HAR §15-312-2. Definitions

As used in this chapter and the procedural handbook: "Agreement concerning costs" means the agreement between the applicant, the corporation, and the department whereby the applicant agrees to pay the costs incurred by the corporation and the department in processing the application and structuring of the proposed bond issue. "Applicant" means any owner or developer that submits an application for the financing of an existing or proposed multi-family rental housing project under the program. "Board" means the board of directors of the Hawaii housing finance and development corporation. "Bond trustee" means the national or state bank or trust company which administers the indenture of trust covering the proceeds and applies the proceeds of a bond issue to protect and enforce the rights of the bondholders. "Bonds" means the revenue bonds issued to finance all or any part of the advance commitment program, the loans to lenders program, the purchase of existing loans program, and the eligible project loan funding program authorized under part III, chapter 201H, HRS. "Bondholder" means the investor or investors that purchase the bonds. "Code" means the Internal Revenue Code of 1954, as amended from time to time, or any successor statute thereto. "Contract rent" means the monthly rent approved by the corporation and payable by an eligible tenant to a qualified sponsor under the lease for a regulated unit in an eligible project. "Corporation" means the Hawaii housing finance and development corporation. 312-3
 §15-312-2 "Credit enhancement" means security for the bonds provided to support the promise to repay the bondholder in order to improve the credit rating on the bond issue. "Department" means the department of budget and finance of the State of Hawaii. "Eligible project loan" means an interim or permanent loan made to a qualified sponsor to finance an eligible project pursuant to the provisions of chapter 201H, HRS. "Eligible tenant" means, with regard to an eligible project maintaining a minimum of twenty per cent of the units for lower income households, a person whose adjusted income, which when combined with the adjusted income of all other persons over the age of eighteen years residing in the same unit, does not exceed fifty per cent of the median income for the area adjusted for family size. With regard to an eligible project maintaining a minimum of forty per cent of the units for lower income households, "eligible tenant" means a person whose adjusted income, which when combined with the adjusted income of all other persons over the age of eighteen years residing in the same unit, does not exceed sixty per cent of the median income for the area adjusted for family size. In no event will the occupants of a unit be considered eligible tenants if all of such occupants are students as defined in section 151(e) (4) of the Code, no one of whom is entitled to file a joint return under section 6013 of the Code. "Executive director" means the executive director of the corporation or the executive director's designated representative. "Household income" means the adjusted income of a person, together with the adjusted income of all persons over the age of eighteen who intent to reside with such person in one residential unit, as calculated in the manner prescribed in section 1.167(k)-3(b) (3) of the Treasury regulations. "HRS" means the Hawaii Revised Statutes. 312-4 §15-312-2 "Credit enhancement" means security for the bonds provided to support the promise to repay the bondholder in order to improve the credit rating on the bond issue. "Department" means the department of budget and finance of the State of Hawaii. "Eligible project loan" means an interim or permanent loan made to a qualified sponsor to finance an eligible project pursuant to the provisions of chapter 201H, HRS. "Eligible tenant" means, with regard to an eligible project maintaining a minimum of twenty per cent of the units for lower income households, a person whose adjusted income, which when combined with the adjusted income of all other persons over the age of eighteen years residing in the same unit, does not exceed fifty per cent of the median income for the area adjusted for family size. With regard to an eligible project maintaining a minimum of forty per cent of the units for lower income households, "eligible tenant" means a person whose adjusted income, which when combined with the adjusted income of all other persons over the age of eighteen years residing in the same unit, does not exceed sixty per cent of the median income for the area adjusted for family size. In no event will the occupants of a unit be considered eligible tenants if all of such occupants are students as defined in section 151(e) (4) of the Code, no one of whom is entitled to file a joint return under section 6013 of the Code. "Executive director" means the executive director of the corporation or the executive director's designated representative. "Household income" means the adjusted income of a person, together with the adjusted income of all persons over the age of eighteen who intent to reside with such person in one residential unit, as calculated in the manner prescribed in section 1.167(k)-3 (b) (3) of the Treasury regulations. "HRS" means the Hawaii Revised Statutes. 312-4
 §15-312-2 "Inducement resolution" means the resolution adopted by the board signifying the corporation's first official action identifying the project as one within the program as required under Treasury Regulation 1.103-8 (a) (5). "Lender loan" means a loan of the bond proceeds by the bond trustee to a mortgage lender for the purpose of funding an eligible project loan. "Median income" means the median income for the area as most recently determined by the Secretary of Housing and Urban ,Development under section 8 of the United States Housing Act of 1937, as amended, or if programs under Section 8 are terminated, median income for the area determined under the method used by the Secretary prior to such termination. "Mortgage" means the mortgage and security agreement and any other security for the note evidencing the obligation of a qualified sponsor to repay an eligible project loan. "Mortgage lender" means a mortgage lender as defined in part III, chapter 201H, HRS. "Owner's equity" means the sum of the capital and the market value of the assets, as confirmed by the corporation, contributed by the qualified sponsor toward the development, or the acquisition and rehabilitation of an eligible project and any subsequent infusions of cash by the qualified sponsor for capital improvements as approved by the corporation. The initial amounts contributed towards owner's equity shall be verified by a cost certification audit, or such other verification acceptable to the corporation, performed upon completion of construction. "Program" means the corporation's hula mae multi- family program as established by chapter 201H, HRS. "Procedural handbook" means a set of instructions, guidelines, terms, and conditions for king, funding, and servicing eligible project loans. 312-5 $15-312-2 "Inducement resolution" means the resolution adopted by the board signifying the corporation's first official action identifying the project as one within the program as required under Treasury Regulation 1.103-8 (a) (5). "Lender loan" means a loan of the bond proceeds by the bond trustee to a mortgage lender for the purpose of funding an eligible project loan. "Median income" means the median income for the area as most recently determined by the Secretary of Housing and Urban Development under section 8 of the United States Housing Act of 1937, as amended, or if programs under Section 8 are terminated, median income for the area determined under the method used by the Secretary prior to such termination. "Mortgage" means the mortgage and security agreement and any other security for the note evidencing the obligation of a qualified sponsor to repay an eligible project loan. "Mortgage lender" means a mortgage lender as defined in part III, chapter 201H, HRS. "Owner's equity" means the sum of the capital and the market value of the assets, as confirmed by the corporation, contributed by the qualified sponsor toward the development, or the acquisition and rehabilitation of an eligible project and any subsequent infusions of cash by the qualified sponsor for capital improvements as approved by the corporation. The initial amounts contributed towards owner's equity shall be verified by a cost certification audit, or such other verification acceptable to the corporation, performed upon completion of construction. "Program" means the corporation's hula mae multi­ family program as established by chapter 201H, HRS. "Procedural handbook" means a set of instructions, guidelines, terms, and conditions for king, funding, and servicing eligible project loans. 312-5
  §15-312-2 "Qualified project period" means the period beginning on the first day on which at least ten per cent of the dwelling units in the project are first occupied and ending on the latter of (a) the date which is fifteen years after the date upon which fifty per cent of the dwelling units in the eligible project are first occupied; (b) the first day upon which no tax-exempt private activity bond issued with respect to the project is outstanding; or (c) the date upon which any assistance provided with respect to the project under section 8 of the United States Housing Act of 1937, as amended, terminates. "Qualified sponsor" means a qualified sponsor as defined in part III, chapter 201H, HRS, and who is determined by the corporation to have articles of incorporation or comparable documents of organization or a written agreement with the corporation which, in addition to other requirements of law, provides that if the person or entity receives an eligible project loan from the corporation as provided for in part III, chapter 201H, HRS, it shall be authorized to enter into an agreement with the corporation, providing for regulations with respect to rents, profits, dividends, and dispositions of property or franchises. "Regulated unit" means a unit occupied by or made available for occupancy by an eligible tenant. No less than twenty per cent of the total number of dwelling units in an eligible project must be regulated units. "Regulatory agreement" means the agreement between the corporation and a qualified sponsor that prescribes the manner in which the eligible project is to be operated, among other things, the rental rates to be charged on the regulated units. "Rental schedule" means the schedule of rents, including the contract rents, covering all units in an eligible project. 312-6 4 §15-312-2 "Qualified project period" means the period beginning on the first day on which at least ten per cent of the dwelling units in the project are first occupied and ending on the latter of (a) the date which is fifteen years after the date upon which fifty per cent of the dwelling units in the eligible project are first occupied; (b) the first day upon which no tax-exempt private activity bond issued with respect to the project is outstanding; or (c) the date upon which any assistance provided with respect to the project under section 8 of the United States Housing Act of 1937, as amended, terminates. "Qualified sponsor" means a qualified sponsor as defined in part III, chapter 201H, HRS, and who is determined by the corporation to have articles of incorporation or comparable documents of organization or a written agreement with the corporation which, in addition to other requirements of law, provides that if the person or entity receives an eligible project loan from the corporation as provided for in part III, chapter 201H, HRS, it shall be authorized to enter into an agreement with the corporation, providing for regulations with respect to rents, profits, dividends, and dispositions of property or franchises. "Regulated unit" means a unit occupied by or made available for occupancy by an eligible tenant. No less than twenty per cent of the total number of dwelling units in an eligible project must be regulated units. "Regulatory agreement" means the agreement between the corporation and a qualified sponsor that prescribes the manner in which the eligible project is to be operated, among other things, the rental rates to be charged on the regulated units. "Rental schedule" means the schedule of rents, including the contract rents, covering all units in an eligible project. 312-6 344 §15-312-4 "Reserve fund for replacements means a restricted custodial account established and maintained under the regulatory agreement, the proceeds of which are to be disbursed for the funding of extraordinary maintenance and repair and replacement of capital items. "Sale resolution" means the resolution adopted by the Board authorizing the issuance of bonds by the corporation. "State" means the State of Hawaii. "Underwriter" means the investment banking firm which structures the bond financing, sells the bonds and delivers the proceeds to the bond trustee. [Eff 4/23/2010; comp 4/23/2010; comp JAN 1 5 2022 J (Auth: HRS §201H-97) (Imp: HRS §§201H-102, 201H-103, 201H-104, 201H-105, 201H-106)