KRS 381.803: Definitions for section -- Failure to maintain infrastructure or common

area -- Petition by city to appoint receiver -- Authority of receiver -- City may

seek reimbursement for costs to repair or maintain infrastructure or common

area from receiver.

(1) As used in this section:

(a) "City" means any city, consolidated local government, urban -county

government, or unified local government; and

(b) "Planned community" means a group of residential dwellings, excluding

condominiums, composed of ind ividual lots for which a deed, common plan,

or other legal document requires that:

1. All owners within the group become members of a homeowners'

association;

2. Owners, or the homeowners' association, hold or lease property or

facilities for the benefit of all owners within the group; or

3. Owners support by membership fees property or facilities for all owners

within the group to use.

(2) If a planned community, whether active or inactive, fails to maintain any

infrastructure, common area, storm water det ention or retention area, or other

facility that it is legally obligated to maintain, any city in which the planned

community is located may petition the Circuit Court of the jurisdiction in which the

city lies for the appointment of a receiver to manage t he affairs of the homeowners'

association. The city shall serve notice of the filing of the petition on the governing

authority of the planned community and each owner within the planned community.

If the petition by a city for the appointment of a receive r is successful, the city

seeking the appointment of a receiver shall be entitled to reimbursement of all costs,

fees, and reasonable attorney's fees, as approved by the court.

(3) The receiver appointed pursuant to subsection (2) of this section shall hav e all the

authority granted to the governing authority of the planned community by its

governing documents, including the ability to impose and collect fees as authorized

by, and in conformance with, its governing documents, and to contract for the

ongoing renovation, maintenance, and upkeep of the legally obligated

infrastructure, common areas, storm water detention or retention areas, or other

facilities. The receiver shall be entitled to recover reasonable costs and fees for

services as approved by the court.

(4) If any city is required to expend funds to repair, renovate, maintain, or correct code

violations of the infrastructure, common areas, storm water detention or retention

areas, or other facilities for which the homeowners' association is legally

responsible, the city may seek reimbursement for those costs from the receiver.