KRS § 198A.080 — KY Code / Title XVII / Chapter 198A / Section 198A.080
198A.080 Housing development fund -- Use to include repair of existing housing
Status: in_force

198A.080 Housing development fund -- Use to include repair of existing housing.

(1) There is hereby created and established a loan fund to be known as the housing

development fund and to be administered by the corporation as a trust fund separate

and distinct from all other moneys, funds, or assets administered by the corporation.

(2) The housing development fund shall be comprised of and the corporation is hereby

authorized to receive and accept for the housing development fund the proceeds of

grants, contributions, appropriations, repayment of loans made from the fund, the

proceeds of fund notes, and any other moneys which may be made available to the

corporation for the purposes of the housing development fund from any other

source. The corporation is hereby authorized to receive and accept from any source

whatever any grants or contributions for the housing development fund. The

corporation is authorized to provide for the issuance, at one (1) time or from time to

time, of housing development fund notes for the purpose of providing funds for

such fund; provided, however, that not more than $5,000,000 fund notes or other

borrowings shall be outstanding at any one (1) time. The principal of and the

interest on any such fund notes shall be payable solely from the housing

development fund. The fund notes of each issue shall be dated, shall mature at such

time or times not exceeding ten (10) years from their date or dates, and may be

made redeemable before maturity, at the option of the corporation, at such price or

prices and under such terms and conditions as may be determined by the

corporation. The corporation shall determine the form and manner of execution of

the fund notes, including any interest coupons to be attached thereto, and shall fix

the denomination or denominations and the place or places of payment of principal

and interest, which may be any bank or trust company within or without the state or

any agent, including the lender. In case any officer whose signature or a facsimile of

whose signature shall appear on any fund notes or coupons attached thereto shall

cease to be such officer before the delivery thereof, such signature or such facsimile

shall nevertheless be valid and sufficient for all purposes the same as if he had

remained in office until such delivery. The fund notes may be issued in coupon or in

registered form, or both, as the corporation may determine, and provision may be

made for the registration of any coupon fund notes as to principal alone and also as

to both principal and interest, and for the reconversion into coupon fund notes of

any fund notes registered as to both principal and interest, and for the interchange of

registered and coupon fund notes. Any such fund notes shall bear interest at such

rate or rates as may be determined by the corporation and may be sold in such

manner, either at public or private sale, and for such price as the corporation shall

determine to be for the best interest of the corporation and best effectuate the

purposes of this chapter.

(3) The proceeds of any fund notes shall be used solely for the purposes for which

issued and shall be disbursed in such manner and under such restrictions, if any, as

the corporation may provide in the resolution authorizing the issuance of such fund

notes. The corporation may provide for the replacement of any fund notes which

shall become mutilated or shall be destroyed or lost.

(4) Fund notes may be issued under the provisions of this section without obtaining the

consent of any department, division, commission, board, body, bureau, or agency of

the state, and without any other proceedings or the happening of any conditions or

things other than those proceedings, conditions, or things which are specifically

required by this chapter and the provisions of the resolution authorizing the issuance

of such fund notes.

(5) The purpose of the housing development fund is to provide a source from which the

corporation may make loans and grants, and the corporation is authorized to make

loans and grants from the housing development fund, at such interest rate or rates

and such term or terms as may be determined by the corporation to be for the best

interest of the corporation and best effectuate the purpose of this chapter, and with

such security for repayment as the corporation deems reasonably necessary and

practicable, to:

(a) Defray development costs of sponsors, builders, and developers of residential

housing, or

(b) Provide to persons and families of lower and moderate income who are

applying for mortgages, either for purchase or rehabilitation of residential

housing the amounts required to make down payments, pay closing costs, or

make interest payments, or

(c) Make or participate in the making of construction loans which are not

federally insured to sponsors, builders, and developers of land development or

residential housing; provided, however, that such loans shall be made only

upon the determination by the corporation that construction loans are not

otherwise available, wholly or in part, from private lenders upon reasonably

equivalent terms and conditions.

(6) No temporary loans shall be made by the corporation from the housing development

fund except in accordance with a written agreement which shall include, without

limitation, the following terms and conditions:

(a) The proceeds of such loan shall be used only for the purpose for which such

loan shall have been made as provided in the agreement;

(b) Such loan shall be repaid in full as provided in the agreement;

(c) All repayments in connection with a loan to defray development costs shall be

made concurrent with receipt by the borrower of the proceeds of a

construction loan or mortgage loan, as the case may be, or at such other times

as the corporation deems reasonably necessary or practicable; and

(d) Such security for repayment shall be specified and shall be upon such terms

and conditions as the corporation deems reasonably necessary or practicable to

insure all repayments.

(7) No funds from the housing development fund shall be used to carry on propaganda

or otherwise attempt to influence legislation.

(8) (a) Notwithstanding other provisions of this section, the corporation may make

loans secured by a mortgage from the housing development fund to enable a

person sixty-two (62) years of age or older who owns the home in which he

resides, whose income combined with his spouse does not exceed six

thousand dollars ($6,000), and who meets any other reasonable standards

established by the corporation to make repairs to his home including but not

limited to siding, weatherstripping, roofing, gutters, electrical wiring,

plumbing, and installation of sewers.

(b) The maximum principal amount of such loans shall not exceed seven

thousand dollars ($7,000) and the maximum interest rate shall not exceed

three percent (3%). All loans shall be repayable over a period of thirty (30)

years. Upon the death of the borrowers prior to maturity, the unpaid balance

shall be paid in full by the person to whom the house has passed by devise or

descent.

(c) The corporation shall make loans under this section in an equal number in

each of the six (6) congressional districts.