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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
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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;
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;
(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.
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