HAR §15-309-2. Definitions

As used in this chapter: "Affidavit" means the application to participate in the program[.] and certify eligibility. "Applicant" means the primary person who submits an affidavit to participate in the program. "Application for relief" means an application to the corporation by a party seeking relief under this chapter. “Appreciated equity value” means the corporation’s equity and corporation’s equity share payable pursuant to section 15-309-14. "Board" means the board of directors of the Hawaii housing finance and development corporation established under chapter 201H, HRS. "Corporation" means the Hawaii housing finance and development corporation established under chapter 201H, HRS. "Corporation's equity" means the amount paid for designated units in a corporation approved housing development project by the corporation to the developer’s escrow agent prior to closing the sale on behalf of the qualified purchaser as a second mortgage loan and is payable pursuant to section 15-309-14. It is determined as: the difference between the original cost of the unit and the amount paid by the qualified purchaser as the first mortgage loan [price of]for the unit [paid by the qualified purchaser. It is the amount paid by the corporation to the developer’s escrow agent prior to closing the sale on behalf of the qualified purchaser as a second mortgage loan and is repayable pursuant to section 15-309-14, as may be amended]. "Corporation's equity percentage share" means the percentage determined as: the corporation's equity divided by the [value]original cost of the unit, excluding any options or upgrades, and established prior to initial sale [closing the purchase] of the unit, rounded to the nearest one per cent; and the amount due when applied to the Net Appreciation of the property at time of repayment pursuant to section 15-309-14. "Dwelling unit revolving fund" means the fund established pursuant to section 201H-191, HRS. "Dwelling unit revolving fund equity pilot program" or "program" means the program established by Act 92, Session Laws of Hawaii 2023. "Eligible buyer" means an applicant who: (1) owns no other real property; (2) receives no gift funds for purchase of the unit; (3) works in a profession that is facing a shortage as determined by the corporation, including health care workers, educators, law enforcement officers, staff at correctional facilities, and agricultural field workers; and [, if applicable,] (4) any other [meets the eligibility] 309-3 requirements [set forth in section 15-308-22, Hawaii Administrative Rules]. "Housing development project" means a plan, design, or undertaking by the corporation or an eligible developer for the development of units. "Housing development project" includes all real and personal property, buildings and improvements, commercial spaces, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with the housing development project. ["Interest rate" means the fixed rate charged on the corporation's equity at one per cent per year, unless otherwise indicated in the qualified purchaser's program agreement.] “Net appreciation” means the amount determined in the event of a sale as the contract resale price minus the original cost of the unit; or in the event of refinance, transfer or non-owner occupancy, as the value minus the original cost of the unit. "Qualified purchaser" means an eligible buyer who meets the criteria of the program for which an affidavit is submitted and has entered into a purchase contract and program agreement. "Starter unit" means a unit that is designed to meet the basic living capacity requirements of homebuyers with families of limited size by eliminating needless design and space amenities. "Unit" means: (1) the structure and land upon which the structure is constructed, whether on fee simple or leasehold property, developed for residential purposes pursuant to chapter 201H, HRS; or (2) improved or unimproved real property that is developed for residential purposes pursuant to chapter 201H, HRS. "Unit" includes dwelling units. "Value" means the unencumbered fair market value of a unit by appraisal, without options and upgrades at the time of purchase or capital improvements made by the purchaser after the property is purchased, as determined by a qualified appraiser[.], except when the property is sold, the value is the owner's actual resale price. [Eff 1/15/24; am and comp ] (Auth: SLH 2023, Act 92, §2) (Imp: SLH 2023, Act 92, §2)