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198A.065 Waiver of income -- Eligibility requirements.
(1)
(2)
(3)
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.
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.
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.
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