Kentucky Revised Statutes Title XVII. Economic Security and Public Welfare § 198A.746.Uses of fund; organizations eligible for funding; discrimination prohibited; annual report

(1)(a) The corporation shall use moneys from the rural housing trust fund created in KRS 198A.744 to make, or participate in the making of loans or grants for the eligible activities described in this section.

(b) Any loan or grant shall be made upon the determination by the corporation that the loan or grant shall be used to create new sources of funding, or to supplement existing sources of funding for eligible activities, and shall not be used to replace existing or available moneys.

(a) Acquisition of housing units for the purpose of preservation of or conversion to rural housing units;

(b) New construction or rehabilitation of rural housing units;

(c) Matching funds for technical assistance directly related to providing rural housing for individuals under KRS 198A.740 to 198A.750; and

(d) Administrative costs for rural housing assistance programs or organizations eligible for funding under subsection (3) of this section, if the loans or grants will substantially increase the recipient's access to housing funds other than those available under KRS 198A.740 to 198A.750.

(a) Local governments;

(b) Local government housing authorities;

(c) Nonprofit organizations;

(d) Regional or statewide housing assistance organizations; and

(e) Business organizations that undertake the new construction or rehabilitation of rural housing units for moderate income individuals.

(a) Rental housing shall be deed restricted for a minimum of thirty (30) years. Investment from the rural housing trust fund into a specific housing type shall revert to like housing for moderate income individuals; and

(b) Single-family units or units for sale shall be deed restricted for a minimum of ten (10) years.

The corporation may grant amendments to deed restrictions on a case-by-case basis.

(7)(a) Moneys in the trust fund shall be contributed permanently to a rural project, except when serving as a match for federal housing programs that require all funds to be contributed permanently to the federal program.

(b) All repayment, interest, or other return on the investment of trust fund moneys are required to be returned to the trust fund and used for eligible trust fund activities in accordance with KRS 198A.740 to 198A.750.

(c) Trust fund moneys invested in a rural project with federal dollars requiring a permanent contribution shall be recaptured to the federal program account.