Title 202 | Chapter 002 | Regulation 020
SUPERSEDED
This document is no longer current.
KENTUCKY HOUSING CORPORATION
(New Administrative Regulation)
202 KAR 2:020.Rural Housing Trust Fund.
Section 1.
Qualification Criteria.(1)
Applications shall be prioritized based on the priorities established in KRS 198A.748(6).(2)
Single-family project applications shall be competitively ranked based on the following criteria:(a)
Willingness to serve those in the most impacted and distressed disaster counties;(b)
Readiness to proceed;(c)
Number of units to be addressed by the project;(d)
Demonstrated experience in development or repair of housing;(e)
Projects to house disaster survivors still living in shelters, doubled up with family, or in another unsustainable housing situation;(f)
Established relationships and mechanisms to ensure a pipeline of moderate-income homebuyer referrals;(g)
Demonstrated expansion of capacity to develop at scale; and(h)
Demonstrated financial capacity to carry out larger-scale housing projects.(3)
Multifamily project applications shall be competitively ranked based on the following criteria:(a)
Willingness to serve those in the most impacted and distressed western Kentucky disaster counties;(b)
Readiness to proceed;(c)
Experience in development of multifamily housing utilizing Kentucky Housing Corporation financing resources;(d)
Demonstrated financial capacity to carry out larger-scale housing projects; and(e)
Projects awarded under the Kentucky Housing Corporation tax exempt bond notice of funding availability in accordance with the terms of such notice of funding availability.(4)
Approval of applications shall be based on the numerical ranking received and the availability of funds.Section 2.
Relocation Costs. In the development of rural housing under the Rural Housing Trust Fund, displacement of moderate-income individuals or families is not permitted unless the project pays all reasonable relocation costs. Reasonable relocation costs shall be determined on a case-by-case basis based on the following criteria:(1)
Provision of relocation advisory services to displaced tenants and owner occupants;(2)
Provision of a minimum of ninety (90) days written notice to vacate prior to requiring possession;(3)
Reimbursement for moving expenses; and(4)
Provision of payments for the added cost of renting or purchasing comparable replacement housing.WINSTON E. MILLER, Executive Director
APPROVED BY AGENCY: June 29, 2023
FILED WITH LRC: July 5, 2023 at 3 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall, if requested, be held on September 21, 2023 at 1:00 p.m. at Kentucky Housing Corporation, 1231 Louisville Road, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until 11:59 p.m. on September 30, 2023. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Samuel Thorner, General Counsel, Kentucky Housing Corporation, 1231 Louisville Road, Frankfort, Kentucky 40601, phone (502) 564-7630, fax (502) 564-7322, email sthorner@kyhousing.org.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Samuel Thorner
(1) Provide a brief summary of:
(a) What this administrative regulation does:
Establishes uniform criteria for qualifying for Rural Housing Trust Fund grants and loans and establishes criteria for the payment of relocation costs.
(b) The necessity of this administrative regulation:
Sets standards to create new sources of funding or to supplement existing sources of funding for the development of housing for moderate-income individuals or families in rural areas. Sets standards for payment of relocation costs if development of rural housing displaces moderate-income individuals or families.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
Kentucky Housing Corporation may administer the Rural Housing Trust Fund, by KRS 198A.744, KRS 198A.746, and KRS 198A.748, to promote development of housing for moderate-income individuals and families in rural areas. This regulation establishes uniform standards for the use of funds and standards for relocation costs, in furtherance of those goals.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
By providing clear notice to organizations eligible for funding of any standards and rules which exist in regard to the use of funds in housing development and relocation costs.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This is not applicable.
(b) The necessity of the amendment to this administrative regulation:
This is not applicable.
(c) How the amendment conforms to the content of the authorizing statutes:
This is not applicable.
(d) How the amendment will assist in the effective administration of the statutes:
This is not applicable.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This administrative regulation affects all potential applicants seeking to apply for loans or grants for eligible activities under the Rural Housing Trust Fund, which includes local governments, local government housing authorities, nonprofit organizations, regional or statewide housing assistance organizations, and business organizations that undertake new construction or rehabilitation of rural housing units for moderate-income individuals.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
This regulation establishes criteria for selection of applications for funding under the Rural Housing Trust Fund and defines reasonable relocation costs. The identified entities must ensure the project pays all reasonable relocation costs in the event it involves displacement of moderate-income individuals or families.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
This regulation establishes criteria for selection of applications for funding under the Rural Housing Trust Fund and defines reasonable relocation costs. There is no cost to complying with the criteria portion of the regulation. In the event reasonable relocation projects must be paid, those costs will be paid by the project, not the identified entities.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
This regulation establishes criteria for the evaluation and selection of applications for funding under the Rural Housing Trust Fund. The more criteria a project application meets, the more likely it is to be funded. The portion of the regulation establishing reasonable relocation costs will not cause any benefits to accrue to the identified entities.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Administrative costs associated with notifying appropriate organizations of funding, designing and reviewing applications, administering funding to eligible applicants and monitoring funded agencies.
(b) On a continuing basis:
There will be some long-term direct costs associated with continued monitoring of funded agencies to ensure long-term compliance.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Administrative fees charged to the Rural Housing Trust Fund.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
Not applicable.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
There are no fees directly or indirectly increased by this administrative regulation.
(9) TIERING: Is tiering applied?
Tiering is not applied, all organizations applying for funds will be subject to the same requirements to provide a fair and equitable selection process.
FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
The regulation impacts the Kentucky Housing Corporation and organizations eligible for funding from the Rural Housing Trust Fund which includes all local governments, local government housing authorities, nonprofit organizations, regional or statewide housing assistance organizations, and business organizations that undertake new construction or rehabilitation of rural housing units for moderate-income individuals.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 198A.744, KRS 198A.746, and KRS 198A.748.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
None.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
None.
(c) How much will it cost to administer this program for the first year?
Kentucky Housing Corporation estimates it will cost approximately 7.5% of expenditures. All costs shall be charged to the Rural Housing Trust Fund as administrative costs.
(d) How much will it cost to administer this program for subsequent years?
Kentucky Housing Corporation estimates it will cost approximately 7.5% of expenditures. All costs shall be charged to the Rural Housing Trust Fund as administrative costs.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation:
Kentucky Housing Corporation is unable to determine specific dollar estimates for costs at this time. The percentage of expenditures is given as an estimate.
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
None.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
None.
(c) How much will it cost the regulated entities for the first year?
No additional costs.
(d) How much will it cost the regulated entities for subsequent years?
No additional costs.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Expenditures (+/-):
Other Explanation:
No additional costs.
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
"Major economic impact" means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated administrative bodies. [KRS 13A.010(13)]. There is not an expected major economic impact from this regulation.
KENTUCKY HOUSING CORPORATION
(New Administrative Regulation)
202 KAR 2:020.Rural Housing Trust Fund.
Section 1.
Qualification Criteria.(1)
Applications shall be prioritized based on the priorities established in KRS 198A.748(6).(2)
Single-family project applications shall be competitively ranked based on the following criteria:(a)
Willingness to serve those in the most impacted and distressed disaster counties;(b)
Readiness to proceed;(c)
Number of units to be addressed by the project;(d)
Demonstrated experience in development or repair of housing;(e)
Projects to house disaster survivors still living in shelters, doubled up with family, or in another unsustainable housing situation;(f)
Established relationships and mechanisms to ensure a pipeline of moderate-income homebuyer referrals;(g)
Demonstrated expansion of capacity to develop at scale; and(h)
Demonstrated financial capacity to carry out larger-scale housing projects.(3)
Multifamily project applications shall be competitively ranked based on the following criteria:(a)
Willingness to serve those in the most impacted and distressed western Kentucky disaster counties;(b)
Readiness to proceed;(c)
Experience in development of multifamily housing utilizing Kentucky Housing Corporation financing resources;(d)
Demonstrated financial capacity to carry out larger-scale housing projects; and(e)
Projects awarded under the Kentucky Housing Corporation tax exempt bond notice of funding availability in accordance with the terms of such notice of funding availability.(4)
Approval of applications shall be based on the numerical ranking received and the availability of funds.Section 2.
Relocation Costs. In the development of rural housing under the Rural Housing Trust Fund, displacement of moderate-income individuals or families is not permitted unless the project pays all reasonable relocation costs. Reasonable relocation costs shall be determined on a case-by-case basis based on the following criteria:(1)
Provision of relocation advisory services to displaced tenants and owner occupants;(2)
Provision of a minimum of ninety (90) days written notice to vacate prior to requiring possession;(3)
Reimbursement for moving expenses; and(4)
Provision of payments for the added cost of renting or purchasing comparable replacement housing.WINSTON E. MILLER, Executive Director
APPROVED BY AGENCY: June 29, 2023
FILED WITH LRC: July 5, 2023 at 3 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall, if requested, be held on September 21, 2023 at 1:00 p.m. at Kentucky Housing Corporation, 1231 Louisville Road, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until 11:59 p.m. on September 30, 2023. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Samuel Thorner, General Counsel, Kentucky Housing Corporation, 1231 Louisville Road, Frankfort, Kentucky 40601, phone (502) 564-7630, fax (502) 564-7322, email sthorner@kyhousing.org.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Samuel Thorner
(1) Provide a brief summary of:
(a) What this administrative regulation does:
Establishes uniform criteria for qualifying for Rural Housing Trust Fund grants and loans and establishes criteria for the payment of relocation costs.
(b) The necessity of this administrative regulation:
Sets standards to create new sources of funding or to supplement existing sources of funding for the development of housing for moderate-income individuals or families in rural areas. Sets standards for payment of relocation costs if development of rural housing displaces moderate-income individuals or families.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
Kentucky Housing Corporation may administer the Rural Housing Trust Fund, by KRS 198A.744, KRS 198A.746, and KRS 198A.748, to promote development of housing for moderate-income individuals and families in rural areas. This regulation establishes uniform standards for the use of funds and standards for relocation costs, in furtherance of those goals.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
By providing clear notice to organizations eligible for funding of any standards and rules which exist in regard to the use of funds in housing development and relocation costs.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This is not applicable.
(b) The necessity of the amendment to this administrative regulation:
This is not applicable.
(c) How the amendment conforms to the content of the authorizing statutes:
This is not applicable.
(d) How the amendment will assist in the effective administration of the statutes:
This is not applicable.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This administrative regulation affects all potential applicants seeking to apply for loans or grants for eligible activities under the Rural Housing Trust Fund, which includes local governments, local government housing authorities, nonprofit organizations, regional or statewide housing assistance organizations, and business organizations that undertake new construction or rehabilitation of rural housing units for moderate-income individuals.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
This regulation establishes criteria for selection of applications for funding under the Rural Housing Trust Fund and defines reasonable relocation costs. The identified entities must ensure the project pays all reasonable relocation costs in the event it involves displacement of moderate-income individuals or families.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
This regulation establishes criteria for selection of applications for funding under the Rural Housing Trust Fund and defines reasonable relocation costs. There is no cost to complying with the criteria portion of the regulation. In the event reasonable relocation projects must be paid, those costs will be paid by the project, not the identified entities.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
This regulation establishes criteria for the evaluation and selection of applications for funding under the Rural Housing Trust Fund. The more criteria a project application meets, the more likely it is to be funded. The portion of the regulation establishing reasonable relocation costs will not cause any benefits to accrue to the identified entities.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Administrative costs associated with notifying appropriate organizations of funding, designing and reviewing applications, administering funding to eligible applicants and monitoring funded agencies.
(b) On a continuing basis:
There will be some long-term direct costs associated with continued monitoring of funded agencies to ensure long-term compliance.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Administrative fees charged to the Rural Housing Trust Fund.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
Not applicable.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
There are no fees directly or indirectly increased by this administrative regulation.
(9) TIERING: Is tiering applied?
Tiering is not applied, all organizations applying for funds will be subject to the same requirements to provide a fair and equitable selection process.
FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
The regulation impacts the Kentucky Housing Corporation and organizations eligible for funding from the Rural Housing Trust Fund which includes all local governments, local government housing authorities, nonprofit organizations, regional or statewide housing assistance organizations, and business organizations that undertake new construction or rehabilitation of rural housing units for moderate-income individuals.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 198A.744, KRS 198A.746, and KRS 198A.748.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
None.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
None.
(c) How much will it cost to administer this program for the first year?
Kentucky Housing Corporation estimates it will cost approximately 7.5% of expenditures. All costs shall be charged to the Rural Housing Trust Fund as administrative costs.
(d) How much will it cost to administer this program for subsequent years?
Kentucky Housing Corporation estimates it will cost approximately 7.5% of expenditures. All costs shall be charged to the Rural Housing Trust Fund as administrative costs.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation:
Kentucky Housing Corporation is unable to determine specific dollar estimates for costs at this time. The percentage of expenditures is given as an estimate.
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
None.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
None.
(c) How much will it cost the regulated entities for the first year?
No additional costs.
(d) How much will it cost the regulated entities for subsequent years?
No additional costs.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Expenditures (+/-):
Other Explanation:
No additional costs.
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
"Major economic impact" means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated administrative bodies. [KRS 13A.010(13)]. There is not an expected major economic impact from this regulation.