{"data":{"id":"us-ky/krs-99.727","jurisdiction":"us-ky","citation":"KRS 99.727","heading":"Consolidated local government may establish tax delinquency diversion","body":"program for blighted property -- Procedures -- Purchases by diverted tax\ndelinquency purchasers -- Administrative regulations.\n(1) As used in this section:\n(a) \"Census blo ck\" means an area within the jurisdiction of a local government\nidentified by the United States Census Bureau using a unique four (4) digit\nnumber;\n(b) \"Certificate of delinquency\" has the same meaning as in KRS 134.010;\n(c) \"Diverted tax delinquency purch aser\" means a third -party purchaser who is\nregistered under subsection (8) of this section to purchase a certificate of\ndelinquency related to property placed in a tax delinquency diversion\nprogram;\n(d) \"Individual parcel\" means a parcel of property not lo cated in a priority project\narea that has been designated by the commission or alternative government\nentity as blighted, and for which the area in which the property is located:\n1. Exhibits conditions that are favorable for development;\n2. Has the resources needed for urban redevelopment; and\n3. Has characteristics that can be promoted as part of a campaign to retain\nexisting residents and attract new residents to the area;\n(e) \"Priority project area\" means a specific group of properties identified by\ncensus block, which are located in an area where:\n1. There are a significant number of blighted properties;\n2. Existing conditions are favorable for development;\n3. Existing resources needed for urban redevelopment are present; and\n4. Existing characteristics of the area can be promoted as part of a\ncampaign to retain existing residents and attract new residents to the\narea;\n(f) \"Third-party purchaser\" has the same meaning as in KRS 134.010; and\n(g) \"Vacant and abandoned property\" means a residential property that has been\ncontinuously vacant for at least one (1) year with repeated housing, building,\nor nuisance code violations.\n(2) The legislative body of a consolidated local governm ent may, by ordinance,\nestablish a tax delinquency diversion program for blighted property.\n(3) The ordinance establishing the program shall designate the commission or an\nalternative government entity as the body responsible for identifying and certifying\npriority project areas and individual parcels of property for inclusion in the tax\ndelinquency diversion program.\n(4) The commission or alternative government entity shall submit recommended\npriority project areas and qualifying individual parcels of prop erty to the governing\nbody of the consolidated local government for consideration.\n(5) Except as provided under subsection (7) of this section, certificates of delinquency\nrelated to property approved by the governing body of the consolidated local\ngovernment for inclusion in the tax delinquency diversion program shall not be\navailable for purchase for a period of up to five (5) years following the year in\nwhich the property is placed in the tax delinquency diversion program.\n(6) The commission or alternati ve government entity shall provide to the county\nattorney a list of all properties included in the tax delinquency diversion plan, and\nthe county attorney shall place the identified properties on the protected list\nrequired under KRS 134.504(10).\n(7) (a) A diverted tax delinquency purchaser may purchase a certificate of\ndelinquency related to vacant and abandoned property which has been placed\nin a tax delinquency diversion program. After ninety (90) days from the\ncreation of the certificate of delinquency,  a diverted tax delinquency\npurchaser who is interested in purchasing the certificate of delinquency for\nvacant and abandoned property shall send a notification to the county attorney\nrequesting that the certificate of delinquency be made available for pur chase.\nWithin thirty (30) days of receipt of the notification, the county attorney shall:\n1. Verify with the commission or alternative government entity as\ndesignated under subsection (3) of this section that the property in\nquestion is vacant and abandoned;\n2. Remove the certificate of delinquency from the protected list required\nby KRS 134.504(10); and\n3. Notify the county clerk and all other diverted tax delinquency\npurchasers that the certificate of delinquency shall be available for\npurchase.\n(b) Once the requirements in paragraph (a) of this subsection are met, the county\nclerk shall conduct a sale of the certificate of delinquency to diverted tax\ndelinquency purchasers. The sale shall be scheduled within ninety (90) days\nof the date of the notification sent to the county clerk in paragraph (a)3. of this\nsubsection.\n(8) (a) To qualify as a diverted tax delinquency purchaser, the third -party purchaser\nshall register with the Department of Revenue under this subsection and be:\n1. A political subdivision o f the Commonwealth created by the governing\nbody of a consolidated local government or operating within the\nboundaries of a consolidated local government;\n2. A state or local agency, board, or commission created by the governing\nbody of a consolidated loca l government or operating within the\nboundaries of a consolidated local government;\n3. A quasi -governmental entity created by the governing body of a\nconsolidated local government or operating within the boundaries of a\nconsolidated local government; or\n4. A nonprofit organization that:\na. Is registered with the Kentucky Secretary of State;\nb. Has been registered with the Kentucky Secretary of State for a\nminimum of five (5) years;\nc. Has a principal place of business in Kentucky;\nd. Includes affordable housing in its stated purpose; and\ne. Is a tax -exempt organization under Section 501(c)(3) of the\nInternal Revenue Code.\n(b) The Department of Revenue shall:\n1. Decline to issue a certificate of registration to any applicant who does\nnot meet the requirements established under paragraph (a) of this\nsubsection; and\n2. Maintain a list of the applicants who are issued a certificate of\nregistration. The list shall include the contact information and email\naddress of each applicant.\n(9) A diverted tax delinquency purchaser shall be subject to the same requirements as a\nthird-party purchaser under KRS Chapter 134.\n(10) The Department of Revenue shall promulgate administrative regulations to\nestablish a process for the purchase and sale of certificates of delinquency related to\nproperty placed in a tax delinquency diversion program.","path":["KRS Chapter 99"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56171","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:02Z","sha256":"1c46bd0595c660a2bec578e79e0b08a6980678fb816455e12acdbca2b6261206","source_id":"us-ky","stale":false,"prev":"us-ky/krs-99.725","next":"us-ky/krs-99.730"},"notice":"GroundRules: Original legal text. Not legal advice."}