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198A.065 Waiver of income -- Eligibility requirements.

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Page 1 of 1 198A.065 Waiver of income -- Eligibility requirements. (1) The General Assembly of the Commonwealth of Kentucky hereby finds and determines that in order to provide for the greatest possible participation by the <br>corporation in programs for the insurance or guarantee of mortgage loans for the <br>construction or rehabilitation of residential housing projects by the United States of <br>America, or an agency or instrumentality thereof; or by any other entity, including <br>private mortgage insurance, which has been duly approved for these loans by the <br>United States of America or by the Commonwealth or any agency or instrumentality <br>thereof, if the criteria for state approval are specified in administrative regulations <br>promulgated under KRS Chapter 13A by the state agency granting the approval; or <br>for mortgage loans that are insured or reinsured by the corporation under KRS <br>198A.040(25), it is appropriate and proper that there be provision by which the <br>maximum amounts of income for persons and families of lower and moderate <br>income established by this chapter may be waived in certain circumstances so that <br>the corporation may insure or reinsure mortgage loans or qualify for insurance or <br>guarantee of mortgage loans. (2) Notwithstanding the requirements of KRS 198A.010(13), 198A.060(1), or any other provisions of law to the contrary, the corporation may, by action of its board of <br>directors, suspend or terminate any income-eligibility requirements established by <br>this chapter, subject to subsection (3) of this section, upon written request of any <br>private mortgage insurance company or any agency or instrumentality of the United <br>States of America which has insured or guaranteed mortgage loans made by the <br>corporation for the construction or rehabilitation of a specific residential housing <br>project or for any mortgage loan insured or reinsured by the corporation under KRS <br>198A.040(25), upon a finding by the board of directors of the existence of one (1) <br>or more of the following conditions with respect to that project: <br>(a) Serious rental or occupancy problems which threaten the financial stability of the project, defined as a project which cannot meet its debt service obligation <br>from available rental income; or (b) A default as to one (1) or more of the terms of the mortgage loan; or <br>(c) A foreclosure of the mortgage loan; or <br>(d) A conveyance of real estate by a deed in lieu of foreclosure. (3) If the corporation suspends or terminates income eligibility requirements relating to a project financed by a loan which is insured or guaranteed by a private mortgage <br>insurance company or the corporation, the corporation shall file with the Legislative <br>Research Commission notice of, and an explanation of the need for, the suspension <br>or termination. The Commission shall refer the notice and explanation to the <br>appropriate interim joint subcommittee for review. The corporation shall also <br>provide to the reviewing subcommittee information relating to the management of, <br>and plans for, the project. Effective: July 15, 1994 <br>History: Amended 1994 Ky. Acts ch. 310, sec. 1, effective July 15, 1994. -- Created 1988 Ky. Acts ch. 215, sec. 2, effective July 15, 1988.