2013 Kentucky Revised Statutes CHAPTER 198A - LOW-COST HOUSING 198A.715 Kentucky Housing Corporation to administer trust fund -- Uses of fund -- Organizations eligible for funding -- Annual report.
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198A.715 Kentucky Housing Corporation to administer trust fund -- Uses of
fund -- Organizations eligible for funding -- Annual report.
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(2)
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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.
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.
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.
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.
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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.
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.
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.
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.
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.
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