BIL 304 Draft 01 2008-2010 - Laserfiche WebLink

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(2) To qualify the units for County funding, OHCD shall certify that the units qualify as affordable housing under chapter 11, and that OHCD will monitor compliance with price and eligibility restrictions, and restrictions on the subsequent transfer of the units, consistent with the requirements of chapter 11. If certification occurs after the issuance of the building permit and payment of the impact fee by the developer, the County shall reimburse the impact fee to the developer. (3) If the unit is released from affordability restrictions on price or buyer eligibility prior to the initial sale of the unit, the developer shall reimburse the affordable housing trust fund for the amount of the impact fee funded by the County. If a rental unit is released from limitations on lease rent prior to the expiration of the 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 a zero - 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 one hundred forty percent of the median income for a family of four on the island of Hawai`i, 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) For 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 a zero - 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; -7-