HAR §15-218-32. Income

(a) The household income of the applicant shall not exceed one hundred forty percent of the area median income (AMI) as determined by the United States Department of Housing and Urban Development. (b) The adjusted 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 or workforce housing unit and shall be verified by submittal of most current state and federal tax returns. (c) The assets of the applicant shall not exceed one hundred thirty-five percent of the applicable 218-17 13 3 97 §15-218-32 §15-218-33 income limit set forth in subsection (a). As used in this sectionL assets include all cash, securitiesL and real and personal property at current fair market value, less any outstanding liabilities secured by these assets. Qualified retirements accounts and gifts of up to twenty percent of the purchase price to assist in the down payment for purchase of a reserved housing or a workforce housing unit shall not be counted towards assets. [Eff 11/11/11; am and comp 7/9/2018; am and comp JUN 2 5 2021 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-33 Occupancy requirements. (a) The following are occupancy requirements for reserved housing and workforce housing units: (1) Applicants for reserved housing and workforce housing units shall certify that, if selected, all applicants will be occupants of the unit; and (2) The purchaser or lessee shall physically occupy the reserved housing or workforce housing unit. (b) Violation of subsection (a) shall be sufficient reason for the authority, at its option, to purchase the unit as provided in section 15-218-35 or evict the renter from the unit, as applicable. The authority may require verification of occupancy from the purchaser or the lessee of a reserved housing or workforce housing unit and the purchaser or the lessee shall provide occupancy verification within thirty calendar days from the date of receipt of notification from the authority. (c) Any deed, lease, agreement of sale, mortgage, or other instrument of conveyance issued by the authority shall expressly contain the restrictions on occupancy 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 or the workforce housing unit or subsequent to the expiration 218-18 13 3 97 §15-218-34 §15-218-35 of the option to purchase period. [Eff 11/11/11; am and comp 7/9/2018; am and comp JUN 2 5 2021 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-34 Factors to be used for reserved housing and workforce housing unit sale price determination. (a) The following factors shall be used in determining the reserved housing and workforce housing unit respective sale price: (1) Down payment amount shall not exceed ten percent of the purchase price; (2) Maximum allowable monthly housing cost consisting of mortgage payment including principal and interest, real property taxes, mortgage insurance premium, and fees and costs required by the bylaws of a condominium property regime, shall not exceed thirty-three percent of gross monthly household income; (3) Interest rate shall be derived by taking the average of the thirty-year fixed rate mortgage rates for six consecutive months including the most current rate published by the Federal Home Loan Mortgage Corporation (Freddie Mac); and (4) Unit type and corresponding factor as provided in section 15-218-19. (b) Annually within forty-five days of HUD's update of area median income (AMI)limits, the executive director shall establish and publish a formula for calculating the applicable sale price of reserved housing and workforce housing units based on the factors enumerated in subsection (a). (c) The maximum allowable sales price of a reserved housing or a workforce housing unit may be calculated based on an AMI of no more than one hundred forty percent, provided that the weighted average sales price of all reserved housing or workforce housing units in a project shall be the price calculated based on an AMI of no more than one hundred 218-19 §15-218-34 §15-218-35 and twenty percent. [Eff 11/11/11; am and comp 7/9/2018; am and comp JUN 2 5 2021 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-35 Terms of reserved housing and workforce housing units for sale. (a) The regulated term for a reserved housing or workforce housing unit shall be ten years from the issuance of certificate of occupancy. If the owner of a reserved housing unit or a workforce housing unit wishes to sell the unit within ten years from the date of issuance of certificate of occupancy for the unit, the authority or an entity approved by the authority shall have the first option to purchase the unit. (b) Sale or transfer of reserved housing or workforce housing units shall be as follows: (1) The owner shall notify the authority in writing of the intent to sell the reserved housing or workforce housing unit; (2) The authority shall notify the owner of authority's decision within sixty days of receipt of the owner's notification required in subsection (b) (1). The authority may: (A) Waive its option to purchase the unit; (B) Agree to purchase the unit; or (C) Designate another buyer for the unit; (3) If the authority fails to notify the owner of a decision in the manner prescribed in paragraph (2), the authority shall have waived its first option to purchase the unit; (4) 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 authority shall ensure that all existing mortgages, liens, and encumbrances are satisfactorily paid by the owner; and (5) In any purchase by transfer subject to an existing mortgage, the authority shall agree 218-20 §15-218-35 §15-218-38 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. (c) The buyback price shall be determined based on the original fair market value of the reserved housing or workforce housing unit appreciated annually by a corresponding annual median sales price percent change index for condominiums published by the Honolulu Board of Realtors plus the allowable cost of improvements made by the owner, if any, less the authority's share of equity in the unit. The owner shall provide financial documents acceptable to the authority indicating the actual cost of the improvements before the cost shall be eligible for inclusion in determining the buyback price. The buyback price shall be no less than the original sale price of the reserved housing or workforce housing unit. The amount paid by the authority to the seller shall be the difference, if any, between the buyback price determined and the total of the outstanding principal balances of the mortgages and liens assumed by the authority. (d) Any subsequent mortgages placed on the reserved housing or workforce housing unit by the owner shall require approval from the executive director and shall not exceed the buyback price established by subsection (c) JUNEf~lJ.. 2 fl/11; am and comp 7/9/2018; am and comp 2 ZU ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-36 REPEALED [R 7/9/2018] §15-218-37 REPEALED [R 7/9/2018]