HAR §15-22-187. of this chapter

(e) The conditions prescribed in subsection (c) above shall be automatically extinguished and shall not attach in subsequent transfers of title when a mortgage holder becomes the owner of a reserved housing unit and the land or leasehold interest pursuant to a mortgage foreclosure, foreclosure under power of sale, or a conveyance in lieu of foreclosure after a foreclosure action is commenced. Any law to the contrary notwithstanding, a mortgagee under a mortgage covering a reserved housing unit and land or UNOFFICIAL COMPILATION June 2005 22-115 leasehold interest subject to the transfer restrictions of the authority 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 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 subsection (c)(1) above. (f) The provisions of this section shall be incorporated in any deed, lease, mortgage, agreement of sale, or other instrument of conveyance for reserved housing units. [Eff 9/8/86, comp 1/28/88, comp 2/24/90, am 8/4/95, am 1/13/00] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) Historical note: §15-22-186 is based substantially upon §15-17-306. [Eff 4/6/85; R 9/8/86] §15-22-187 Equity sharing requirements. (a) The authority's share of the equity in the reserved housing unit shall become due upon: (1) Waiver of the authority's first option to purchase the reserved housing unit; or (2) Resale of the reserved housing unit after the expiration of the period during which the authority has the first option to purchase the unit. (b) The authority's share of the equity in the reserved housing unit shall be the higher of: (1) An amount equivalent to the difference between the original fair market value of the unit and its original sales contract price, not to exceed the difference between the resale fair market value and the original sales contract price; or (2) An amount equivalent to the authority's percentage share of net appreciation calculated as the difference between the original fair market value of the unit and its original sales contract price, divided by the original fair market value of the unit. As used herein, "net appreciation" means UNOFFICIAL COMPILATION June 2005 22-116 resale fair market value less original sales contract price and actual sales costs incurred, if any. The authority shall determine the fair market value of the unit at the time of the initial sale and at the time of resale. (c) The price and terms on the resale of units shall be approved by the authority. [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: §15-22-187 is based substantially upon §15-17-307. [Eff 4/6/85; R 9/8/86] §15-22-188 Deferral or waiver of certain conditions on transfer of reserved housing. (a) The conditions prescribed in §15-22-186 of this chapter pertaining to payment to the authority of its share of the equity in the reserved housing unit shall be deferred by the executive director if the owner wishes to transfer title to the unit and the property or lease by devise or through the laws of descent to a family member who would otherwise qualify under rules established by the authority. (b) Waivers may be granted by the authority on a case-by-case basis if any of the following are met: (1) The waiver will not result in speculation; (2) Where fiscal management will not allow repurchase of the unit; or (3) Where such waiver will allow permanent financing by other mortgage lenders. [Eff 9/8/86, comp 1/28/88, comp 2/24/90, am 12/15/94] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) Historical note: §15-22-188 is based substantially upon §15-17-308. [Eff 4/6/85; R 9/8/86]