and rehabilitate residential housing for such persons and families, to help prevent the recurrence of slum conditions and blight and assist in their permanent elimination throughout the Commonwealth. (3) The General Assembly hereby finds and declares further that the purposes of this chapter are to provide financing for development costs, land development and residential housing construction, new or rehabilitated, for sale or rental to persons and families of lower and moderate income. (4) The General Assembly hereby finds and declares further that in accomplishing this purpose, the Kentucky Housing Corporation shall be and constitute a de jure municipal corporation and political subdivision of the Commonwealth of Kentucky created for the performance of essential public functions and the serving of public purposes in improving and promoting the health, welfare and prosperity of the people of the Commonwealth of Kentucky by the production of residential housing. Effective: March 23, 1982 History: Amended 1982 Ky. Acts ch. 99, sec. 2, effective March 23, 1982. -- Amended 1978 Ky. Acts ch. 220, sec. 2, effective June 17, 1978. -- Created 1972 Ky. Acts ch. 70, sec. 2.

KRS 198A.025 State policy on housing

198A.025. State policy on housing The General Assembly hereby finds and declares it to be in the public interest to establish a state policy on housing. The objectives of a Kentucky housing policy shall be to: (1) Encourage the availability of decent and affordable housing for all Kentucky residents; (2) Identify the basic housing needs of all Kentuckians, including the elderly, persons of low and very low income, the disabled, the homeless, and single-parent households; (3) Coordinate housing activities and services among state departments and agencies to ensure program flexibility and comprehensive housing production; (4) Remove administrative and regulatory guidelines to ensure compatibility in the development of affordable housing for all Kentuckians; (5) Inventory state owned lands and buildings to evaluate utilization for both public and private housing development; (6) Encourage and strengthen collaborative planning and partnerships among social service providers, all levels of government, and the public and private sectors, including for-profit and nonprofit organizations, in the production of affordable housing; (7) Reevaluate housing and housing-related programs and policies to ensure proper coordination of those programs and policies; (8) Coordinate housing into comprehensive community and economic development strategies at the state and local levels; (9) Encourage local planning commissions to include a housing element in the five (5) year comprehensive plan; and (10) Discourage housing policies or strategies which concentrate affordable housing in limited sections of metropolitan areas and county jurisdiction. Effective: July 15, 1996 History: Created 1996 Ky. Acts ch. 50, sec. 1, effective July 15, 1996.

KRS 198A.027 Behavioral and rehabilitative requirements for permanent housing initiatives

198A.027. Behavioral and rehabilitative requirements for permanent housing initiatives (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. Effective: July 15, 2024 History: Created 2024 Ky. Acts ch. 174, sec. 18, effective July 15, 2024.

KRS 198A.030 Kentucky Housing Corporation established -- Board of directors -- Officers of corporation and duties

198A.030. Kentucky Housing Corporation established -- Board of directors -- Officers of corporation and duties (1) There is hereby created and established an independent, de jure municipal corporation and political subdivision of the Commonwealth which shall be a public body corporate and politic to be known as the Kentucky Housing Corporation. (2) The Kentucky Housing Corporation is created and established as a de jure municipal corporation and political subdivision of the Commonwealth to perform essential governmental and public functions and purposes in improving and otherwise promoting the health and general welfare of the people by the production of residential housing in Kentucky. (3) The corporation shall be governed by a board of directors, consisting of fifteen (15) members, five (5) of whom shall be the Commissioner of Agriculture, the secretary of the Finance and Administration Cabinet, the commissioner of the Department for Local Government, the Attorney General, and the secretary of the Cabinet for Economic Development, or their duly appointed designees, as public directors, and ten (10) private directors who shall be appointed by the Governor, subject to confirmation by the Senate as provided by KRS 11.160, as follows: (a) One (1) private director representing the interests of financial lending institutions located within the Commonwealth; (b) One (1) private director representing the interests of the manufactured housing industry within the Commonwealth; (c) One (1) private director representing the interests of real estate practitioners licensed by the Kentucky Real Estate Commission; (d) One (1) private director representing the interests of the homeless population within the Commonwealth; (e) One (1) private director representing the interests of local government; (f) One (1) private director representing the interests of the home construction industry in the Commonwealth; (g) One (1) private director representing the interests of consumers in the Commonwealth; (h) One (1) private director representing the interests of the Kentucky State Building Trades Council; (i) One (1) director representing the interests of nonprofit housing organizations located within the Commonwealth; and (j) One (1) director having significa nt professional experience in auditing, financial accounting, municipal bond financing, or investment banking. (4) Private directors appointed by the Governor may include previous members of the board, and members may be reappointed for successive terms. A ll appointments shall be for four (4) years, and the appointees shall serve until a qualified successor is appointed. (5) In case of a vacancy, the Governor may appoint a person for the vacancy to hold office during the remainder of the term. A vacancy sha ll be filled in accordance with the requirement and procedures for appointments. (6) The Governor may remove any private director whom he or she may appoint in case of incompetency, neglect of duty, gross immorality, or malfeasance in office, and the Governor may declare the office vacant and may appoint a person for the vacancy as provided in this section. (7) The Governor shall designate a private director of the corporation to serve as chairman. The term of the chairman shall extend to the earlier of either the date of expiration of his or her then current term as a private director of the corporation or a date six (6) months after the expiration of the then current term of the Governor designating the chairman. (8) The board of directors shall annually elect one (1) of its members as vice chairman. The board of directors shall also elect or appoint, and prescribe the duties of, other officers the board of directors deems necessary or advisable, including an executive director and a secretary, and the board of directors shall fix the compensation of the officers. (9) The executive director shall administer, manage, and direct the affairs and business of the corporation, subject to the policies, control, and direction of the board of directors of the corporation. The secretary of the corporation shall keep a record of the proceedings of the corporation and shall be custodian of all books, documents, and papers filed with the corporation, the minute book or journal of the corporation, and its official seal. The secretary shall have authority to cause copies to be made of all minutes and other records and documents of the corporation and to give certificates under the official seal of the corporation to the effect that copies are true copies, and all persons dealing with the corporation may rely upon the certificates. (10) A majority of the board of directors of the corporation shall constitute a quorum for the purposes of conducting its business and exercising its powers and for all other purposes. A majority shall be determined by excluding any existing vacancies from the total number of directors. (11) Action shall be taken by the corporation upon a vote of a majority of the directors present at a meeting at which a quorum shall exist called upon three (3) days' written notice to each director or upon the concurrence of at least eight (8) directors. (12) Each private director shall be entitled to a fee of one hundred dollars ($100) for attendance at each meeting of the board of directors or duly called committee meeting of the board. Effective: March 24, 2023 History: Amended 2023 Ky. Acts ch. 92, sec. 28, effective March 24, 2023. -- Amended 2010 Ky. Acts ch. 117, sec. 82, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 12, sec. 46, effective June 25, 2009 . -- Amended 2007 Ky. Acts ch. 47, sec. 86, effective June 26, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 620, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 69, sec. 69, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 289, sec. 1, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 339, sec. 3, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 182, sec. 2, effective July 15, 1982; and ch. 396, sec. 49, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 141, sec. 6, effective July 15, 1980; and ch. 295, sec. 46, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 154, sec. 16, effective June 17, 1978; ch. 155, sec. 121, effective June 17, 1978; ch. 220, sec. 3, effective June 17, 1980; and ch. 384, sec. 571, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 200, sec. 13; and ch. 210, sec. 6. -- Amended 1974 Ky. Acts ch. 257, sec. 7; and ch. 383, sec. 2. -- Created 1972 Ky. Acts ch. 70, sec. 4.

KRS 198A.035 Advisory committee on housing policy

198A.035. Advisory committee on housing policy (1) The Kentucky Housing Corporation shall oversee the development and implementation of the Kentucky housing policy. The corporation shall create an advisory committee on housing policy consisting of the following: (a) The following nine (9) state government members, or their duly appointed designees: the commissioner of education; commissioner of the Department for Local Government; commissioner of the Department of Housing, Buildings and Construction; secretary of the Energy and Environment Cabinet; secretary of the Cabinet for Health and Family Services; executive director of the Human Rights Commission; state historic preservation officer; secretary of the Transportation Cabinet; and executive director of the Kentucky Housing Corporation; (b) At-large members shall be appointed by the chairman of the board of directors of the Kentucky Housing Corporation. There shall be one (1) at-large representative for each of the following: 1. Public housing authorities; 2. Mortgage banking industry; 3. Manufactured housing industry; 4. Realtors; 5. Homebuilders; 6. Urban nonprofit housing organizations; 7. Rural nonprofit housing organizations; 8. Urban advocates for the homeless; 9. Rural advocates for the homeless; 10. Residents of economically diverse urban neighborhoods; 11. Residents of economically diverse rural neighborhoods; 12. Rental property providers; 13. Advocates for persons with physical disabilities; 14. Advocates for persons with mental disabilities; 15. The Kentucky State Building Trades Council; 16. The Kentucky League of Cities; and 17. The Kentucky Association of Counties; and (c) One (1) member of the Senate and one (1) member of the House of Representatives. (2) State government members and General Assembly members shall serve on the advisory committee during the term of their elected or appointed state government positions. Members appointed as provided by subsection (1)(b) of this section shall be appointed for four (4) year terms, except that initially five (5) shall be appointed for two (2) year terms, six (6) shall be appointed for three (3) year terms, and six (6) shall be appointed for four (4) year terms. (3) The advisory committee shall meet at least quarterly and hold additional meetings as necessary. Eleven (11) members of the committee shall constitute a quorum for the purposes of conducting business and exercising its powers for all purposes. (4) Any vacancy shall be filled as provided by the requirements and procedures for the initial appointment and only for the remainder of the term of the initial appointment. (5) Any at-large member may be removed at any time, with or without cause, by resolution of a majority of the board of directors of the corporation. (6) The advisory committee shall consult with and advise the officers and directors of the corporation concerning matters relating to the Kentucky housing policy. (7) The corporation shall annually report its findings and recommendations regarding the Kentucky housing policy to the Governor and the Interim Joint Committee on Local Government of the Legislative Research Commission. (8) The advisory committee shall elect a presiding officer from among its members and may establish its own rules of procedure which shall not be inconsistent with the provisions of this chapter. (9) Members of the advisory committee shall serve without compensation. Members who are not employees of the Commonwealth shall be entitled to reimbursement for actual expenses incurred in carrying out their duties on the committee. (10) The Kentucky Housing Corporation shall provide the staff and funding for the administrative activities of the advisory committee. The Kentucky Housing Corporation shall perform all budgeting, procurement, and other administrative activities necessary to the functioning of the advisory committee. The advisory committee may authorize studies as it deems necessary and utilize Kentucky Housing Corporation funds and other available resources from the public or private sector to provide housing needs data. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 243, effective July 15, 2010; and ch. 117, sec. 83, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 87, effective June 26, 2007. -- Amended 2005 Ky. Acts ch. 99, sec. 43, effective June 20, 2005. -- Amended 2004 Ky. Acts ch. 105, sec. 19, effective July 13, 2004. -- Amended 2000 Ky. Acts ch. 7, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69, sec. 70, effective July 15, 1998; and ch. 426, sec. 132, effective July 15, 1998.. -- Created 1996 Ky. Acts ch. 50, sec. 2, effective July 15, 1996. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 117, which do not appear to be in conflict and have been codified together.

KRS 198A.040 Corporate powers

198A.040. Corporate powers The corporation shall have all of the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including but without limiting the generality of the foregoing the power: (1) To make or participate in the making of insured construction loans to sponsors of land development or residential housing; provided, however, that such loans shall be made only upon the determination by the corporation that construction loans have been refused in writing, wholly or in part, from private lenders in the Commonwealth of Kentucky upon reasonably equivalent terms and conditions; (2) To make or participate in the making of insured mortgage loans to sponsors of residential housing; provided, however, that such loans shall be made only upon the determination by the corporation that mortgage loans have been refused in writing, wholly or in part, from private lenders in the Commonwealth of Kentucky upon reasonably equivalent terms and conditions; (3) To purchase or participate in the purchase of insured mortgage loans made to sponsors of residential housing or to persons of lower and moderate income for residential housing; provided, however, that any such purchase shall be made only upon the determination by the corporation that mortgage loans have been refused in writing, wholly or in part, from private lenders in the Commonwealth of Kentucky upon reasonably equivalent terms and conditions; (4) To make temporary loans from the housing development fund; (5) To collect and pay reasonable fees and charges in connection with making, purchasing and servicing its loans, notes, bonds, commitments, and other evidences of indebtedness; (6) To acquire real property, or any interest therein, by purchase, foreclosure, lease, sublease, or otherwise; to own, manage, operate, hold, clear, improve, and rehabilitate such real property; and to sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber such real property where such use of real property is necessary or appropriate to the purpose of the Kentucky Housing Corporation; (7) To sell, at public or private sale, all or any part of any mortgage or other instrument or document securing a construction, land development, mortgage, or temporary loan of any type permitted by this chapter; (8) To procure insurance against any loss in connection with its operations in such amounts, and from such insurers, as it may deem necessary or desirable; (9) To consent, whenever it deems it necessary or desirable in the fulfillment of its corporate purposes, to the modification of the rate of interest, time of payment of any installment of principal or interest, or any other terms of any mortgage loan, mortgage loan commitment, construction loan, temporary loan, contract, or agreement of any kind to which the corporation is a party; (10) To acquire, establish, operate, lease, and sublease residential housing for persons and families of lower and moderate income and to enter into agreements or other transactions with any federal, state, or local governmental agency for the purpose of providing adequate living quarters for such persons and families in cities and counties where a need has been found for such housing and where no local housing authorities or other organizations exist to fill such need; (11) To include in any borrowing such amounts as may be deemed necessary by the corporation to pay financing charges, interest on the obligations for a period not exceeding two (2) years from their date, consultant, advisory, and legal fees and such other expenses as are necessary or incident to such borrowing; (12) To make and publish rules and regulations respecting its lending programs and such other rules and regulations as are necessary to effectuate its corporate purposes; (13) To provide technical and advisory services to sponsors of residential housing and to residents and potential residents thereof, including but not limited to housing selection and purchase procedures, family budgeting, property use and maintenance, household management, and utilization of community resources; (14) To promote research and development in scientific methods of constructing low cost residential housing of high durability; (15) To encourage community organizations to participate in residential housing development; (16) To make, execute, and effectuate any and all agreements or other documents with any governmental agency or any person, corporation, association, partnership, or other organization or entity, necessary to accomplish the purposes of this chapter; (17) To accept gifts, devises, bequests, grants, loans, appropriations, revenue sharing, other financing and assistance, and any other aid from any source whatsoever and to agree to, and to comply with, conditions attached thereto; (18) To sue and be sued in its own name and plead and be impleaded; (19) To maintain an office in the city of Frankfort and at such other place or places as it may determine; (20) To adopt an official seal and alter the same at pleasure; (21) To adopt bylaws for the regulation of its affairs and the conduct of its business and to prescribe rules, regulations, and policies in connection with the performance of its functions and duties; (22) To employ fiscal consultants, engineers, attorneys, real estate counselors, appraisers, and such other consultants and employees as may be required in the judgment of the corporation and to fix and pay their compensation from funds available to the corporation therefor, provided that any personal service contracts entered into shall be subject to review by the Government Contract Review Committee of the Legislative Research Commission; (23) To invest any funds held in reserve or in sinking fund accounts or any moneys not required for immediate disbursement in obligations guaranteed by the Commonwealth, the United States, or their agencies or instrumentalities; provided, however, that the return on such investments shall not violate any rulings of the Internal Revenue Service regarding the investment of the proceeds of any federally tax exempt bond issue; (24) To make or participate in the making of rehabilitation loans to the sponsors or owners of residential housing; provided, however, that any such rehabilitation loan shall be made only upon the determination by the corporation that the rehabilitation loan was not otherwise available wholly or in part from private lenders upon reasonably equivalent terms and conditions; (25) To insure or reinsure construction, mortgage, and rehabilitation loans on residential housing; provided, however, that any such insurance, reinsurance, or waiver shall be made only upon the determination by the corporation: (a) That such insurance or reinsurance is not otherwise available wholly or in part from private insurers upon reasonably equivalent terms and conditions; and (b) That such loan is a reasonably sound business investment; and provided further that insurance may be waived only where the corporation finds that the amount of the loan does not exceed eighty-five percent (85%) of the development costs, or eighty-five percent (85%) of the value of the property secured by the mortgage as determined by at least two (2) appraisers who are independent of the sponsors, builders, and developers; (26) To make grants from appropriated funds, agency and trust funds, and any other funds from any source available to the corporation, to sponsors, municipalities, local housing authorities, and to owners of residential housing for the development, construction, rehabilitation, or maintenance of residential housing and such facilities related thereto as corporation shall deem important for a proper living environment, all on such terms and conditions as may be deemed appropriate by the corporation; (27) To make periodic grants to reduce principal and interest payments on mortgages or rentals payable by persons and families of lower and moderate income; (28) (a) To make a grant to reduce principal and interest payments on a mortgage or a rental payable by a regular member of the United States Armed Forces who names Kentucky as home of record for military purposes, during that member's deployment on active duty outside the United States, or payable by a member of a state National Guard or a Reserve component who names Kentucky as home of record for military purposes, during that member's federal active duty. To qualify for a grant, a member shall meet reasonable standards established by the corporation, including having family income equal to or less than two hundred percent (200%) of the state or area median income; and (b) To provide a member identified in paragraph (a) of this subsection and that member's Kentucky resident spouse with the educational, technical, and ombudsman services that are necessary to maintain a mortgage during that member's federal active duty; (29) To establish a program to assist persons and families of lower and moderate income to help defray the cost of assessment and decontamination services required under KRS 224.1-410. To qualify for the program, a person shall meet reasonable standards established by the corporation. A person shall not be eligible for the program if convicted of a felony or found by the corporation to be responsible for contamination of the relevant property through methamphetamine production. The corporation shall report on the establishment and use of this program to the Legislative Research Commission by October 1 of each year; (30) To establish single-family mortgage-lending programs outside of the mortgage revenue bond funds. To qualify for these programs, a person shall meet reasonable standards established by the corporation and shall have a combined family income that is equal to or less than one hundred seventy-five percent (175%) of the greater of the state or area median income; and (31) To perform the following activities for lenders, holders, housing finance agencies, or other third-party entities, who are located within or without the boundaries of the Commonwealth: (a) Service mortgage loans; (b) Administer federal or state program contracts; and (c) Perform other housing activities to facilitate the delivery or preservation of affordable housing. The Kentucky Housing Corporation shall be exempt from the regulations of the Department of Insurance and the laws of the Commonwealth relating thereto. Effective: July 15, 2014 History: Amended 2014 Ky. Acts ch. 28, sec. 1, effective July 15, 2014. -- Amended 2011 Ky. Acts ch. 23, sec. 2, effective March 15, 2011. -- Amended 2010 Ky. Acts ch. 24, sec. 244, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 161, sec. 3, effective July 15, 2008. -- Amended 2007 Ky. Acts ch. 55, sec. 1, effective June 26, 2007; and ch. 83, sec. 2, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 252, Pt. XXVIII, sec. 7, effective April 25, 2006. -- Amended 1998 Ky. Acts ch. 486, sec. 8, effective July 15, 1998. -- Amended 1982 Ky. Acts ch. 99, sec. 3, effective March 23, 1982; and ch. 182, sec. 3, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 220, sec. 4, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 364, sec. 2. -- Amended 1974 Ky. Acts ch. 383, sec. 3. -- Created 1972 Ky. Acts ch. 70, sec. 5.

KRS 198A.050 Administration of programs by executive director -- Requirements

198A.050. Administration of programs by executive director -- Requirements (1) In the administration of the programs authorized by or receiving benefits under KRS 198A.040, the executive director of the Kentucky Housing Corporation shall require: (a) That to the greatest extent feasible opportunities for training and employment arising in connection with the planning, construction, rehabilitation, and operation of housing assisted under such programs shall be given to persons of lower and moderate income residing in the area of such housing; and (b) That to the greatest extent feasible contracts for work to be performed pursuant to such programs shall be awarded to business concerns, including but not limited to individuals or firms doing business in the fields of design, architecture, building construction, rehabilitation, maintenance or repair, located in or owned in substantial part by persons residing in the area of such housing. (2) In the administration of rental residential housing assisted under this chapter, the executive director of the Kentucky Housing Corporation shall require maximum feasible tenant participation and responsibility in tenant programs and services. (3) The executive director of the Kentucky Housing Corporation shall establish standards of performance for materials, methods and design which meet the minimum requirements of appropriate federal or state agencies. Effective: March 23, 1982 History: Amended 1982 Ky. Acts ch. 99, sec. 4, effective March 23, 1982. -- Amended 1974 Ky. Acts ch. 383, sec. 4. -- Created 1972 Ky. Acts ch. 70, sec. 6.

KRS 198A.055 Administration of certified rehabilitation tax credit -- Administrative regulations

198A.055. Administration of certified rehabilitation tax credit -- Administrative regulations (1) The corporation shall work with the Kentucky Heritage Council to administer the certified rehabilitation credit permitted by KRS 171.398. (2) For commercial residential property that is granted credit based on thirty percent (30%) of qualified rehabilitation expenses for providing housing that is affordable to households earning eighty percent (80%) or less of the median family income, the corporation shall ensure that the commercial residential property remain compliant with this requirement for a minimum of five (5) years within the completion of the certified rehabilitation. (3) The corporation, in conjunction with the Kentucky Heritage Council and the Department of Revenue, may promulgate administrative regulations in accordance with KRS Chapter 13A to establish policies and procedures to ensure compliance with this section. Effective: April 14, 2026 History: Created 2026 Ky. Acts ch. 161, sec. 62, effective April 14, 2026.

KRS 198A.060 Requirements for loan agreement or articles of incorporation of assisted entities -- Limit on return of investment of stockholders or members

198A.060. Requirements for loan agreement or articles of incorporation of assisted entities -- Limit on return of investment of stockholders or members (1) The loan agreement or the articles of incorporation, association, partnership or other governing documents of any sponsor, builder or developer assisted under this chapter shall contain, in addition to other requirements of law: (a) That the corporation, cooperative or association has been organized to provide housing facilities and such social, recreational, commercial and community facilities as may be incidental or appurtenant thereto for persons or families of lower and moderate income; (b) That the operations of the corporation, cooperative or association may be supervised by the Kentucky Housing Corporation and that the corporation, cooperative or association shall enter into such agreements with the Kentucky Housing Corporation as the Kentucky Housing Corporation from time to time requires, providing for regulation by the Kentucky Housing Corporation of the planning, development and management of any residential housing undertaken by the corporation, cooperative or association and their disposition of the property and franchises; (c) That the Kentucky Housing Corporation shall have the power to appoint to the board of directors of the corporation, cooperative or association a number of new directors, which number shall be sufficient to constitute a majority of the board, if the corporation, cooperative or association has received a loan or advance under this chapter and the Kentucky Housing Corporation determines that the loan or advance is in jeopardy of not being repaid, or that the residential housing for which the loan or advance was made is in jeopardy of not being constructed. (2) The articles of incorporation, association, partnership or other governing documents of any limited dividend corporation, association or entity of any sponsor, builder or developer assisted under this chapter shall provide, in addition to other requirements of law, that every stockholder or member shall be deemed to have agreed that he shall not receive from the corporation, association or entity in repayment of his investment any sums in excess of the face value of the investment attributable to his respective interest plus cumulative dividend payments at such rate as the Kentucky Housing Corporation deems to be reasonable and proper. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 99, sec. 5, effective March 23, 1982; and ch. 182, sec. 4, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 364, sec. 3. -- Created 1972 Ky. Acts ch. 70, sec. 7. Legislative Research Commission Note. This section was amended by two 1982 Acts which do not appear to be in conflict and have been compiled together.

KRS 198A.065 Waiver of income -- Eligibility requirements

198A.065. Waiver of income -- Eligibility requirements (1) The General Assembly of the Commonwealth of Kentucky hereby finds and determines that in order to provide for the greatest possible participation by the corporation in programs for the insurance or guarantee of mortgage loans for the construction or rehabilitation of residential housing projects by the United States of America, or an agency or instrumentality thereof; or by any other entity, including private mortgage insurance, which has been duly approved for these loans by the United States of America or by the Commonwealth or any agency or instrumentality thereof, if the criteria for state approval are specified in administrative regulations promulgated under KRS Chapter 13A by the state agency granting the approval; or for mortgage loans that are insured or reinsured by the corporation under KRS 198A.040(25), it is appropriate and proper that there be provision by which the maximum amounts of income for persons and families of lower and moderate income established by this chapter may be waived in certain circumstances so that the corporation may insure or reinsure mortgage loans or qualify for insurance or guarantee of mortgage loans. (2) Notwithstanding the requirements of KRS 198A.010(14), 198A.060(1), or any other provisions of law to the contrary, the corporation may, by action of its board of directors, suspend or terminate any income-eligibility requirements established by this chapter, subject to subsection (3) of this section, upon written request of any private mortgage insurance company or any agency or instrumentality of the United States of America which has insured or guaranteed mortgage loans made by the corporation for the construction or rehabilitation of a specific residential housing project or for any mortgage loan insured or reinsured by the corporation under KRS 198A.040(25), upon a finding by the board of directors of the existence of one (1) or more of the following conditions with respect to that project: (a) Serious rental or occupancy problems which threaten the financial stability of the project, defined as a project which cannot meet its debt service obligation from available rental income; or (b) A default as to one (1) or more of the terms of the mortgage loan; or (c) A foreclosure of the mortgage loan; or (d) A conveyance of real estate by a deed in lieu of foreclosure. (3) If the corporation suspends or terminates income eligibility requirements relating to a project financed by a loan which is insured or guaranteed by a private mortgage insurance company or the corporation, the corporation shall file with the Legislative Research Commission notice of, and an explanation of the need for, the suspension or termination. The Commission shall refer the notice and explanation to the appropriate interim joint subcommittee for review. The corporation shall also provide to the reviewing subcommittee information relating to the management of, and plans for, the project. Effective: March 15, 2011 History: Amended 2011 Ky. Acts ch. 23, sec. 3, effective March 15, 2011. -- Amended 1994 Ky. Acts ch. 310, sec. 1, effective July 15, 1994. -- Created 1988 Ky. Acts ch. 215, sec. 2, effective July 15, 1988.

KRS 198A.070 State not liable for obligations of the Kentucky Housing Corporation

198A.070. State not liable for obligations of the Kentucky Housing Corporation (1) Obligations issued under the provisions of this chapter shall not be deemed to constitute a debt, liability or obligation of the state or of any political subdivision thereof or a pledge of the faith and credit of the state or of any such political subdivision, but shall be payable solely from the revenues or assets of the corporation. Each obligation issued under this chapter shall contain on the face thereof a statement to the effect that the corporation shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor and that neither the faith and credit nor the taxing power of the state or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligation. (2) Expenses incurred by the corporation in carrying out the provisions of this chapter may be made payable from funds provided pursuant to this chapter and no liability shall be incurred by the corporation hereunder beyond the extent to which moneys shall have been so provided. History: Created 1972 Ky. Acts ch. 70, sec. 8.

KRS 198A.080 Housing development fund -- Use to include repair of existing housing

198A.080. Housing development fund -- Use to include repair of existing housing (1) There is hereby created and established a loan fund to be known as the housing development fund and to be administered by the corporation as a trust fund separate and distinct from all other moneys, funds, or assets administered by the corporation. (2) The housing development fund shall be comprised of and the corporation is hereby authorized to receive and accept for the housing development fund the proceeds of grants, contributions, appropriations, repayment of loans made from the fund, the proceeds of fund notes, and any other moneys which may be made available to the corporation for the purposes of the housing development fund from any other source. The corporation is hereby authorized to receive and accept from any source whatever any grants or contributions for the housing development fund. The corporation is authorized to provide for the issuance, at one (1) time or from time to time, of housing development fund notes for the purpose of providing funds for such fund; provided, however, that not more than $5,000,000 fund notes or other borrowings shall be outstanding at any one (1) time. The principal of and the interest on any such fund notes shall be payable solely fr om the housing development fund. The fund notes of each issue shall be dated, shall mature at such time or times not exceeding ten (10) years from their date or dates, and may be made redeemable before maturity, at the option of the corporation, at such pr ice or prices and under such terms and conditions as may be determined by the corporation. The corporation shall determine the form and manner of execution of the fund notes, including any interest coupons to be attached thereto, and shall fix the denomination or denominations and the place or places of payment of principal and interest, which may be any bank or trust company within or without the state or any agent, including the lender. In case any officer whose signature or a facsimile of whose signature shall appear on any fund notes or coupons attached thereto shall cease to be such officer before the delivery thereof, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The fund notes may be issued in coupon or in registered form, or both, as the corporation may determine, and provision may be made for the registration of any coupon fund notes as to principal alone and also as to both principal and interest, and for the reconversion into coupon fund notes of any fund notes registered as to both principal and interest, and for the interchange of registered and coupon fund notes. Any such fund notes shall bear interest at such rate or rates as may be deter mined by the corporation and may be sold in such manner, either at public or private sale, and for such price as the corporation shall determine to be for the best interest of the corporation and best effectuate the purposes of this chapter. (3) The proceeds of any fund notes shall be used solely for the purposes for which issued and shall be disbursed in such manner and under such restrictions, if any, as the corporation may provide in the resolution authorizing the issuance of such fund notes. The corporation may provide for the replacement of any fund notes which shall become mutilated or shall be destroyed or lost. (4) Fund notes may be issued under the provisions of this section without obtaining the consent of any department, division, commission, boar d, body, bureau, or agency of the state, and without any other proceedings or the happening of any conditions or things other than those proceedings, conditions, or things which are specifically required by this chapter and the provisions of the resolution authorizing the issuance of such fund notes. (5) The purpose of the housing development fund is to provide a source from which the corporation may make loans and grants, and the corporation is authorized to make loans and grants from the housing development fund, at such interest rate or rates and such term or terms as may be determined by the corporation to be for the best interest of the corporation and best effectuate the purpose of this chapter, and with such security for repayment as the corporation deems reasonably necessary and practicable, to: (a) Defray development costs of sponsors, builders, and developers of residential housing, or (b) Provide to persons and families of lower and moderate income who are applying for mortgages, either for purchase or rehabilitation of residential housing the amounts required to make down payments, pay closing costs, or make interest payments, or (c) Make or participate in the making of construction loans which are not federally insured to sponsors, builders, and developers of land development or residential housing; provided, however, that such loans shall be made only upon the determination by the corporation that construction loans are not otherwise available, wholly or in part, from private lenders upon reasonably equivalent terms and conditions. (6) No temporary loans shall be made by the corporation from the housing development fund except in accordance with a written agreement which shall include, without limitation, the following terms and conditions: (a) The proceeds of such loan shall be used only for the purpose for which such loan shall have been made as provided in the agreement; (b) Such loan shall be repaid in full as provided in the agreement; (c) All repayments in connection with a loan to defray development costs shall be made concurrent with receipt by the borrower of the proceeds of a construction loan or mortgage loan, as the case may be, or at such other times as the corporation deems reasonably necessary or practicable; and (d) Such security for repayment shall be specified and shall be upon such terms and conditions as the corporation deems reasonably necessary or practicable to insure all repayments. (7) No funds from the housing development fund shall be used to carry on propaganda or otherwise attempt to influence legislation. (8) (a) Notwithstanding other provisions of this section, the corporation may make loans secured by a mortgage from the housing development fund to enable a person sixty-two (62) years of age or older who owns the home in which he resides, whose income combined with his spouse does not exceed six thousand dollars ($6,000), and who meets any other reasonable standards established by the corporation to make repairs to his home including but not limited to siding, weatherstripping, roofing, gutters, electrical wiring, plumbing, and installation of sewers. (b) The maximum principal amount of such loans shall not exceed seven thousand dollars ($7,000) and the maximum interest rate shall not exceed three percent (3%). All loans shall be repayable over a period of thirty (30) years. Upon the death of the borrowers prior to maturity, the unpaid balance shall be paid in full by the person to whom the house has passed by devise or descent. (c) The corporation shall make loans under this section in an equal number in each of the six (6) congressional districts. Effective: July 14, 1992 History: Amended 1992 Ky. Acts ch. 235, sec. 6, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 99, sec. 6, effective March 23, 1982; and ch. 182, sec. 5, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 308, sec. 1, effective July 15, 1980. -- Amended 1976 Ky. Acts ch. 364, sec. 4. -- Amended 1974 Ky. Acts ch. 383, sec. 5. - - Created 1972 Ky. Acts ch. 70, sec. 9.

KRS 198A.090 Corporate authorization and operation of revenue bond financing -- Approval of General Assembly required for certain bond or note issuances

198A.090. Corporate authorization and operation of revenue bond financing -- Approval of General Assembly required for certain bond or note issuances (1) Except as provided in subsection (6) of this section, the corporation may provide for the issuance, at one (1) time or from time to time, of bonds of the corporation if the cumulative outstanding indebtedness of the corporation's bonds does not exceed five billion dollars ($5,000,000,000), in order to carry out and effectuate its corporate purposes and powers. (2) In anticipation of the issuance of bonds, the corporation may provide for the issuance, at one (1) time or from time to time, of bond anticipation notes. The principal of and the interest on the bonds or notes shall be payable solely from the funds provided for the payment. Notes may be made payable from the proceeds of bonds or renewal notes or, if bond or renewal note proceeds are not available, notes may be paid from any available revenues or assets of the corporation. (3) The bonds or notes of each issue shall be dated and may be made redeemable before maturity at the option of the corporation at a price and under terms and conditions determined by the corporation. Bonds or notes shall bear interest at a rate determined by the corporation. Notes shall mature at a time not exceeding ten (10) years from their date and bonds shall mature at a time not exceeding forty (40) years from their date, as determined by the corporation. The corporation shall determine the form and manner of execution of the bonds or notes, including any interest coupons to be attached thereto, and shall fix the denomination and the place of payment of principal and interest, which may be any bank or trust company within or without the Commonwealth. If an officer whose signature or a facsimile of whose signature appears on any bonds, notes, or coupons attached to them shall cease to be an officer before the delivery thereof, the signature or facsimile shall be valid and sufficient for all purposes as if he had remained in office until delivery. The corporation may provide for the authentication of the bonds or notes by a trustee or fiscal agent. The bonds or notes may be issued in coupon or in registered form, or both, as the corporation may determine, and provision may be made for the registration of any coupon bonds or notes as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds or notes of any bonds or notes registered as to both principal and interest, and for the interchange of registered and coupon bonds or notes. Upon the approval of a resolution of the corporation, authorizing the sale of its bonds or notes, the bonds or notes may be sold in a manner, either at public or private sale, and for a price the corporation shall determine to be for the best interest of the corporation and best effectuate the purposes of this chapter, if the sale is approved by the corporation. (4) The proceeds of any bonds or notes shall be used solely for the purposes for which they are issued and shall be disbursed in the manner and under the restrictions, if any, the corporation may provide in the resolution authorizing the issuance of bonds or notes or in the trust agreement securing the same. (5) Prior to the preparation of definitive bonds, the corporation may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds have been executed and are available for delivery. The corporation may also provide for the replacement of any bonds or notes which become mutilated, destroyed, or lost. (6) (a) Prior to the issuance of any bonds or notes that are not secured by: 1. Direct obligations or obligations guaranteed by the United States of America; or 2. Obligations of federal agencies to the extent that the obligations are backed by the full faith and credit of the United States of America; or 3. Repurchase agreements with any primary dealer in securities fully secured by obligations described in subparagraphs 1. and 2. of this paragraph if the market value of the security is maintained at one hundred three percent (103%) of the principal amount of the repurchase agreement and the security is held by an independent third-party custodian financial institution; or 4. Insured or guaranteed construction loans or mortgage loans as defined by KRS 198A.010(10) and (11); or 5. Guaranty insurance policies which guarantee payment of the principal and interest on the bonds issued by a nationally recognized entity authorized to issue guarantees and rated in the highest rating category by at least one (1) of the nationally recognized rating services; the corporation shall obtain the approval of the issuance from the General Assembly in accordance with the provisions of KRS 56.870(1), unless the provisions of paragraph (b) of this subsection apply. This requirement shall not apply to refunding bond or note issues which are for the purpose of achieving debt service savings and which do not extend the term of the refunded bonds or notes. (b) The corporation may provide for the issuance, at any one (1) time or from time to time, of bonds which do not satisfy the requirements of paragraph (a) of this subsection without approval of the issuance by the General Assembly if the cumulative outstanding indebtedness of the corporation that does not meet the requirements of paragraph (a) of this subsection does not exceed thirty million dollars ($30,000,000). (c) The corporation shall annually report on its housing and bonding programs to the Interim Joint Committee on Appropriations and Revenue. (7) The Finance and Administration Cabinet shall provide to the corporation fiscal consultant services regarding revenue bond management as necessary. Effective: March 15, 2011 History: Amended 2011 Ky. Acts ch. 23, sec. 4, effective March 15, 2011. -- Amended 2008 Ky. Acts ch. 76, sec. 1, effective July 15, 2008. -- Amended 2000 Ky. Acts ch. 15, sec. 1, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 53, sec. 4, effective July 15, 1994. -- Amended 1992 Ky. Acts ch. 365, sec. 1, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 99, sec. 7, effective March 23, 1982. -- Amended 1978 Ky. Acts ch. 220, sec. 5, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 310, sec. 1. -- Amended 1974 Ky. Acts ch. 74, Art. II, sec. 9(1); and ch. 383, sec. 6. -- Created 1972 Ky. Acts ch. 70, sec. 10.

KRS 198A.100 Trust agreement to secure corporate obligations -- Operation thereof

198A.100. Trust agreement to secure corporate obligations -- Operation thereof In the discretion of the corporation any obligations issued under the provisions of this chapter may be secured by a trust agreement by and between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or the resolution providing for the issuance of such obligations may pledge or assign all or any part of the revenues or assets of the corporation, including, without limitation, mortgage loans, mortgage loan commitments, construction loans, temporary loans, contracts, agreements and other security or investment obligations, the fees or charges made or received by the corporation, the moneys received in payment of loans and interest thereon, and any other moneys received or to be received by the corporation. Such trust agreement or resolution may contain such provisions for protecting and enforcing the rights and remedies of the holders of any such obligations as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the corporation in relation to the purposes to which obligation proceeds may be applied, the disposition or pledging of the revenues or assets of the corporation, the terms and conditions for the issuance of additional obligations, and the custody, safeguarding and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of the state which may act as depository of the proceeds of obligations, revenues or other money hereunder to furnish such indemnifying bonds or to pledge such securities as may be required by the corporation. Any such trust agreement or resolution may set forth the rights and remedies of the holders of any obligations and of the trustee, and may restrict the individual right of action by any such holders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the corporation may deem reasonable and proper for the security of the holders of any obligations. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be paid from the revenues or assets pledged or assigned to the payment of the principal of and the interest on obligations or from any other funds available to the corporation. History: Created 1972 Ky. Acts ch. 70, sec. 11.

KRS 198A.110 Pledge of corporate assets on obligations of the corporation

198A.110. Pledge of corporate assets on obligations of the corporation The pledge of any assets or revenues of the corporation to the payment of the principal of or the interest on any obligations of the corporation shall be valid and binding from the time when the pledge is made and any such assets or revenues shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the corporation, irrespective of whether such parties have notice thereof. Nothing herein shall be construed to prohibit the corporation from selling any assets subject to any such pledge except to the extent that any such sale may be restricted by the trust agreement or resolution providing for the issuance of such obligations. History: Created 1972 Ky. Acts ch. 70, sec. 12.

KRS 198A.120 All moneys received are trust funds and may be temporarily invested

198A.120. All moneys received are trust funds and may be temporarily invested Notwithstanding any other provisions of law to the contrary, all moneys received pursuant to the authority of this chapter shall be deemed to be trust funds to be held and applied solely as provided in this chapter. The resolution authorizing any obligations or the trust agreement securing the same may provide that any of such moneys may be temporarily invested pending the disbursement thereof and shall provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this chapter and such resolution or trust agreement may provide. Any such moneys or any other moneys of the corporation may be invested as provided in KRS 386.020. History: Created 1972 Ky. Acts ch. 70, sec. 13.

KRS 198A.130 Holders of corporate obligations granted legal rights to enforce duties of the corporation

198A.130. Holders of corporate obligations granted legal rights to enforce duties of the corporation Any holder of obligations issued under the provisions of this chapter or any coupons appertaining thereto, and the trustee under any trust agreement or resolution authorizing the issuance of such obligations, except the rights herein given may be restricted by such trust agreement or resolution, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the state or granted hereunder or under such trust agreement or resolution, or under any other contract executed by the corporation pursuant to this chapter, and may enforce and compel the performance of all duties required by this chapter or by such trust agreement or resolution to be performed by the corporation or by any officer thereof. History: Created 1972 Ky. Acts ch. 70, sec. 14.

KRS 198A.140 Declaration of negotiability of obligations of the corporation

198A.140. Declaration of negotiability of obligations of the corporation Notwithstanding any of the foregoing provisions of this chapter or any recitals in any obligations issued under the provisions of this chapter, all such obligations and interest coupons appertaining thereto shall be and are hereby made negotiable instruments under the laws of this state, subject only to any applicable provisions for registration. History: Created 1972 Ky. Acts ch. 70, sec. 15.

KRS 198A.150 Obligations of Kentucky Housing Corporation are authorized investments

198A.150. Obligations of Kentucky Housing Corporation are authorized investments Obligations issued under the provisions of this chapter are hereby made securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such obligations are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds, notes or obligations of the state is now or may hereafter be authorized by law. History: Created 1972 Ky. Acts ch. 70, sec. 16.

KRS 198A.160 Authorization for issuance of refunding obligations

198A.160. Authorization for issuance of refunding obligations (1) The corporation is hereby authorized to provide for the issuance of refunding obligations for the purpose of refunding any obligations then outstanding which shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such obligations and, if deemed advisable by the corporation, for any corporate purpose of the corporation. The issuance of such obligations, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the corporation in respect of the same shall be governed by the provisions of this chapter which relate to the issuance of obligations, insofar as such provisions may be appropriate therefor. (2) Refunding obligations may be sold or exchanged for outstanding obligations issued under this chapter and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption or payment of such outstanding obligations. Pending the application of the proceeds of any such refunding obligations, with any other available funds, to the payment of the principal, accrued interest and any redemption premium on the obligations being refunded, and, if so provided or permitted in the resolution authorizing the issuance of such refunding obligations or in the trust agreement securing the same, to the payment of any interest on such refunding obligations and any expenses in connection with such refunding, such proceeds may be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America which shall mature or which shall be subject to redemption by the holders thereof, at the option of such holders, not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended. History: Created 1972 Ky. Acts ch. 70, sec. 17.

KRS 198A.165 Authorization for establishing reserve and replacement funds

198A.165. Authorization for establishing reserve and replacement funds The corporation shall be authorized and empowered in connection with the issuance of its bonds and notes for housing purposes pursuant to this chapter to establish in respect of such bonds and notes such reserve funds or replacement funds as may be required in the sound discretion of the board of directors of the corporation to enable the corporation to effectuate its proper public purposes. In the event any such reserve fund or replacement fund created by the corporation in connection with any such bond issue or note issue should, in violation of any contract made by the corporation with any bondholder or note holder be monetarily deficient in any respect as of any date of accounting so stipulated by the corporation, the corporation shall immediately make formal request in writing to the secretary of the Finance and Administration Cabinet, and to the Governor of Kentucky that sums adequate to restore such reserve fund or replacement fund to its contractually required level and to pay any overdue principal and interest on any outstanding bonds and notes of the corporation be included in the next succeeding executive budget, and that such budget request with recommendation for approval by the General Assembly to the corporation for the use and benefit of such reserve fund or replacement fund. In the event the next scheduled even-numbered-year regular session of the General Assembly of Kentucky shall occur more than six (6) months after any such request by the corporation, the corporation shall request that sums adequate to restore such reserve fund or replacement fund to such contractually required level and to pay any overdue principal and interest on any outstanding bonds and notes of the corporation be made available from the Governor's contingency fund, and if such funds are so made available the budget request hereinabove described in this section shall be correspondingly reduced. Effective: June 21, 2001 History: Amended 2001 Ky. Acts ch. 58, sec. 27, effective June 21, 2001. -- Created 1974 Ky. Acts ch. 383, sec. 8.

KRS 198A.170 Annual report and annual audit

198A.170. Annual report and annual audit The corporation shall, promptly following the close of each fiscal year, submit an annual report of its activities for the preceding year to the Governor and the General Assembly. Each such report shall set forth a complete operating and financial statement of the corporation during the year. The housing fund shall also cause an annual audit to be made by a resident independent certified public accountant of its books, accounts, and records, with respect to its receipts, disbursements, contracts, mortgages, leases, assignments, loans and all other matters relating to its financial operations. The persons performing such audit shall furnish copies of the audit report to the secretary of the Finance and Administration Cabinet, where they shall be placed on file and made available for inspection by the general public. History: Amended 1974 Ky. Acts ch. 74, Art. II, sec. 9(2). -- Created 1972 Ky. Acts ch. 70, sec. 18.

KRS 198A.180 Limitation of liability for corporate members or officers

198A.180. Limitation of liability for corporate members or officers No member or other officer of the corporation shall be subject to any personal liability or accountability by reason of his execution of any obligations or the issuance thereof. History: Created 1972 Ky. Acts ch. 70, sec. 19.

KRS 198A.190 Authority to accept and expend funds

198A.190. Authority to accept and expend funds The corporation is authorized to accept and expend such moneys as may be appropriated from time to time by the General Assembly or such moneys as may be received from any source including income from the corporation's operations, for effectuating its corporate purposes including, without limitation, the payment of the initial expenses of administration and operation and the establishment of a reserve or contingency fund to be available for the payment of the principal of and the interest on any bonds or notes of the corporation. History: Amended 1974 Ky. Acts ch. 383, sec. 7. -- Created 1972 Ky. Acts ch. 70, sec. 20.

KRS 198A.200 Tax exempt status

198A.200. Tax exempt status The Kentucky Housing Corporation has been duly created as a de jure municipal corporation and political subdivision of the Commonwealth of Kentucky. Accordingly, the Kentucky Housing Corporation shall not be required to pay any taxes and assessments to the Commonwealth of Kentucky, or any county, municipality or other governmental subdivision of the Commonwealth of Kentucky, upon any of its property or upon its obligations or other evidences of indebtedness pursuant to the provisions of this chapter, or upon any moneys, funds, revenues or other income held or received by the corporation and the notes and bonds of the corporation and the income therefrom shall at all times be exempt from taxation, except for death and gift taxes and taxes of transfers; provided, however, that real property owned by the Kentucky Housing Corporation shall be exempt from all property taxation and special assessments of the state or political subdivisions thereof, but the corporation may agree to pay, in lieu of such taxes, such amounts as the corporation finds consistent with the cost to the state or political subdivision of supplying municipal services to the housing development and maintaining the economic feasibility of the housing development, which payments such bodies are hereby authorized to accept. History: Amended 1976 Ky. Acts ch. 200, sec. 4. -- Amended 1974 Ky. Acts ch. 383, sec. 9. -- Created 1972 Ky. Acts ch. 70, sec. 21.

KRS 198A.210 Disclosure of conflict of interest of member, officer, or employee of the corporation

198A.210. Disclosure of conflict of interest of member, officer, or employee of the corporation If any member, officer, or employee of the corporation shall be interested either directly or indirectly, or shall be an officer or employee of or have an ownership interest in any firm or corporation interested directly or indirectly in any contract with the corporation, including any loan to any sponsor, builder, or developer, such interest shall be disclosed to the corporation and shall be set forth in the minutes of the corporation, and the member, officer, or employee having such interest therein shall not participate on behalf of the corporation in the authorization of any such contract. History: Created 1972 Ky. Acts ch. 70, sec. 22.

KRS 198A.220 Provisions of this chapter deemed to be supplemental powers to other laws

198A.220. Provisions of this chapter deemed to be supplemental powers to other laws The foregoing sections of this chapter shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing; provided, however, that the issuance of bonds or notes under the provisions of this chapter need not comply with the requirements of any other law applicable to the issuance of bonds or notes. History: Created 1972 Ky. Acts ch. 70, sec. 23.

KRS 198A.230 Disposition of corporation assets upon termination or dissolution

198A.230. Disposition of corporation assets upon termination or dissolution Upon termination or dissolution, all rights and properties of the corporation shall pass to and be vested in the Commonwealth of Kentucky, subject to the rights of lienholders and other creditors, unless the board of directors directs at such times that they be distributed among one or more corporations, trusts, community chests, funds or foundations organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, no part of the net earnings of which inures to the benefit of any private shareholder, member or individual and no substantial part of whose activities consists of carrying on propaganda, or otherwise attempting to influence legislation. History: Created 1972 Ky. Acts ch. 70, sec. 24.

KRS 198A.240 Title of chapter

198A.240. Title of chapter This chapter shall be known and may be cited as the "Mae Street Kidd Kentucky Housing Corporation Act." History: Amended 1974 Ky. Acts ch. 50, sec. 1. -- Created 1972 Ky. Acts ch. 70, sec. 1.

KRS 198A.250 Loans to mortgage lenders for residential mortgage loans -- Rules and regulations

198A.250. Loans to mortgage lenders for residential mortgage loans -- Rules and regulations (1) The corporation may make loans to mortgage lenders for the purpose of furnishing funds to such mortgage lenders to be used for making residential mortgage loans. (2) The corporation shall from time to time adopt, modify, amend or repeal rules and regulations governing the making of loans to mortgage lenders and the use of the proceeds thereof, including rules and regulations as to any or all of the following: (a) Procedures for the application or submission of requests for loans to mortgage lenders; (b) Standards and requirements as to allocations of loans among all or certain of the mortgage lenders or awards of loans and determining the amounts and interest rates thereof; (c) Limitations or restrictions as to the number of family units, locations or other qualifications or characteristics of residential housing to be financed by residential mortgage loans; (d) Restrictions as to the interest rates on residential mortgage loans or the return realized therefrom by mortgage lenders; (e) Requirements with respect to the application of the proceeds of loans to mortgage lenders, including the time within which the proceeds of any such loan must be committed and disbursed for residential mortgage loans; (f) Schedules of any fees and charges necessary to provide for expenses and reserves of the corporations; and (g) Any other matters related to the duties and the exercise of the powers of the corporation under this section. Such rules and regulations shall in each case be designed to effectuate the general purposes of this chapter and the following specific objectives: (i) the expansion of the supply of funds in the state available for residential mortgage loans; (ii) the provision of the additional residential housing needed to remedy the shortage of adequate housing in the state and to eliminate the existence of a large number of substandard dwellings; and (iii) the effective participation by mortgage lenders in the program authorized by this chapter and the restriction of the financial return and benefit thereto from such program to that necessary and reasonable to induce such participation. (3) The obligation to repay loans to mortgage lenders shall be general obligations of the respective mortgage lenders and shall bear such date or dates, shall mature at such time or times, shall be evidenced by such note, bond or other certificate of indebtedness, shall be subject to prepayment and shall contain such other provisions consistent with this section, all as the corporation shall by resolution determine. (4) Any other provision of this section to the contrary notwithstanding, the interest rate or rates and other terms of the loans to mortgage lenders made from the proceeds of any issue of bonds of the corporation shall be at least sufficient to assure the payment of said bonds and the interest thereon as the same become due from the amounts received by the corporation in repayment of such loans and interest thereon. (5) The corporation may require that such loans to mortgage lenders be additionally secured as to payment of both principal and interest by a pledge of and lien upon collateral security in such amounts as the corporation by resolution shall determine to be necessary to assure the payment of such loans and the interest thereon as the same become due. Such collateral security shall consist of (i) direct obligations of, or obligations guaranteed by, the United States of America; (ii) bonds, debentures, notes or other evidences of indebtedness, satisfactory to the corporation, issued by any of the following federal agencies: banks for cooperatives, federal intermediate credit banks, federal home loan banks, export-import bank of the United States, federal land banks, the federal national mortgage association or the government national mortgage association; (iii) direct obligations of or obligations guaranteed by the state; or (iv) mortgages insured or guaranteed by the United States of America or an instrumentality thereof as to payments of principal and interest. The corporation may require in the case of any or all mortgage lenders that such collateral be lodged with a bank or trust company located in the state designated by the corporation as custodian therefor. In the absence of such requirement a mortgage lender shall upon receipt of the loan proceeds from the corporation enter into an agreement with the corporation containing such provisions as the corporation shall deem necessary to adequately identify and separately maintain such collateral and service the same and providing that such mortgage lender shall hold such collateral as an agent for the corporation and shall be held accountable as the trustee of an express trust for the application and disposition thereof and the income therefrom solely to the uses and purposes in accordance with the provisions of such agreement. A copy of each such agreement and any revisions or supplements thereto shall be filed with the secretary of state, and no further filing or other action under Article 9 of KRS Chapter 355 or any other law of the state shall be required to perfect the security interest of the corporation in such collateral or any additions thereto or substitutions therefor, and the lien and trust for the benefit of the corporation so created shall be binding from and after the time made against all parties having claims of any kind in tort, contract or otherwise against such mortgage lender. The corporation may also establish such additional requirements as it shall deem necessary with respect to the pledging, assigning, setting aside, or holding of such collateral and the making of substitutions therefor or additions thereto and the disposition of income and receipts therefrom. (6) The corporation shall require the submission to it by each mortgage lender to which the corporation has made a loan of evidence satisfactory to the corporation of the making of residential mortgage loans as required by this section and prescribed by rules and regulations of the corporation and in connection therewith may inspect the books and records of such mortgage lender. (7) All residential mortgage loans made as required by this section shall comply with the applicable provisions of the laws of the state, and, where federal law or the law of another jurisdiction governs the affairs of the mortgage lender with the applicable provisions of such law. (8) The corporation may require agreement by any mortgage lender as a condition of the loan to such mortgage lender, to the payment of penalties to the corporation for violation by the mortgage lender of any provision of this section or its undertaking to the corporation with respect to the making of residential mortgage loans, and such penalties shall be recoverable at the demand of the corporation. (9) If at any time the corporation shall determine that an adequate supply of funds exists in regular banking channels for residential mortgage loans, the corporation shall discontinue the making of loans to mortgage lenders until such time as the corporation may subsequently determine that the supply of funds available for new residential mortgage loans is again inadequate. (10) For purposes of this section, the term "residential mortgage loan" means a loan made by a mortgage lender and secured by a mortgage constituting a first lien upon residential housing. History: Created 1976 Ky. Acts ch. 364, sec. 5.

KRS 198A.300 Financial assistance program for replacement or rehabilitation of unsafe wells and private water supplies

198A.300. Financial assistance program for replacement or rehabilitation of unsafe wells and private water supplies The Kentucky Housing Corporation may develop a financial assistance program for replacement or rehabilitation of unsafe wells and other private water supplies serving low and moderate-income families and individuals. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 108, sec. 3, effective July 15, 1986.

KRS 198A.400 Kentucky Homeownership Protection Center -- Purposes -- Cooperative agreements -- Funding -- Referrals to specific lenders and brokers prohibited

198A.400. Kentucky Homeownership Protection Center -- Purposes -- Cooperative agreements -- Funding -- Referrals to specific lenders and brokers prohibited (1) There may be established, as part of the borrower education initiatives established by or through the Kentucky Housing Corporation, a Kentucky Homeownership Protection Center. (2) The purpose of the Kentucky Homeownership Protection Center shall be to: (a) Provide a centralized location for information on public services made available by federal, state, or local government or community entities, to assist a homeowner who is in default, or in danger of default, on his or her home loan; and (b) Attempt to assist, any homeowner who contacts the center without cost to the homeowner, with the goal of: 1. Providing a homeowner with information, including toll-free telephone numbers for public services, made available by federal, state, or local government or community entities, including programs such as NeighborWorks and Don't Borrow Trouble, mortgage assistance programs, home repair assistance programs, and utility assistance programs; 2. Determining if the homeowner has contacted his or her lender regarding any default or danger of default; and 3. Providing a homeowner with counseling agencies approved by the United States Department of Housing and Urban Development that may be able to assist the homeowner. (3) The Kentucky Homeownership Protection Center may enter into an agreement with any public or nonprofit entity to carry out any part of the mortgage foreclosure counseling and education program. (4) The Kentucky Homeownership Protection Center may solicit contributions and grants from the private sector, nonprofit entities, and the federal government to assist in carrying out the purposes of this chapter. (5) The Kentucky Homeownership Protection Center shall not, directly or through an entity contracted with in accordance with subsection (3) of this section, make referrals or recommendations to or regarding specific for-profit lenders or mortgage brokers. Effective: April 24, 2008 History: Created 2008 Ky. Acts ch. 175, sec. 1, effective April 24, 2008.

KRS 198A.700 Definitions for KRS 198A.700 to 198A.730

198A.700. Definitions for KRS 198A.700 to 198A.730 As used in KRS 198A.700 to 198A.730, unless the context otherwise requires: (1) "Homeless individual" means a person who: (a) Lacks a fixed, regular, or adequate nighttime residence; (b) Is at risk of becoming homeless in a rural or urban area because the residence is not safe, decent, sanitary, or secure; (c) Has as a primary nighttime residence a publicly- or privately-operated shelter designed to provide temporary living accommodations; (d) Has as a primary nighttime residence a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings; or (e) Is a family or a person who does not have access to normal accommodations due to violence or the threat of violence from a cohabitant. (2) "Nonprofit organization" means an organization duly organized and validly existing as a not-for-profit organization under the laws of the Commonwealth, any other state, or the United States and whose purpose includes the development, construction, rehabilitation, or acquisition of housing. (3) "Technical assistance" means activities that are directly related to a nonprofit organization's ability to provide housing for very low-income persons in assisted projects under KRS 198A.700 to 198A.730, and includes land use and planning costs, design and engineering services, finance services, loan packaging assistance, program development assistance, construction consultation, and marketing assistance for developers, and budgeting assistance, independent living skill development, homeownership, tenant education, and self-sufficiency development for renters and homeowners. (4) "Trust fund" means the affordable housing trust fund. (5) "Very low-income" means the income of individuals or families that is below sixty percent (60%) of the area median income for the Commonwealth as determined by the United States Department of Housing and Urban Development. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 206, sec. 1, effective July 15, 1994. – Created 1992 Ky. Acts ch. 458, sec. 1, effective July 14, 1992.

KRS 198A.705 Legislative findings

198A.705. Legislative findings The General Assembly hereby finds and declares that current economic conditions, federal housing policies, and declining resources at the federal, state, and local levels adversely affect the ability of very low-income persons to obtain safe, decent, and affordable housing; that an increasing number of individuals are homeless, are at risk of becoming homeless, or live in overcrowded, inadequate, and unsafe housing units; and it is in the public interest to establish a continuously renewable resource known as an affordable housing trust fund to assist very low-income persons in meeting their basic housing needs. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 458, sec. 2, effective July 14, 1992.

KRS 198A.710 Affordable housing trust fund

198A.710. Affordable housing trust fund There is hereby established in the State Treasury a separate, revolving, nonlapsing fund known as the affordable housing trust fund. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 458, sec. 3, effective July 14, 1992.

KRS 198A.715 Kentucky Housing Corporation to administer trust fund -- Uses of fund - - Organizations eligible for funding -- Annual report

198A.715. Kentucky Housing Corporation to administer trust fund -- Uses of fund - - Organizations eligible for funding -- Annual report (1) The administering agency for the trust fund shall be the Kentucky Housing Corporation, which shall use moneys from the trust fund to make, or participate in the making, of loans or grants for the eligible activities described in this section. Loans or grants shall be made upon the determination by the corporation that the loan or grant shall be used to create new sources of funding, or to supplement existing sources of funding for eligible activities, and shall not be used to replace existing or available funds. (2) Activities eligible for funding shall include: (a) Provision of matching funds for federal housing dollars requiring a local or state match including, but not limited to, the National Affordable Housing Act of 1990; (b) Acquisition of housing units for the purpose of preservation or conversion as very low-income housing; (c) New construction or rehabilitation of very low income housing units; (d) Matching funds for technical assistance directly related to providing housing for persons pursuant to KRS 198A.700 to 198A.730; and (e) Administrative costs for housing assistance programs or organizations eligible for funding pursuant to subsection (3) of this section, if the grants or loans will substantially increase the recipient's access to housing funds other than those available under KRS 198A.700 to 198A.730. (3) Organizations eligible for funding from the trust fund include: (a) Local governments; (b) Local government housing authorities; (c) Nonprofit organizations; (d) Regional or statewide housing assistance organizations; and (e) Sponsors who work in connection with rental housing developments that receive low-income tax credits under Section 42 of the Internal Revenue Code of 1986, as amended. Sponsors, as set out in this paragraph, shall only be eligible if the corporation determines a nonprofit organization owns at least a fifty-one percent (51%) interest in the sponsor and materially participates in the development and operation of the rental housing. (4) Housing units provided to very low-income persons or families pursuant to KRS 198A.700 to 198A.730, shall be deed-restricted under the following conditions: (a) Rental housing shall be deed-restricted for a minimum of thirty (30) years. Amendments may be granted by the corporation on a case-by-case basis. Investment from the trust fund into a specific housing type shall revert to like housing for very low-income persons. (b) Single-family units or units for sale shall be deed restricted for a minimum of five (5) years. Amendments may be granted by the corporation on a case-by- case basis. (5) In the development of housing pursuant to KRS 198A.700 to 198A.730, displacement of very low-income persons shall not be permitted unless the project shall pay all reasonable relocation costs as defined by the corporation. (6) There shall not be discrimination in the sale or rental, or otherwise making available or denying, a dwelling funded under KRS 198A.700 to 198A.730 to any buyer or renter because of race, religion, sex, familial status, disability, or national origin. (7) In the event that the corporation chooses to use trust fund dollars with or as a match to the Federal Home Investment Partnership Program or other federal programs, the strictest affordability requirements shall apply. (8) Trust fund dollars shall be contributed permanently to a project, except when serving as a match for federal housing programs that require all funds to be contributed permanently to the federal program. All repayment, interest, or other return on the investment of trust fund dollars are required to be returned to the trust fund and used for eligible trust fund activities in accordance with the requirements of KRS 198A.700 to 198A.730. Trust fund dollars invested in a project with federal dollars requiring a permanent contribution shall be recaptured to the federal program account. (9) On or before October 1 of each fiscal year, the Kentucky Housing Corporation shall submit a report to the Legislative Research Commission on the disposition of the affordable housing trust fund moneys for the previous fiscal year. Effective: June 25, 2013 History: Amended 2013 Ky. Acts ch. 12, sec. 1, effective June 25, 2013. -- Amended 2000 Ky. Acts ch. 469, sec. 2, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 206, sec. 2, effective July 15, 1994; and ch. 405, sec. 48, effective July 15, 1994. – Created 1992 Ky. Acts ch. 458, sec. 4, effective July 14, 1992.

KRS 198A.720 Application procedures -- Granting of funds -- Priorities in funding -- Targeting of funds -- Services to be provided

198A.720. Application procedures -- Granting of funds -- Priorities in funding -- Targeting of funds -- Services to be provided (1) The corporation shall issue a public notice to eligible recipients of the availability of trust funds at least twice each calendar year and provide for reasonable opportunity for the filing of applications. (2) The corporation shall approve or deny properly submitted and completed applications within ninety (90) days of their receipt. (3) The corporation shall grant as many applications as will effectively use available funds. (4) The corporation shall grant or deny applications by ranking the applications competitively using criteria established by the corporation in consultation with the advisory committee for the trust fund created under KRS 198A.725. The corporation shall give priority to: (a) Applications for projects submitted by nonprofit organizations or local governments for new construction for families; (b) Applications for projects using existing privately owned housing stock, including stock purchased by nonprofit public development authorities; (c) Applications for projects using existing publicly owned housing stock; and (d) Applications from local governments for projects that demonstrate effective zoning, conversion, or demolition controls for single room occupancy units. (5) The corporation shall limit funds to be used for administrative costs to no more than seven and one-half percent (7.5%) of available funds, and shall disapprove any project in which more than seven and one-half percent (7.5%) of available funds shall be used for administrative costs. (6) The corporation shall require at least forty percent (40%) of all funds received to be used for rural areas of the Commonwealth, which shall periodically be defined by the board of directors of the corporation. (7) Funds targeted under this section that are not expended or set-aside within twenty- four (24) months from allocation may be reallocated in nontargeted communities for very low-income persons. The corporation may extend the twenty-four (24) month period for good cause; however, an extension shall not exceed an additional twelve (12) month period. (8) The corporation shall provide technical assistance to eligible recipients seeking to construct, rehabilitate, or finance housing-related services for very low-income persons. The corporation may contract with nonprofit organizations to provide the technical assistance required by this subsection. (9) The corporation shall provide or contract for the following services: (a) Financial planning and packaging for housing projects including alternative ownership programs and bridge financing; (b) Project design, architectural planning, siting, and compliance with planning requirements; (c) Securing matching resources for project development; (d) Maximizing local government contributions to project development in the form of land donations, infrastructure improvements, waivers of development fees, local and state managed funds, zoning variances, density bonuses for low rise-multifamily projects, or creative local planning; (e) Coordination with local planning, economic development, environmental, technical assistance, and recreational activities; (f) Construction and material management; and (g) Project maintenance and management. Effective: June 25, 2013 History: Amended 2013 Ky. Acts ch. 12, sec. 2, effective June 25, 2013. -- Amended 1994 Ky. Acts ch. 206, sec. 3, effective July 15, 1994. – Created 1992 Ky. Acts ch. 458, sec. 5, effective July 14, 1992.

KRS 198A.725 Advisory committee for trust fund

198A.725. Advisory committee for trust fund (1) The corporation shall create an advisory committee for the trust fund consisting of eleven (11) members appointed by the chairman of the board of directors of the corporation. (a) Three (3) members shall be appointed from representatives of each of the following categories of organizations: 1. The Home Builders Association of Kentucky, the Kentucky Manufactured Housing Institute, the Apartment Association, the Kentucky Association of Realtors, the Kentucky State Building Trades Council, the Mortgage Bankers Association of Kentucky, and the Kentucky Bankers Association; 2. The Homeless and Housing Coalition of Kentucky, builders or nonprofit housing organizations, support service providers, homeless persons, and very low-income tenants; and 3. The Kentucky Association of Counties, the Kentucky League of Cities, and agencies of state government. (b) The remaining two (2) members appointed shall include one (1) member of the Kentucky Senate and one (1) member of the Kentucky House of Representatives. (2) Upon organization of the advisory committee three (3) members shall continue in office for three (3) years, three (3) members shall have two (2) year terms, and three (3) members shall have a one (1) year term, as designated by the chairman of the board of directors. Thereafter, all members appointed shall serve a three (3) year term or until their successors are appointed and duly qualified. A vacancy on the advisory committee shall be filled pursuant to the requirements and procedures for original appointments. Members of the advisory committee may be reappointed one (1) time. (3) The advisory committee shall consult with and advise the officers and directors of the corporation concerning matters relating to the trust fund. (4) The advisory committee shall elect a presiding officer from its members and may establish its own rules of procedure which shall not be inconsistent with the provisions of this chapter. (5) Members of the advisory committee shall serve without compensation. Members who are not employees of the Commonwealth shall be entitled to reimbursement for actual expenses incurred in carrying out their duties on the committee. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 458, sec. 6, effective July 14, 1992. Legislative Research Commission Note (7/14/92). In codifying the text of this section, the words "and three (3) members shall have two (2) year terms," have been omitted from subsection (2) because this text is repetitive and appears to be a manifest clerical or typographical error under KRS 7.136(1).

KRS 198A.730 Short title for KRS 198A.700 to 198A.730

198A.730. Short title for KRS 198A.700 to 198A.730 KRS 198A.700 to 198A.730 may be cited as the "Kentucky Affordable Housing Act." Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 458, sec. 7, effective July 14, 1992.

KRS 198A.740 Definitions for KRS 198A.740 to 198A.750

198A.740. Definitions for KRS 198A.740 to 198A.750 As used in KRS 198A.740 to 198A.750: (1) "Moderate income" means the income of individuals or families that is below one hundred twenty percent (120%) of the area median income for the Commonwealth as determined by the United States Department of Housing and Urban Development; (2) "Nonprofit organization" has the same meaning as in KRS 198A.700; (3) "Technical assistance" has the same meaning as in KRS 198A.700; and (4) "Trust fund" means the rural housing trust fund created in KRS 198A.744. Effective: March 24, 2023 History: Created 2023 Ky. Acts ch. 92, sec. 29, effective March 24, 2023.

KRS 198A.742 Legislative findings

198A.742. Legislative findings The General Assembly hereby finds and declares that: (1) Current economic conditions, federal housing policies, and declining resources at the federal, state, and local levels adversely affect the ability of individuals to obtain safe, decent, and affordable rural housing; (2) An increasing number of individuals are homeless, at risk of becoming homeless, or live in overcrowded, inadequate, and unsafe rural housing units; and (3) It is in the public interest to establish a continuously renewable resource known as a rural housing trust fund to assist moderate income individuals in meeting basic housing needs. Effective: March 24, 2023 History: Created 2023 Ky. Acts ch. 92, sec. 30, effective March 24, 2023.

KRS 198A.744 Rural housing trust fund

198A.744. Rural housing trust fund (1) There is hereby established in the State Treasury a revolving account to be known as the rural housing trust fund. The fund shall consist of moneys received from state appropriations, gifts, grants, federal funds, and all repayment, interest, or other return on the investment of trust fund dollars as required by KRS 198A.746(7)(b). (2) The fund shall be administered by the corporation. (3) Amounts deposited in the fund shall be used as provided in KRS 198A.740 to 198A.750. Separate accounts within the fund shall be made for state appropriations, federal funds, and moneys received from other sources. (4) Notwithstanding KRS 45.229, moneys in the fund not expended at the close of a fiscal year shall not lapse but shall be carried forward into the next fiscal year. (5) Any interest earnings of the fund shall become a part of the fund and shall not lapse. Effective: March 24, 2023 History: Created 2023 Ky. Acts ch. 92, sec. 31, effective March 24, 2023.

KRS 198A.746 Uses of fund -- Organizations eligible for funding -- Discrimination prohibited -- Annual report

198A.746. Uses of fund -- Organizations eligible for funding -- Discrimination prohibited -- Annual report (1) (a) The corporation shall use moneys from the rural housing trust fund created in KRS 198A.744 to make, or participate in the making of, loans or grants for the eligible activities described in this section. (b) Any loan or grant shall be made upon the determination by the corporation that the loan or grant shall be used to create new sources of funding, or to supplement existing sources of fundi ng for eligible activities, and shall not be used to replace existing or available moneys. (2) Activities eligible for funding shall include: (a) Acquisition of housing units for the purpose of preservation of or conversion to rural housing units; (b) New construction or rehabilitation of rural housing units; (c) Matching funds for technical assistance directly related to providing rural housing for individuals under KRS 198A.740 to 198.750; and (d) Administrative costs for rural housing assistance programs or organizations eligible for funding under subsection (3) of this section, if the loans or grants will substantially increase the recipient's access to housing funds other than those available under KRS 198A.740 to 198A.750. (3) Organizations eligible for funding from the rural housing trust fund include: (a) Local governments; (b) Local government housing authorities; (c) Nonprofit organizations; (d) Regional or statewide housing assistance organizations; and (e) Business organizations that undertake the new construction or rehabilitation of rural housing units for moderate income individuals. (4) Housing units provided to moderate income individuals o r families under KRS 198A.740 to 198A.750 shall be deed restricted under the following conditions: (a) Rental housing shall be deed restricted for a minimum of thirty (30) years. Investment from the rural housing trust fund into a specific housing type sha ll revert to like housing for moderate income individuals; and (b) Single-family units or units for sale shall be deed restricted for a minimum of ten (10) years. The corporation may grant amendments to deed restrictions on a case -by-case basis. (5) In the development of rural housing under KRS 198A.740 to 198A.750, displacement of moderate income individuals or families shall not be permitted unless the project pays all reasonable relocation costs as defined by the corporation in administrative regulations promulgated under KRS Chapter 13A. (6) Discrimination in the sale or rental of, or otherwise making available or denying, a dwelling funded under KRS 198A.740 to 198A.750 to any buyer or renter because of race, religion, sex, familial status, disability, or national origin is prohibited. (7) (a) Moneys in the trust fund shall be contributed permanently to a rural project, except when serving as a match for federal housing programs that require all funds to be contributed permanently to the federal program. (b) All repayment, interest, or other return on the investment of trust fund moneys are required to be returned to the trust fund and used for eligible trust fund activities in accordance with KRS 198A.740 to 198A.750. (c) Trust fund moneys invested in a rural project with federal dollars requiring a permanent contribution shall be recaptured to the federal program account. (8) Beginning on or before October 1, 2024, and on or before each October 1 thereafter, the corporation shall submit a report to the Legislative Research Commission on the disposition of the rural housing trust fund moneys for the previous fiscal year. Effective: March 24, 2023 History: Created 2023 Ky. Acts ch. 92, sec. 32, effective March 24, 2023.

KRS 198A.748 Application procedures -- Granting of funds -- Priority of applications -- Services to be provided

198A.748. Application procedures -- Granting of funds -- Priority of applications -- Services to be provided The corporation shall: (1) Issue a public notice to eligible recipients regarding the availability of trust fund moneys at least twice each calendar year; (2) Provide a reasonable opportunity for the filing of applications; (3) After consultation with the Rural Housing Trust Fund Advisory Committee created in KRS 198A.750, approve or deny properly submitted and completed applications within ninety (90) days of their receipt; (4) Approve applications that will effectively use available moneys; (5) Approve or deny applications by ranking the applications competitively using criteria established by the corporation in consultation with the advisory comm ittee and promulgated in an administrative regulation under KRS Chapter 13A; (6) Give priority to applications in the following order: (a) Applications for projects located in a federally declared disaster area or projects assisting individual recipients displaced by a federally declared disaster area; (b) Applications for projects submitted by nonprofit organizations or local governments for new rural housing construction; (c) Applications for projects using existing privately owned housing stock, including stock purchased by nonprofit public development activities; (d) Applications for projects using existing publicly owned housing stock; and (e) Applications from local governm ents for projects that demonstrate effective zoning, conversion, or demolition controls for single room occupancy units; (7) Provide technical assistance to eligible recipients seeking to construct, rehabilitate, or finance housing-related services for moderate income individuals. The corporation may contract with nonprofit organizations to provide the technical assistance required by this subsection; and (8) Provide the following services: (a) Financial planning and packaging for housing projects, includin g alternative ownership programs and bridge financing; (b) Project design, architectural planning, siting, and compliance with planning requirements; (c) Securing matching resources for project development; (d) Maximizing local government contributions to project development in the form of land donations, infrastructure improvements, waivers of development fees, local and state managed funds, zoning variances, density bonuses for low-rise multifamily projects, or creative local planning; (e) Coordination with local planning, economic development, environmental, technical assistance, and recreational activities; (f) Construction and material management; and (g) Project maintenance and management. Effective: March 24, 2023 History: Created 2023 Ky. Acts ch. 92, sec. 33, effective March 24, 2023.

KRS 198A.750 Rural Housing Trust Fund Advisory Committee

198A.750. Rural Housing Trust Fund Advisory Committee (1) There is hereby created the Rural Housing Trust Fund Advisory Committee, which shall be composed of the following eleven (11) members: (a) The Commissioner of Agriculture or the Commissioner's duly appointed designee; (b) Two (2) members of the Senate appointed by the President of the Senate, each of whom shall serve while a member of the Senate for the term for which he or she was elected; (c) Two (2) members of the House of Representatives appointed by the Speaker of the House, each of whom shall serve while a member of the House of Representatives for the term for which he or she was elected; and (d) Six (6) private citizens with a principal residence located in a rural community who shall be appointed by the board of directors of the corporation. (2) (a) Members appointed under subsection (1)(d) of this section shall serve a three (3) year term or until their successors are appointed and duly qualified, and may be reappointed to one (1) additional term. (b) A vacancy on the advisory committee shall be filled following the requirements and procedures for original appointments. (3) The advisory committee shall consult with and advise the officers and directors of the corporation concerning matters relating to the rural housing trust fund. (4) The Commissioner of Agriculture shall be the presiding officer, and the advisory committee may establish its own rules of procedure, which shall not be inconsistent with the housing provisions of this chapter. (5) Members of the advisory committee shall serve without compensation, but members who are not employees of the Commonwealth shall be entitled to reimbursement for actual expenses incurred in carrying out their duties on the advisory committee. Effective: March 24, 2023 History: Created 2023 Ky. Acts ch. 92, sec. 34, effective March 24, 2023. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 54, provides that, for the initial terms of private citizens appointed under subsection (1)(d) of this statute, two members shall be appointed for a three-year term, two members shall be appointed for a two-year term, and two members shall be appointed for a one-year term.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38084Fetched: 10/20/2026

Starting a business in Kentucky? Kentucky LLC guide: costs and requirements