(A) The purpose of the fund is to leverage public investment to preserve, produce, and provide safe, quality, affordable housing. "Affordable housing," for purposes of this ordinance, means housing that requires families or individuals to pay no more than thirty (30) percent of their gross household income for housing and housing-related costs (such as utilities).
(B) The Board may accept applications for funding from the Fund from non-profit organizations, for-profit organizations, units of local government, or a public housing authority. Funding may be provided in the form of grants or loans.
(C) The Fund may be used to fund the acquisition of property, site development, construction or rehabilitation of housing (including rental housing), permanent financing costs (including down payment and closing costs), construction financing costs, reduction or refinancing of existing debt, matching funds for other grants, technical assistance directly related to creating a housing project, developer fees (up to fifteen (15) percent of each project), administrative costs, permits, fees, taxes, and other soft costs associated with rental housing development, and/or project and tenant based rental assistance.
(D) Projects funded by the Fund shall be allocated for projects that serve households up to a maximum of eighty (80) percent of the area median income ("AMI"). The Board shall annually establish population targets based on AMI. Those targets shall reflect awareness of the need to ensure that a portion of services include those at fifty (50) percent of AMI, and those at thirty (30) percent of AMI.
(E) Any projects funded by the Fund shall include deed restrictions and financial penalties to ensure that projects are maintained as affordable housing for the term set forth in the agreement with the applicant.
(F) Any affordable housing development funded in whole or in part by the fund shall be inspected at least once per calendar year to ensure compliance with any affordable housing standards adopted by the Board, which may include, but are not limited to; building and property maintenance codes applicable in the Commonwealth of Kentucky or within Lexington-Fayette County, requirements for design-based security such as Secured by Design, and other standards as set forth by the Board or the Urban County Government.
(G) Any projects funded by the Fund that require building permits and other action by departments and divisions within the Urban County Government shall be entitled to expedited review and a waiver of the fees associated with these actions, to the extent allowable by law.
(H) Any unexpended balance of the Fund remaining at the close of a fiscal year shall not lapse but shall continue into the succeeding fiscal year for future eligible activities.
(I) All revenues recaptured from loans or unfulfilled grants shall be returned to the Fund for future use.
(J) The Fund may accept private gifts, grants, donations, or other contributions.