KRS § 198A.040 — KY Code / Title XVII / Chapter 198A / Section 198A.040
198A.040 Corporate powers
Status: in_force

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

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;

(11) 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;

(12) 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;

(13) 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;

(14) To promote research and development in scientific methods of constructing low

cost residential housing of high durability;

(15) To encourage community organizations to participate in residential housing

development;

(16) 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;

(17) 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;

(18) To sue and be sued in its own name and plead and be impleaded;

(19) To maintain an office in the city of Frankfort and at such other place or places as it

may determine;

(20) To adopt an official seal and alter the same at pleasure;

(21) 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;

(22) 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;

(23) 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.