Haw. Code R. § 15-218-41 - Equity sharing requirements
(a) The authority's
share of the equity in the reserved housing or workforce housing unit shall be
a percentage of the resale fair market value of the unit. The percentage shall
be determined as follows: original fair market value minus the original
reserved housing or workforce housing sales price divided by original fair
market value. The percentage shall be rounded to the nearest one
percent.
(b) If the authority
waives its first option to purchase a reserved housing or workforce housing
unit as provided for in section
15-218-35(a),
the owner of the reserved housing or workforce housing unit may sell the unit
at fair market value. The authority's share of the equity in the reserved
housing or workforce housing unit shall become due upon sale of the
unit.
(c) If the authority's
percentage share of equity is less than one-half of one percent, or if the
resale fair market value of the reserved housing or workforce housing unit is
less than the original reserved housing or workforce housing unit sales price,
subsection (a) shall not be applicable.
(d) The authority shall determine the fair
market value of the reserved housing or workforce housing unit at the time of
original sale and also at the time of resale.
(e) The resale price and terms shall be
approved by the authority.
(f) The
authority's interest created by the provisions of this section shall constitute
a lien on the real property and shall be superior to any other mortgage or lien
except for:
(1) Any mortgage created for the
purpose of securing the payment of a loan of funds expended solely for the
purchase of a reserved housing or workforce housing unit;
(2) Any mortgage insured or held by a federal
housing agency; and
(3) Any
mortgage or lien created for any other purpose provided that the authority has
previously consented to the mortgage or lien in writing.
(g) The owner of a reserved housing or
workforce housing unit may pay all or part of the authority's share of equity
at any time without a sale or transfer of the reserved housing or workforce
housing unit by making an application to the executive director. The minimum
amount of partial payment shall be no less than twenty-five percent of shared
equity. Provisions of this paragraph shall be applicable to all reserved
housing units regulated under the authority's administrative rules pertaining
to reserved housing units.
Notes
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