§206-34  Policy as to sale prices andrentals.  It shall be the policy of the State that the board of land andnatural resources (acting directly or by an agent or agents) shall manage andoperate its development projects in an efficient manner so as to enable it tofix the rentals or prices for lands at the lowest possible rates or salesprices consistent with the purpose of this chapter; and that the board shallnot construct or operate any project for profit, or as a source of revenue tothe State.  To this end, the board shall fix the sales prices for residentiallots or rentals for lots or buildings in its projects at no higher rates orprices than it shall find to be necessary to produce revenues which (togetherwith all other available moneys, revenues, income, and receipts of the boardfrom whatever sources derived under the administration of this chapter) will besufficient:

(1)  To pay, as the same become due, the principal andinterest on the bonds of the board;

(2)  To meet the cost of, and to provide for,maintaining and operating the projects (including the cost of any insurance)and the administrative expenses of the board; and

(3)  To create a reserve sufficient to meet thelargest principal and interest payments which will be due on the bonds in anyone year thereafter, and to maintain such reserve; provided that the rates orprices shall be at least fifteen per cent below the going market prices ofcomparable properties determined in accordance with generally acceptedappraisal principles. [L 1961, c 6, §32; Supp, §98J-32; HRS §206-34]