Haw. Code R. § 15-164-12 - Rental assistance contracts; sharing of appreciation
(a)
The corporation may enter into an agreement to enter into a rental assistance
contract in accordance with section 2016-224, HRS. The agreement shall provide
for the execution of a rental assistance contract upon satisfaction of the
terms set forth in the procedural handbook. The maximum annual rental
assistance payment amount shall be determined pursuant to the procedural
handbook. The rate of return on owner's equity shall not exceed fifteen per
cent annually.
(b) The corporation
shall be entitled to share in the appreciation of the value of units maintained
for eligible tenants within an eligible project realized at the time of
refinancing or prepayment of the eligible project loan in accordance with
section 2016-225, HRS; provided that the corporation shall exempt projects
owned by a county from this shared appreciation requirement if all of the
following requirements are met:
(1) The funds
derived by the county as a result of appreciation in value of the units are
used for housing projects where in:
(A) At
least sixty per cent of the project is affordable to families earning up to one
hundred per cent of the area median income as determined by the United Stated
Department of Housing and Urban Development and as adjusted for family size;
and
(B) At least one-half of the
foregoing sixty per cent is affordable to families earning up to eighty per
cent of the area median income as determined by the United Stated Department of
Housing and Urban Development and as adjusted for family size; and
(2) The project from which the
appreciation in value is derived remains as affordable as it was prior to the
refinancing or prepayment of the eligible project loan.
(c) The discount rate used in calculating the
corporation's share of the appreciation in value shall be as stated in the
rental assistance contract, but shall not exceed fifteen percent,
Notes
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