HAR §15-308-82. Applicability

This subchapter applies to all dwelling units for whi ch the restrictions set forth in sections 201H-47 , including the shared appreciation equity program restrictions , 2 01H- 4 9 , and 2 01H-5 1 , HRS , remain in effect . [Eff 1 / 1 5 /22 ; comp DEC 1 0 2022 1 (Auth : HRS §201H- 4 ) ( Imp : HRS §201H-47 ) §15-308-83 Providing consent to additional financing . ( a ) Within the statutorily required time period from the date of purchase , the corporation shall consent to additional financing or refinancing of the original mortgage and subordinate the restriction provided in section 201H-47 , HRS , as follows : ( 1 ) When the total loan amount does not exceed the corporation ' s purchase price of the property as determined by the provisions of section 15-308-85 ( a ) ; ( 2 ) When the total loan amount exceeds the corporation ' s purchase price of the property and the loan is used for : (A) Capital improvement s ; (B) Payment of subsidy, deferred land value or deferred sales price ; (C) Payment of the corporation ' s share of appreciation under the Shared Appreciation Equity Program; or ( D) Purchase of leased fee interest for the leasehold property owned . (b) When the corporation ' s rights under section 15-308-103 are still applicable , the total amount of liens and encumbrances cannot be greater than the sum of eighty per cent of the owner ' s original purchase price and the owner ' s share of net appreciation . In cases where a house lot was purchased and the owner contributed the owner ' s own labor to construct the 3 0 8 - 3 1 dwelling, the fair market value of the dwelling shall be included as part of the owner's share of net appreciation. In extreme hardship cases involving health and safety, the corporation may allow up to an additional twenty per cent of the owner's original purchase price and the owner's share of net appreciation; provided that the lien or encumbrance is for a loan for capital improvement purposes only. (c) In cases where the corporation previously consented to the existing loan and the principal balance is greater than the total loan amount determined herein, the corporation may consent to the principal balance of the previously consented-to loan. (d) In cases where the corporation would have consented to the existing loan initially made without consent and the lender has submitted an application for relief; provided that the lender must complete all requirements and pay all fees as listed in section 15- 308-4. (e) In any event, the total loan amount shall not exceed the fair market value or county assessed value of the property at the time the loan is made, whichever is lower. [Eff 1/15/22; am and comp DEC 1 0 2022 (Auth: HRS §201H-4) (Imp: HRS §201H-47) §15-308-84 Repurchase when owner seeks to transfer title. (a) If an owner seeks to transfer the title to a dwelling unit to which this subchapter applies, the corporation shall have the first option to purchase the dwelling unit. If the corporation waives its repurchase option, a qualified nonprofit housing trust shall have th~ option to repurchase the unit. (b) The repurchase price shall be determined by the corporation pursuant to the guidelines set forth in section 15-308-105. (c) The corporation or qualified nonprofit housing trust may repurchase the dwelling unit either by: 308-32 dwelling, the fair market value of the dwelling shall be included as part of the owner ' s share of net appreciation . In extreme hardship cases involving health and safety, the corporation may allow up to an additional twenty per cent of the owner ' s origina l purchase price and the owner ' s share of net appreciation ; provided that the lien or encumbrance is for a loan for capital improvement purposes only . ( c ) In cases where the corporation previously consented to the existing loan and the principal balance is greater than the total loan amount determined herein, the corporation may consent to the principal balance of the previously consented-to loan . (d) In cases where the corporation would have consented to the existing loan initially made without consent and the lender has submitted an application for relief; provided that the lender must complete all requirements and pay all fees as listed in section 15- 30 8-4 . ( e ) In any event , the total loan amount shall not exceed the fair market value or county assessed value of the property at the time the loan is made , whichever is lower . [Eff 1 /15/22 ; am and comp JEE 1 () 2022 (Auth : HRS $201H-4 ) ( Imp : HRS §2 01H-47 ) §15-308-84 Repurchase when owner seeks to transfer title . ( a ) If an owner seeks to transfer the title to a dwelling unit to which this subchapter applies , the corporation shall have the first opt ion to purchase the dwelling unit . If the corporation waives its repurchase option, a qualified nonprofit housing trust shall have the option to repurchase the unit . (b) The repurchase price shall be determined by the corporation pursuant to the guidelines set forth in section 15-308-105 . ( c ) The corporation or qualified nonprofit housing trust may repurchase the dwelling unit either by : 3 0 8 -32  : , ii f I (1) Conveyance free and clear of all liens and mortgages; or (2) Conveyance subject to existing mortgages and liens. (d) If the real property is conveyed in the manner provided in paragraph (c) (1), it shall be conveyed to the corporation or qualified nonprofit housing trust only after all mortgages and liens are released. (e) If the real property is conveyed in the manner provided in paragraph (c) (2), the corporation or qualified nonprofit housing trust, as applicable, shall assume the seller's obligation on any first mortgage created for the purpose of securing the payment of a loan of funds expended solely for the purchase of the real property by the seller; and any mortgage or lien created for any other purpose provided that the corporation has previously consented to it in writing. The interest created by the provisions of this subsection shall constitute a lien on the real property and shall be superior to any other mortgage or lien except for: (1) Any first mortgage created for the purpose of securing the payment of a loan of funds expended solely for the purchase of the real property by the seller; (2) Any mortgage insured or held by a federal housing agency; and (3) Any mortgage or lien created for any other purpose provided that the corporation has previously consented to it in writing. The amount paid by the corporation or qualified nonprofit housing trust, as applicable, to the seller shall be the difference, if any, between the purchase price determined in section 15-308-105 and the total of the outstanding principal balances of the mortgages and liens assumed by the corporation. (f) If the shared appreciation equity program amount was paid, and the corporation repurchases the property pursuant to the guidelines set forth in section 15- 308-33 ii f I i 1 [  ( 1 ) Conveyance free and clear of all liens and mortgages ; or ( 2 ) Conveyance subj ect to existing mortgages and liens . ( d) If the real property is conveyed in the manner provided in paragraph ( c ) ( 1 ) , it shall be conveyed to the corporation or qualified nonprofit housing trust only after all mortgages and liens are released . ( e ) If the real property is conveyed in the manner provided in paragraph ( c ) ( 2 ) , the corporation or qualified nonprofit housing trust, as applicable, shall assume the seller ' s obligation on any first mortgage created for the purpose of securing the payment of a loan of funds expended solely for the purchase of the real property by the seller; and any mortgage or lien created for any other purpose provided that the corporation has previously consented to it in writing . The interest created by the provisions of this subsection shall constitute a lien on the real property and shall be superior to any other mortgage or lien except for : ( 1 ) Any first mortgage created for the purpose of securing the payment of a loan of funds expended solely for the purchase of the real property by the seller; ( 2 ) Any mortgage insured or held by a federal housing agency; and ( 3 ) Any mortgage or lien created for any other purpose provided that the corporation has previously consented to it in writing . The amount paid by the corporation or qualified nonprofit housing trust , as applicable, to the seller shall be the difference , if any, between the purchase price determined in section 15-308-105 and the total of the outstanding principal balances of the mortgages and liens assumed by the corporation . ( f ) If the shared appreciation equity program amount was paid, and the corporation repurchases the property pursuant to the guidelines set forth in section 15- 308-33 308-105, the amount paid for the shared appreciation equity program shall be reimbursed to the owner. [Eff 1/15/22; am and comp C 1 O 2022 ] (Auth: HRS §201H-4) (Imp: HRS §201H-47) §15-308-85 Determination of repurchase price for purchases subject to restrictions. (a) If the corporation repurchases a dwelling unit pursuant to section 201H-47(a) (1), HRS, the repurchase price shall be determined as follows: (1) The price at which the dwelling unit was originally purchased plus interest credit subsidies, if any, to be recaptured for federally subsidized mortgages; provided that when land only is purchased and the purchaser provides his or her labor to construct the dwelling unit, the fair market value of the dwelling provided by appraisal for the purposes of qualifying for the first mortgage or by appraisal obtained by the corporation plus the original purchase price of the land shall be used to determine the original purchase price; (2) The cost of improvements to the dwelling unit added by the owner after the original purchase, provided that the owner shall furnish financial documentation indicating the actual cost of improvements in a form deemed acceptable by the corporation in its sole discretion; and (3) Simple interest at the rate of one per cent per year on the purchaser's original cost and capital improvements. (b) If the corporation has assigned its repurchase rights to the dwelling unit to a qualified nonprofit housing trust, the corporation shall determine the repurchase price using the same methodology as provided in subsection (a). (c) Any dwelling unit repurchased by the corporation or qualified nonprofit housing trust under this subchapter shall be in resalable condition; or, in the alternative, the estimated expense required to 308-34 308-105, the amount paid for the shared appreciation equity program shall be reimbursed to the owner . [Eff 1 /1 5 /2 2 ; am and comp DEC 1 0 2022 ] (Auth : HRS §201H- 4 ) ( Imp : HRS §201H-47 ) §15-308-85 Determination of repurchase price for purchases subject to restrictions . ( a ) I f the corporation repurchases a dwelling unit pursuant to section 2 01H-4 7 ( a ) ( 1 ) , HRS , the repurchase price shall be determined as follows : ( 1 ) The price at which the dwelling unit was originally purchased plus interest credit subsidies , i f any, to be recaptured for federally subsidized mortgages ; provided that when land only is purchased and the purchaser provides his or her labor to construct the dwelling unit, the fair market value of the dwelling provided by appraisal for the purposes of qualifying for the first mortgage or by appraisal obtained by the corporation plus the original purchase price of the land shall be used to determine the original purchase price ; ( 2 ) The cost o f improvements to the dwelling unit added by the owner after the original purchase , provided that the owner shall furnish financial documentation indicating the actual cost of improvements in a form deemed acceptable by the corporation in its sole discretion ; and ( 3 ) Simple interest at the rate o f one per cent per year on the purchaser ' s original cost and capital improvements . (b) If the corporation has assigned its repurchase rights to the dwelling unit to a qualified nonprofit housing trust , the corporation shall determine the repurchase price using the same methodology as provided in subsection ( a ) . ( c ) Any dwelling unit repurchased by the corporation or qualified nonprofit housing trust under this subchapter shall be in resalable condition ; or, in the alternative , the estimated expense required to 3 0 8 - 3 4 i I i I 0 restore the dwelling unit to resalable condition shall constitute a reduction of the repurchase price to be paid by the corporation or qualified nonprofit housing trust, as applicable, provided, however, that no reduction shall be made for the estimated expense to repair a substantial soil or construction defect as defined in section 201H-51, HRS. (d) The corporation shall notify the seller of the seller's right to recourse under chapter 15-300, in the event that there is a disagreement on the repurchase price determined the corporation. [Eff 1/15/22; am and comp 1 0 ] (Auth: HRS §201H-4) (Imp: HRS §§201H-4 7, 201H-51 §15-308-86 Waiver by corporation of right to repurchase. (a) The corporation may waive the right to repurchase set forth in section 201H-47, HRS, if: (1) The owner wishes to transfer title to the dwelling unit by devise or through the laws of descent to the owner's spouse, child, parent, or sibling and the devisee or heir is otherwise eligible to purchase such a dwelling unit under this chapter; (2) The purchaser wishes to transfer title to the dwelling unit to the co-owner or a household member who meets the eligibility requirements; or (3) One of the following conditions exist: (A) The waiver will not result in the owner being able to sell the dwelling unit for a substantial profit nor promote speculative purchasing or selling of dwelling units to which this subchapter applies and the dwelling unit is sold to a person who is a qualified resident and the owner pays the corporation its percentage share of the net appreciation, if applicable; or (B) Fiscal considerations will not allow repurchase of the dwelling unit. (b) If the corporation waives its right to repurchase a dwelling unit pursuant to section 201H- 308-35 i I i I 0 !   restore the dwelling unit to resalable condition shall constitute a reduction of the repurchase price to be paid by the corporation or qualified nonprofit housing trust , as applicable, provided, however, that no reduction shall be made for the estimated expense to repair a substantial soil or construction defect as defined in section 2 01H-5 1 , HRS . (d) The corporation shall notify the seller of the seller ' s right to recourse under chapter 1 5-30 0 , i n the event that there is a disagreement on the repurchase price determined DY, _the corporation . [Eff 1 / 15/22 ; am and comp DEC 1 [ 202? ] (Auth : HRS §201H- 4 ) ( Imp : HRS §§2 01H- 4 7 , 2 01H-51 ) S15-308-86 Waiver by corporation of right to repurchase . ( a ) The corporation may waive the right to repurchase set forth in section 2 01H-47, HRS , if : ( 1 ) The owner wishes to transfer title to the dwelling unit by devise or through the laws of descent to the owner ' s spouse , child, parent , or sibling and the devisee or heir is otherwise eligible to purchase such a dwelling unit under this chapter; ( 2 ) The purchaser wishes to transfer title to the dwelling unit to the co-owner or a household member who meets the eligibility requirements ; or ( 3 ) One o f the following conditions exist : ( A) The waiver will not result in the owner being able to sell the dwelling unit for a substantial profit nor promote speculative purchasing or selling of dwelling units to which this subchapter applies and the dwelling unit is sold to a person who is a qualified resident and the owner pays the corporation its percentage share of the net appreciation, i f applicable ; or ( B ) Fiscal considerations will not allow (b) If repurchase a repurchase of the dwelling unit . the corporation waives its right to dwelling unit pursuant to section 2 01H- 308-35 47 (a) (1), HRS, then the dwelling unit may be transferred by the owner and the restrictions provided for in sections 201H-47 through 201H-51, HRS, shall then be reinstated in any subsequent conveyance. In the event the restrictions are waived, the corporation shall inform the owner of the waiver in writing and the owner, at the owner's expense, shall draft and record such instruments as are necessary to make the waiver effective. (c) If the corporation waives its right to repurchase a dwelling unit due to construction litigation, then the dwelling unit may be rented by the owner as provided for in subcha,.pt~~ 7. [Eff 1/15/22; am and comp DEC 1 U 2Ul2] (Auth: HRS §201H-4) (Imp: HRS §§201H-47, 201H-49, 201H-50, 201H-51) §15-308-87 Release by the corporation of right to purchase. (a) The corporation may release the right to purchase as set forth in section 201H-47, HRS, if the property is financed under a federally subsidized mortgage program and when fiscal considerations will not allow the repurchase of the dwelling unit. (b) The corporation's right to repurchase prescribed in sections 201H-47 to 201H-51, HRS, shall be automatically extinguished and shall not attach in subsequent transfers of title when a mortgage holder or other party becomes the owner of the dwelling unit pursuant to a mortgage foreclosure, foreclosure under power of sale, or a conveyance in lieu of foreclosure after a foreclosure action is commenced; or wheti.ra mortgage is assigned to a federal housing agency~ If requested by the owner, the corporation shall at 1 the owner's expense execute a written release in a form which may be recorded. [Eff 1/15/22; comp 1 O 2022 ] (Auth: HRS §2 OlH-4) (Imp: , HRS §§201H-47, 201H-50, 201H-51) §15-308-88 Procedures regarding repurchase by corporation and waiver of right of repurchase. (a) 308-36 47 ( a ) ( 1 ) , HRS , then the dwelling unit may be transferred by the owner and the restrictions provided for in sections 2 0 1H-47 through 2 0 1H-51 , HRS , shall then be reinstated in any subsequent conveyance . In the event the restrictions are waived, the corporation shall inform the owner of the waiver in writing and the owner , at the owner ' s expense, shall draft and record such instruments as are necessary to make the waiver effective . ( c) If the corporation waives its right to repurchase a dwelling unit due to construction litigation, then the dwelling unit may be rented by the owner as provided for in Sy_chap4 7 . (Eff 1 / 15/22 ; am and comp JEU ] ) 2022 j ( Auth : HRS §2 01H-4 ) ( Imp : HRS §S201H- 4 7 , 201H-4 9, 2 01H-50 , 2 01H-51 ) §15-308-87 Release by the corporation of right to purchase . ( a ) The corporation may release the right to purchase as set forth in section 201H- 4 7 , HRS , if the property is financed under a federally subsidized mortgage program and when fiscal considerations wil l not allow the repurchase of the dwelling unit . (b) The corporation ' s right to repurchase prescribed in sections 201H-4 7 to 2 01H-51 , HRS , shall be automatically extinguished and shall not attach in subsequent transfers of title when a mortgage holder or other party becomes the owner of the dwelling unit pursuant to a mortgage foreclosure , foreclosure under power of sale, or a conveyance in lieu of foreclosure after a foreclosure action is commenced; or when a mortgage is assigned to a federal housing agency . I f requested by the owner , the corporation shall at the owner ' s expense execute a written release in a form which may be reco rded . [Eff 1 /15/2 2 ; comp DEC 1 O 2022 ] ( Auth : HRS §201H-4 ) ( Imp : HRS SS201H- 4 7 , 2 01H- 5 0 , 201H- 5 1 ) §15-308-88 Procedures regarding repurchase by corporation and waiver of right of repurchase . ( a ) 3 0 8 - 3 6
 2 ) !l I If an owner seeks to transfer a dwelling unit, the owner shall deliver to the corporation by mail, postage prepaid, or in person a certificate of intent to sell, and a capital improvement computation form as used by the corporation. If the owner seeks a waiver of the corporation's right to repurchase the dwelling unit under section 201H-47(a) (1), HRS, then the owner shall also deliver to the corporation or by mail, postage prepaid, or in person a request for waiver of right of repurchase. (b) The corporation shall review the certificate of intent to sell, the request for waiver of right of repurchase, or both. The corporation may request any additional information necessary for th~ review and the owner shall comply with the request. The corporation shall, within sixty days, notify the owner in writing of its decision to either waive the right to repurchase or to repurchase the unit. If the corporation determines that it will repurchase the dwelling unit, the repurchase shall close within ninety days of notification. This time limit, however, may be extended if the homeowner fails to comply with all of the conditions relating to the repurchase procedures, provided that the repurchase price shall remain unchanged. (c) If the corporation determines that it will either repurchase or allow a qualified nonprofit housing trust to repurchase the dwelling unit, it shall provide a repurchase disclosure sheet to the owneF and enter into a repurchase agreement with trhe ownerr"· All rights and remedies of the corporation in regard:::F9 its option to repurchase the dwelling uniit • 1 • shall 1~bE; preserved notwithstanding the failure of the JI, owner to, execute a repurchase agreement. 1 u J ! 1 l ·1 +?~ If the corporation determines that it wi1~i waive 1)-t~ rights under section 201H-47 (a) (1), HRS, , 1 , then it shall issue to the owner a waiver of right 1~f: repurchase. The waiver shall not be issued to anyo~e other tlJ...~ the owner. [Eff 1/15/22; comp UtL 1 C ] (Auth: HRS §201H-4) (Imp: HRS §201H-47) 308-37
   If an owner seeks to transfer a dwelling unit , the owner shall deliver to the corporation by mail , postage prepaid, or in person a certificate of intent to sell , and a capital improvement computation form as used by the corporation . If the owner seeks a waiver of the corporation ' s right to repurchase the dwelling unit under section 2 01H-47 ( a ) ( 1 ) , HRS , then the owner shall also deliver to the corporation or by mail, postage prepaid, or in person a request for waiver of right of repurchase . (b) The corporation shall review the certificate of intent to sell , the request for waiver of right of repurchase, or both . The corporation may request any additional information necessary for the review and the owner shall comply with the request . The corporation shall , within sixty days , notify the owner in writing of its decision to either waive the right to repurchase or to repurchase the unit . I f the corporation determines that it will repurchase the dwelling unit , the repurchase shall close within ninety days of notification . This time limit, however, may be extended if the homeowner fails to comply with all of the conditions relating to the repurchase procedures , provided that the repurchase price shall remain unchanged . ( c) I f the corporation determines that it will either repurchase or allow a qualified nonprofit housing trust to repurchase the dwelling unit, it shall provide a repurchase disclosure sheet to the owner and enter into a repurchase agreement with the owner . All rights and remedies of the corporation in i regard_ to its option to repurchase the dwelling unit shall be preserved notwithstanding the failure of the I i - owner ,to execute a repurchase agreement . g h i ( a ) , I f the corporation determines that it will , waive its rights under section 201H-47 ( a ) ( 1 ) , HRS , 1  ) ·  I then it shall issue to the owner a waiver of right of repurchase . The waiver shall not be issued to anyone other than the owner . [Eff 1 / 15/22 ; comp UlC 1 C 2022 1 (Auth : HRS §20 1H-4 ) ( Imp : HRS §20 1H-47 ) 308-37 §15-308-89 Resale or rental of repurchased dwelling unit. (a) Following the repurchase of a dwelling unit pursuant to this subchapter, the corporation may in its discretion either resell or rent or lease the dwelling unit. (b) If the corporation resells a repurchased dwelling unit, the sales price shall be determined by the corporation; provided, however, that the sales price shall not exceed the greater of: (1) The fair market value of the dwelling unit reduced by a reasonable discount representing the decrease in value resulting from the restrictions set forth in sections 201H-47 and 201H-49, HRS, and the shared appreciation program; or (2) The price at which the dwelling unit was repurchased by the corporation plus administrative expenses and the sale shall be conditioned on imposition of the restrictions set forth in sections 201H-47 and 201H-49, HRS, and the shared appreciation program. (c) Resale policies to be followed by the corporation or its designated representative are follows: as ( 1) (2) (3) ( 4) (d) dwelling Resales shall be priced to be affordable to meet the incomes of target groups. A statutorily required time period transfer and use restriction shall be imposed on each resale. The shared appreciation equity program shall be part of the resale program. When the number of applicants exceeds the number and type of units available, section 15-308-25 shall apply. After the initial period, the sale of units shall be offered to applicants on the wait list. The applicant shall also meet the original income requirements as determined for the project or unit. If the corporation rents the new project unit or repurchased dwelling unit, it shall 308-38 §15-308-89 Resale or rental of repurchased dwelling unit. ( a ) Following the repurchase of a dwelling unit pursuant to this subchapter, the corporation may in its discretion either resell or rent or lease the dwelling unit . ( b ) If the corporation resells a repurchased dwelling unit , the sales price shall be determined by the corporation ; provided, however, that the sales price shall not exceed the greater of : ( 1 ) The fair market value of the dwelling unit reduced by a reasonable discount representing the decrease in value resulting from the restrictions set forth in sections 201H-47 and 2 01H-49, HRS , and the shared appreciation program; or ( 2 ) The price at which the dwelling unit was repurchased by the corporation plus administrative expenses and the sale shall be conditioned on imposition of the restrictions set forth in sections 2 01H-47 and 201H- 4 9 , HRS , and the shared appreciation program . ( c ) Resale policies t o b e followed by the corporation or its des ignated representative are follows : as ( 1 ) ( 2 ) ( 3 ) ( 4 ) (d) dwelling Resales shall be priced to be affordable to meet the incomes of target groups . A statutorily required time period transfer and use restriction shall be imposed on each resale . The shared appreciation equity program shall be part of the resale program . When the number of applicants exceeds the number and type of units available , section 15-308-25 shall apply . After the initial period, the sale of units shall be offered to applicants on the wait list . The applicant shall also meet the original income requirements as determined for the proj ect or unit . If the corporation rents the new proj ect unit or repurchased dwelling unit, it shall 3 0 8-38 )   9 rent the dwelling unit as provided in subchapter 4. [Eff 1/15/22; am and comp 10 ] (Auth: HRS §201H-4) (Imp: HRS §§201H-47, 201H-49) §15-308-90 Repurchase under foreclosure of properties subject to restrictions. The corporation may repurchase a property that is the subject of a mortgage foreclosure or foreclosure under power of sale when the property is encumbered with the right- to-repurchase restrictions set forth in sections 201H- 47, 201H-49, and 201H-51, HRS, and the shared appreciation equity program. (1) For property encumbered by the restrictions set forth in sections 201H-47, 201H-49, and 201H-51, HRS: (2) (A) The price may be determined by the guidelines set forth in section 15-308- 105 (a) (1) to (3), or at a price that will enable the corporation to resell the property; or (B) The corporation may waive its option to purchase the property and shall be entitled to the proceeds remaining in excess of the customary and actual costs and expenses of the foreclosure sale, encumbrances of record, purchaser's costs of improvements and simple annual interest of one per cent on purchaser's original cost and capital improvements. For property encumbered by the shared appreciation equity program restriction only: (A) The property may be repurchased when the price, determined by adding the corporation's share of net appreciation amount plus the superior encumbrances of record, will enable the corporation to resell the property. (B) The corporation shall be entitled to 308-39 Tl1 l l , 1 11 9 rent the dwelling unit as provided in subchapter 4 . [Eff 1 /15/22 ; am and comp DEC 1 0 2022 ] (Auth : HRS §201H- 4 ) ( Imp : HRS §§201H-47 , 2 01H- 4 9 ) §15-308-90 Repurchase under foreclosure of properties subject to restrictions . The corporation may repurchase a property that is the subj ect of a mortgage foreclosure or foreclosure under power of sale when the property is encumbered with the right­ to-repurchase restrictions set forth in sections 201H- 4 7 , 201H- 4 9 , and 201H-51 , HRS , and the shared appreciation equity program . ( 1 ) For property encumbered by the restrictions set forth in sections 201H- 4 7 , 2 01H- 4 9 , and 2 01H-51 , HRS : (A) The price may be determined by the guidelines set forth in section 1 5-308- 105 (a) ( 1 ) to ( 3 ) , or at a price that will enable the corporation to resell the property; or (B ) The corporation may waive its option to purchase the property and shall be entitled to the proceeds remaining in excess of the customary and actual costs and expenses of the foreclosure sale, encumbrances of record, purchaser ' s costs of improvements and simple annual interest of one per cent on purchaser ' s original cost and capital improvements . ( 2 ) For property encumbered by the shared appreciation equity program restriction only : (A) The property may be repurchased when the price , determined by adding the corporation ' s share of net appreciation amount plus the superior encumbrances of record, will enable the corporation to resell the property . (B) The corporation shall be entitled to 308-39 ) I l  y 'I' t i l 1I c  [ I its share of net appreciation when the property is transferred as the result of the foreclosure sale. (C) If the corporation's share is not paid when due, interest on the corporation's amount will accrue interest at the simple annual rate of twelve per cent until paid. The corporation shall pursue foreclosure or legal action. [Eff 1/15/22; am and comp DEC 1 O 2022 ] (Auth: HRS §201H-4) (Imp: HRS §§201H-107, 201H-47, 201H-49, 201H-51) SUBCHAPTER 6 SHARED APPRECIATION EQUITY PROGRAM RESTRICTIONS