Kentucky Revised Statutes Title IX. Counties, Cities, and Other Local Units § 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: