HAR §15-307-249. Audit and cost certifications

All books and records of a project shall be subject to audit and all expenditures of a project shall be subject to cost certification. [Eff 4/28/17; comp 1/15/22; comp ] (Auth: HRS §§201H- 4, 201H-191.5) (Imp: §201H-191.5) §15-307-250 Compliance monitoring; penalties for non-compliance. (a) The corporation may perform an audit at least once a year until a regional infrastructure project is completed, but shall have access to all books and records upon notice to the eligible developer. (b) The penalty for non-compliance with program rules and requirements is at the discretion of the corporation. For projects receiving program funds in the form of loans, foreclosure proceedings is one alternative. For projects receiving grants, the corporation may undertake legal proceedings to secure specific performance. In all cases, the corporation reserves the right to pursue any and all legal remedies to recapture the funds awarded, to seek specific performance, or other actions that it deems necessary. 307-58 (c) Upon determination by the corporation of non-compliance with program rules and requirements, the owner or eligible developer, or both, shall be notified and given sixty calendar days to correct the violations. The corporation may extend the correction period, up to a total of six months if it is determined that good cause exists for granting such an extension." [Eff 4/28/17; comp 1/15/22; am and comp ] (Auth: HRS §§201H-4, 201H-191.5) (Imp: §201H- 191.5) 2. Material, except source notes and other notes, to be repealed is bracketed and stricken. New material is underscored. 3. Additions to update source notes and other notes to reflect these amendments and compilation are not underscored. 4. These amendments to and compilation of chapter 15-307, Hawaii Administrative Rules, shall take effect ten days after filing with the Office of the Lieutenant Governor. I certify that the foregoing are copies of the rules drafted in the Ramseyer format, pursuant to the requirements of section 91-4.1, Hawaii Revised Statutes, which were adopted on Month XX, 2025, and filed with the Office of the Lieutenant Governor. ______________________________ GARY MACKLER, Chairperson Hawaii Housing Finance and Development Corporation APPROVED AS TO FORM: __________________________ Deputy Attorney General 307-60 [FEES] FEE SCHEDULE (1/01/26) [Effective ________________] Pursuant to §15-307-7, fees [Fees] may be charged by the [Hawaii Housing Finance and Development Corporation] Hawaii housing finance and development corporation as follows: PURPOSE AMOUNT CHARGED Developer's Non-refundable 201H Application Fee [$2,000] $5,000 Developer's Non-refundable DURF Application Fee [$2,000] $5,000 Developer's Non-refundable Project Ground Lease Extension or Modification Application Fee [$2,000] $5,000 Developer's DURF Loan Financing Fee** 1% to 2.5% of loan amount Interest on DURF Interim Loan** 0% to 8.5% compounded annually Interest on DURF Permanent Loan** The applicable federal rate ("AFR") as determined by the Internal Revenue Service, plus 3% DURF [Permanent]Loan Affordability Restrictions Compliance Monitoring Fee** $35 per unit per year for all project units excluding managers units. 201H Exemptions Affordability Restrictions Compliance Monitoring Fee** $25 per unit per year for all project units excluding manager units. Administrative Fee (assessed to developers)** $0 to $2,500 per unit 307-61 PURPOSE AMOUNT CHARGED Regional Infrastructure Loan Application Fee** [$2,000] $5,000 Regional Infrastructure Loan Origination Fee** 1.0% of loan amount Regional Infrastructure Loan Amendment Fee** [$2,000] $5,000 Regional Infrastructure Loan Servicing Fee, per year for the loan term** 0.30% of loan amount, compounded annually Interest on Regional Infrastructure Loan to Private entity or county department or agency** 1.0% plus the actual interest rate paid by the State on the loan funds, compounded annually Interest on Regional Infrastructure Loan to state department or agency** 0%-1.0% plus the actual interest rate paid by the State on the loan funds, compounded annually ** May be adjusted by the board on a case-by-case basis.