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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
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fill such need;
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;
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;
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;
To promote research and development in scientific methods of constructing
low cost residential housing of high durability;
To encourage community organizations to participate in residential housing
development;
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;
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;
To sue and be sued in its own name and plead and be impleaded;
To maintain an office in the city of Frankfort and at such other place or places
as it may determine;
To adopt an official seal and alter the same at pleasure;
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;
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;
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;
To make or participate in the making of rehabilitation loans to the sponsors or
owners of residential housing; provided, however, that any such rehabilitation
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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;
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;
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;
To make periodic grants to reduce principal and interest payments on
mortgages or rentals payable by persons and families of lower and moderate
income;
(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;
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; and
(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.
The Kentucky Housing Corporation shall be exempt from the regulations of the
Department of Insurance and the laws of the Commonwealth relating thereto.
Effective:March 15, 2011
History: 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.
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