HAR §15-308-107. Determination of fair market value

( a ) Whenever it is necessary to determine the net appreciation of the property, the corporation shall select an appraiser and order an appraisal of the fair market value of the dwelling unit . The owner shall pay for the cost of the appraisal . ( b ) Within ten business days upon receipt of the appraisal , a written copy shall be provided to the owner . Should the owner dispute the appraisal , the owner may obtain a second appraisal at the owner ' s cost and expense .
  ( c ) I f the first appraisal obtained by the ­ corporation is not disputed, that appraisal shall be no used to determine. the fair market value . ne  (d) If the owner disputes the first appraisal , the second appraisal ordered by the owner shall be sent to the corporation within the earlier of ( 1 ) ten business days upon receipt , or ( 2 ) forty- five calendar days after the first appraisal is received from the corporation . 3 0 8 - 4 4 (e) If the second appraisal is lower than the first appraisal, the fair market value used shall be one-half of the sum of the two appraisals. (f) If the second appraisal is not lower, the corporation's first appra~sal shall be used to determine the fair market value. (g) All appraisals shall be made by a qualified appraiser as defined in this chapter. [Eff 1/15/22; am and comp 1 O (Auth: HRS §201H-4) (Imp: HRS §201H-4 7) §15-308-108 Cancellation of the corporation's share of the net appreciation. (a) The corporation's right to be paid a share of the net appreciation shall constitute a lien on the property until all of the following events have occurred: (1) The corporation has been fully paid its share of the net appreciation and any other amounts that are due and owing the corporation; (2) The corporation releases the shared appreciation equity program restriction; and (3) The release is recorded at the bureau of conveyances by the purchaser. (b) Should no amount be due the corporation following all computations, the corporation may issue a release of the shared appreciation equity program upon the request of the owner. In the event the corporation provides written notice to the owner that no amount is due, the owner, at the owner's own expense, shall draft and have recorded such instruments as a~e;n~cessary to make the release effective. The ow~~~ shall submit a recorded copy of the release instr~~ents to the corporation within forty-five days otµt~e date of the corporation's written notice in,order to have the shared appreciation equityiprogram restriction cancelled. [Eff 1/15/22; am and comp DEC 1 CJ ] (Auth: HRS §201H-4) (Imp: HRS §201H-4 7) §15-308-109 Exercise of the right to purchase restriction. In the event the corporation exercises 308-45 ( i j 1/) 1. I, I. 1 i L I \I I
   ( e ) I f the second appraisal is lower than the first appraisal , the fair market value used shall be one-hal f of the sum of the two appraisals . ( f) If the second appraisal is not lower, the corporation ' s first appraisal shall be used to determine the fair market value . ( g) All appraisals shall be made by a qualified appraiser as defined in this chapter . [Eff 1 / 15 /2 2 ; am and comp DEC 1 0 2022 (Auth : HRS §201H-4 ) ( Imp : HRS §201H- 4 7 ) §15-308-108 Cancellation of the corporation ' s share of the net appreciation . ( a ) The corporation ' s right to be paid a share of the net appreciation shall constitute a lien on the property until all of the following events have occurred : ( 1 ) The corporation has been fully paid its share of the net appreciation and any other amounts that are due and owing the corporation ; ( 2 ) The corporation releases the shared appreciation equity program restriction; and ( 3 ) The release is recorded at the bureau of conveyances by the purchaser . (b) Should no amount be due the corporation following all computations , the corporation may issue a release of the shared appreciation equity program upon the request of the owner . In the event the corporation provides written notice to the owner that no amount is due , the owner, at the owner ' s own expense , shall draft and have recorded such instruments as are necessary to make the release effective . The owner shall submit a recorded copy of the release instruments to the corporation within forty-five days of the date of the corporation ' s written notice in order to have the shared appreciation equity program restriction cancelled . (Eff 1 / 15/22 ; am and comp JEC 1  2(022 1 (Auth : HRS §201H-4 ) ( Imp : HRS §201H-47 ) §15-308-109 Exercise of the right to purchase restriction . In the event the corporation exercises 308-45 7e  W i 4    me n I ! i / 1 its option to purchase the property, the shared appreciation equity program restriction shall not apply. If the purchaser paid part of or the full payment for the shared appreciation equity program, the corporation shall refund the amount paid. [Eff 1/15/22; comp DEC 1 0 2022 ] (Auth: HRS §201H- 4) (Imp: HRS §201H-4 7) §15-308-110 Prepayment of corporation's percentage share of net appreciation. (a) The owner may pay all or part of the corporation's share of the net appreciation at any time without a sale or transfer of the dwelling unit. (b) If only a partial payment is made to the corporation, the owner's original purchase price shall be increased for the purpose of making any later calculation to determine the balance of the corporation's share of the net appreciation. (c) The minimum amount of partial payment is twenty-five per cent. [Eff 1/15/22; comp DEC 1 O 2022] (Auth: HRS §201H-4) (Imp: HRS §201H-47) SUBCHAPTER 7 OWNER OCCUPANCY WAIVER PROCEDURES