HAR §15-311-4. Authority to hire outside consultants

The corporation may hire outside consultants when in the determination of the corporation the services to be performed by the consultant are essential in carrying out the purposes of the fund. [Eff 4/23/10; comp JAN 1 5 2022 ] (Auth: HRS §201H- 202) (Imp: HRS §201H-202) SUBCHAPTER 2 RENTAL HOUSING REVOLVING FUND §15-311-21 Project requirements. Qualified whole or in part through rental housing revolving following criteria: criteria for funding; minimum housing projects funded in loans or grants from the fund must meet the one of the (a) ( 1) (2) (3) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income; and At least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income at the time of admission into the housing project; or 311-7 §15-311-21 (4) Is a mixed-income rental project or units in a mixed-income rental project wherein all of the available units are for persons and families with incomes at or below one hundred forty per cent of the median family income. Provided, however, that if there are an insufficient number of persons or families who meet the income qualifying criteria for admission into the housing project, the corporation may permit the developer to rent units to higher income tenants in order to ensure full occupancy of funded projects. (b) At the close of each biennium, at least one- third of the funds allocated to construction projects for the period shall have been committed to projects that guarantee affordable units to persons or families with incomes at or below thirty per cent of the median family income pursuant to subsection (a) (2) above. [Eff 4/23/10; am and comp JAN 1 5 2022 ] (Auth: HRS §201H-202) (Imp: HRS §201H-202) §15-311-22 Rental housing revolving fund; allowable uses. (a) The rental housing revolving fund may be utilized to provide loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units that meet the criteria for eligibility set forth in sections 15-311- 21 and 15-311-32. Additionally, an amount from the fund may be used to pay for administrative expenses incurred by the corporation in administering the fund. (b) Activities eligible for assistance from the fund shall include, but not be limited to: (1) Planning; (2) Design; (3) Land acquisition; (4) Costs of options; (5) Agreements of sale; (6) Downpayments; (7) Equity financing, including the leveraging of moneys with the use of fund assets; 311-8 46' I (8) New construction or rehabilitation activities; §15-311-23 (9) Acquisition of housing units for the purpose of preservation as lower cost housing; (10) Pre-development activity grants or loans to nonprofit organizations or governmental agencies, provided that an organization or agency may be eligible to receive one grant or loan per rental housing project; (11) Capacity building grants to nonprofit organizations, provided that an organization may be eligible to receive no more than $150,000 per nonprofit organization; (12) For participation in interim construction loans provided by private lenders or in loan programs administered by government agencies, such as the dwelling unit revolving fund administered by the corporation; and (13) Other housing development services or activities as approved by the corporation on a case-by-case basis. [Eff 4/23/10; am and comp JAN 1 5 2022 ] (Auth: HRS §201H-202) (Imp: HRS §§201H-202, 201H-204) §15-311-23 Rental housing revolving fund; project administrative expenses. Program funds cannot be used to finance the day-to-day administrative expenses of projects which are allotted revolving fund moneys. For the purposes of this chapter, "day-to-day administrative expenses of the project" shall refer to the administrative expenses of the project after occupancy of the units has taken place. [Eff 4/23/10; am and comp JA,~ 1 5 2022 ] (Auth: HRS §201H-202) (Imp: HRS §201H-202) 311-9 §15-311-24 §15-311-24 Loans and grants to nonprofit and governmental entities. (a) Loans and grants may be provided to nonprofit or governmental entities for the purposes set forth in section 15-311-21 and shall be subject to the additional conditions set forth in this section. (b) The corporation shall objectively review each project on a case-by-case basis to determine whether a loan or a grant is to be provided, and shall not be predisposed to providing loans over grants. The corporation shall also set forth the terms and conditions of the loan or grant, including the interest rate, repayment requirements, if applicable, appropriate security, and the like. The corporation may waive the repayment of funds used for predevelopment activities if the project fails to materialize through no fault of the recipient. (c) The corporation shall take all reasonable steps necessary to ensure that projects funded shall remain affordable for the economic life of the project or for as long as rental housing revolving fund moneys are invested in the project; provided, however, that upon the request of the project owners, the corporation shall have the authority to waive the conditions of the loan or grant due to extreme hardship or if such modifications are in conformity with the corporation's then existing rules for loans and grants for new projects. For example, the corporation, in conformity with its then existing rules, shall have the authority to subordinate an existing loan or grant to a subsequent rehabilitation mortgage loan. (d) The corporation shall ensure that loans and grants provided for equity gap financing or interim construction purposes are secured to safeguard against a change in the use or ownership of the project, or the project no longer fulfilling the intended purpose for which the grant was provided. Loans and grants may be secured through any of the following means: 311-10 (1) Use of a forgivable or subordinated mortgage; §15-311-25 (2) Development of a project on government-owned land with conditions attached to the land; (3) Use of a regulatory agreement; or (4) Any of a combination of the above. (e) The corporation shall establish provisions for monitoring the following: (1) The progress of nonprofit entities in developing and expanding their development capabilities or proceeding with pre- development activities if grants or loans are used for capacity building or pre- development purposes; (2) The progress of projects receiving loans and grants under these rules; and (3) Compliance with the terms and conditions of the loan or grant. The corporation shall have the right to rescind or recapture moneys loaned or granted if the terms of the contract are not fulfilled. [Eff 4/23/10; am and comp JAN 1 5 2022 ] (Auth: HRS §201H-202) (Imp: HRS §201H-202, 201H-204)