HAR §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 218-21 3269 s1 s 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 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 218-22 3269 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 mortgage 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). [Eff 11/11/11; am and comp JUL 09 2018 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-36 REPEALED [ JUL 09 2018 ] §15-218-37 REPEALED [ JUL 09 2018 ]