Kentucky Housing Corporation

The committee discussed the approval of the fiscal year 2027 annual internal audit plan, including its risk-based approach and the inclusion of high-risk areas like information security. Members also reviewed the quality assurance process for audits and the timeline for upcoming reviews. Furthermore, the meeting covered a financial update for the first three quarters of fiscal year 2026, touching on balance sheet assets, revenue bonds, net interest income, mortgage servicing fee income, and operating budget variances, including staffing and default costs.

The board discussed several items including the passing of a former leader, with a resolution honoring his life and legacy. The board received a report from the program, policy and planning committee, which included a review of fiscal year 2027 corporate strategies and the fiscal year 2027 allocation plan. There was a detailed presentation on strategies to address the state's housing supply gap, optimize financial resources, and leverage technology. Additionally, the meeting included an overview of the allocation plan, detailing sources of funds and their designated uses for the upcoming fiscal year, and discussed the implementation of new programs to promote affordable housing.

The board meeting focused on several key items, including a resolution honoring a late board member for his service and contributions to affordable housing. Financial and operational agenda items included the renewal of a contract with the Corporation for Supportive Housing to provide technical assistance, the approval of a final resolution for bonding authority for the Winterwood Portfolio 4 project, and authorization for personal service contracts with real estate agencies for the marketing and disposition of the REO single-family housing portfolio. Additionally, the board approved amendments to existing legal service contracts for foreclosure and bankruptcy proceedings due to increased volume and updated fee guidelines, and authorized the renewal of these legal service contracts for the upcoming fiscal year.

The board meeting featured a report from the finance committee regarding mortgage activity, bond issuances, and delinquency ratios. The independent auditors presented the annual audit report, which resulted in an unmodified opinion and no findings. Additionally, the executive committee provided an update on the approval of bond resolutions for multiple affordable housing developments, including the Campbell View Apartments, the Western Kentucky Recovery Portfolio, and the SoCare Northern Kentucky portfolio project.

The board discussed and approved final resolution extensions for Park Hill Acres, Meadows at McNeely Lake, and the Soar Northern Kentucky portfolio due to project-based voucher requirements and HUD processing delays. The presentation of the first-quarter financial status for fiscal year 2026 was conducted, covering asset increases from mortgage-backed securities, net interest income, and operating budget variances. Additionally, the executive team announced a 3% cost-of-living adjustment for eligible staff to address inflationary pressures.