Haw. Code R. § 15-308-84 - Repurchase when owner seeks to transfer title

(a) If an owner seeks to transfer the title to a dwelling unit to which this subchapter applies, the corporation shall have the first option to purchase the dwelling unit. If the corporation waives its repurchase option, a qualified nonprofit housing trust shall have the option to repurchase the unit.

(b) The repurchase price shall be determined by the corporation pursuant to the guidelines set forth in section 15-308-105.

(c) The corporation or qualified nonprofit housing trust may repurchase the dwelling unit either by:

(1) Conveyance free and clear of all liens and mortgages; or

(2) Conveyance subject to existing mortgages and liens.

(d) If the real property is conveyed in the manner provided in paragraph (c)(1), it shall be conveyed to the corporation or qualified nonprofit housing trust only after all mortgages and liens are released.

(e) If the real property is conveyed in the manner provided in paragraph (c)(2), the corporation or qualified nonprofit housing trust, as applicable, shall assume the seller's obligation on any first mortgage created for the purpose of securing the payment of a loan of funds expended solely for the purchase of the real property by the seller; and any mortgage or lien created for any other purpose provided that the corporation has previously consented to it in writing. The interest created by the provisions of this subsection shall constitute a lien on the real property and shall be superior to any other mortgage or lien except for:

(1) Any first mortgage created for the purpose of securing the payment of a loan of funds expended solely for the purchase of the real property by the seller;

(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 corporation has previously consented to it in writing. The amount paid by the corporation or qualified nonprofit housing trust, as applicable, to the seller shall be the difference, if any, between the purchase price determined in section 15-308-105 and the total of the outstanding principal balances of the mortgages and liens assumed by the corporation.

(f) If the shared appreciation equity program amount was paid, and the corporation repurchases the property pursuant to the guidelines set forth in section 15-308-105, the amount paid for the shared appreciation equity program shall be reimbursed to the owner.

Notes

Haw. Code R. § 15-308-84

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