HAR §15-164-2. Definitions

(a) The definition of the terms "eligible tenant", "owner", .. regulatory agreement••, and "rental assistance contract O shall be the same as defined in part III, chapter 201G, HRS. (b) As used in this subchapter and the procedural handbook: 11 Discount rate" means the rate to be used to determine the present value of the cumulative rental assistance payments made to an owner. 0 Eligible·project" means an eligible project-as defined~in part III, chapter 201G, HRS and which is not 164-2 2236 §15-164-11 feasible at affordable rentals without a rental assistance contract. "Owner's equity" means the capital contributed by the owner to the eligible project and approved by the corporation pursuant to the procedural handbook and regulatory agreement. "Qualified sponsor" means qualified sponsor as defined in part III, chapter 201G, HRS, and who is determined by the corporation to have articles of incorporation or comparable documents of organization or a written agreement with the corporation which, in addition to other requirements of law, provides that if the person or entity receives an interim construction loan under part III, chapter 201G, HRS, and subpart 3 of these rules, it shall be authorized to enter into an agreement with the corporation, providing for regulations with respect to rents, profits, dividends, and dispositions of property or franchises. "Rate of return on owner's equity" means the annual percentages derived by dividing the owner's net earnings, as defined in the procedural handbook, by the owner. 6 equity. [Eff or.r 2b1~99 ) (Auth: HRS §201G-225) (Imp: HRS §§201G-2i~, 201G-223, 201G-224, 201G-225) SlS-164-3 Delegation. The corporation delegates to the administrator the authority to implement and carry out the~u~oses of this chapter. [Eff OCT 25 9~- J (Auth: HRS §201G-225) (Imp: HRS §20 G-225) SUBCHAPTER 2 RENTAL ASSISTANCE PROGRAM SlS-164-11 Rental assistance revolving fund. (a) The corporation shall administer the rental assistance revolving fund established pursuant to section 201G­ 223, HRS. (b) Subject to the restrictions in section 201G­ 223, HRS, the corporation may use the aggregate principal sum and the accumulated earnings in the rental assistance revolving fund to make payments·under the re~tal assistance contracts or to subsidize 164-3 2236 §15-164-11 tenants• rents in projects developed by the corporation under ~lrt IJI of chapter 201G, HRS. [Eff u~T 2a 1999 ] (Auth: HRS §201G-225) (Imp: HRS §201G-223) SlS-164-12 Rental assistance contracts; sharing of appreciation. (a) The corporation may enter into an agreement to enter into a rental assistance contract in accordance with section 201G-224, HRS. The agreement shall provide for the execution of a rental assistance contract upon satisfaction of the terms set forth in the procedural handbook. The maximum annual rental assistance payment amount shall be determined pursuant to the procedural handbook. The rate of return on owner's equity shall not exceed fifteen per cent annually. (b) The corporation shall be entitled to share in the appreciation of the value of units maintained for eligible tenants within an eligible project realized at the time of refinancing or prepayment of the eligible project loan in accordance with section 201G-225, HRS; provided that the corporation shall exempt projects owned by a county from this shared appreciation requirement if all of the following requirements are met: (1) The funds derived by the county as a result of appreciation in value of the units are used for housing projects wherein: {A) At least sixty per cent of the project is affordable to families earning up to one hundred per cent of the area median income as determined by the United Stated Department of Housing and Urban Development and as adjusted for family size; and (B) At least one-half of the foregoing sixty per cent is affordable to families earning up to eighty per cent of the area median income as determined by the United Stated Department of Housing and (2) Urban Development and as adjusted for family size; and The project from which the appreciation in value is derived remains as affordable as it was prior to the refinancing or prepayment of the eligible project loan. 164-4 2236 §15-164-12 (c) The discount rate used in calculating the corporation 1 s share of the appreciation in value shall be as stated in the rental assistance contract, but shall not exceed fifteen per cent. [Eff OCT?~ 1009 ] (Auth: HRS §201G-225) (Imp: Hk~f2d~~ 225) 515-164-13 Procedures, implementation of program. (a) The corporation shall develop a procedural handbook which shall contain, but not be limited to, procedures for evaluating rental schedules, reviewing tenants' income in eligible projects, inspecting units, and calculating appreciation upon refinancing or prepayment of the eligible project loan. (b) The operation and implementation of the rental assistance program shall be conducted in accordance with part III, chapter 201G, HRS, these rules, and the procedural handbook as amended or supplemented from time to time by the corporation at its sole discretion. (c) A copy of the procedural handbook, in its most current form, shall at all times be kept at the principal office of the corporation and shall be avail._able f~r inspection during normal business hours. [EffUCT 2a 1999 ] (Auth: HRS §201G-225) (Imp: HRS §§201G-223, 201G-224, 201G-225 SUBCHAPTER 3 INTERIM CONSTRUCTION PROGRAM