P. Hawaii Development Revolving Fund
[§201G-421] Hawaii development revolving fund. (a) There shall be a revolving fund to be known as the Hawaii development revolving fund which shall be administered by the corporation. All repayments of principal and interest on loans or grants made by the corporation from the fund shall be placed in the Hawaii development revolving fund to be used for the purposes of this section.
(b) The corporation may make loans or grants, either before or after final subdivision approval, to cover planning, engineering, feasibility studies, and other initial costs, including the cost of options, agreements of sale, and downpayments of commencing projects to provide low or moderate cost housing through government assistance programs.
(c) In managing the fund, the corporation may cooperate with other public and private nonprofit organizations and may enter into loan or grant agreements with them. The necessity for the extent and nature of security required for a loan or grant shall be determined by the corporation. The security may include, but is not limited to, a borrowing resolution of the nonprofit organization.
The foregoing powers are subject, however, to the following restrictions and limitations:
(1) No single loan or grant shall exceed two per cent of the project cost;
(2) The loan shall be repaid with simple interest not to exceed six per cent per year; and
(3) The moneys loaned shall be used only for the planning, engineering, feasibility studies, and other initial costs of commencing projects to provide nonprofit low or moderate cost housing.
(d) The corporation may adopt rules in accordance with chapter 91 to carry out the purposes of this section.
(e) For the purposes of this section, "government assistance programs" means housing programs qualified by the corporation and administered or operated by the corporation or the United States or any of their political subdivisions, agencies, or instrumentalities, corporate or otherwise. [L 1997, c 350, pt of §2]