BIL 324 Draft 01 2006-2008 - Laserfiche WebLink

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term initially agreed upon by OHCD, the owner shall reimburse the affordable housing trust fund for the amount of the impact fee funded by the County. (b) Eligible buyers of other units. (1) A buyer who purchases a new dwelling unit for which an impact fee had previously been paid, which is not covered under subsection (a), shall be eligible for azero-interest loan from the affordable housing trust fund in an amount equal to the impact fee, provided that: (A) The buyer has been qualified by OHCD as an eligible buyer under the applicable affordable housing guidelines; (B) The dwelling unit is sold at a price which is affordable for families earning no more than 140% of the median income for a family of four on the island of Hawaii, as determined by OHCD; and (C) The buyer has never previously received a loan under this subsection or under subsection (c). (2) The loan shall be provided at the closing of the sale of the unit and shall reduce the amount of the principal mortgage. The loan shall be a recorded lien on the property but shall be subordinated to the principal mortgage. (3) Tor the purposes of this subsection, the unit does not have to meet the standards of section 11-5(b), provided it has completed final building inspection as a dwelling unit. (4) The loan shall be repaid to the affordable housing trust fund upon any subsequent transfer of title, provided that repayment shall be deferred if the subsequent transfer complies with the provisions of paragraphs (b)(1)(A) through (b)(1)(C). (c) Owner-builders.. (1) A person who builds a home on a parcel owned by that person for their personal residence shall be eligible for azero-interest loan from the affordable housing trust fund to pay for the impact fee, provided that: (A) The person would, except for the ownership of the parcel, qualify as an eligible buyer; (B) The tax-assessed value of the land does not exceed $100,000; (C) The home does not exceed 1400 square feet in size, excluding carport or garage; and (D) The person has not previously received a loan under this subsection or subsection (b). (2) The loan shall be a recorded lien against the property but shall be subordinated to any mortgage on the property. (3) The loan shall be repaid to the affordable housing trust fiord upon any subsequent transfer of title, provided that repayment shall be deferred if the subsequent transfer complies with the provisions of paragraphs (b)(1)(A) through (b)(1)(C). -7-