Haw. Code R. § 15-302-12 - Rent-to-own program; general provisions
(a) The corporation
is authorized to develop or participate in the development of housing projects
in which dwelling units are offered for rent to qualified residents who may not
have the financial capability to purchase a dwelling unit at the time of
initial occupancy, but who demonstrate a desire and potential capability of
being able to purchase the unit within five years as determined by the
corporation.
(b) The sales price of
the dwelling unit shall be established at the beginning of the rental term and
shall remain in effect for the first five years after the rental agreement is
executed.
(c) The participant shall
have the option of purchasing the unit at any time within the five-year period
and shall have the right to remain in the unit for at least five years provided
that all conditions set forth in these rules are met.
(d) During the period that the participant
rents the unit, the following shall apply:
(1) The corporation shall credit a portion of
the participant's rent toward the purchase price of the unit, which amount
shall be determined on a project-by-project basis;
(2) The participant shall learn the
responsibilities of homeownership and begin to save money toward the purchase
of the home by participating in a homeownership counseling program approved by
the corporation;
(3) The
corporation shall have the right to verify on an annual basis that the
participant is making sufficient progress toward saving money for the purchase
of the unit, and if it is determined that the participant is not making
sufficient progress, the corporation shall have the right to terminate the
contract and offer the unit to another potential purchaser with all rental
amounts paid to date being forfeited; and
(4) The participant shall perform minor
maintenance on the dwelling unit, with major maintenance being provided by the
corporation or the owner of the project, if the owner is other than the
corporation.
(e) When a
participant decides to exercise his or her option to purchase the unit, in
order to qualify for a first mortgage, the participant must satisfy
conventional lender requirements or requirements under any of the corporation's
mortgage lending programs. In rural areas, financing may be provided through
the United States Department of Agriculture's Rural Development
Program.
(f) If the participant
does not qualify to purchase the unit within the five-year period, the renter
shall forfeit the right to continue living in the unit and the unit shall be
rented to another potential purchaser. Renters displaced in accordance with
this section shall be given preference to occupy other rental units owned by
the corporation.
(g) The
corporation shall have the right to reestablish the sales price of the unit
upon expiration of the option period or upon resale of the unit.
Notes
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