KRS 80.020: Housing developments and authorities -- Purposes -- Powers.

(1) Cities of all classes may acquire, establish, and operate, within their limits, housing,

under the provisions of this chapter, for the purpose of providing adequate and

sanitary living quarters for individuals or families, such housing to be for

individuals or families with low or moderate income or for individuals or families

having income in excess of low or moderate if such housing is acquired, established

and operated in conjunction with, and located within one (1) mile of housing for

individuals or families with low or moderate income. They may create city housing

authorities, and they and the authorities created by them shall have all powers

necessary and appropriate to engage in such housing and slum clearance projects,

including, without limitation, all power specified in KRS 80.500 and the power in

connection with the use of federal funds, with the approval of the federal funding

agency, if applicable, to mortgage, encumber, pledge, assign, or otherwise grant or

consent to a lien or security interest in, any real or personal property, or any interest

therein, owned or held by the authority, to provide security for:

(a) The repayment of borrowed funds;

(b) Any guarantee of this repayment or any other performance of the authority or;

(c) Any payment or guarantee of performance of any subsidiary or affiliate of the

authority, or of any business arrangement into which the authority shall have

entered in furtherance of the purposes of this chapter.

The conditions of any mortgage or other instrument grantin g or consenting to a

security interest in property of a local housing authority may include any provisions

that are customary in mortgages and other security interests used in commercial

transactions.

(2) Housing authorities may engage in the maintenance a nd enhancement of adequate

housing stock for low -income and moderate -income persons as set forth in this

chapter.

(3) Housing authorities may loan moneys on the terms they deem advisable, subject to

the approval of the United States Department of Housing a nd Urban Development,

if that agency's funds are used, to other governments or their agencies or to other

owners of housing or of housing to be constructed or reconstructed, if the authority

determines that the loans will result in the creation of housing.

(4) Housing authorities may lease or convey real property to other governments or

agencies thereof or to nongovernmental owners or developers of housing for a

consideration less than fair market value, if the housing authority determines that

the action facilitates housing.