Section 15-302-12 - Rent-to-own program; general provisions(a) The corporation is authorized to develop or participate in the development of housing projects in which dwelling units are offered for rent to qualified residents who may not have the financial capability to purchase a dwelling unit at the time of initial occupancy, but who demonstrate a desire and potential capability of being able to purchase the unit within five years as determined by the corporation.(b) The sales price of the dwelling unit shall be established at the beginning of the rental term and shall remain in effect for the first five years after the rental agreement is executed.(c) The participant shall have the option of purchasing the unit at any time within the five-year period and shall have the right to remain in the unit for at least five years provided that all conditions set forth in these rules are met.(d) During the period that the participant rents the unit, the following shall apply: (1) The corporation shall credit a portion of the participant's rent toward the purchase price of the unit, which amount shall be determined on a project-by-project basis;(2) The participant shall learn the responsibilities of homeownership and begin to save money toward the purchase of the home by participating in a homeownership counseling program approved by the corporation;(3) The corporation shall have the right to verify on an annual basis that the participant is making sufficient progress toward saving money for the purchase of the unit, and if it is determined that the participant is not making sufficient progress, the corporation shall have the right to terminate the contract and offer the unit to another potential purchaser with all rental amounts paid to date being forfeited; and(4) The participant shall perform minor maintenance on the dwelling unit, with major maintenance being provided by the corporation or the owner of the project, if the owner is other than the corporation.(e) When a participant decides to exercise his or her option to purchase the unit, in order to qualify for a first mortgage, the participant must satisfy conventional lender requirements or requirements under any of the corporation's mortgage lending programs. In rural areas, financing may be provided through the United States Department of Agriculture's Rural Development Program.(f) If the participant does not qualify to purchase the unit within the five-year period, the renter shall forfeit the right to continue living in the unit and the unit shall be rented to another potential purchaser. Renters displaced in accordance with this section shall be given preference to occupy other rental units owned by the corporation.(g) The corporation shall have the right to reestablish the sales price of the unit upon expiration of the option period or upon resale of the unit.[Eff JUN 15 2007] (Auth: HRS §§ 201H-4, 201H-181) (Imp: HRS § 201H-181)