HAR §15-307-150. Repair and rental agreement

(a) If the corporation receives a notice of substantial construction defect and determines that the dwelling unit has a substantial construction or soil defect, then the corporation, upon approval of the board, may, but shall not be obligated to, enter into a repair and rental agreement with the owner. (b) If the corporation enters into a repair and rental agreement with the owner, the corporation shall enter into contracts with such design professionals and contractors whose services are reasonably necessary to repair the dwelling unit. Under the terms of the contracts, the corporation, and not the owner, shall be responsible for making payments due to 307-40 §15-307-151 the design professionals and contractors under the contracts. (c) If the corporation determines that the owner will be substantially deprived of the use of the dwelling unit during the time it is being repaired pursuant to a repair and rental agreement, the corporation shall pay rent to the owner during the period of time the dwelling unit is being repaired. The amount of rent to be paid shall be determined by the corporation; provided, however, that the rent paid shall not exceed the amount of the mortgage payments being made by the owner on the dwelling unit. (d) The repair and rental agreement provided for under this section shall include at least the following: (1) The scope of repair to be performed on the dwelling unit; (2) The amount of rent to be paid to the owner, if any; and (3) A release and indemnification by the owner in favor of the corporation relating to any liability arising out of the construction or soil defect and the work performed by the design professionals and contractors to repair the dwelling unit. [Eff 12/04/10; comp 4/28/17; comp JAN 1 5 2022 ] (Auth: HRS §§201H-4, 201H-51) (Imp: HRS §201H-51) §15-307-151 Legal action on behalf of corporation. (a) If the corporation expends moneys to repurchase or repair and rent a dwelling unit pursuant section 201H-51, HRS, then the corporation, upon approval by the board, shall have the authority to take legal action against the developer, co­ developer, general contractor, and their subcontractors, consultants and other parties involved with the development, construction, or sale of the dwelling unit or with the substantial construction defect in order to recover the moneys expended. 307-41 §15-307 151 (b) The corporation, upon approval by the board, shall have the authority to retain attorneys and expert witnesses and incur the expenses reasonably necessary for the legal action to recover the moneys expended. (c) The corporation shall not be barred from bringing a legal action under this section notwithstanding any period of limitations set forth in chapter 657, HRS. [Eff 12/04/10; comp 4/28/17; comp JAN 1 5 2022 ] (Auth: HRS §201H-4) (Imp: HRS §201H-51)