Questions and Answers About This Rare Opportunity
Q What is Reserved Housing?
A Reserved housing is a result of an effort to provide a spectrum of housing within Kaka’ako community development district that is priced for residents earning up to 140% of Honolulu County ‘ area medium income, Prospective purchasers must meet income and asset qualifications, may not own a principal residence and are subject to shared equity and buy back provisions,
Q What are the income and asset requirements to be eligible to purchase a reserved unit?
A An applicant’s 2012 gross calendar earnings may not exceed $108,738 for a household of one, and $120,820 for a household of two or more persons, Total net assets must not exceed $146,796 for a household size of one, and $163,107 for a household of two or more persons,
Q Do I have to be a first time homebuyer?
A No, Applicants are eligible to purchase a reserved housing unit as long as they have not owned a ma jority interest in any principal residential property during the prior three year period,
Q How much down payment will I need?
A The reserved housing program does not require a minimum down to purchase, however, the reserved housing purchase contract requires a 10% deposit, There are loan programs available that have lower deposit requirements, Applicants are also allowed to receive bona fide gift funds from family members of any amounts to assist in the buyer’s purchase and mortgage loan qualification, Please feel free to contact or meet with our approved lenders to obtain information on available mortgage loan programs and to obtain loan pre-qualifications,
Q Are my monthly Association dues and privileges the same as market priced units?
A Yes, all residents of Symphony Honolulu are able to share and enjoy all of the same amenities as the market priced units, All residents within the bUilding pay monthly maintenance fees to the AOAO according to size of the unit owned,
Q Do I have to live there for a specific period of time?
A Prospective applicants are required to complete and sign the Hawaii Community Development Authority (HCDA) eligibility affidavit indicating that the buyer intends to occupy the unit as an owner occupant during the 5-year regulated term, Buyers may not lease the unit for rent during such term,
Q Can I re-sell my unit?
A Yes, If a buyer wishes to transfer or se ll the unit prior to the end of the 5-year regulated term, the sale is subiect to the HCDA right of first option to purchase the unit. After the end of the regulated term or if HCDA decides not to exercise its first option to purchase the unit during ,the regulated term, the original buyer may sell or transfer the unit without restrictions prOVided thatthe equitysharing amountmustbe paid to HCDA.
The shared equity amount is payable to HCDA upon the first resale of the reserved housing unit no matter when that sale occurs, w hether before or after the 5-year regulated term,
Q Can you give an example on how the equity sharing works?
A The original shared equity amount payable to the HCDA is calculated as the difference between the current unencumbered appraised value of the unit and the price the reserved housing unit is sold for. For example:
Appraised value of
Reserved unit as “market unit”: $ 500,000
(Less) Reserved
Housing Sale price: $ 450,000
HCDA Original
Shared Equity Amount: $ 50,000
At the time of sale, the original buyer of the reserved housing unit shall pay the HCDA the higher of either the original shared equity amount or the shared equity amount calculated as a percentage of the net appreciation after selling costs, The fu ll amount of the calculated shared equity amount is only due to HCDA to the extent that the proceeds are available to pay the full amount, after deducting the original cost, sales costs, and verified costs of any improvements made by the reserved housing owner,
Q Why buy a reserved residence at Symphony Honolulu?
A In the last 26 years, there have only been four prior occasions that reserved housing has been offered in Honolulu, The reserved housing program is governed by the (HCDA! and supported by OliverMcMillan in a concerted effort to provide income and asset qualified owner-occupant home buyers an opportunity to purchase a highly livable residence w ithin an amenity fil led, contemporary and sustainably deSigned building located in the heart of Honolulu, With one-bedroom, one-bathroom and two-bedroom, two-bathroom spaCiOUS residences offered from 672 to 1,1 45 square feet, Symphony Honolulu offers a rare and unique opportunity,
NOTICE: Obtain the Property Report required by Federal law and read it before signing anything. No Federal agency has judged the merits or value, if any, of this property.