Hawaii Administrative Rules › Title 15 - DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM › Hawaii Housing Finance and Development Corporation › Chapter 312 - HULA MAE MULTI-FAMILY RENTAL HOUSING PROGRAM › Subchapter 1 - GENERAL PROVISIONS › Section 15-312-2 - Definitions

Current through June, 2024
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.
"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.
"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 multifamily
					 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.
"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.
"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.