Hawaii Administrative Rules › Title 15 - DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM › Hawaii Housing Finance and Development Corporation › Chapter 308 - STATE ASSISTED SALES AND LEASE PROGRAM › Subchapter 1 - GENERAL PROVISIONS › Section 15-308-2 - Definitions

Current through June, 2024
As used in this chapter:
"Administrative expenses" means expenses incurred by the
					 corporation for activities performed in conjunction with the administration of
					 this chapter pursuant to sections
					 201H-47 thru
					 201H-51, HRS. Such costs may
					 include, but are not limited to salaries, other employee benefits, and other
					 expenses necessary to administer this chapter.
"Administrator" means the executive director employed by
					 the board or the executive director's designated representative.
"Applicant" means the primary person who submits an
					 application to purchase a property under chapter
					 201H, HRS, and if applicable,
					 applicant's spouse, co-applicant, and co-applicant spouse.
"Application" means an application to purchase a unit in a
					 project. An application is deemed complete when submitted together with the
					 required supporting information and verification documents for determination of
					 eligibility to purchase a unit in a new for-sale affordable development, on a
					 form approved by the corporation.
"Application for relief" means an application to the
					 corporation by a party seeking relief under this chapter.
"Assets" means total cash, securities, and real property
					 less any outstanding liabilities secured by the assets.
"Assisted project" means a project which is initiated and
					 developed by an entity other than the corporation, and which is being provided
					 state assistance to lower sales prices or rental rates. Such assistance may
					 include, but is not necessarily limited to, interim and permanent financing,
					 expedited processing of projects, tax credits, general excise tax exemptions,
					 and rental assistance.
"Board" means the board of directors of the Hawaii housing
					 finance and development corporation established under chapter
					 201H, HRS.
"Co-applicant" means a person who submits an application to
					 purchase an affordable unit with the applicant and who is:
(1) Not married to an applicant, is of the
				  age of majority, unrelated to the applicant, and intends to reside in the unit;
				  or
(2) Related to an applicant by
				  blood, marriage, or operation of law, including foster children and hanai
				  children, is of the age of majority, and wishes to be on title of the
				  affordable unit.
"Contractor" means a general engineering contractor or
					 general building contractor licensed under chapter
					 444, HRS.
"Corporation" means the Hawaii housing finance and
					 development corporation established under chapter
					 201H, HRS.
"County" includes the counties of Kauai, Maui, Hawaii, and
					 the city and county of Honolulu, and unless the context requires a different
					 meaning, it shall mean the county in which the project is situated.
"Design professional" means a professional engineer,
					 architect, surveyor, or landscape architect licensed under chapter
					 464, HRS.
"Develop" or "development" means the planning, financing,
					 acquisition of real property, demolition of existing structures, clearance of
					 real property, construction, reconstruction, alteration, or repairing of
					 approaches, streets, sidewalks, utilities, and services or other site
					 improvements, or construction, reconstruction, repair, remodeling, extension,
					 equipment, or furnishing of buildings or other structures or any combination of
					 the foregoing, of any housing project. It also includes any and all
					 undertakings necessary therefor, and the acquisition of any housing, in whole
					 or in part.
"Domicile" means the state where a person has his or her
					 true, fixed, and permanent home and to where the person has the intention of
					 returning whenever the person is absent. A person may have only one
					 domicile.
"Dwelling" means a structure designated for residential
					 use.
"Dwelling unit" or "unit" means the structure and land upon
					 which the structure is constructed, whether on fee simple or leasehold
					 property, developed pursuant to chapter
					 201H, HRS, which is intended for
					 residential purposes. It may also mean improved or unimproved real property
					 which is developed for residential purposes pursuant to the provisions of
					 chapter 201H,
					 HRS.
"Elder" means a person who is a qualified resident of the
					 State and who has attained the age of sixty-two.
"Eligible developer" means an individual, partnership,
					 cooperative, including limited equity housing cooperatives (as defined in
					 chapter 421H, HRS),
					 firm, nonprofit or profit corporation, limited liability company, or public
					 agency which the corporation has certified pursuant to the provisions of
					 section 15-308-24 of this chapter.
"Eligible purchaser" means a first-time homebuyer or
					 qualified resident who demonstrates need for assistance in obtaining housing,
					 and who meets the requirements of section
					 15-308-22 for the project for
					 which an application is submitted.
"Fair market value" means the unencumbered fair market
					 value of a property that has no State or county restrictions attached thereto,
					 as determined by a real estate appraiser licensed or certified to practice in
					 the State of Hawaii subject to the requirements of section
					 466K-4, HRS.
"First-time homebuyer" means a qualified resident who has
					 not owned any unit anywhere for a period of one year prior to the date of
					 application for a lower cost housing unit.
"Former owner" means a former owner of a dwelling
					 unit:
(1) From whom the dwelling unit
				  was repurchased pursuant to section
				  201H-47, HRS; or
(2) Who has obtained a waiver of repurchase
				  rights from the corporation under section
				  201H-47, HRS.
"Government assistance program" means any housing program
					 qualified by the corporation and administered or operated by the State, the
					 corporation, the United States, or any of its political subdivisions, agencies,
					 or instrumentalities, corporate or otherwise, which may be used to effectuate
					 housing development for qualified persons in the State. Government assistance
					 program includes, but is not limited to, the following:
(1) Any program specified, allowed, or
				  eligible for assistance under chapter
				  201H, HRS;
(2) Any program specified, allowed, or
				  eligible for assistance under laws, rules, or regulations of the United States
				  Department of Housing and Urban Development and the United States Department of
				  Agriculture; or
(3) Any program
				  regulated by either the corporation, counties, or the United States or any of
				  their political subdivisions, agencies, or instrumentalities, corporate or
				  otherwise.
"Gross household income" means the total amount of income
					 of household members, from all sources before deductions including all income
					 for household members eighteen years of age and older who are currently
					 residing in the household, or who will physically reside in the dwelling unit
					 to be purchased.
"Guaranteed loan" means a loan that is guaranteed or as to
					 which a commitment to guarantee has been made under the provisions of a federal
					 or state law.
"Homeless" means those who meet one or more of the four
					 categories of homelessness established by the United States Department of
					 Housing and Urban Development, as follows:
(1) Individuals and families who lack a
				  fixed, regular, and adequate nighttime residence and includes a subset for an
				  individual who is exiting an institution where he or she resided for ninety
				  days or less and who resided in an emergency shelter or a place not meant for
				  human habitation immediately before entering that institution;
(2) Individuals and families who will
				  imminently lose their primary nighttime residence;
(3) Unaccompanied youth and families with
				  children and youth who are defined as homeless under other federal statutes;
				  or
(4) Individuals and families who
				  are fleeing, or are attempting to flee, domestic violence, dating violence,
				  sexual assault, stalking, or other dangerous or life-threatening conditions
				  that relate to violence against the individual or a family member.
"Household" means an individual; or two or more persons who
					 live or intend to live together as a unit and whose income and resources are
					 available to meet the household's need and who may, but need not be, related by
					 blood, marriage, or operation of law, including foster children and hanai
					 children and whose head of household has reached the age of majority, or is
					 otherwise legally emancipated.
"Household member" means a person who is a co-applicant or
					 will reside in the dwelling unit.
"Household size" means the total number of household
					 members residing, or that will be legally residing, in a dwelling unit. For
					 purposes of calculating household size, a person who is pregnant shall count as
					 two household members.
"HRS" means the Hawaii Revised Statutes.
"HUD" means the United States Department of Housing and
					 Urban Development.
"Improvement" means an addition, renovation, or replacement
					 to the dwelling unit which enhances the value of the property, and for which
					 labor and capital' are expended. Improvements do not include repairs or
					 maintenance of the property.
"Initial public offering" means the date when the project
					 is authorized for release to the general public and applications are made
					 available for distribution and acceptance.
"Lower cost housing", in the context of identifying the
					 persons or families intended to be served by such housing, primarily includes
					 housing for persons or families whose incomes are identified as one hundred
					 forty per cent or less of the area median income for each of the counties of
					 Hawaii, Maui, Honolulu, and Kauai as determined by the United States Department
					 of Housing and Urban Development from time to time, and as adjusted by family
					 size. For the purpose of this chapter, such persons or families include persons
					 or families within the following income groups:
(1) "Very low income" - those earning fifty
				  per cent of the area median income and below;
(2) "Low income" - those earning above fifty
				  per cent up to eighty per cent of the area median income;
(3) "Low-moderate income" -- those earning
				  above eighty per cent up to one hundred twenty per cent of the area median
				  income; or
(4) "Moderate income" -
				  those earning above one hundred twenty per cent up to one hundred forty per
				  cent of the area median income.
"Mortgage payment" means the owner's payment on any
					 mortgage which is necessary for financing the purchase of an owner's dwelling
					 unit. It may also include payments for lease rent, real property taxes,
					 mortgage insurance, association fees, and any other expenses directly related
					 to financing the purchase of the owner's real property or to maintaining an
					 ownership interest in the real property.
"Mortgagee" means any bank or other institution authorized
					 by federal or state law to make loans on dwelling units or the authorized
					 assignee of such bank or institution.
"Owner" means the owner of a dwelling unit.
"Person with a disability" means a person having a physical
					 or mental impairment that substantially limits one or more major life
					 activities; a record of such an impairment; or is regarded as having such an n
					 impairment. Major life activities include caring for oneself, performing manual
					 tasks, walking, seeing, hearing, speaking, breathing, and working.
"Plans and specifications" includes construction plans and
					 specifications and any other document that may be required by the county in the
					 processing of the plans and specifications for the issuance of permits for
					 construction and building of improvements within a project.
"Project" or "housing project" means a plan, design, or
					 undertaking by the corporation or an eligible developer for the development of
					 dwelling units, and includes all real and personal property, buildings and
					 improvements, commercial space, 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
					 project, assisted project, or sponsored project.
"Qualified appraiser" means a real estate appraiser
					 licensed or certified to practice in the State of Hawaii subject to the
					 requirements of section
					 466K-4, HRS.
"Qualified nonprofit housing trust" means a corporation/
					 association, or other duly chartered organization that is registered and in
					 good standing with the State; is recognized by the Internal Revenue Service as
					 a charitable or otherwise tax-exempt organization under section 501(c)(3) of
					 the Internal Revenue Code of 1986, as amended; has the capacity, resources, and
					 mission to carry out the purposes of this chapter; and has been determined by
					 the corporation to operate a homeownership program that:
(1) Provides homeownership opportunities to
				  first-time homebuyers; and
(2)
				  Imposes an owner-occupancy restriction on the homebuyers with a minimum term of
				  ten years.
A "qualified nonprofit housing trust" shall be determined
					 to have the capacity, resources, and mission to carry out the purposes of the
					 chapter when it is determined, in the corporation's sole discretion, that
					 it:
(1) Demonstrates efficient
				  financial capacity and ability to exercise the corporation's repurchase rights
				  in a timely fashion;
(2)
				  Demonstrates the ability to comply with the requirements set forth in
				  subchapter 5,
infra;
and
(3) Agrees to comply with all
				  applicable requirements set forth in subchapter
				  5 of this chapter.
"Qualified resident" means the same as defined under
					 section 201H-32, HRS.
"Rules" means these rules.
"Sponsored" includes, but is not limited to, the provision
					 of a loan and exemptions pursuant to section
					 201H-38, HRS.
"Sponsored project" means a housing project benefitting
					 from various programs administered by the corporation including, but not
					 limited to, a loan and exemptions pursuant to section
					 201H-38, HRS.
"State" means the State of Hawaii.
"Subsidies" means the difference between all costs expended
					 by the corporation, less any recoveries by the corporation. It also includes
					 unrecovered development, land, financing, and carrying costs.
"Sustainable affordable leases" means the same as defined
					 in section 516-1, HRS.
"Value" means the value of a property as determined by a
					 qualified appraiser.