99-Year Leasehold

DEPARTMENT OF BUSINESS, DEPARTMENT ECONOMIC DEVELOPMENT, BUSINESS, ECONOMIC DEVELOPMENT, AND AND TOURISM TOURISM

Adoption of Adoption of Chapter Chapter 15-223 15-223 Hawaii Hawaii Administrative Administrative Rules Rules

March 6, 2025 March 2025

SUMMARY SUMMARY

Chapter 15-223, Chapter 15-223, Hawaii Hawaii Administrative Administrative Rules, Rules, entitled entitled "Ninety-nine "Ninety-nine Year Year Leasehold Leasehold Residential Residential Condominium Condominium Program", Program", is is adopted. adopted.

HAWAII ADMINISTRATIVE RULES HAWAII RULES

TITLE 15

DEPARTMENT DEPARTMENT OF BUSINESS, BUSINESS, ECONOMIC ECONOMIC DEVELOPMENT, DEVELOPMENT, AND AND TOURISM

SUBTITLE SUBTITLE 4

HAWAII COMMUNITY HAWAII COMMUNITYDEVELOPMENT DEVELOPMENTAUTHORITY AUTHORITY

CHAPTER 15-223 CHAPTER 15-223

NINETY-NINE YEAR LEASEHOLD NINETY-NINE YEAR LEASEHOLD RESIDENTIAL CONDOMINIUM RESIDENTIAL CONDOMINIUM PROGRAM PROGRAM

Subchapter 1 Subchapter General Provisions General Provisions

§15-223-1 §15-223-1 Purpose and Purpose and intent intent §15-223-2 §15-223-2 Administration Administration §15-223-3 §15-223-3 Severability Severability §15-223-4 §15-223-4 Rules Rules of of interpretation interpretation §15-223-5 §15-223-5 Interpretation Interpretation by by the the executive executive director director §15-223-6 §15-223-6 Definitions Definitions §§15-223-7 §§15-223-7 to to 15-223-17 15-223-17 (Reserved) (Reserved)

Subchapter 2 Subchapter Eligibility to Eligibility to Purchase Purchase Ninety-Nine Ninety-Nine Year Year Leasehold Leasehold Condominium Condominium Unit Unit §15-223-18 §15-223-18 Eligibility Eligibility §15-223-19 §15-223-19 Owner occupancy occupancy §§15-223-20 to §§15-223-20 to 15-223-30 15-223-30 (Reserved) (Reserved)

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03

15-223-1 15-223-1

Subchapter 3 Subchapter Marketing and Marketing and Sale Sale of of Ninety-Nine Ninety-Nine Year Leasehold Year Leasehold Condominium Condominium Unit Unit

§15-223-31 §15-223-31 Marketing and Marketing and sale sale ofof condominium condominium unit unit $15-223-32 §15-223-32 Condominium unit Condominium unit sale sale announcement announcement $15-223-33 §15-223-33 Application intake Application intake list list §15-223-34 §15-223-34 Sale of Sale of condominium condominium unit unit §§15-223-35 to §§15-223-35 to 15-223-45 15-223-45 (Reserved) (Reserved)

Subchapter 4 Subchapter Resale or Resale or Transfer Transfer of of Leasehold Leasehold Condominium Unit Condominium Unit

§15-223-46 §15-223-46 Purpose Purpose §15-223-47 §15-223-47 Applicability Applicability §15-223-48 §15-223-48 Right of Right of first first refusal refusal to to purchase purchase by by the Hawaii the Hawaii community community development development authority authority §15-223-49 §15-223-49 Resale of Resale of the the condominium condominium unit unit §15-223-50 §15-223-50 Transfer upon Transfer upon the the death death of of the the condominium owner condominium owner to to an an heir heir §§15-223-51 to §§15-223-51 to 15-223-61 15-223-61 (Reserved) (Reserved)

Subchapter 5 Subchapter Enforcement and Enforcement and Penalties Penalties §15-223-62 §15-223-62 Enforcement of owner-occupant Enforcement owner-occupant requirement requirement §15-223-63 §15-223-63 Cure period Cure period $15-223-64 §15-223-64 Penalties Penalties §S§15-223-65 to §§15-223-65 to 15-223-75 15-223-75 (Reserved) (Reserved)

Subchapter 6 Subchapter Foreclosure Foreclosure

$15-223-76 §15-223-76 Foreclosure Foreclosure $15-223-77 §15-223-77 Sale of Sale of a condominium condominium unit unit by by the the mortgagee pursuant mortgagee pursuant to to a foreclosure foreclosure §§15-223-78 S15-223-78 to to 15-223-88 15-223-88 (Reserved) (Reserved)

SUBCHAPTER SUBCHAPTER 1

GENERAL PROVISIONS GENERAL PROVISIONS

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§15-223-4 §15-223-4

§15-223-1 §15-223-1 Purpose Purpose and intent. Consistent and intent. Consistent with with the intent the intent ofof section section 206E-282, 206E-282, Hawaii Hawaii Revised Revised Statutes, the Statutes, the purpose purpose of of this this chapter chapter isis to to establish establish the the ninety-nine ninety-nine year year leasehold leasehold program program for for the the purpose purpose of of providing providing low-cost, low-cost, leasehold leasehold residential residential condominium units condominium units for for sale sale to to Hawaii Hawaii residents residents onon state-owned lands state-owned lands within within anan urban urban redevelopment redevelopment site. site. This chapter This chapter is is adopted adopted under under chapter chapter 91, 91, HRS, and and implements the implements the provisions provisions of of chapter chapter 206E, 206E, HRS, HRS, part part XII. XII. [Eff [Eff AUG AUG 24 2025 202; (Auth: HRS §§206E-282, (Auth: HRS §§206E-282, 206E- 206E­ 284, 284, 206E-292) 206E-292) (Imp: (Imp: HRS §§206E-283, HRS §§206E-283, 206E-284) 206E-284)

§15-223-2 Administration. The Hawaii §15-223-2 Administration. Hawaii community community development authority, development authority, through through itsits executive executive director, director, shall administer shall administer thethe provisions provisions of of this this chapter. AUG [Eff AUG chapter. [Eff 2 4 2025 2025 ] (Auth: (Auth: HRSHRS §§206E-292, §§206E-292, 206E-283, 206E-283, 206E-284) 206E-284) (Imp: (Imp: HRS §§206E-283, 206E-284) HRS §§206E-283, 206E-284)

Severability. If §15-223-3 Severabi1ity. §15-223-3 court of If a court of competent competent jurisdiction jurisdiction finds finds any any provision provision or or provisions provisions of of this this chapter to chapter to be be invalid invalid or ineffective ineffective in in whole whole or or in in part, part, the the effect effect ofof that that decision decision shall shall be be limited limited toto those those provisions provisions which which are are expressly expressly stated stated in in the the decision decision to to be be invalid invalid oror ineffective, ineffective, and and allall other other provisions of provisions of this this chapter chapter shall shall continue continue to to be be separately separately and and fully fully effective. effective. [Eff AUG2 4 2025 [Eff AUG 2025 (Auth: HRS (Auth: §§206E-292, 206E-283, HRS §§206E-292, 206E-283, 206E-284) 206E-284) (Imp:(Imp: HRS §§206E-283, HRS §§206E-283, 206E-284) 206E-284)

§15-223-4 Ru1es §15-223-4 Rules ofof interpretation. interpretation. (a) (a) Provisions Provisions of the the rules rules are are activated activated by by "shall" "shall" when when required; and required; and "may" "may" when when optional. optional. (b) Terms (b) Terms notnot defined defined in in section section 15-223-6 15-223-6 shall shall be accorded be accorded their their commonly commonly accepted accepted meanings. meanings. In In the the event event of of conflicts conflicts between between these these definitions definitions andand those those found elsewhere found elsewhere within within the the Hawaii Hawaii community community

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S§15-223-4 §15-223-4

development authority's development authority's administrative administrative rules,rules, these these rules shall rules shall take take precedence precedence for for this this chapter. chapter. (c) Words (c) Words used used in in the the singular singular include include the the plural; words plural; words used used inin plural plural include include the the singular. singular. (d) Words (d) Words used used in in the the present present tense tense include include the the future tense; future tense; words words used used inin future future tense tense include include the the present tense. present tense. [Eff [Eff AUG AUG 24 4 2025 2025 (Auth: HRS (Auth: HRS SS206E-292, 206E-283, §§206E-292, 206E-283, 206E-284) 206E-284) (Imp: (Imp: HRS SS206E- HRS §§206E- 283, 206E-284) 283, 206E-284)

§15-223-5 Interpretation §15-223-5 Interpretation by by thethe executive executive director. (a) director. (a) In In administering administering this this chapter, chapter, thethe executive director, executive director, whenwhen deemed deemed necessary necessary by by the the executive director, executive director, may may render render written written interpretations interpretations to clarify to clarify or or elaborate elaborate upon upon the the meaning meaning of of specific specific provisions of provisions of this this chapter chapter for for intent, intent, clarity, clarity, andand applicability to applicability to aa particular particular situation. situation. (b) A (b) written interpretation A written interpretation shall shall bebe signed signed byby the executive the executive director director and and include include the the following: following: Identification of (1) Identification (1) of the the section section of of this this chapter in chapter in question; question; (2) A (2) statement of A statement of the the question; question; (3) A (3) statement of A statement of interpretation; interpretation; and and (4) A (4) statement of A statement of justification. justification. (c) A (c) written interpretation A written interpretation issued issued byby the the executive director executive director shall shall be be the the basis basis forfor administering and administering and enforcing enforcing the the pertinent pertinent sections sections of of this chapter. this chapter. All All written written interpretations interpretations rendered rendered pursuant to pursuant to this this chapter chapter shallshall be be public public record record and and shall be shall be effective effective on on the the date date signed signed by by the the executive executive director. [Eff director. [Eff AUGAUG 2442025 2025 ] (Auth: (Auth: HRS SS206E- HRS §§20 292, 206E-283, 206E-284) (Imp: HRS §S206E-283, 206E- 292, 206E-283, 206E-284) (Imp: HRS §§206E-283, 206E- 284) 284)

§15-223-6 Definitions. As §15-223-6 Definitions. As used used in in this this chapter, chapter, the following the following words words and and terms terms shall shall have have the the following following meanings unless meanings unless the the context context shall shall indicate indicate another another oror aa different different meaning meaning or or intent: intent: "Condominium Unit" "Condominium means aa residential Unit" means residential condominium unit condominium unit developed developed under under the the ninety-nine ninety-nine year year leasehold program. leasehold program.

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§15-223-6 §15-223-6

"Develop" or "Develop" or "development" "development" meansmeans the the planning, planning, financing, and financing, and acquisition acquisition of of real real property, property, demolition of demolition of existing existing structures, structures, clearance clearance of of real real property, construction, property, construction, reconstruction, reconstruction, alteration, alteration, or or repairing of repairing of approaches, approaches, streets, streets, sidewalks, sidewalks, utilities, and utilities, and services services or or other other site site improvements, improvements, or or construction, reconstruction, construction, reconstruction, repair, repair, remodeling, remodeling, extension, equipment, extension, equipment, or or furnishing furnishing of of buildings buildings or or other structures other structures or or any any combination combination of of the the foregoing, foregoing, of of anyany project. project. It It also also includes includes anyany and and all all undertakings undertakings necessarynecessary therefore. therefore. "Developer" means "Developer" private person, means a private person, or or an an entity entity retained by retained by the the Hawaii Hawaii community community development development authority authority to develop to ninety-nine year develop a ninety-nine year leasehold leasehold residential residential condominium project condominium project under under the the ninety-nine ninety-nine yearyear leasehold program. leasehold program. "Eligible buyer" "Eligible buyer" means means a person household person or a household that is that is eligible eligible to to purchase purchase a condominium condominium unit unit pursuant to pursuant to section section 15-223-18. 15-223-18. "Executive director" "Executive director" means means thethe executive executive director director of of thethe Hawaii Hawaii community community development development authority. authority. "Household" means "Household" means anan individual; individual; or or two two oror more more persons who live persons live oror intend intend to to live live together together as as a unit unit and and who may, may, butbut need need not not be, be, related related byby blood, blood, marriage, or operation marriage, operation of of law. law. "Mixed-use project" "Mixed-use project" means means a project project consisting consisting of of any combination any combination of: commercial project, of: a commercial project, a redevelopment redevelopment project, project, or or a residential residential project project that that includes ninety-nine includes ninety-nine year year leasehold leasehold residential residential condominium units. condominium units. "Owner" means "Owner" means thethe eligible eligible buyer buyer who hashas purchased purchased and and resides resides in in the the condominium condominium unit. unit. "Owner-occupied residential "Owner-occupied residential use"use" means means anyany use use currently currently permitted permitted in in existing existing residential residential zones zones consistent consistent with with owner owner occupancy. occupancy. "Owner-occupied "Owner-occupied residential residential use" use" does does not not include include renting renting oror subleasing by subleasing by the the owner owner of of a residential residential condominium condominium unit to unit to any any tenant tenant or sublessee sublessee of of any any kind. kind. "Program" means "Program" means thethe ninety-nine ninety-nine yearyear leasehold leasehold program. program. "Project" "Project" meansmeans a specific specific workwork or or improvement, improvement, including real including real and and personal personal properties, properties, or or any any interest interest therein, therein, acquired, acquired, owned, owned, constructed, constructed, reconstructed, reconstructed, rehabilitated, rehabilitated, or or improved improved byby the the Hawaii community Hawaii community development development authority, authority, or or a

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§15-223-6 §15-223-6

including aa commercial developer, including developer, commercial project, project, redevelopment project, redevelopment project, residential residential project, project, or or mixed- mixed­ use project, use project, that that includes includes ninety-nine ninety-nine yearyear leasehold leasehold residential condominium residential condominium units. units. "Public transit "Public transit station" station" means means aa planned planned or or existing station existing station connected connected to to aa locally locally preferred preferred alternative for alternative mass transit for aa mass transit project. project. "Urban redevelopment "Urban redevelopment site"site" means means non-ceded non-ceded state- state­ owned lands owned within aa one-mile lands within one-mile radius radius of of aa public public transit station transit station inin aa county county having having aa population population greater than greater than five five hundred hundred thousand. thousand. [Eff [Eff AUG AUG 24 2025 2 4206E- 2025 ] (Auth: HRS (Auth: §§206E-292, 206E-281, HRS §§206E-292, 206E-281, 206E-283, 206E-283, 206E- 284) (Imp: 284) (Imp: HRS §§206E-283, 206E-284) HRS §§206E-283, 206E-284)

SS15-223-7 to §§15-223-7 to 15-223-17 15-223-17 (Reserved). (Reserved).

SUBCHAPTER SUBCHAPTER 22

ELIGIBILITY TO PURCHASE ELIGIBILITY NINETY-NINE YEAR PURCHASE NINETY-NINE YEAR LEASEHOLD LEASEHOLD CONDOMINIUM UNIT CONDOMINIUM UNIT

§15-223-18 Eligibility. §15-223-18 Eligibility. (a) (a) An An eligible eligible buyerbuyer may own may own other other real real property property for for up up toto six six months months after after closing on closing on the the purchase purchase of of aa condominium condominium unit.unit. (b) Within (b) Within six six months months from from the the closing closing on on the the purchase of purchase of aa condominium condominium unit,unit, the the eligible eligible buyerbuyer shall have shall have completed completed the the sale sale ofof any any other other residential residential or non-residential or non-residential real real property property owned owned by by the the eligible eligible buyer. The buyer. The eligible eligible buyer buyer shall shall provide provide proof, proof, that that is acceptable to the executive director, of the sale is acceptable to the executive director, of the sale of the of the real real property property to to the the executive executive director director within within thirty days thirty days ofof the the sale sale of of the the property. property. (c) The (c) The eligible eligible buyer buyer shall: shall: (1) Be (1) qualified resident Be aa qualified resident of of the the State, State, as as defined in defined in section section 201H-32, 201H-32, HRS; HRS; (2) Not (2) Not own own any any other other real real property, property, including including any residential any residential or or non-residential non-residential property,property, except as except as provided provided in in section section 15-223-lB(a); 15-223-lB(a); (3) Not (3) Not havehave anyany beneficial beneficial ownership ownership of of any any trusts, corporations, trusts, corporations, limited limited liability liability

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§15-223-19 §15-223-19

companies, or companies, or partnerships partnerships that that hold hold real real property; and property; and (4) Not (4) Not have have any any co-ownership co-ownership or or fractional fractional ownership of ownership of aa residential residential or or non- non­ residential real residential real property, property, except except as as provided in provided in section section 15-223-lB(b). 15-223-18 (b). (d) An (d) An owner owner ofof aa condominium condominium unit unit who who isis in in the the process of process of selling selling thethe condominium condominium unit unit toto another another eligible buyer eligible buyer may may purchase purchase and and hold hold other other residential residential or non-residential or non-residential real real property property up up to to six six months months in in advance of advance of closing closing on on the the sale sale of of the the condominium condominium unit. [Eff unit. [Eff AUG AUG 24 2025 2025 1] (Auth: (Auth: HRS §§206E-292, HRS §§206E-292, 206E-284) (Imp: 206E-284) (Imp: HRS §206E-284) HRS §206E-284)

§15-223-19 Owner occupancy. §15-223-19 occupancy. (a) (a) The The eligible eligible buyer shall buyer shall not not use use thethe condominium condominium unitunit forfor any any purpose other purpose other than than owner-occupied owner-occupied residential residential use.use. (b) An (b) An eligible eligible buyer buyer shall shall bebe considered considered an an owner-occupant if owner-occupant if the the eligible eligible buyer buyer resides resides in in the the condominium unit condominium unit for for atat least least two two hundred hundred seventy seventy daysdays annually. The annually. The owner owner shall shall submit submit anan annual annual affidavit affidavit to the to the executive executive director director attesting attesting that that thethe owner owner hashas resided in resided in the the condominium condominium unit unit for for at at least least two two hundred seventy hundred seventy days days each each year. year. (c) The (c) The executive executive director director maymay waive waive thethe requirements of requirements of section section 15-223-19(a) 15-223-19(a) and and (b)(b) where where thethe inability of inability of an an owner owner to to reside reside in in the the condominium condominium unit is unit is due due to to unforeseen unforeseen circumstances, circumstances, military military transfer, serious transfer, serious illness, illness, or or other other hardship hardship circumstances as circumstances as determined determined by by the the executive executive director director in the in the executive executive director's director's sole sole discretion. discretion. The The owner of owner of the the condominium condominium unitunit shall shall file file an an application of application of waiver waiver of of occupancy occupancy requirement requirement to to the the executive director executive director for for aa determination. determination. The The application shall application shall contain contain aa statement statement describing describing the the basis for basis for thethe waiver waiver of of occupancy occupancy requirement requirement and and thethe estimaht% 7'j 2§ ion of estimat~d..dl.hl;~ion of the the proposed proposed waiver. waiver. [Eff AUG2 [Eff AUb i 4 4 ZU: LU (Auth: HRS ]] (Auth: SS206E-292, 206E- HRS §§206E-292, 206E- 284) (Imp: HRS §206E-284) 284) (Imp: HRS §206E-284)

§S15-223-20 to §§15-223-20 to 15-223-30 15-223-30 (Reserved). (Reserved).

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§15-223-31 §15-223-31

SUBCHAPTER SUBCHAPTER 3

MARKETING MARKETING AND AND SALE OF NINETY-NINE NINETY-NINE YEAR YEAR LEASEHOLD LEASEHOLD CONDOMINIUM CONDOMINIUMUNIT

§15-223-31 §15-223-31 Marketing Marketing and and sa1e sale of of condominium condominium unit. unit. (a) The (a) The Hawaii Hawaii community community development development authority authority advertise the may advertise the sale sale of of condominium condominium units units andand qualify and qualify and select select eligible eligible buyers buyers for for the the condominium condominium units. It units. It may also also permit permit the the developer developer of of the the condominium units, condominium units, or thethe developer's developer's designated designated representative, to representative, to be be responsible responsible for for advertising advertising the the sale of sale of thethe condominium condominium units units and and qualifying qualifying and and selecting eligible selecting eligible buyers buyers for for the the condominium condominium units. units. (b) Applications (b) Applications forfor the the purchase purchase of of the the condominium units condominium units shall shall bebe accepted first-come, accepted on a first-come, first-served or first-served or lottery lottery basis. basis. An An application application shallshall be submitted be submitted in in person person by by the the applicant. applicant. Only Only completed applications completed applications shall shall bebe acceptable. acceptable. Applicants shall Applicants shall not not be be required required to to submit submit a deposit deposit 500. [Eff exceeding $ 500. amount exceeding amount [Eff AUGAUG2 4 2025 2025 1] (Auth:(Auth: HRS §§206E-292, 206E-283, HRS §§206E-292, 206E-283, 206E-284) 206E-284) (Imp: HRS (Imp: HRS §§206E-283, 206E-284) §§206E-283, 206E-284)

§15-223-32 Condominium §15-223-32 Condominium unit unit sa1e sale announcement. announcement. For a period For period of of thirty thirty calendar calendar days, days, the the Hawaii Hawaii community development community development authority authority or or the the developer developer shall shall publish or publish or cause cause to to be be published published in in at at least least one one newspaper published newspaper published dailydaily inin the the State State and and having having a general circulation general circulation in in the the county county in in which which the the project project is located, is located, at at least least twice week, or twice a week, or once week if once a week if paired with paired with another another form form ofof public public notice notice such such as as a designated project designated project website website oror informational informational meeting, meeting, an announcement an announcement containingcontaining thethe following following information information regarding the sale of condominium units in the regarding the sale of condominium units in the project: project: 1) The location 1) The location of of the the project; project; (2) (2) The The total total number number of of condominium units condominium units in in the the project; project; (3) The (3) The sales sales price price ofof the the condominium condominium units; units;

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§15-223-33 §15-223-33

(4) (4) approximate size The approximate size of of the the condominium condominium units; units; (5) A statement (5) statement that that one one hundred hundred perper cent cent ofof the the condominium units condominium units areare being being sold sold inin leasehold; leasehold; (6) eligible buyer The eligible buyer requirements requirements in in section section 15-223-18; 15-223-18; owner-occupancy requirements (7) The owner-occupancy (7) requirements in in section section 15-223-19; 15-223-19; (8) A statement (8) statement thatthat the the condominium condominium units units will will be offered be offered to to prospective prospective buyers buyers through through a public lottery public lottery oror inin the the order order inin which which thethe applications were applications were accepted, accepted, whichever whichever is is applicable; applicable; (9) The name (9) name and and address address of of the the real real estate estate broker designated broker designated by by the the Hawaii Hawaii community community development authority development authority or or the the developer, developer, whom whom eligible buyers eligible buyers may contact contact to to be be placed placed to to obtain further obtain further information information on on the the project; project; and and (10) A statement (10) statement thatthat the the condominium condominium units units will will be available be available to to any any eligible eligible buyer buyer without without regard to regard to race, race, sex, sex, color, color, religion, religion, marital status, marital status, familial familial status, status, national national origin, disability origin, disability status, status, age, age, oror HIV HIV (human immunodeficiency (human immunodeficiency virus)virus) status. status. [Eff AUG [Eff AUG 2 4 2025 2D25 ] (Auth: HRS (Auth: SS206E-4, 206E-283, HRS §§206E-4, 206E-283, 206E-284) 206E-284) (Imp: HRS (Imp: §§206E-283, 206E-284) HRS §§206E-283, 206E-284)

§15-223-33 §15-223-33 Application Application intake intake list. list. (a) (a) During During the initial the initial offering offering period period of of thirty thirty calendar calendar days, days, the Hawaii the Hawaii community community development development authority authority or or the the developer shall developer shall compile compile an an application application intake intake list list consisting of consisting of the the names, names, email email and and mail mail addresses, addresses, and and phone numbers phone numbers of of all all individuals individuals stating stating a desire desire to to purchase a condominium purchase condominium unitunit contained contained in in the the project. project. (b) The (b) The application application intake intake list list shall shall bebe compiled in compiled in the the order order in in which which applicants applicants have have submitted to the Hawaii community development submitted to the Hawaii community development authority or authority or the the developer developer an an acknowledgment acknowledgment that that the the applicant meets applicant meets thethe eligible eligible buyer buyer requirements requirements in in 15-223-18. section 15-223-18. section

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§15-223-33 §15-223-33

(c) Any (c) Any individual individual who who makes makes anyany false false statement statement in the in the acknowledgment acknowledgment shall shall be be subject subject to to criminal criminal charges and charges and civil civil action action under under thethe laws laws ofof the the State. State. Any individual Any individual foundfound toto have have willfully willfully submitted submitted falsefalse information, made information, made misstatements, misstatements, or or withheld withheld important important information shall information shall be be deemed deemed to to be be ineligible ineligible for for the the project and project and disqualified disqualified from from purchase purchase of of condominium condominium units in units in any any future future projects, projects, provided provided that that thethe Hawaii Hawaii community development community development authority authority shall shall not not waive waive its its right to right to pursue pursue anyany other other recourse recourse provided provided by by law. law. (d) If (d) If the the marketing marketing and and sale sale ofof the the condominium condominium units is units is conducted conducted by by the the developer, developer, the the developer developer shall submit shall submit the the application application intakeintake list, list, anyany applications, and applications, and any any applicants' applicants' acknowledgments acknowledgments to to the Hawaii the Hawaii community community development development authority authority within within tenten days of days of the the expiration expiration of of the the initial initial thirty thirty dayday offering period. offering period. Within Within thirty thirty days days ofof the the expiration expiration of the of the initial initial thirty thirty dayday offering offering period, period, the the developer shall developer shall verify verify that that applicants applicants meetmeet thethe eligible buyer eligible buyer requirements requirements in in section section 15-223-18 15-223-18 and and submit aa list submit list ofof eligible eligible buyers buyers andand eligibility eligibility verification documentation verification documentation to to the the executive executive director director for review for review andand approval. approval. (e) If (e) If the the marketing marketing and and sale sale ofof the the condominium condominium units is units is conducted conducted by by the the developer, developer, within within thirty thirty days after days after the the close close ofof project project sales, sales, thethe developer developer shall submit shall submit toto the the Hawaii Hawaii community community development development authority aa summary authority summary of of which which individuals individuals on on the the eligible buyer eligible buyer list purchased aa condominium list purchased condominium unit, unit, which did which did not purchase aa condominium not purchase condominium unit, unit, and and the the applicant's reason applicant's reason forfor not not purchasing purchasing aa unit unit if~ if � reason was reason was provided provided by by the the applicant. applicant. [Eff [Eff AUGAUG i2 4 2025 2025 ]] (Auth: (Auth: HRS §§206E-292, 206E-283, HRS §§206E-292, 206E-283, 206E-284) 206E-284) (Imp: (Imp: HRS §§206E-283, 206E-284) HRS §§206E-283, 206E-284)

§15-223-34 Sale §15-223-34 Sale of of leasehold leasehold condominium condominium unit. unit. (a) The (a) The Hawaii Hawaii community community development development authority authority oror the the developer shall developer shall offer offer the the condominium condominium units units toto eligible buyers eligible buyers onon the the application application intake intake list list byby one one of the of the following following methods: methods: (1) In (1) In the the order order in in which which their their names names appear appear on on the list; the list; (2) By (2) By the the drawing drawing of of lots; lots; or or

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§15-223-46 §15-223-46

(3) (3) By any By any other other reasonable reasonable and and fair fair method method asas determined by determined by thethe executive executive director. director. (b) If (b) If the the marketing marketing and and sale sale of of the the condominium condominium units is units is conducted conducted by by the the developer, developer, the the developer developer shall also shall also bebe required required to to comply comply with with thethe following: following: Prior to (1) Prior (1) to the the sale sale ofof any any ofof the the condominium condominium units, the units, the developer developer shallshall submit submit toto the the executive director, executive director, for for review review and and approval, approval, copies of copies of the the sale sale contracts contracts and and condominium conveyance condominium conveyance documents documents for for the the condominium units; condominium units; Prior to (2) Prior (2) to the the sale sale ofof any any ofof the the condominium condominium units, the units, the developer developer shallshall submit submit toto the the executive director executive director aa copy copy of of the the covenants, covenants, conditions, and conditions, and restrictions, restrictions, if if any, any, for for review and review and approval; approval; The developer (3) The (3) developer shallshall submit submit to to the the executive executive director aa list director list of of all all purchasers purchasers by by condominium unit condominium unit number, number, name, name, date date ofof sale sale contract, date contract, date of of recordation, recordation, tax tax map map key, key, and property and property address; address; and and (4) The (4) The Hawaii Hawaii community community development development authority authority or the or the developer developer shallshall comply comply withwith all all applicable stAq~e2inzb2sederal ederal fair housing [Eff " i ;212 2 f applicable fair housing laws. [Eff laws. AU \Ul:J ]] (Auth: (Auth: HRSHRS SS206E-292, 206E-283, §§206E-292, 206E-283, 206E-284) 206E-284) (Imp: (Imp: HRSHRS §§206E-283, 206E-284) §§206E-283, 206E-284)

§§15-223-35 to §§15-223-35 to 15-223-45 15-223-45 (Reserved). (Reserved).

SUBCHAPTER SUBCHAPTER 44

RESALE OR RESALE OR TRANSFER TRANSFER OF OF LEASEHOLD LEASEHOLD CONDOMINIUM UNIT CONDOMINIUMUNIT

This subchapter Purpose. This §15-223-46 Purpose. §15-223-46 subchapter governs governs the the general procedures general procedures for for the the resale resale of of aa condominium condominium unit b~ unit R OWN©r DY a~ to another OWQ~r to another eligible eligible buyer. buyer. [Efr AuG [Eff AUG24z4 2025 20L:J 1] (Auth: (Auth: HRS SS206E-292, 206E- HRS §§206E-292, 206E- 283, 206E-284) 283, 206E-284) (Imp: HRS (Imp: §§206E-283, 206E-284) HRS §§206E-283, 206E-284)

223-11 223-11 360 3

§15-223-47 §15-223-47

§15-223-47 $15-223-47 Applicability. Applicability. This This subchapter subchapter applies to applies to all all condominium condominium units units developed developed and and sold sold under the under the program program asas defined defined in in section section 15-223-6. 15-223-6. [Eff AUG [Eff AUG 24 2025 2025 1] (Auth: (Auth: HRS §§206E-292, 206E- HRS §§206E-292, 206E- 283, 206E-284) 283, 206E-284) (Imp: (Imp: HRS §§206E-283, 206E-284) HRS §§206E-283, 206E-284)

§15-223-48 §15-223-48 RightRight ofof first first refusal refusal to to purchase purchase byby the the Hawaii Hawaii community community development development authority. authority. (a) (a) IfIf an owner an owner wants wants toto sell sell a condominium condominium unit unit within within five five years from years from the the date date ofof the the initial initial purchase purchase of of the the condominium unit, condominium unit, the the Hawaii Hawaii community community development development authority shall authority shall have have the the right right of of first first refusal refusal to to purchase the purchase the condominium condominium unit. unit. For purchase (b) For (b) purchase of of the the condominium condominium unit unit byby the the Hawaii community Hawaii community development development authority, authority, purchase purchase price price shall be shall be determined determined by by the the Hawaii Hawaii community community development authority development authority by by taking taking into into consideration consideration the the original sale original sale price price ofof the the condominium condominium unit, unit, Owner's Owner's Equivalent Rent Equivalent Rent ofof Primary Primary Residence Residence for for Urban Urban Hawaii Hawaii published by published by the the United United States States Bureau Bureau of of Labor Labor Statistics, and Statistics, and the the cost cost ofof any any value-added value-added improvements made improvements made by by the the owner owner of of the the condominium condominium unit. The following unit. following formula formula shall shall bebe utilized utilized to to calculate the calculate the purchase purchase price: price:

(Original Sale Price = (Original Purchase Price= Purchase Sale Price Price X Owner's Owner's Equivalent Rent Equivalent Rent of of Primary Primary Residence Residence Factor) Factor) + (Cost (Cost of any of any Value-Added Value-Added Improvements Improvements made made by by the the Owner Owner X Owner's Equivalent Owner's Equivalent Rent Rent ofof Primary Primary Residence Residence Factor) Factor)

Owner's Equivalent The Owner's Equivalent Rent Rent ofof Primary Primary Residence Residence Factor shall Factor shall be be computed computed asas follows: follows:

Owner's Equivalent Owner's Equivalent Rent Rent ofof Primary Primary Residence Residence Factor = Owner's Factor= Owner's Equivalent Equivalent Rent Rent of Primary Primary Residence Residence from the month and year of Resale from the month and year of Resale I Annual Owner's Annual Owner's Equivalent Rent Equivalent Rent of of Primary Primary Residence Residence from from the the year year of of original sale original sale

condominium unit The condominium unit owner owner shall shall provide provide financial documentation financial documentation acceptable acceptable toto the the executive executive director indicating director indicating the the actual actual cost cost of of any any value-added value-added

223-12 223-12

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§15-223-50 §15-223-50

improvements before improvements before the the cost can be cost can be eligible eligible for for inclusion in inclusion in determining determining the purchase price. the purchase price. [Eff AUG [Eff AUG Auth: HRS 2025 ll Auth: 2 4 2025 §§206E-292, 206E- HRS §§206E-292, 206E- 284) (Imp: 284) (Imp: HRS §206E-284) HRS §206E-284)

§15-223-49 §15-223-49 Resale Resale ofof the the condominium condominium unit.unit. (a)(a) If the If the Hawaii Hawaii community community development development authority authority doesdoes not not exercise its exercise its right right to to purchase purchase thethe condominium condominium unit, unit, the owner the owner of of the the condominium condominium unitunit may may sell sell the the unit unit toto an eligible an eligible buyer buyer as as defined defined in in section section 15-223-18. 15-223-18. When the When the sale sale ofof the the condominium condominium unitunit isis toto any any entity entity other than other than the the Hawaii Hawaii community community development development authority, authority, the former the former owner owner shall shall not not qualify qualify forfor purchase purchase of of another condominium another condominium unitunit under under the the program. program. (b) Subject (b) Subject to to the the approval approval of of the the executive executive director, aa current director, current owner owner ofof aa condominium condominium unit unit may may sell the sell the unit unit toto purchase purchase aa larger larger oror aa smaller smaller condominium unit condominium unit under under the the program, program, provided provided thatthat the the owner can owner can furnish furnish proof proof that that the the household household sizesize of of the the owner has owner has increased increased or or decreased decreased respectively, respectively, from from the time the time of of initial initial purchase purchase of of aa condominium condominium unitunit under the under the program. program. [Eff [Eff AUG AUG2 4 2025 2025 1] (Auth: (Auth: HRSHRS §§206E-292, 206E-283, §§206E-292, 206E-283, 206E-284) 206E-284) (Imp: (Imp: HRS §§206E- HRS §§206E- 283, 206E-284) 283, 206E-284)

§15-223-50 Transfer §15-223-50 Transfer uponupon the the death death of of the the condominium condominium owner owner to to an an heir. heir. (a) Upon (a) Upon the the death death ofof the owner the owner of of aa condominium condominium unit, unit, thethe condominium condominium unit unit may be may be transferred transferred to to the the deceased's deceased's heir heir by by devise devise oror as any as any other other real real property property under under existing existing law, law, provided that provided that the the deceased's deceased's heirheir qualifies qualifies as as an an eligible buyer. eligible buyer. (b) If (b) If the the deceased's deceased's heir heir does does not not qualify qualify asas an eligible an eligible buyer, buyer, the the deceased's deceased's heir heir shall shall sell sell the the condominium unit condominium unit to to another another eligible eligible buyerbuyer as as defined defined in section in section 15-223-18 15-223-18 within within six six months months fromfrom the the date date of disqualification of disqualification of of the the deceased's deceased's heir heir as as an an eligible buyer eligible buyer asas determined determined by by the the Hawaii Hawaii community community development authority in its sole discretion. Within development authority in its sole discretion. Within five years five years from from thethe date date ofof initial initial purchase purchase of of the the condominium unit, condominium unit, the the Hawaii Hawaii community community development development

223-13 223-13

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§15-223-50 §15-223-50

authority shall authority shall have have the the right right of of first first refusal refusal to to purchase the purchase the condominium condominium unit unit before before itit can can be be sold sold toto another eligible another buyer. [[Eff eligible buyer. Eff AUG AUG2 4 2025 2025 (Auth: 1l (Auth: HRS §§206E-292, 206E-283, HRS §§206E-292, 206E-283, 206E-284) (Imp: HRS 206E-284) (Imp: HRS §§206E-283, 206E-284) §§206E-283, 206E-284)

SS15-223-51 to §§15-223-51 to 15-223-61 15-223-61 (Reserved). (Reserved).

SUBCHAPTER SUBCHAPTER 5

ENFORCEMENT ENFORCEMENTAND PENALTIES AND PENALTIES

§15-223-62 Enforcement §15-223-62 Enforcement of of owner-occupant owner-occupant requirement. (a) requirement. (a) TheThe condominium condominium unitsunits shall shall notnot be be advertised for advertised for rent, rent, rented, rented, or used used for for any any purpose purpose other than other than for for owner-occupied owner-occupied residential residential useuse asas provided in provided in section section 15-223-19. 15-223-19. owner of (b) The owner (b) of the the condominium condominium unit unit shall shall annually submit annually submit anan acknowledgment acknowledgment to to the the executive executive director attesting director attesting thatthat the the owner owner has has remained remained an an owner-occupant of owner-occupant of the the condominium condominium unitunit asas provided provided in in section 15-223-19. section 15-223-19. Any condominium condominium unit unit owner owner making making false statement a false statement in in the the acknowledgment acknowledgment shallshall bebe subject to subject to criminal criminal charges charges and and civil civil action action under under the the laws of the laws of the State.State. [Eff [Eff AUG AUG 2 4 2025 2025 1] (Auth: (Auth: HRSHRS §§206E-292, 206E-283) §§206E-292, 206E-283) (Imp: HRS (Imp: §206E-283) HRS §206E-283)

$15-223-63 Cure §15-223-63 Cure period. period. If condominium unit If a condominium unit owner is owner is in in violation violation ofof the the owner-occupancy owner-occupancy or or eligibility requirement, eligibility requirement, the the Hawaii Hawaii community community development authority development authority shall shall notify notify the the condominium condominium unit owner unit owner inin writing writing and and thethe condominium condominium unit unit owner owner shall have shall have sixty sixty calendar calendar days days to to cure cure the the violation violation from the from the date date ofof the the written written notification. notification. [Eff AUG2 4 2025 [Eff AUG 2025 ] (Auth: HRS (Auth: §§206E-292, 206E-283) HRS §§206E-292, 206E-283) (Imp: (Imp: HRS HRS §206E-283) §206E-283)

223-14 223-14

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§15-223-76 §15-223-76

§15-223-64 Penalties. §15-223-64 Penalties. (a) (a) IfIf after after notification of notification of the the owner-occupancy owner-occupancy or or eligibility eligibility requirement violation, requirement violation, the the condominium condominium unitunit owner owner fails to fails to cure cure the the violation violation within within thethe sixty sixty day day cure cure period, the Hawaii community development authority may period, the Hawaii community development authority may require an require an owner owner toto sell sell the the condominium condominium unitunit to to anan eligible buyer eligible buyer within within one one hundred hundred andand eighty eighty daysdays from from the end the end ofof the the cure cure period. period. (b) The (b) The Hawaii Hawaii community community development development authority authority may also may disqualify aa person also disqualify person or household that or aa household that is is required to required to sell sell the the condominium condominium unit unit pursuant pursuant to to section 15-223-64(a) section 15-223-64 (a) from from purchasing purchasing another another condominium unit condominium unit developed developed under under thethe program. program. [Eff AUG [Eff AUG2420252025 (Auth: HRS 1] (Auth: 206E- §§206E-292,92, 206E- HRS SS206E-2 283) 283) (Imp: HRS (Imp: §206E-283) HRS §206E-283)

§§§15-223-65 S15-223-65 to to 15-223-75 15-223-75 (Reserved). (Reserved).

SUBCHAPTER 66 SUBCHAPTER FORECLOSURE FORECLOSURE

§15-223-76 §15-223-76 Foreclosure. Foreclosure. (a) In (a) the event In the event of of aa foreclosure, any foreclosure, any law law to to the the contrary contrary notwithstanding, notwithstanding, aa mortgagee mortgagee underunder aa mortgage mortgage covering covering aa condominium condominium unit shall, unit shall, prior prior toto commencing commencing mortgage mortgage foreclosure foreclosure proceedings, notify proceedings, notify the the Hawaii Hawaii community community development development authority in authority in writing writing of: of: (1 (1 Any default Any default of of the the mortgagor mortgagor underunder the the mortgage within mortgage within ninety ninety days days after after the the occurrence of occurrence of the the default; default; and and (2) Any (2) Any intention intention of of the the mortgagee mortgagee to to foreclose foreclose the mortgage the mortgage under under chapter chapter 667,667, HRS. HRS. (b) In (b) In the the event event ofof aa foreclosure, foreclosure, the the mortgagee mortgagee shall provide shall provide thethe Hawaii Hawaii community community development development authority the authority the opportunity opportunity to to exercise exercise its its right right ofof first refusal first refusal to to purchase purchase the the condominium condominium unit.unit. (c) If (c) If the the Hawaii Hawaii community community development development authority exercises authority exercises its its right right toto purchase purchase thethe condominium unit, condominium unit, the the purchase purchase price price shall shall bebe calculated based calculated based onon the the formula formula provided provided in in section section

223-15 223-15

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§15-223-76 §15-223-76

15-223-48 (b). 15-223-48 [Eff AUG (b). [Eff AUG 2 4 2025 2025 1] (Au (Auth: th : HRS HRS §S206E-292, 206E-284) §§206E-292, (Imp: HRS 206E-284) (Imp: §206E-284) HRS §206E-284)

§15-223-77 Sale §15-223-77 Sale ofof a condominium condominium unitunit byby the the mortgagee pursuant mortgagee pursuant to foreclosure. If to a foreclosure. If the the Hawaii Hawaii community development community development authority authority does does notnot exercise exercise its its right of right of first first refusal refusal toto purchase purchase the the condominium condominium unit, the unit, the mortgagee mortgagee of of the the condominium condominium unitunit may may sell sell the unit the unit in in leasehold leasehold forfor the the remaining remaining termterm ofof the the leasehold to leasehold to any any buyer. buyer. Provisions Provisions of of section section 15-223- 15-223- 18 and 18 and 15-223-19 15-223-19 shall shall not not bebe applicable applicable to to sale of aa sale of condomipiyy l,l,D,j.t condom~nj..~~ y@it under under this this section. section. [Eff AUG [Eff 24ZUZ5 AUll ~ 4 LULJ ]] (Auth: HRS (Auth: SS206E-292, 206E- HRS §§206E-292, 206E- 284) 284) (Imp: HRS (Imp: §206E-284) HRS §206E-284)

§S15-223-78 to §§15-223-78 to 15-223-88 15-223-88 (Reserved). (Reserved).

223-16 223-16 � � : €m �ou a

DEPARTMENT OF DEPARTMENT BUSINESS, ECONOMIC OF BUSINESS, ECONOMIC DEVELOPMENT, DEVELOPMENT, AND AND TOURISM

Chapter Chapter 15-223, 15-223, Hawaii Hawaii Administrative Administrative Rules, Rules, onon the the summary page summary page dated dated March March 6, 2025, 2025, was adopted adopted onon March March 5, 5, 2025, 2025, following following public public hearings hearings held held onon February February 5,5, 2025, 2025, and and March March 5, 5, 2025, 2025, after after public public notices notices werewere given given inin the the Honolulu Star-Advertiser, Honolulu Star-Advertiser, Hawaii Hawaii Tribune-Herald, Tribune-Herald, West Hawaii Hawaii Today, Today, The The Garden Garden Island, Island, and and The The Maui News on on January January 2,2, 2025. 2025.

The The adoption adoption shall shall take take effect effect tenten days days after after filing filing with with the the Office Office ofof the the Lieutenant Lieutenant Governor. Governor.

STERLING STERLING HIGA Chairperson Chairperson Hawai'i Community Hawai'i Community Development Development Authority Authority

JAMES TOKIOKA JAMES TOKIOKA Director Director Department of Department of Business, Business, Economic Development Economic Development and and Tourism Tourism

.m Qt.r.J JOSH JOSH GREEN,M.D. GREEN,M.D. Governor Governor State of State of Hawai'i Hawai'i

Dated: Dated: APPROVED AS TO FORM: APPROVED FORM:

Kerin Tongg Kev111Tongg Deputy Deputy Attorney Attorney General General AUG14 2025 AUG 2025 Filed Filed

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