HAR §15-22-185. Occupancy guidelines

The following are occupancy guidelines for reserved housing units: Permissible Standard Unit Size Household Size Household Size 0 bedroom 1 - 2 persons 1 person 1 bedroom 1 - 3 persons 2 persons 2 bedrooms 2 - 5 persons 4 persons 3 bedrooms 3 - 7 persons 5 persons 4 bedrooms 4 - 9 persons 6 persons [Eff 9/8/86, comp 1/28/88, comp 2/24/90, am 8/4/95] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) Historical note: §15-22-185 is based substantially upon §15-17-305. [Eff 4/6/85; R 9/8/86] §15-22-185.1 Affordability criteria. (a) The following criteria shall be utilized in determining price and income equivalencies of units for sale: (1) Down payment amount shall not exceed ten per cent; (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; and (3) Interest rate shall be derived by taking the past six-months average of the interest rate on thirty year fixed rate mortgages less one-half of one per cent. (b) The following criteria shall be utilized in determining price and income equivalencies of units for rent: monthly payments, which consist of rent, all utilities and other building operating costs, excluding telephone and cable television service, shall not exceed thirty per cent of the renter's gross monthly income. (c) Monthly payment and qualification requirements set forth in this chapter for the rental of reserved housing shall be regulated for a minimum period of fifteen years. [Eff 8/4/95] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7)] UNOFFICIAL COMPILATION June 2005 22-113 §15-22-186 Conditions on transfer of reserved housing units. (a) The transfer of reserved housing units shall be regulated in accordance with the conditions set forth in subsection (c) of this section for a minimum number of years following the original sale of the unit as prescribed in subsection (b) below. The authority may elect to extend the period on a case-by-case basis. (b) The regulated term for reserved housing units shall be established based on unit affordability. Unit affordability, expressed as a percentage of median income, shall be determined based on the standard household sizes established in §15-22-185 and affordability criteria set forth in §15-22-185.1. Reserved housing units affordable to qualified persons with adjusted household incomes: (1) Less than one hundred per cent of median income shall be regulated for ten years; (2) One hundred to one hundred nineteen per cent of median income shall be regulated for five years; and (3) One hundred twenty to one hundred forty per cent of median income shall be regulated for two years. (c) The conditions for transferring reserved housing units during the regulated term are as follows: (1) If an owner wishes to transfer title to the reserved housing unit, the authority or a governmental agency approved by the authority shall have the first option to purchase the unit at a sales price based on the lower of: (A) The current fair market value of the reserved housing unit less the authority's share of the equity in the unit as determined by section 15-22-187 of this chapter; or (B) The original sales price of the reserved housing unit adjusted proportionately to the change in median income computed from the date of the purchase to the date of the sale. (2) If the owner is purchasing another reserved housing unit as provided in section 15-22-182(c), the owner shall sell the reserved unit to the authority, prior to or upon the closing of the sale of the larger reserved unit, at a sales price based on the lower of: (A) The current fair market value of the reserved housing unit less the authority's share of the equity in the unit as determined by section 15-22-187 of this chapter; or UNOFFICIAL COMPILATION June 2005 22-114 (B) The original sales price of the reserved unit plus one per cent simple interest per year of said sales price computed from the date of the purchase to the date of sale. (3) The owner shall notify the authority in writing of the intent to transfer title to the reserved housing unit and the property or the lease. The authority shall respond to the owner's notification by either waiving its option to purchase the unit, or by agreeing to buy the unit or providing a substitute buyer for the unit at the price calculated in subsection (c)(1) or (2). The authority shall notify the owner of its decision within sixty days of receipt of the owner's notification. (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. (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. In these cases, the amount to be paid to the owner by the authority shall be the difference between the price as determined herein and the principal balance of all mortgages outstanding and assumed at the time of transfer of title to the authority. (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