Sections
Part I General Provisions 516-1 – 516-9
Part II Condemnation of Development Tract 516-21 – 516-56
Part III Rights of Lessees 516-61 – 516-73
Part IV Judicial Declaration 516-82 – 516-83
Part V Fee Title Acquisition Loan Program 516-91 – 516-186
Part VI Sustainable Affordable Developments or Leases 516-201 – 516-204

Terms Used In Hawaii Revised Statutes > Chapter 516

  • acquisition loan programs: includes all or any part of the loan to lenders program, the purchase of existing loans program, the advance commitments program, and the eligible loan funding program authorized under this part. See Hawaii Revised Statutes 516-91
  • Corporation: means the Hawaii housing finance and development corporation created by chapter 201H. See Hawaii Revised Statutes 516-1
  • county: includes the city and county of Honolulu. See Hawaii Revised Statutes 54-17
  • Dead body: means lifeless human body, or such parts of the human body, or the bones thereof, from the state of which it reasonably may be concluded that death recently occurred. See Hawaii Revised Statutes 338-1
  • Development tract: means a single contiguous area of real property not less than five acres in size which has been developed and subdivided into residential lots, including residential lots which may have been converted to fee simple and streets and roadways developed as an integral part of the development tract. See Hawaii Revised Statutes 516-1
  • Eligible borrower: means any lessee, irrespective of race, creed, national origin, or sex, who:

         (1)  Qualifies to purchase the leased fee interest in the lessee's property under this chapter;

         (2)  Has never before obtained a loan under this part; and

         (3)  Meets other qualifications as established by rules adopted by the corporation. See Hawaii Revised Statutes 516-91

  • Eligible loan: means a loan to an eligible borrower for the purchase of the leased fee interest in the eligible borrower's houselot; provided that the property financed is and will be occupied as the principal place of residence by the eligible borrower, and meets other requirements as established by rules adopted by the corporation. See Hawaii Revised Statutes 516-91
  • Fair market value: means that amount of money that a purchaser willing, but not obliged, to buy an interest in land would pay an owner willing, but not obliged, to sell it, taking into consideration all uses to which the land is adapted or might in reason be applied. See Hawaii Revised Statutes 516-1
  • Fee simple lands: means absolute ownership of land for an indefinite duration, freely transferable and inheritable. See Hawaii Revised Statutes 516-1
  • Lease: means a conveyance of land or an interest in land, by a fee simple owner as lessor, or by a lessee or sublessee as sublessor, to any person, in consideration of a return of rent or other recompense, for a term, measured from the initial date of the conveyance, twenty years or more (including any periods for which the lease may be extended or renewed at the option of the lessee). See Hawaii Revised Statutes 516-1
  • leased fee interest: means all of the interests of the fee owner, lessor, and all legal and equitable owners of the land which is leased, other than the lessee's interest as defined by this chapter. See Hawaii Revised Statutes 516-1
  • legal and equitable owners: include individuals, both masculine and feminine, and, except as to the term "lessee" the terms also include corporations, firms, associations, trusts, estates, and the State or its political subdivisions. See Hawaii Revised Statutes 516-1
  • Lessee: means any person to whom land is leased or subleased, and the lessee's heirs, successors, legal representatives, and assigns. See Hawaii Revised Statutes 516-1
  • Lessor: means any person who leases or subleases land to another, and the lessor's heirs, successors, legal representatives, and assigns. See Hawaii Revised Statutes 516-1
  • month: means a calendar month; and the word "year" a calendar year. See Hawaii Revised Statutes 54-15
  • Mortgage lender: means any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, credit union, insurance company, or any other financial institution, or a holding company for any of the foregoing, which:

         (1)  Is authorized to do business in the State;

         (2)  Customarily provides services or otherwise aids in the financing of mortgages on single family or multi-family residential property; and

         (3)  Is a financial institution whose accounts are federally insured, or is an institution which is an approved mortgagee for the Federal Housing Administration, or is an approved lender for the Department of Veterans Affairs or the United States Department of Agriculture, or is an approved mortgage loan servicer for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. See Hawaii Revised Statutes 516-91

  • oath: includes a solemn affirmation. See Hawaii Revised Statutes 54-16
  • Onsite improvements: means all physical improvements placed on a residential lot intended for occupancy which improvements are for the benefits of occupants of that lot, including, but not limited to, dwelling units, garages, service buildings, stairs, walkways, driveways, walls, trees, shrubs, landscaping, and pools. See Hawaii Revised Statutes 516-1
  • Physician: means a person licensed to practice medicine or osteopathic medicine under part I of chapter 453 or a practitioner of medicine, osteopathic medicine, or surgery excepted from licensure by section 453-2(b)(3). See Hawaii Revised Statutes 338-1
  • Revenue bond: means bonds, notes, or other evidence of indebtedness of the corporation issued to finance any of the acquisition loan programs under this part. See Hawaii Revised Statutes 516-91
  • Sustainable affordable development: means a development tract that satisfies all of the following requirements:

         (1)  The sales price at the time of initial sale of at least thirty per cent of all the residential lots in the development tract shall be limited in accordance with directly applicable state or county law, regulation, policy, or agreement, such that households earning not more than the required percentages of the median income for the applicable county (according to the directly applicable law, regulation, policy or agreement) will be required to spend no more than the allowable percentage of their gross incomes for housing costs as determined by secondary mortgage market standards or as otherwise agreed, all as determined as of the time of the initial sale of the residential lots;

         (2)  The sales price at the time of the initial sale of at least fifty-one per cent of the residential lots in the development tract, including the lots subject to the requirements of paragraph (1), and the sales price at the time of a resale of at least fifty‑one per cent of all the residential lots in the development tract, shall be no higher than eighty per cent of the fair market value of the residential lots in fee at the time of initial sale or resale, as appropriate, including all buildings and improvements, unencumbered by the restrictions of the lease;

         (3)  All residential lots sold in satisfaction of paragraph (1) or (2) shall be leased under sustainable affordable leases;

         (4)  The state or county agency that approves the sustainable affordable development may reduce the minimum percentage of residential lots to be sold in satisfaction of paragraph (1) or (2) upon a showing that the sustainable affordable development comprises a portion of a housing project that includes other housing, which together with the residential lots comprising the sustainable affordable development, satisfies the state or county agency's affordable housing requirements as set forth in the applicable state or county law, regulation, policy, or agreement; and

         (5)  For the purposes of this chapter, the residential lots in a development tract comprising a sustainable affordable development are not required to be in a single contiguous area as long as all non-contiguous lots are:

              (A)  Within a ten-mile radius of each other; and

              (B)  Leased by the same fee owner under a sustainable affordable lease. See Hawaii Revised Statutes 516-1

  • Sustainable affordable lease: means a residential lot lease in a sustainable affordable development that satisfies all of the following requirements:

         (1)  The lease provides for a consideration to the fee owner below a fair market return on the fair market value of the land; provided that compensation to the fee owner for land, including lease rent, shall be either:

              (A)  Totally capitalized into the initial sales price for the residential lot, including all buildings and improvements; or

              (B)  Partially capitalized with a share of appreciation paid to the lessor upon resale of the residential lot;

         (2)  In order to maintain the continued affordability of the residential lot, the lease limits the lessee's maximum sales price on the residential lot upon resale, including all buildings and improvements, to the lesser of:

              (A)  The fair market value of the residential lot, including all buildings and improvements, encumbered by the restrictions of the lease; or

              (B)  The sum of:

                   (i)  The lessee's purchase price for the residential lot, including all buildings and improvements;

                  (ii)  Any appreciation on the residential lot, including all buildings and improvements as measured by multiplying the amount in clause (i) by the increase in the consumer price index for all urban consumers as determined by the United States Department of Labor for the applicable county (or if not published for the county, then for the State), from the date of the purchase to the date of the contract for resale; and

                 (iii)  The fair market value of all lessor‑approved capital improvements made by the lessee; and

         (3)  The lease may allow the lessor to receive a share of the appreciation in accordance with paragraph (2), as agreed to by the lessor and lessee, and as set forth in the sustainable affordable lease. See Hawaii Revised Statutes 516-1

  • Trust indenture: means an agreement by and between the corporation and the trustee, which sets forth the duties of the trustee with respect to the revenue bonds, the security therefor, and other provisions as deemed necessary or convenient by the corporation to secure the revenue bonds. See Hawaii Revised Statutes 516-91
  • Trustee: means a national or state bank or trust company within or without the State which enters into a trust indenture. See Hawaii Revised Statutes 516-91