§516-33  Qualification for purchase. 
(a)  Except as otherwise provided under section 516-28, no application to
purchase shall be accepted nor shall any sale of any residential houselot
within a development tract be made to any person unless the person meets the
following requirements:



(1)  Is at least eighteen years of age;



(2)  Is a bona fide resident of the State and resides
on the lot, except in hardship circumstances as determined by the corporation on
a case by case basis where such inability to reside on the lot arises out of a
temporary job or military transfer, a temporary educational sabbatical or the
serious illness of the person; provided further that if either the person or
the lessor disagree with the corporation's determination, they shall be
entitled to a contested case proceeding under chapter 91 in which both the
person and lessor shall be parties;



(3)  Has legal title to, or pursuant to an agreement
of sale an equitable interest in, a residential structure situated on the
leased lot applied for; provided that for the purposes of this section, the
vendor under such agreement of sale shall not be eligible to purchase the lot. 
An agreement of sale means an executory contract for the sale and purchase of
real property which binds one party to sell and the other party to buy property
which is the subject matter of the transaction;



(4)  Has a letter of credit, certificate of deposit,
proof of funds, or approved application from any lending institution
demonstrating that the person will be able to promptly pay the corporation for
the leased fee interest in the lot;



(5)  Submits an application in good faith in such form
as is acceptable to the corporation;



(6)  Executes a contract for purchase of the fee
interest in such form as is acceptable to the administration; and



(7)  Does not own in fee simple lands suitable for
residential purposes for such person within the county and in or reasonably
near the place of business of such person or has or have pending before the
Hawaii housing finance and development corporation an unrefused application to
lease or purchase a lot in a development tract.  A person is deemed to own
lands herein if the person, the person's spouse, or both the person and the
person's spouse (unless separated and living apart under a decree of a court of
competent jurisdiction) own lands.



(b)  The amount set by the corporation for the
leased fee interest in the lot for which the lessee must obtain a letter of
credit, certificate of deposit, proof of funds, or approved application for
loan pursuant to [subsection (a)(4)] shall not be admissible for any reason in
any action, suit, or proceeding brought under this chapter.  Any financial
information the corporation may request and obtain from the lessees shall not
be discoverable or admissible in any action, suit, or proceeding brought under
this chapter.



(c)  In the event of a wilful breach of
contract of a lessee to purchase the leased fee interest, the corporation may
sell or assign its interest without respect to the requirements of this
section.



(d)  The corporation may require additional
testimony or evidence under oath in connection with any application.  The
determination by the corporation of any applicant's eligibility under this part
shall be conclusive as to all persons thereafter dealing with the property;
provided that the making of any false statement knowingly by applicants or
other person in connection with any application shall constitute perjury and
shall be punishable as such.  The corporation shall adopt rules pursuant to
chapter 91 to effectuate the purposes of this section. [L 1967, c 307, §22; HRS
§516-33; am L 1972, c 2, §30; am L 1975, c 184, §2(13); am L 1978, c 140, §2;
am L 1980, c 39, §3; am L 1983, c 204, §1; gen ch 1985; am L 1987, c 337, §16;
am L 1988, c 104, §2; am L 1992, c 158, §2; am L 1993, c 326, §3; am L 1997, c
350, §14; am L 2005, c 196, §26(b); am L 2006, c 180, §16]



 



Cross References



 



  Perjury and related offenses, see §§710-1060 to 1068.