Kentucky 2023 2023 Regular Session

Kentucky House Bill HB508 Introduced / Bill

                    UNOFFICIAL COPY  	23 RS BR 1741 
Page 1 of 2 
XXXX   2/21/2023 8:13 PM  	Jacketed 
AN ACT relating to residential planned communities. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
SECTION 1.   A NEW SECTION OF KRS CHAPTER 381 IS CREATED TO 3 
READ AS FOLLOWS: 4 
(1) As used in this section: 5 
(a) "City" means any city government, consolidated local government, urban-6 
county government, or unified local government; and 7 
(b) "Planned community" means a group of residential dwellings, excluding 8 
condominiums, composed of individual lots for which a deed, common plan, 9 
or other legal document requires that: 10 
1. All owners within the group become members of a homeowners' 11 
association; 12 
2. Owners, or the homeowners' association, hold or lease property or 13 
facilities for the benefit of all owners within the group; or 14 
3. Owners support by membership fees property or facilities for all 15 
owners within the group to use. 16 
(2) If a planned community, whether active or inactive, fails to maintain any 17 
infrastructure, common area, storm water detention or retention area, and other 18 
facilities that it is legally obligated to maintain, any city in which the planned 19 
community is located may petition the Circuit Court of the jurisdiction in which 20 
the city lies for the appointment of a receiver to manage the affairs of the 21 
homeowners' association. Any city seeking the appointment of a receiver shall be 22 
entitled to reimbursement of all costs, fees, and reasonable attorney's fees. 23 
(3) The receiver shall have all the authority granted to the governing authority of the 24 
planned community, including the ability to establish, levy, and collect fees, and 25 
to contract for the ongoing renovation, maintenance, and upkeep of the legally 26 
obligated infrastructure, common areas, storm water detention or retention areas, 27  UNOFFICIAL COPY  	23 RS BR 1741 
Page 2 of 2 
XXXX   2/21/2023 8:13 PM  	Jacketed 
and other facilities. The receiver shall be entitled to recover reasonable costs and 1 
fees for services as approved by the court. 2 
(4) If any city is required to expend funds to repair, renovate, maintain, or correct 3 
code violations of the infrastructure, common areas, storm water detention or 4 
retention areas, or other facilities for which the homeowners' association is 5 
legally responsible, the city may seek reimbursement for those costs from the 6 
receiver. 7