HB 466 — AN ACT relating to real property purchased at a master commissioner's sale.

Summary

Amend KRS 91.514 and create a new section of KRS Chapter 426 to establish that any residential property that is purchased at a master commissioner's sale in a county that has a land bank authority and was occupied prior to or at the time of the sale must be returned to a state of occupancy within specified time periods; define terms; and establish a fine of $100 per day payable to the local government for noncompliance.

Bill Text

• Introduced View text Current pdf

Compared against the Kentucky Revised Statutes as published AI-generated reading aid — verify against the official bill.

The bill amends existing law to require purchasers of real property at master commissioner's sales to return the property to a state of occupancy within a specified timeframe and establishes penalties for noncompliance.

• KRS 91.514

  any right of redemption of the United States of America, if any. → any right of redemption of the United States of America.

  Clarifies that the title is subject to the right of redemption of the United States.

• KRS 91.514

  (6) (a) 1. Except as provided in subparagraphs 2. and 3. of this paragraph, any purchaser who obtains title to real property under this section, which was occupied at the time the collector of taxes filed the list of unpaid tax bills as required under KRS 91.484, shall return the property to a state of occupancy no later than the period of time required by a land bank authority established pursuant to KRS 65.210 to 65.300 and 65.350 to 65.375 for returning the property to effective utilization for the county in which the property is located.

  Introduces a requirement for purchasers to return occupied properties to a state of occupancy within a specified timeframe.

• KRS 91.514

  2. If the property obtained under subparagraph 1. of this paragraph is subject to an existing lease at the time of sale, the time required for the purchaser to return the property to a state of occupancy shall not begin until the end of the lease period, with the remaining lease period not to exceed eleven (11) months.

  Allows for an extension of the timeframe for returning properties that are under an existing lease.

• KRS 91.514

  3. If the property obtained under subparagraph 1. of this paragraph is subject to the six (6) month right of redemption under KRS 426.530, the time required for the purchaser to return the property to a state of occupancy shall not begin until the end of the redemption period.

  Defers the requirement to return properties under a six-month right of redemption until the redemption period ends.

• KRS 91.514

  6. (c) Failure to comply with this subsection shall result in a fine in the amount of one hundred dollars ($100) per day for each day of violation, payable to the chief financial officer of the local government in which the property is located, and may result in an order of sale of the property under KRS 426.205.

  Establishes penalties for failing to comply with the occupancy requirement.

• KRS 91.514

  (d) This subsection shall only apply to residential property located in a county that has a land bank authority created pursuant to KRS 65.210 to 65.300 and 65.350 to 65.375.

  Limits the applicability of the occupancy requirements and penalties to residential properties in certain counties.

• SECTION 2. A NEW SECTION OF KRS CHAPTER 426 IS CREATED TO READ AS FOLLOWS:

  Creates a new section in KRS chapter 426 regarding occupancy requirements for properties sold under court orders.

• KRS 426

  (1) (a) Except as provided in paragraph (b) of this subsection, any purchaser who obtains title to real property sold under an order or judgment of a court, other than an execution, by a commissioner or other officer selling the property and that was occupied at the time of the appraisal required under KRS 426.520, shall return the property to a state of occupancy no later than the period of time required by a land bank authority established pursuant to KRS 65.210 to 65.300 and 65.350 to 65.375 for returning the property to effective utilization for the county in which the property is located.

  Imposes a similar occupancy requirement on real property sold under court orders.

Action History

1. February 05, 2024

   to Committee on Committees (H)

2. February 05, 2024

   introduced in House

Sponsors

• Daniel Grossberg · Primary

Subjects