The director may revoke a homesite entry permit for failure to

(1) erect a dwelling in the time required under Alaska Stat. § 38.08.060(a)(2) unless the director finds that erection of the dwelling has been substantially completed and progress toward completion is being made at the expiration of the time required; or
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(2) convert a substantially completed dwelling for which an exception has been made under (1) of this section into a habitable permanent dwelling within one year after the deadline set out in Alaska Stat. § 38.08.060(a)(2).
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