Selling a Reserved Housing Unit

Posted on Aug 21, 2019 in Main

Please allow at least four to six weeks to complete the release of a unit from HCDA’s Reserved Housing Program.  Be advised that closing may take longer than 45-days if the documents require any edits, so please prepare accordingly.

To sell an HCDA Reserved Housing Unit complete the highlighted sections of the letter linked below and return to HCDA, along with the documents mentioned at the bottom of the Owner’s Request for Unilateral Release letter.  This letter will serve as your formal request for a Release of Unilateral Declaration of Restrictive Covenants.

In accordance with the HCDA’s rules, the HCDA will exercise its first option to purchase if any Reserved Housing Unit is sold during the regulated term.  Reserved Housing unit owners are only allowed to sell their units at market after the Regulated Term has expired.

Please review your Unit Deed and Unilateral Declaration to confirm your Regulated Term has expired prior to following the steps below to release your unit from HCDA’s Reserved Housing Program.

The HCDA requires the following documents to process all requests for Unilateral Release:

  • Unit Deed with Reservation and Conditions;
  • Unilateral Declaration of Restrictive Covenants for Unit Designated as Reserved Housing Unit;
  • Purchase Contract;
  • Counter Offer (if applicable);
  • Preliminary Title Report;
  • Estimated Closing Disclosure showing the shared equity due to the HCDA;
  • Estimated Seller’s Statement showing the shared equity due to the HCDA; and
  • Draft Release of Unilateral Declaration of Restrictive Covenants.

Draft templates of the Unilateral Release for various housing projects are linked below.
Please select the appropriate template and fill out all highlighted fields.

Return all documents listed above to:

HCDA
547 Queen Street
Honolulu, HI, 96813

or by email to:

DBEDT.hcda.reservedhousing@hawaii.gov.

If you have any questions, call HCDA at (808) 594-0300.

After the HCDA receives all of the above documents, please allow four to six weeks for legal review and execution of the Release of Unilateral Declaration of Restrictive Covenants.