Bill > HB580

This bill establishes a First-Generation Homebuyer Trust Fund program in Kentucky to help individuals who have never owned a home become homeowners. A "first-generation homebuyer" is defined as someone who has not had sole ownership of residential property and either their parents or legal guardians also never owned property, or they were in foster care, an emancipated youth, or qualify as homeless under federal law. The bill creates a dedicated revolving account within the State Treasury, managed by the Kentucky Housing Corporation, which will receive state appropriations, gifts, grants, federal funds, and loan repayments. This fund will be used to operate a forgivable loan program offering up to $5,000 for down payments, closing costs, mortgage insurance, or interest rate buy-downs for eligible first-generation homebuyers whose household income is no more than 120% of the median income in their county. Recipients must complete financial education and homebuyer counseling, occupy the purchased property as their principal residence for at least three years, and repay the loan if they sell the property or it ceases to be their primary home within that period. The Kentucky Housing Corporation will also submit annual reports to the Legislative Research Commission detailing the fund's use and the program's impact.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb580.html