DEPARTMENT OF DEFENSE U.S. ARMY CORPS OF ENGINEERS (USACE) HOMEOWNER ASSISTANCE PROGRAM (HAP)
Disclaimer: The information contained herein is strictly provided as information only. For more information about the U.S. Army Corps Homeowner Assistance Program, please see the HAP contact information inside or visit: http://hap.usace.army.mil.
OVERVIEW The Department Defense (DOD) is proud to offer the Homeowners Assistance Program (HAP) to eligible military members, federal civilian and Non-Appropriated Fund employees. This program was authorized by law to assist eligible homeowners who, through no fault of their own, face a financial loss when selling their homes in areas where real estate values have declined because of a Base Closure or Realignment Announcement. The Department of Defense designated the U.S. Army as executive agent for HAP. The U.S. Army Corps of Engineers administers the program for the Department of Defense and the Coast Guard. Base closures and force reductions are necessary facts of life during this time of transition for all the services. HAP, and other personnel oriented initiatives, will minimize hardships on service members, employees and families as we accomplish our changing missions. Working with installation commanders and housing officials, the U.S. Army Corps of Engineers district realty specialists will offer all possible assistance in determining and disbursing HAP benefits to eligible homeowners. The American Recovery and Reinvestment Act of 2009 (ARRA) temporarily expands the HAP to assist service members and DOD employees who are wounded, injured or become ill when deployed, surviving spouses of service members or DOD employees killed or died of wounds while deployed, service member and civilian employees assigned to BRAC 05 organizations, and service members required to permanently relocate during the home mortgage crisis.
ELIGIBILITY The general eligibility requirements follow; however, if you think you might be eligible, you should submit an application for a formal determination. Two things must happen before a HAP can be Implemented in your community: First - There has to be an announcement of a base closing or realignment action which affects your community. Second - A determination must be made that real estate values have dropped as a direct result of the base closing or realignment announcement. Eligibility
The applicant must be a military service member (including Coast Guard) or federal civilian employee (including non-appropriated fund) assigned at or near the installation announced for closure or realignment. Also Eligible Are: o Civilian and military personnel on overseas tours who transferred within three years prior to the announcement and who are homeowners in the area.
Civilian employee homeowners on overseas tours with reemployment rights in the area affected by the announcement.
Military member homeowners ordered into on-post housing within six months prior to the announcement.
All applicants must have been the owner-occupant of their homes for which assistance is being requested on the BRAC announcement date which is May 13, 2005
A Non-Appropriated employee who was assigned at the installation on the closure/realignment announcement date may also apply. The current BRAC closure/realignment announcement date is May 13, 2005.
Also eligible are personnel transferred or terminated within six months prior to the announcement who were owner on May 13, 2005.
Civilian and military personnel on an overseas tour who transferred within 3 years prior to the announcement and who are homeowners in the area; and
Civilian employee homeowners on an overseas tour with reemployment rights in the area affected by the closure; and
A military member homeowner ordered into on-post housing within six months prior to the announcement.
In addition, applicants must be relocating beyond commuting distance from the area. All applicants must have been the owner-occupant of the home for which assistance is being requested on the announcement date. To qualify, the applicant must also meet other eligibility criteria.
These are the general eligibility requirements. If you think you may be eligible, you should submit an application for a formal determination.
BENEFITS Private Sale Eligible applicants may be compensated for the difference between 95% of the appraised fair market value of the property prior to the announcement date, and the appraised value of the property at the time of sale, or the sales price, whichever is greater. Closing costs are reimbursed for private sales. Government Purchase The Government might purchase your property at 75% of your purchase price, or mortgage payoff. If this occurs, the government will sell the home to the buyer you and your realtor located and pay the realtor fees. NOTE: It is a DOD policy to insure that HAP funding remain available to assist the maximum number of applicants as opposed to using the funds for administrative costs associated with maintenance and resale of a large housing inventory. Foreclosure Assistance If foreclosure proceedings have commenced, an applicant may elect to receive foreclosure benefits or private sale benefits. Foreclosure benefits may be paid directly to the applicant to reimburse for foreclosure costs paid by the applicant, or paid to third parties on the applicant’s behalf. NOTE: Eligible HAP applicants who work at overseas installations announced for closure or realignment may receive only private sale benefits. Government purchase benefits are not available at overseas installations. How HAP Assists You HAP provides assistance in four ways. For eligible applicants, the Government may: 1. 2. 3. 4.
Reimburse you for part of your loss from selling your home. Assist you, if you don’t have funds from the sale of your home to pay-off your mortgage. Purchase your home by paying off the mortgage. Help, if you default on your mortgage.
EXPANDED HAP PROGRAMS WOUNDED, INJURED, ILL WARRIORS & SURVIVING SPOUSES OF FALLEN WARRIORS MILITARY & CIVILIAN PERSONNEL 1) WT: Military Personnel and Civilian Employees: a. Military Personnel: Member of Armed Forces (including US Coast Guard) in medical transition 1. Incurred wound, injury, or illness in the line of duty during a deployment in support of the Armed Forces, on or after 11 September 2001; 2. Is disabled to a degree of 30% or more as a result of such wound, injury, or illness, as determined by the Sec. Def. 3. Is reassigned in furtherance of medical treatment or rehabilitation, or due to medical retirement in connection with such disability 4. Owned home at time of deployment where wounded, injured, or became ill. b. Civilian Employees of the Department of Defense or US Coast Guard: 1. Was wounded, injured, or became ill in the performance of his or her duties during a forward deployment occurring on or after 11 September 2001, in support of the Armed Forces; and 2. Is reassigned in furtherance of medical treatment, rehabilitation, or due to medical retirement resulting from the sustained disability. 3. Owned home at time of deployment where wound June 3, 2011Surviving Spouse: a) Of service member killed in the line of duty, or in the performance of his or her duties during a deployment on or after 11 September 2001, in support of the Armed Forces or died from a wound, injury, or illness incurred in the line of duty during such a deployment.
b) Relocate within two years of spouse’s death. 2) If you are a WT or SS, download the application packet and complete the application. Carefully read all instructions, and mail your completed application to the USACE district responsible for the area in which your home is. SS must include DD Form 1300 (Report of Casualty) with application. Once DOD implementing guidance is received the district will contact you concerning your eligibility and benefits.
EXPANDED HAP FOR BRAC 05 IMPACTED PERSONNEL (WHERE ANNOUNCEMENT DOES NOT CAUSE A MARKET DECLINE) - MILITARY & CIVILIAN PERSONNEL 1. Military Personnel and Civilian Employees assigned to BRAC 05 organizations/installations. 2. Applicant must have been owner occupant on May 13, 2005, and the property must be sold between July 1, 2006 and September 30, 2012. 3. If you are a BRAC 05 impacted homeowner, download the application packet and complete the application. Carefully read all instructions, and mail your completed application to the USACE district responsible for the area in which your home is located. MEMBERS OF THE ARMED FORCES PERMANENTLY REASSIGNED DURING THE MORTGAGE CRISIS - MILITARY PERSONNEL ONLY 1. Permanent reassignment to a new duty station or home port outside a 50-mile radius of the member's former duty station or home port. 2. Reassignment ordered between 1 February 2006 and 30 September 2010. 3. Property purchased (or contract to purchase signed) before 1 July 2006. 4. Must have a decline of at least a 10% home value loss from the date of purchase to date of sale. 5. Property was the primary residence of the owner. 6. Owner has not previously received these benefit payments.
7. If you are a member of the Armed Forces who is PCSing or has PCSed, download the application packet and complete the application. Carefully read all instructions, and mail your completed application to the USACE district responsible for the area in which your home is. Note: Red text reflects recent changes in PCS interim rule.
QUESTIONS AND ANSWERS What Is the Homeowners Assistance Program? The Homeowners Assistance Program, often referred to as “HAP,” is authorized in Section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966, as amended. This act (law) provides for some monetary relief for eligible federal personnel – both military (including Coast Guard) and civilian faced with losses on the sale of their primary residence when, "as a result of the actual or pending closing of such base or installation, in whole or in part, or if as the result of such action and other similar action in the same area, there is no present market for the sale of such property upon reasonable terms and conditions." How does the Homeowners Assistance Program (HAP) work? Generally, the HAP provides assistance in four possible ways. If you are eligible for HAP benefits, the government may: 1. Reimburse you for part of your loss from selling your home 2. Assist you, if you don’t receive enough proceeds from the sale of your home to pay off your mortgage 3. Buy your home by paying off the mortgage 4. Help you, if you default on your mortgage Who is eligible for HAP? The applicant must be a military member (including Coast Guard), federal civilian or NonAppropriated Fund employee assigned or employed at or near the Installation announced for Closure or Realignment. They must have been assigned to the installation and be an owner and occupant of the home on the announcement date.
Also eligible are personnel transferred or terminated within six months prior to the announcement who were owner-occupants at the time of transfer; and
Civilian and military personnel on an overseas tour who transferred within 3 years prior to the announcement and who are homeowners in the area; and
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Civilian employee homeowners on an overseas tour with reemployment rights in the area affected by the closure; and
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A military member homeowner ordered into on post housing within 6 months prior to the announcement.
In addition, applicants must be relocating beyond commuting distance from the area. If you think you may be eligible, you should submit an application for a formal determination. How do I apply for HAP benefits? The application is made on DD Form 1607, application for Homeowners Assistance Program. Part III, Section IV of the form must be completed by your personnel officer. In addition, you must submit a variety of documents to show evidence of your ownership of the property, your occupancy dates, your assignment orders, your efforts to sell the home (whether or not it was sold), and mortgage details. A complete application package can be obtained from either base/installation housing or personnel offices, or it can be downloaded from our web site: (http://www.hq.usace.army.mil/hap/). Before you make an application, we suggest you contact the DOD HAP National Hotline at 1-888-DODHAP1 (888-363-4271). Who makes the determination that we will have HAP? The U.S. Army Corps of Engineers will analyze your community situation, conduct market analyses, and make a recommendation to the Deputy Assistant Secretary of the Army for Installations & Housing for a final determination. If there is an announcement to realign or close your installation and market conditions indicate that homes cannot be sold under reasonable terms and conditions, a HAP may be approved. What happens if I can't sell my house? The Government can acquire your house for the balance of any mortgage existing at the time of announcement, or for 75% of the prior fair market value (whichever is higher). If the amount you owe on your mortgage is less than the 75% of the prior market value, you can be paid the difference.
The amount of payment you receive for your HAP benefits may have to be adjusted for taxes and other liabilities, depending on the terms of the mortgage. Many complicated situations will arise in individual cases as HAP is implemented. This brochure is only provided to give you the basic facts. Your specific situation will have to be assessed for eligibility and compensation by the real estate professionals administering the program in your area or community. After I apply, should I stop trying to sell my house? A key part of the process is your continued effort to sell your house privately, at the best possible price. If your HAP application is approved and you meet all the eligibility requirements, you will be paid an amount up to the difference between 95% of the Fair Market Value prior to the closure announcement, and the appraised value at sale time. Additionally, some of the costs for selling your home privately may be reimbursed to you. Since HAP will not reimburse you for the total loss in value, it is to your advantage to sell at the best price possible. In Closing HAP is an important program; we are committed to making it work with a minimum of delays. We realize how important your home ownership and homes cannot be sold under reasonable terms and your financial security are to you and your family, and will do our best to provide timely and complete assistance. What's necessary for HAP to be implemented in my community? First - There has to be an announcement of a base closure or realignment action which affects your community. Second - A determination must be made that real estate values have dropped as a direct result of the base closure or realignment announcement.
Many factors may affect the local price of real estate, but these two conditions must be met for your community to be eligible for the Homeowners Assistance Program. If these conditions are met, the local command submits a request to the Corps of Engineers for approval and implementation of a HAP. VA and FHA mortgages If your mortgage is either VA Guaranteed or FHA Insured and you sell your house by an assumption of the existing mortgage, we suggest you request a release of liability from either VA or FHA, depending on the type of mortgage. If your buyer is not acceptable to VA or FHA, you will not receive any HAP benefits until you obtain a release of liability. HAP Application Checklist Once a Homeowners Assistance Program local project is established in your community, you can apply to the Installation Housing Office or online. You must have the following items prepared to submit with your application:
DD Form 1607, Application for Homeowners Assistance (Part 111 Section IV of this form requires completion by your Personnel Officer)
The deed (copy) to your dwelling which evidences your ownership of the property
Transfer orders, or amendment orders. Send one (1) copy
Retirement orders or separation letter. Send one (1) copy. This will provide further evidence of your relocation
Receipts from your utility company (or a signed and dated letter from your utility company) which states that you occupied your house on the date of the base closure or realignment announcement
HAP CONTACT INFORMATION HAP National Assistance Hotline: 888-DODHAP1 (888-363-4271) Email HAP at: dodhap1@usace.army.mil HAP Offices HAP Field Office, Savannah P.O. Box 889 Savannah, GA 31402-0889 912-652-5563 / 800-861-8144 (www.sas.usace.army.mil) (Serves eastern US & Europe) HAP Field Office, Fort Worth U.S. Army Engineer District, Fort Worth P.O. Box 17300 Ft. Worth, TX 76102-0300 817-886-1216/ 888-231-7751 (www.swf.usace.army.mil) (Serves central US) HAP Field Office, Sacramento U.S. Army Engineer District, Sacramento 1325 J Street Sacramento, CA 95814-2922 916-557-6850 / 800-811-5532 (www.spk.usace.army.mil) (Serves the western US & Pacific) National Program HQ, U.S. Army Corps of Engineers DOD Homeowners Assistance Program 411 G Street, NW Washington, DC 20314-1000 202-761-1566