Hawaii Administrative Rules › Title 15 - DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM › Hawaii Community Development Authority › Chapter 19 - DISTRICT-WIDE IMPROVEMENT PROGRAM RULES › Subchapter 5 - FINANCING › Section 15-19-83 - Special funds for payment of bonds

Current through June, 2024
(a) All moneys
				  collected on account of assessments and interest for any improvement or
				  improvements after the issuance of any assessment area bonds, including
				  refunding assessment bonds, for the improvement or improvements shall be kept
				  by the executive director in a special fund and applied solely to the payment
				  of interest and principal of the assessment area bonds until the bonds have
				  been paid. In the event that any surplus remains in the special fund after the
				  payment of assessment area bonds chargeable against the fund or in case of a
				  premium received on the sale of the bonds, it shall be credited and become a
				  part of a fund to be known as the assessment area revolving fund. Moneys in the
				  assessment area revolving fund shall be available to make up deficiencies in
				  the proceeds of bonds sold below par, to cover deficiencies in interest
				  realized on account of diminishing balances of installments outstanding, to
				  advance interest due on assessment area bonds outstanding prior to collection
				  of annual assessments, to be advanced by the authority in lieu of issuing
				  assessment area bonds for the purposes specified in section 15-19-81(e) hereof,
				  to pay all expenses in connection with the sale of delinquent assessment area
				  lots, and to pay the prices of the delinquent lots as are bid for and purchased
				  for the authority by the executive director, and the executive director is
				  authorized upon the purchase to transfer the proper amounts so bid to the
				  proper special funds for the respective assessment area concerned.
(b) The executive director shall advance
				  moneys in the assessment area revolving fund for any part of unpaid assessments
				  for any improvement or improvements when, pursuant to this chapter, the
				  authority has rounded off the amount of bonds to be issued, the advancement to
				  be in the amount equal to the difference between the total of the bonds issued
				  and the total of the unpaid assessment. Upon recommendation of the executive
				  director, the authority may by resolution authorize the executive director also
				  to advance moneys in the assessment area revolving fund for unpaid assessments
				  for any improvement or improvements in lieu of the issuance of bonds where the
				  aggregate of the assessment installments for all property owners in the
				  assessment area is less than $1,000.00 for each year, for the purposes
				  specified in section 15-19-81(e) hereof in lieu of issuing assessment area
				  bonds, for any unpaid amount of the first installment of the assessments where
				  elections have been made to pay the assessments in installments and for any
				  payment in connection with any improvement or improvements for which the
				  issuance and sale of assessment area bonds have been duly authorized. After the
				  authority has created, defined and established an assessment area pursuant to
				  this chapter, the authority, upon recommendation of the executive director, may
				  by resolution authorize the executive director to advance moneys in the
				  assessment area revolving fund for the cost of land acquisition for
				  improvements pursuant to this chapter.