Haw. Code R. § 15-305-11 - Designation initiated by lessees

(a) The lessees of residential lots in any qualified development tract may request designation of that development tract for acquisition, in whole or part, as provided in this section.

(b) The lessees desiring to acquire the leased fee interests in their residential lots shall initially determine whether chapter 516, HRS, applies to their development tract. The lessees may submit their findings to the executive director prior to formal application, and the executive director may provide a preliminary determination as to tract qualification.

(c) The lessees shall submit to the executive director a request for designation of the development tract on a form provided by the executive director.

(1) The request for designation shall contain sufficient information to identify the development tract and the fee owners thereof. Each request for designation shall have attached a tax map showing the development tract and the residential lots of the lessees requesting designation;

(2) Each lessee requesting designation of the development tract shall sign a signature sheet which shall be attached to the request for designation and which sufficiently identifies the lessee's lot. The signature of each requesting lessee shall constitute a certification that the lessee has read, understood and agreed to or with all representations, covenants, and statements of consequence contained in the request for designation.

(d) Together with the request for designation, each lessee requesting designation shall submit to the corporation an application to purchase the leased fee interest in his or her leasehold lot on a form provided by the corporation.'

(1) The application to purchase shall identify the particular residential leasehold lot for which the lessee desires to purchase the leased fee interest and shall have attached thereto a copy of the original lease and any amendments thereto to that lot;

(2) Each lessee desiring a designation of a lot shall submit a separate application to purchase the lessee's lot. All lessees named on a lease to a lot must complete an application to purchase either individually or jointly;

(3) The lessees submitting the application to purchase shall agree to and comply with the requirements and the statements contained in the application. Each application to purchase shall be signed and sworn to by the lessees submitting the application to purchase and shall be notarized;

(4) The application to purchase shall be submitted with a cashier's or certified check in the amount of $1,000 as an initial deposit. Any interest accrued on the initial deposit may be withdrawn at the written request of the lessee provided there are sufficient funds remaining on deposit for the lessee to cover the tract costs. A reasonable service charge shall be assessed for each interest withdrawal transaction;

(5) Thereafter, in addition to the initial deposit, each lessee may be required to submit an additional deposit, which shall be used to pay for tract costs not covered by the initial deposit. The additional deposit may be collected in advance if the projected tract cost exceed the initial deposit.

Notes

Haw. Code R. § 15-305-11

[Eff JUN 15 2007] (Auth: HRS §§ 516-7, 516-33) (Imp: HRS §§ 516-7, 516-22, 516-33, 516-33.5)