HAR §15-218-38. Foreclosure

In the event of a foreclosure, any law to the contrary notwithstanding, a mortgagee under a mortgage covering a reserved housing unit and land or leasehold interest subject to the restrictions of sections 15-218-35, 15-218-36, and 15-218-37, shall, prior to commencing mortgage foreclosure proceedings, notify the authority of (1) any default of the mortgagor under the mortgage within ninety days after the occurrence of the default; and (2) any intention of the mortgagee to foreclose the mortgage under chapter 667, HRS. The authority shall be a party to any foreclosure action, and shall be entitled to all proceeds remaining in excess of all 218-16 29 7 6 §15-218-41 customary and actual costs and expenses of transfer pursuant to default, including liens and encumbrances of record. The person in default shall be entitled to any amount remaining provided the amount shall not exceed the lower of the amounts computed in section 15-218-35. [Eff NOV 11 2011 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-39 Transfers of title pursuant to a mortgage foreclosure. The conditions prescribed in sections 15-218-35, 15-218-36, and 15-218-37 (a) (1) through (6) above shall be automatically extinguished and shall not attach to subsequent transfers of title pursuant to a mortgage foreclosure, foreclosure under power of sale, or a conveyance in lieu of foreclosure after a foreclosure action is commenced. [Eff NOV 11 2011 (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-40 Incorporation in deed. The provisions of sections 15-218-35 through 15-218-37, and section 15-218-41 shall be incorporated in any deed, lease, mortgage, agreement of sale, or other instrument of conveyance for reserved housing units. [Eff NOV 11 2011 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-41 Equity sharing requirements. (a) The authority's share of the equity in the reserved housing unit shall become due upon resale of the reserved housing unit. (b) The authority's share of the equity in the reserved housing unit shall be the higher of: (1) An amount equal to the difference between the original fair market price of the unit as determined by the authority and its original sales contract price; or (2) An amount equivalent to the percentage of net appreciation calculated as the 218-17 29 7 6 §15-218-41 difference between the original fair market price of the unit as determined by the authority and its original contract price divided by the original fair market price of the unit. (c) At its sole discretion, the authority may allow the project developer to buy out the shared appreciation provisions for all or a portion of the reserved housing units by making a cash payment to the authority of an amount equal to the amount for equity sharing calculated in subsection (b) above. (d) The owner of the reserved housing unit shall provide financial documents acceptable to the authority before the cost of improvements made by the owner can be deducted from the sale price. (e) The authority shall determine the fair market value of the reserved housing unit at the time of original sale and also at the time of resale. (f) The resale price and terms shall be approved by the authority. [Eff NOV 11 2011 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-42 Deferral of equity sharing. The authority may consider deferring the equity sharing in case an owner of a reserved housing unit wishes to transfer title to the unit by devise or through the laws of descent to a family member who would otherwise qualify for purchase of a reserved housing unit under this chapter. [Eff NOV 11 zo,i l (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-43 Effects of subsequent rule amendments. (a) In the case of subsequent rule amendments, reserved housing owners shall be permitted at their election to: (1) Remain subject to the rules in effect at the time of the purchase of the unit, or 218-18 29 7 6 §15-218-55 (2) Be governed by the amended rules. (b) The authority, or any other entity that the authority transfers the reserved housing to shall notify all reserved housing owners of any change made by law, ordinance, rule or regulation within one hundred eighty days of such changes. Such notice shall clearly state the enacted or proposed new provisions, the date upon which they are to be effective and offer to each owner of reserved housing units constructed and sold prior to the effective date, an opportunity to be governed by such new provision. (c) No reserved housing unit owner shall be entitled to modify the restrictions or conditions on use, transfer, or sale of the reserved housing unit, without the written permission of the holder of a duly-recorded first mortgage on the unit and the owner of the fee simple or leasehold interest in the land underlying the unit. (d) This section shall apply to all reserved housing units developed, constructed and sold pursuant to this chapter. [Eff NOV 11 21111 J (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §§15-218-44 to 15-218-54 (Reserved) . SUBCHAPTER 4 WORKFORCE HOUSING PROJECT(S) ' §15-218-55 Workforce housing project(s) (a) New residential project(s) where at least seventy-five per cent of the residential units are set aside for purchase by families earning between one hundred to one hundred forty per cent of the AMI, which does not require financial assistance for construction from Federal, State, or County governmental bodies, and which meets the following unit size requirements shall qualify as a workforce housing project. 218-19 29 7 6 §15-218-55 Maximum Unit Type Unit Size (Square Feet) Studio with one bathroom 500 One bedroom with one bathroom 650 Two bedroom with one bathroom 800 Two bedroom with one and a half 900 bathroom Two bedroom with two bathroom 1,000 Three bedroom with one and a half 1,100 bathroom Three bedroom with two bathroom 1,200 Four bedroom with two bathroom 1,300 (b) Workforce housing project(s) shall be exempt from the requirements of sections 15-218-35, 15-218-36, and 15-218-41 of subchapter 3 of this chapter. (c) Workforce housing projects shall not be used to satisfy the reserved housing requirement(s) for any residential project(s) that are required to provide reserved housing in accordance with subchapter 2. (d) Workforce housing project(s) shall receive a floor area bonus of one hundred per cent, provided that such bonus floor area shall be used towards the construction of workforce housing project(s) only. (e) In approving development permit for a qualified workforce housing project the authority may consider modification(s) to the provisions of Hawaii administrative rules, chapter 217, title 15, mauka area rules. (f) Workforce housing projects shall be exempt from the provisions of Hawaii administrative rules, section 15-217-65. [Eff NOV 11 2011 J (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §§15-218-56 to 15-218-66 (Reserved) . 218-20 29 7 I DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM The repeal of chapter 15-22, Hawaii Administrative Rules, and the adoption of chapter 15-218, Hawaii Administrative Rules, on the Summary Page dated September 14, 2011, were adopted on September 14, 2011, following public hearings held on May 18, 2011 and September 14, 2011, after public hearing notices were given in the Honolulu Star Advertiser, Hawaii Tribune-Herald, The Maui News, West Hawaii Today, and The Garden Island, on April 16, 2011 and August 14, 2011, respectively. The repeal of chapter 15-22, Hawaii Administrative Rules, and the adoption of chapter 15-218, Hawaii Administrative Rules, shall take effect ten days after filing with the Office of the Lieutenant Governor. APPROVED AS TO FORM: C - c___ Deputy -i?ttorney General Executive Hawaii Community Development Authority S rno,yAk~9(L~ _o)R7CHARD1 C. LIM Director Department of Business, Economic Development, and Tourism ,- fTl ~ -; :•~ L#"n.t_..,2 Governor t _. State of Hawaii Date: Filed 218-21 2976