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AN ACT relating to programs to encourage the rehabilitation of property. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Local government" means a city, county, consolidated local government, 6
urban-county government, charter county government , or unified local 7
government; and 8
(b) "Qualifying donee" means an entity that has received a donation of 9
property from a donor and that is a: 10
1. Local government; 11
2. Land bank established pursuant to KRS 65.350 to 65.375; 12
3. Nonprofit community land trust; or 13
4. Nonprofit organization that: 14
a. Is registered with the Kentucky Secretary of State; 15
b. Has been registered with the Kentucky Secretary of State for a 16
minimum of five (5) years; 17
c. Has its principal place of business in Kentucky; 18
d. Includes affordable housing in its stated purpose; and 19
e. Is a tax -exempt organization under Section 501(c)(3) of the 20
Internal Revenue Code. 21
(2) (a) Each local government shall establ ish a program to allow property owners 22
that donate property to a qualifying donee to have fines, fees, and interest 23
associated with that property waived. Fines, fees, and interest eligible for 24
waiver shall include: 25
1. Recording fees under KRS 64.012; 26
2. Any fines, fees, or interest incurred due to an ordinance violation 27
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associated with the property; and 1
3. Notwithstanding any provision of law to the contrary, any fines, fees 2
or interest that have been assessed as a result of delinquent property 3
taxes associated with the property prior to the creation of a certificate 4
of delinquency. 5
(b) To qualify for a program under this section, no later than thirty (30) days 6
after making a donation to a qualifying donee, the donor shall submit an 7
affidavit to any local go vernment that the donor owes outstanding fines, 8
fees, or interest associated with the property. The affidavit shall contain: 9
1. The name and mailing address of the donor; 10
2. The address of the property that was donated; 11
3. The date the donation was made; 12
4. The identity of the qualifying donee; and 13
5. A list of all fines and fees owed to the local government associated 14
with the donated property. 15
The donor shall attach documentation to the affidavit sufficient to allow the 16
local government to verify that th e property was donated to a qualifying 17
donee. 18
(c) A local government that has received an affidavit under paragraph (b) of 19
this subsection and has verified that the property has been donated to a 20
qualifying donee, shall: 21
1. Waive the fines, fees, and inter est associated with the property as set 22
out in paragraph (a) of this subsection; and 23
2. Release any lien held by the local government in connection with a 24
fine or fee, other than a lien for delinquent property taxes. 25
Section 2. KRS 65.355 is amended to read as follows: 26
(1) Any local government, the county or independent school district within the county, 27
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and the Commonwealth of Kentucky may enter into an interlocal cooperation 1
agreement pursuant to KRS 65.210 to 65.300 f or the purpose of establishing a land 2
bank authority pursuant to KRS 65.350 to 65.375. 3
(2) The authority shall be a public body corporate and politic with the power to sue and 4
be sued, issue deeds in its name, and any other powers necessary and convenient to 5
carry out these powers or that may be granted to the authority by the parties. 6
(3) The a uthority shall be established to acquire the tax delinquent properties of the 7
parties, properties that have become blighted or deteriorated as defined by KRS 8
99.705 and properties that have local government liens filed against them, to 9
facilitate the publi c purpose of returning property that is in a non -revenue 10
generating, non -tax producing status to effective utilization, including but not 11
limited to providing housing, new industry, and jobs for the citizens of the county. 12
The authority shall have the powe rs provided in KRS 65.370 and 65.375 and in the 13
interlocal cooperation agreement. 14
(4) Any local government that creates a land bank authority shall establish a 15
program for granting property assessment or reassessment moratoriums pursuant 16
to KRS 99.595 to 99.605. Any residential building sold or otherwise disposed of as 17
part of a land bank program shall be eligible for a property assessment 18
moratorium certificate if such building is repaired, restored, rehabilitated or 19
stabilized in accordance with the provisions of KRS 99.595 to 99.605. 20