KRS 80.240: Application of receipts of city housing authority.

(1) The rents and other revenues of a city housing authority shall be applied: first to

pay the interest and principal of the bonds issued under KRS 80.230 as payments

fall due; next, to pay the costs of maintaining, repairing, improving and operating its

developments; next, to create such reserve for depreciation as the housing authority

deems necessary and proper. The excess, if any, of the rents received during any

annual period may be applied to the prepayment of the obligations of the housing

authority or may be placed in a special fund for the purpose of paying the principal

and interest of the obligations as they become due.

(2) Receipts of revenues of a city housing authority in excess of the amounts required to

pay:

(a) The interest and principal on bonds issued under this chapter as payments fall

due;

(b) The cost of maintaining, repairing, improving and operating its projects; and

(c) Reserves for depreciation as the housing authority deems necessary and

proper;

may be applied to the engagement by the authority in activities for the maintenance

and enhancement of adequate housing stock for low -income and moderate -income

persons, as defined in this chapter.