{"data":{"id":"us-ky/krs-42.350","jurisdiction":"us-ky","citation":"KRS 42.350","heading":"Area development fund for capital projects.","body":"(1) The area development fund in the State Treasury shall be administered by the\nDepartment for Local Government. The fund may receive state appropriations,\ngifts, grants, and federal funds and shall be disbursed by the State Treasurer upon\nthe warrant of the commissioner of the Department for Local Government. Any\nunallotted or unencumbered balances in the fund shall be invested in United States\ngovernment securities maturing not later than one (1) year from the date of\ninvestment, and the income from the inve stments shall be prorated for expenditure\nfor capital projects in area development districts according to the formula provided\nin KRS 42.370.\n(2) Money in the fund shall be used only for capital projects which contribute to\ncommunity or industrial developm ent in the Commonwealth, KRS 48.300 and\n48.500 notwithstanding. Capital projects eligible for financing out of the fund\ninclude and shall be limited to:\n(a) The construction, reconstruction, renovation, and maintenance of buildings\nand other improvements to real estate;\n(b) The acquisition of real property and interests in real property;\n(c) The purchase of major items of equipment;\n(d) Industrial site development projects, including land reclamation, clearing,\ngrading, draining, landscaping, and the construction of walkways and fences;\n(e) The extension and installation of water, gas, sewer, and electrical utilities\nlines to public facilities and industrial sites;\n(f) The provision of solid waste management or disposal systems bringing\ncounties into complia nce with state or federal law. All expenses incurred in\nconnection with or incidental to the construction or acquisition of a capital\nproject under this section, including architectural, engineering, legal, and\nother expenses required for the projects may be paid out of the fund. Money\nin the fund may be used to retire a mortgage or other indebtedness\nencumbering an eligible capital project made within the preceding five (5)\ncalendar years to secure the repayment of moneys loaned or advanced to\nfinance the construction or acquisition of the project and may be used in\nmatch or in combination with funds obtained from other sources for an\neligible capital project. No money shall be expended out of the fund, directly\nor indirectly, to pay or reimburse the cost o f any feasibility study, master plan\nfor any capital improvement development or redevelopment project, the\npurchase of consumable supplies or any administrative salary, or other\noperating or capital expense of any area development district or for the\nacquisition, construction, reconstruction, renovation, or maintenance of any\nbuilding or property of schools, state institutions of higher learning, or any\nroad, street, bridge, or highway.\n(3) The board of directors of each area development district shall dete rmine from\namong the capital project proposals submitted by eligible beneficiary agencies, the\ncapital projects to be proposed to be constructed or acquired out of the fund. The\narea development districts shall submit to the commissioner of the Department for\nLocal Government the capital projects selected for construction or acquisition\nwithin the districts. Each project proposal shall include: a detailed description of the\nproject; a statement of the public benefit to be derived from the project; if availa ble,\ndesign plans and specifications for the project; an itemized estimate of the cost of\nthe project; a statement of the sources and amounts of funds available from any\nother source for the construction or acquisition of the project; and other information\nrelating to the proposed capital project as the Department for Local Government\nmay require.","path":["KRS Chapter 42"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22022","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:02Z","sha256":"bedfd8a36c66752c39da18b0997d946ad011943f4e7f30df98d5cf19058cfd1b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-42.345","next":"us-ky/krs-42.355"},"notice":"GroundRules: Original legal text. Not legal advice."}