{"data":{"id":"us-ky/krs-198a.040","jurisdiction":"us-ky","citation":"KRS 198A.040","heading":"Corporate powers.","body":"The corporation shall have all of the powers necessary or convenient to carry out and\neffectuate the purposes and provisions of this chapter, including but without limiting the\ngenerality of the foregoing the power:\n(1) To make or participate in the making  of insured construction loans to sponsors of\nland development or residential housing; provided, however, that such loans shall\nbe made only upon the determination by the corporation that construction loans\nhave been refused in writing, wholly or in part, from private lenders in the\nCommonwealth of Kentucky upon reasonably equivalent terms and conditions;\n(2) To make or participate in the making of insured mortgage loans to sponsors of\nresidential housing; provided, however, that such loans shall be made on ly upon the\ndetermination by the corporation that mortgage loans have been refused in writing,\nwholly or in part, from private lenders in the Commonwealth of Kentucky upon\nreasonably equivalent terms and conditions;\n(3) To purchase or participate in the pu rchase of insured mortgage loans made to\nsponsors of residential housing or to persons of lower and moderate income for\nresidential housing; provided, however, that any such purchase shall be made only\nupon the determination by the corporation that mortgag e loans have been refused in\nwriting, wholly or in part, from private lenders in the Commonwealth of Kentucky\nupon reasonably equivalent terms and conditions;\n(4) To make temporary loans from the housing development fund;\n(5) To collect and pay reasonable fees and charges in connection with making,\npurchasing and servicing its loans, notes, bonds, commitments, and other evidences\nof indebtedness;\n(6) To acquire real property, or any interest therein, by purchase, foreclosure, lease,\nsublease, or otherwise; to own, manage, operate, hold, clear, improve, and\nrehabilitate such real property; and to sell, assign, exchange, transfer, convey, lease,\nmortgage, or otherwise dispose of or encumber such real property where such use of\nreal property is necessary or app ropriate to the purpose of the Kentucky Housing\nCorporation;\n(7) To sell, at public or private sale, all or any part of any mortgage or other instrument\nor document securing a construction, land development, mortgage, or temporary\nloan of any type permitted by this chapter;\n(8) To procure insurance against any loss in connection with its operations in such\namounts, and from such insurers, as it may deem necessary or desirable;\n(9) To consent, whenever it deems it necessary or desirable in the fulfillment of  its\ncorporate purposes, to the modification of the rate of interest, time of payment of\nany installment of principal or interest, or any other terms of any mortgage loan,\nmortgage loan commitment, construction loan, temporary loan, contract, or\nagreement of any kind to which the corporation is a party;\n(10) To acquire, establish, operate, lease, and sublease residential housing for persons\nand families of lower and moderate income and to enter into agreements or other\ntransactions with any federal, state, or local governmental agency for the purpose of\nproviding adequate living quarters for such persons and families in cities and\ncounties where a need has been found for such housing and where no local housing\nauthorities or other organizations exist to fill such need;\n(11) To include in any borrowing such amounts as may be deemed necessary by the\ncorporation to pay financing charges, interest on the obligations for a period not\nexceeding two (2) years from their date, consultant, advisory, and legal fees and\nsuch other expenses as are necessary or incident to such borrowing;\n(12) To make and publish rules and regulations respecting its lending programs and such\nother rules and regulations as are necessary to effectuate its corporate purposes;\n(13) To provide technical and advisory services to sponsors of residential housing and to\nresidents and potential residents thereof, including but not limited to housing\nselection and purchase procedures, family budgeting, property use and maintenance,\nhousehold management, and utilization of community resources;\n(14) To promote research and development in scientific methods of constructing low\ncost residential housing of high durability;\n(15) To encourage community organizations to participate in residential housing\ndevelopment;\n(16) To make, execute, and effectuate any and all agreements or other documents with\nany governmental agency or any person, corporation, association, partnership, or\nother organization or entity, necessary to accomplish the purposes of this chapter;\n(17) To accept gifts, devises, bequests, grants, loans, appropriations, revenue sharing,\nother financing and assistance, and any other aid from any source whatsoever and to\nagree to, and to comply with, conditions attached thereto;\n(18) To sue and be sued in its own name and plead and be impleaded;\n(19) To maintain an office in the city of Frankfort and at such other place or places as it\nmay determine;\n(20) To adopt an official seal and alter the same at pleasure;\n(21) To adopt bylaws for the regulation of its affairs and the conduct of its business and\nto prescribe rules, regulations, and policies in connection with the performance of\nits functions and duties;\n(22) To employ fiscal consultants, engineers, attorneys, real estate counselors,\nappraisers, and such other consultants and employees as may be required in the\njudgment of the corporation and to fix and pay their compensation from funds\navailable to the corporation there for, provided that any personal service contracts\nentered into shall be subject to review by the Government Contract Review\nCommittee of the Legislative Research Commission;\n(23) To invest any funds held in reserve or in sinking fund accounts or any moneys  not\nrequired for immediate disbursement in obligations guaranteed by the\nCommonwealth, the United States, or their agencies or instrumentalities; provided,\nhowever, that the return on such investments shall not violate any rulings of the\nInternal Revenue Service regarding the investment of the proceeds of any federally\ntax exempt bond issue;\n(24) To make or participate in the making of rehabilitation loans to the sponsors or\nowners of residential housing; provided, however, that any such rehabilitation loa n\nshall be made only upon the determination by the corporation that the rehabilitation\nloan was not otherwise available wholly or in part from private lenders upon\nreasonably equivalent terms and conditions;\n(25) To insure or reinsure construction, mortgag e, and rehabilitation loans on residential\nhousing; provided, however, that any such insurance, reinsurance, or waiver shall be\nmade only upon the determination by the corporation:\n(a) That such insurance or reinsurance is not otherwise available wholly or in part\nfrom private insurers upon reasonably equivalent terms and conditions; and\n(b) That such loan is a reasonably sound business investment; and provided\nfurther that insurance may be waived only where the corporation finds that the\namount of the loan  does not exceed eighty -five percent (85%) of the\ndevelopment costs, or eighty -five percent (85%) of the value of the property\nsecured by the mortgage as determined by at least two (2) appraisers who are\nindependent of the sponsors, builders, and developers;\n(26) To make grants from appropriated funds, agency and trust funds, and any other\nfunds from any source available to the corporation, to sponsors, municipalities,\nlocal housing authorities, and to owners of residential housing for the development,\nconstruction, rehabilitation, or maintenance of residential housing and such\nfacilities related thereto as corporation shall deem important for a proper living\nenvironment, all on such terms and conditions as may be deemed appropriate by the\ncorporation;\n(27) To make periodic grants to reduce principal and interest payments on mortgages or\nrentals payable by persons and families of lower and moderate income;\n(28) (a) To make a grant to reduce principal and interest payments on a mortgage or a\nrental payable by a regular member of the United States Armed Forces who\nnames Kentucky as home of record for military purposes, during that\nmember's deployment on active duty outside the United States, or payable by a\nmember of a state National Guard or a Reserve component  who names\nKentucky as home of record for military purposes, during that member's\nfederal active duty. To qualify for a grant, a member shall meet reasonable\nstandards established by the corporation, including having family income\nequal to or less than two  hundred percent (200%) of the state or area median\nincome; and\n(b) To provide a member identified in paragraph (a) of this subsection and that\nmember's Kentucky resident spouse with the educational, technical, and\nombudsman services that are necessary to maintain a mortgage during that\nmember's federal active duty;\n(29) To establish a program to assist persons and families of lower and moderate income\nto help defray the cost of assessment and decontamination services required under\nKRS 224.1 -410. To qualif y for the program, a person shall meet reasonable\nstandards established by the corporation. A person shall not be eligible for the\nprogram if convicted of a felony or found by the corporation to be responsible for\ncontamination of the relevant property thr ough methamphetamine production. The\ncorporation shall report on the establishment and use of this program to the\nLegislative Research Commission by October 1 of each year;\n(30) To establish single -family mortgage -lending programs outside of the mortgage\nrevenue bond funds. To qualify for these programs, a person shall meet reasonable\nstandards established by the corporation and shall have a combined family income\nthat is equal to or less than one hundred seventy -five percent (175%) of the greater\nof the state or area median income; and\n(31) To perform the following activities for lenders, holders, housing finance agencies,\nor other third-party entities, who are located within or without the boundaries of the\nCommonwealth:\n(a) Service mortgage loans;\n(b) Administer federal or state program contracts; and\n(c) Perform other housing activities to facilitate the delivery or preservation of\naffordable housing.\nThe Kentucky Housing Corporation shall be exempt from the regulations of the\nDepartment of Insurance and the laws of the Commonwealth relating thereto.","path":["KRS Chapter 198A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43218","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:50Z","sha256":"c06ba36d17139f00fb189ae0b00514d46b1cf1b9fa61de9166375b979ede829a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-198a.035","next":"us-ky/krs-198a.050"},"notice":"GroundRules: Original legal text. Not legal advice."}