Haw. Code R. § 15-308-103 - Corporation's percentage share of net appreciation

(a) As the corporation is providing the opportunity for the purchaser to buy a home below fair market value, the purchaser shall pay the corporation its share of the net appreciation when the property is transferred or sold. The appraisal procured by the corporation shall be used to establish the corporation's percentage share at the time of transfer or sale by the following calculation:

Original Fair Market Value minus Purchaser's

Original Base Purchase Price divided by Original Fair Market Value rounded to the nearest one per cent.

Net appreciation is calculated as follows:

(Current Fair Market Value of the dwelling unit as originally purchased excluding any capital improvements by the purchaser subsequent to original purchase) - Purchaser's Original Base Purchase Price - Actual Sales costs incurred, if any. Any shared appreciation equity agreements entered into on or after August 27, 1999 shall not be eligible to deduct sales costs.

(b) The shared appreciation equity program restriction shall be part of the conveyance document for the sale of the dwelling unit recorded in the bureau of conveyances.' Notification of the shared appreciation program restriction as an encumbrance on the property shall be recorded as a separate memorandum.

(c) If the corporation's percentage share of net appreciation is less than one-half of one per cent, the shared appreciation equity program restriction shall not apply.

Notes

Haw. Code R. § 15-308-103

[Eff 1/15/2022] (Auth: HRS § 201H-4) (Imp: HRS § 201H-47) Comp 12/10/2022