HAR §15-216-32. Income

(a) The gross household income of the applicant shall not exceed one hundred forty per cent of the AMI as determined by the United States Department of Housing and Urban Development. (b) The gross household income shall be the income earned during the most current calendar year preceding the date of application to purchase or rent a reserved housing unit and shall be verified by submittal of most current State or Federal tax returns. (c) The assets of the applicant shall not exceed one hundred thirty-five per cent of the applicable 216-11 30 5 3 §15-216-32 income limit set forth in subsection {a) above. As used herein, assets include, all cash, securities and real and personal property at current fair market value, less any outstanding liabilities secured by such assets. [Eff OCT 2 7 2012 1 {Auth: HRS §§206E-4, 206E-5, 206E-7) {Imp: HRS §§206E-4, 206E-5, 206E-7) §15-216-33 Occupancy requirements. {a) The following are occupancy requirements for reserved housing units: (1) Applicants for reserved housing shall certify that, if selected, all applicants will be occupants of the reserved unit; (2) The purchaser or lessee shall physically occupy the reserved unit; and (3) The city and county of Honolulu maximum occupancy limits for a residential dwelling unit shall apply. {b) Violation of subsection {a) shall be sufficient reason for the authority, at its option, to purchase the unit as provided in section 15-216-36 {first option to purchase) or evict the renter from the unit, as applicable. {c) Any deed, lease, agreement of sale, mortgage, or other instrument of conveyance issued for the reserved housing unit shall expressly contain the restrictions on use prescribed in this section. {d) The restriction prescribed in subsection {a) above shall not apply if the authority waives its option to purchase the reserved housing unit or subsequent to the expiration of the option to purchase period. [Ef f OCT 2 7 20f2 1 {Auth: HRS § §2 06E-4, 206E-5, 206E-7) {Imp: HRS §§206E-4, 206E-5, 206E-7) §15-216-34 Affordability criteria. {a) The following criteria shall be used in determining price and income equivalencies of units for sale: 3U53 1·' (1) Down payment amount shall not exceed ten per cent of the purchase price; 216-12 §15-216-35 (2) Monthly payments, which consist of principal and interest, real property taxes, insurance, and fees and costs required by the bylaws of a condominium property regime, shall not exceed thirty-three per cent of gross monthly income or some other percentage approved by the United States Department of Housing and Urban Development; and (3) Interest rate shall be derived by taking the average of the interest rate on thirty year fixed rate mortgages posted for major Honolulu banks in the first week of each of the preceding six months. (b) The fol.lowing criteria shall be used in determining price and income equivalencies of units for rent: monthly rent and all utilities and other building operating costs (excluding telephone, cable television and internet service) shall not exceed thirty-three per cent of the renter's gross monthly income. [Eff OCT 2] 2012 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-216-35 Term of reserved housing requirements. (a) The regulated term for reserved housing units that are for sale shall be five years from the date of issuance of certificate of occupancy. Reserved housing rental units shall be regulated for fifteen years. The authority may suspend or modify regulated term and qualifying income requirements on a project by project basis, if, in its sole judgment, it determines that these requirements are negatively impacting the sale or rental of reserved housing units as the primary objective of the authority to promote redevelopment within the Kalaeloa CDD. (b) During the regulated term, a reserved unit owner shall not purchase additional limited common elements or personal property. (c) During the regulated term, the executive director shall approve any initial or subsequent mortgage placed on a reserved unit which does not 216-13 30 5 3 30 5 3 §15-216-35 exceed eighty per cent of the original purchase price of the unit. (d) After the end of the regulated term, the owner may sell the unit or assign the property free from any transfer or price restrictions except for applicable equity sharing requirements set forth in section 15-216-41 (equity sharing requirements). [Eff OCT 2 7 2012 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-216-36 First option to purchase. If the owner of a reserved housing unit wishes to sell the unit during the regulated term, the authority or an entity approved by the authority shall have the first option to purchase the unit. The purchase price shall be based on the lower of: (1) The current fair market price of the reserved housing unit as determined by the authority less the authority's share of equity in the unit as determined by section 15-216-41 (equity sharing requirements); or (2) The reserved housing unit price calculated based on the RU 2 at the time of sale of the unit. [Eff '!~I ] ·'2012 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-216-37 Sale or transfer of reserved housing units. Sale or transfer of reserved housing units during the regulated term shall be as follows: (1) The authority or an entity approved by the authority shall have the first option to purchase the unit in the manner indicated in section 15-216-36 (first option to (2) ( 3) purchase); The owner shall notify the authority in writing of the intent to sell the reserved housing unit; The authority shall notify the owner of its decision within sixty days of receipt of the 216-14 §15-216-38 owner's notification required in subsection (2) above. The authority may: (A) Wave its option to purchase the unit, (B) Agree to purchase the unit, or (C) Designate another buyer for the unit; (4) If the authority fails to notify the owner of a decision in the manner prescribed in subsection (3), the authority shall have waived its first option to purchase the unit; (5) The authority may purchase the unit either outright, free and clear of all liens and encumbrances; or by transfer subject to an existing mortgage. If by outright purchase, the owner shall ensure that all existing mortgages, liens, and encumbrances have been satisfactorily paid; and (6) In any purchase by transfer subject to an existing mortgage, the authority shall agree to assume and to pay the balance on any first mortgage created for the purpose of enabling the owner to obtain funds for the purchase of the unit and any other mortgages which were created with the approval and consent of the authority. In these cases, the amount to be paid to the owner by the authority shall be the difference between the price as determined in section 15-216-36 (first option to purchase) (1) or (2) and the principal balance of all mortgages outstanding and assumed at the time of transf~~ Rf tit.le to the authority. [Eff Ul,I t. 7 ZUlZ ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 2 06E-5, 206E-7)