AN ACT relating to affordable housing.

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