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198A.040 Corporate powers.

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198A.040 Corporate powers. The corporation shall have all of the powers necessary or convenient to carry out and <br>effectuate the purposes and provisions of this chapter, including but without limiting the <br>generality of the foregoing the power: <br>(1) To make or participate in the making of insured construction loans to sponsors of land development or residential housing; provided, however, that such loans shall <br>be made only upon the determination by the corporation that construction loans <br>have been refused in writing, wholly or in part, from private lenders in the <br>Commonwealth of Kentucky upon reasonably equivalent terms and conditions; (2) To make or participate in the making of insured mortgage loans to sponsors of residential housing; provided, however, that such loans shall be made only upon the <br>determination by the corporation that mortgage loans have been refused in writing, <br>wholly or in part, from private lenders in the Commonwealth of Kentucky upon <br>reasonably equivalent terms and conditions; (3) To purchase or participate in the purchase of insured mortgage loans made to sponsors of residential housing or to persons of lower and moderate income for <br>residential housing; provided, however, that any such purchase shall be made only <br>upon the determination by the corporation that mortgage loans have been refused in <br>writing, wholly or in part, from private lenders in the Commonwealth of Kentucky <br>upon reasonably equivalent terms and conditions; (4) To make temporary loans from the housing development fund; <br>(5) To collect and pay reasonable fees and charges in connection with making, purchasing and servicing its loans, notes, bonds, commitments, and other evidences <br>of indebtedness; (6) To acquire real property, or any interest therein, by purchase, foreclosure, lease, sublease, or otherwise; to own, manage, operate, hold, clear, improve, and <br>rehabilitate such real property; and to sell, assign, exchange, transfer, convey, lease, <br>mortgage, or otherwise dispose of or encumber such real property where such use of <br>real property is necessary or appropriate to the purpose of the Kentucky Housing <br>Corporation; (7) To sell, at public or private sale, all or any part of any mortgage or other instrument or document securing a construction, land development, mortgage, or temporary <br>loan of any type permitted by this chapter; (8) To procure insurance against any loss in connection with its operations in such amounts, and from such insurers, as it may deem necessary or desirable; (9) To consent, whenever it deems it necessary or desirable in the fulfillment of its corporate purposes, to the modification of the rate of interest, time of payment of <br>any installment of principal or interest, or any other terms of any mortgage loan, <br>mortgage loan commitment, construction loan, temporary loan, contract, or <br>agreement of any kind to which the corporation is a party; (10) To acquire, establish, operate, lease, and sublease residential housing for persons and families of lower and moderate income and to enter into agreements or other <br>transactions with any federal, state, or local governmental agency for the purpose of providing adequate living quarters for such persons and families in cities and <br>counties where a need has been found for such housing and where no local housing <br>authorities or other organizations exist to fill such need; (11) To include in any borrowing such amounts as may be deemed necessary by the corporation to pay financing charges, interest on the obligations for a period not <br>exceeding two (2) years from their date, consultant, advisory, and legal fees and <br>such other expenses as are necessary or incident to such borrowing; (12) To make and publish rules and regulations respecting its lending programs and such other rules and regulations as are necessary to effectuate its corporate purposes; (13) To provide technical and advisory services to sponsors of residential housing and to residents and potential residents thereof, including but not limited to housing <br>selection and purchase procedures, family budgeting, property use and maintenance, <br>household management, and utilization of community resources; (14) To promote research and development in scientific methods of constructing low cost residential housing of high durability; (15) To encourage community organizations to participate in residential housing development; (16) To make, execute, and effectuate any and all agreements or other documents with any governmental agency or any person, corporation, association, partnership, or <br>other organization or entity, necessary to accomplish the purposes of this chapter; (17) To accept gifts, devises, bequests, grants, loans, appropriations, revenue sharing, other financing and assistance, and any other aid from any source whatsoever and to <br>agree to, and to comply with, conditions attached thereto; (18) To sue and be sued in its own name and plead and be impleaded; <br>(19) To maintain an office in the city of Frankfort and at such other place or places as it may determine; (20) To adopt an official seal and alter the same at pleasure; <br>(21) To adopt bylaws for the regulation of its affairs and the conduct of its business and to prescribe rules, regulations, and policies in connection with the performance of <br>its functions and duties; (22) To employ fiscal consultants, engineers, attorneys, real estate counselors, appraisers, and such other consultants and employees as may be required in the <br>judgment of the corporation and to fix and pay their compensation from funds <br>available to the corporation therefor, provided that any personal service contracts <br>entered into shall be subject to review by the Government Contract Review <br>Committee of the Legislative Research Commission; (23) To invest any funds held in reserve or in sinking fund accounts or any moneys not required for immediate disbursement in obligations guaranteed by the <br>Commonwealth, the United States, or their agencies or instrumentalities; provided, <br>however, that the return on such investments shall not violate any rulings of the <br>Internal Revenue Service regarding the investment of the proceeds of any federally <br>tax exempt bond issue; (24) To make or participate in the making of rehabilitation loans to the sponsors or owners of residential housing; provided, however, that any such rehabilitation loan <br>shall be made only upon the determination by the corporation that the rehabilitation <br>loan was not otherwise available wholly or in part from private lenders upon <br>reasonably equivalent terms and conditions; (25) To insure or reinsure construction, mortgage, and rehabilitation loans on residential housing; provided, however, that any such insurance, reinsurance, or waiver shall be <br>made only upon the determination by the corporation: <br>(a) That such insurance or reinsurance is not otherwise available wholly or in part from private insurers upon reasonably equivalent terms and conditions; and (b) That such loan is a reasonably sound business investment; and provided further that insurance may be waived only where the corporation finds that the <br>amount of the loan does not exceed eighty-five percent (85%) of the <br>development costs, or eighty-five percent (85%) of the value of the property <br>secured by the mortgage as determined by at least two (2) appraisers who are <br>independent of the sponsors, builders, and developers; (26) To make grants from appropriated funds, agency and trust funds, and any other funds from any source available to the corporation, to sponsors, municipalities, <br>local housing authorities, and to owners of residential housing for the development, <br>construction, rehabilitation, or maintenance of residential housing and such <br>facilities related thereto as corporation shall deem important for a proper living <br>environment, all on such terms and conditions as may be deemed appropriate by the <br>corporation; (27) To make periodic grants to reduce principal and interest payments on mortgages or rentals payable by persons and families of lower and moderate income; (28) (a) To make a grant to reduce principal and interest payments on a mortgage or a rental payable by a regular member of the United States Armed Forces who <br>names Kentucky as home of record for military purposes, during that <br>member's deployment on active duty outside the United States, or payable by a <br>member of a state National Guard or a Reserve component who names <br>Kentucky as home of record for military purposes, during that member's <br>federal active duty. To qualify for a grant, a member shall meet reasonable <br>standards established by the corporation, including having family income <br>equal to or less than two hundred percent (200%) of the state or area median <br>income; and (b) To provide a member identified in paragraph (a) of this subsection and that member's Kentucky resident spouse with the educational, technical, and <br>ombudsman services that are necessary to maintain a mortgage during that <br>member's federal active duty; and (29) To establish a program to assist persons and families of lower and moderate income to help defray the cost of assessment and decontamination services required under <br>KRS 224.01-410. To qualify for the program, a person shall meet reasonable <br>standards established by the corporation. A person shall not be eligible for the <br>program if convicted of a felony or found by the corporation to be responsible for contamination of the relevant property through methamphetamine production. The <br>corporation shall report on the establishment and use of this program to the <br>Legislative Research Commission by October 1 of each year. The Kentucky Housing Corporation shall be exempt from the regulations of the <br>Department of Insurance and the laws of the Commonwealth relating thereto. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 244, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 161, sec. 3, effective July 15, 2008. -- Amended 2007 Ky. Acts <br>ch. 55, sec. 1, effective June 26, 2007; and ch. 83, sec. 2, effective June 26, 2007. -- <br>Amended 2006 Ky. Acts ch. 252, Pt. XXVIII, sec. 7, effective April 25, 2006. -- <br>Amended 1998 Ky. Acts ch. 486, sec. 8, effective July 15, 1998. -- Amended 1982 <br>Ky. Acts ch. 99, sec. 3, effective March 23, 1982; and ch. 182, sec. 3, effective July <br>15, 1982. -- Amended 1978 Ky. Acts ch. 220, sec. 4, effective June 17, 1978. -- <br>Amended 1976 Ky. Acts ch. 364, sec. 2. -- Amended 1974 Ky. Acts ch. 383, sec. 3. -<br>- Created 1972 Ky. Acts ch. 70, sec. 5.