UNOFFICIAL COPY 24 RS BR 1886
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AN ACT relating to affordable housing and making an appropriation therefor. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 198A IS CREATED TO 3
READ AS FOLLOWS: 4
(1) (a) There is established in the State Treasury a revolving account to be known 5
as the abandoned home pool fund. This fund shall be administered by the 6
corporation. The fund shall consist of moneys received from state 7
appropriations, gifts, grants, federal funds, and all repayment, interest, or 8
other return on the investment of fund dollars as required by this section. 9
(b) Notwithstanding KRS 45.229, any moneys remaining in the fund at the 10
close of the fiscal year shall not lapse but shall be carried forward into the 11
succeeding fiscal year to be used for the purposes set forth in this section. 12
(c) All repayment, interest, or other return on the investment of fund moneys 13
are required to be returned to the fund and used for eligible activities in 14
accordance with this section. 15
(2) Eligible activities that may receive funding under this section shall include the 16
purchase and improvement of vacant and abandoned homes in the 17
Commonwealth. 18
(3) Entities eligible to receive funding include: 19
(a) A unit of local government; and 20
(b) A local government housing authority. 21
(4) Residential housing units purchased, improved, or provided under this section 22
shall be deed-restricted for a minimum of twenty (20) years as follows: 23
(a) The corporation shall have right of first refusal to purchase any property 24
provided under this section; 25
(b) All units shall maintain the same demographic restrictions on residents as 26
may be required under this section for initial selection; and 27 UNOFFICIAL COPY 24 RS BR 1886
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(c) Amendments to deed-restrictions may be granted by the corporation on a 1
case-by-case basis. 2
(5) No more than seventy-five percent (75%) of a particular eligible activity shall be 3
financed under this section. The remaining twenty-five percent (25%) shall be 4
facilitated by the eligible entity. 5
(6) The purchase or improvement of vacant and abandoned homes shall be 6
prioritized in areas where fewer than twenty-five percent (25%) of existing homes 7
are currently vacant or abandoned. 8
(7) Once a vacant and abandoned home has been purchased and improved by an 9
eligible entity under this section, the entity shall: 10
(a) Calculate the entire cost of the purchase and improvement of the home; and 11
(b) Rent the location to an individual or family with an income equal to or less 12
than eighty percent (80%) of the area median income. Rent shall be due 13
monthly and the rent amount shall be the lesser of: 14
1. The entire cost of the purchase and improvement of the home divided 15
into one hundred eighty (180) equal payments that include an interest 16
rate no higher than three percent (3%); or 17
2. Thirty percent (30%) of the individual's or family's income. 18
(8) Once the individual or family has made one hundred eighty (180) monthly 19
payments, the entity shall transfer title to the property to the individual or family. 20
(9) Rent payments made to an eligible entity under this section shall be distributed 21
pro rata between the eligible entity and the fund, based upon the portion of the 22
activity cost initially financed by the eligible entity and the fund under subsection 23
(5) of this section. 24
(10) If an individual or family chooses to leave or is evicted from the home rented to 25
them under this section, they shall receive: 26
(a) Twenty percent (20%) of the money paid by the individual or family in rent 27 UNOFFICIAL COPY 24 RS BR 1886
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if they have made more than twelve (12) monthly payments; 1
(b) Thirty percent (30%) of the money paid by the individual or family in rent if 2
they have made more than thirty-six (36) monthly payments; 3
(c) Forty percent (40%) of the money paid by the individual or family in rent if 4
they have made more than sixty (60) monthly payments; 5
(d) Fifty percent (50%) of the money paid by the individual or family in rent if 6
they have made more than eighty-four (84) monthly payments; 7
(e) Sixty percent (60%) of the money paid by the individual or family in rent if 8
they have made more than one hundred eight (108) monthly payments; 9
(f) Seventy percent (70%) of the money paid by the individual or family in rent 10
if they have made more than one hundred thirty-two (132) monthly 11
payments; and 12
(g) Eighty percent (80%) of the money paid by the individual or family in rent if 13
they have made more than one hundred fifty-six (156) monthly payments. 14
(11) Payments made under subsection (10) of this section shall be based upon the 15
portion of the activity cost initially financed by the eligible entity and the fund 16
under subsection (5) of this section. 17
(12) In the event an individual or family who is renting a home under to this section is 18
unable to make a monthly payment for more than ninety (90) days, the eligible 19
entity shall institute an eviction action in compliance with applicable state and 20
local laws and ordinances. 21
(13) The corporation shall: 22
(a) Issue a public notice to eligible entities of the availability of moneys from 23
the fund at least twice each calendar year and provide a reasonable 24
opportunity for the filing of applications; 25
(b) Approve or deny properly submitted and completed applications within 26
ninety (90) days of their receipt; 27 UNOFFICIAL COPY 24 RS BR 1886
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(c) Approve as many applications as will effectively use available moneys in the 1
fund; and 2
(d) Approve or deny applications by ranking the applications competitively 3
using criteria established by the corporation through promulgation of an 4
administrative regulation in accordance with KRS Chapter 13A. 5
(14) A person or entity shall not discriminate in the sale or rental, or otherwise 6
making available or denying, a housing unit funded under this section to any 7
buyer or renter because of race, religion, sex, familial status, disability, or 8
national origin. 9