Military

Military Hap Program – Housing Assistance Program – Military Expanded Hap Program

The Housing Assistance Program for military personnel has changed a lot over the last 3-4 months. In the Sacramento office, the staff went from 3 to more than 10 and the number of applications went from a few hundred to over 2000 thousand!

Expansion HAP by the American Recovery and Reinvestment Act of 2009

These FAQs and more can be found at the Homeowners Assistance Program (HAP) website.

Q. What is “Expanded HAP”?

A. Congress created in the HAP program in 1966 (see Section 3374, Title 42 United States Code) to financially compensate eligible military and civilian Federal employee homeowners when the real estate market was adversely affected directly related to the closure or reduction-in-scope of operations due to Base Realignment and Closure (BRAC). The Army Corps of Engineers runs it on behalf of all the military branches. The American Recovery and Reinvestment Act of 2009 (ARRA), Public Law 111-5, expanded the HAP to provide assistance to:

• Wounded members of the Armed Forces (30% or greater disability) and wounded Department of Defense (DoD) and Coast Guard civilian homeowners reassigned in furtherance of medical treatment or rehabilitation or due to medical retirement in connection with their disability;
• Surviving spouses of the fallen
• Base Realignment and Closure (BRAC) 2005 impacted homeowners relocating during the mortgage crisis; and
• Service member homeowners undergoing Permanent Change of Station (PCS) moves during the mortgage crisis.

Q. How do I apply?

A. Visit the HAP web site: http://hap.usace.army.mil/ and download the application package. Complete the application and mail to the U.S. Army Corps of Engineer District responsible for the area in which your home is located.

Q. Will the application packages be handled in a first come first served manner?

A. Applications will be processed as quickly as possible according to eligibility in the following order:

1. Wounded, Injured, and Ill. Within this category, applications will generally be processed in chronological order of the wound, injury, or illness.
2. Surviving Spouses. Within this category, applications will generally be processed in chronological order of the date of death of the member or employee.
3. BRAC 2005 Members and Civilian Employees. Within this category, applications will generally be processed in chronological order of the date of job elimination.
4. Permanently Reassigned Members of the Armed Forces. Within this category, applications will generally be processed beginning with the earliest report-not-later-than date of PCS orders.

Q. If I am eligible, what should I do after I mail in my completed application?

A. Each individual’s situation is unique. Contact the CoE District office where your home is located for assistance.

ELIGIBILITY

Q: Who is eligible for Expanded HAP assistance?

A. ARRA Expanded HAP applies to certain:

1. Wounded, Injured, or Ill service members and DoD (including Coast Guard) civilian employees
2. The surviving spouse of a member of the Armed Forces or of a civilian employee whose spouse dies as the result of a wound, injury, or illness incurred in the line of duty
3. Base Realignment and Closure 2005 impacted service members and civilians
4. Permanent Change of Station (PCS) servicemembers

Q. What are the specific eligibility requirements for Permanent Change of Station (PCS)?

A. PCS refers to the assignment or transfer of a member to a different permanent duty station (PDS), to include relocation to place of retirement, under a competent authorization/order that does not specify the duty as temporary, provide for further assignment to a new PDS, or direct the military service member return to the old PDS.To qualify, a service member must have:

• owned home prior to July 1, 2006.
• have PCS orders dated between February 1, 2006 and September 30, 2010
• be reassigned to a new duty station or home port outside a 50-mile radius of the member’s former duty station or home port. The orders must specify a report-no-later-than date of on or before February 28, 2010. These dates may be extended to September 30, 2012 at the discretion of the DUSD(I&E) based on availability of funds.
• suffered at least a 10% home value loss between July 1, 2006 and date of application for Expanded HAP benefits for the county/parish/city in which the primary residence is located, and
• 10% decline of personal home value loss from the date of purchase to date of sale.

 

Q. Is there a cap on the benefits the Expanded HAP will pay per applicant?

A. The Primary Fair Market Value (PFMV) may not exceed an amount equal to the 2009 Fannie Mae/Freddie Mac conforming loan limits (as amended by the ARRA of 2009). These conforming loan limits range from $417,000 to $729,500. These apply for the duration of the Expanded HAP and are established for each city/county/parish as appropriate.

Q. Will my Expanded HAP benefits be taxable?

A. No. President Obama signed HR 3548, Unemployment Compensation Extension Act of 2009 into law and thereby exempted Expanded HAP benefit payments from taxation. Payments to military members are not subject to social security or Medicare taxes.Tax documents will be certified by the HQUSACE Finance Center, and distributed to applicants and the Internal Revenue Service (IRS) on an annual basis.

Q. I had a contract to purchase my home prior to July 1, 2006, but closed after that date, do I qualify?

A. If you are a Military PCS eligible applicant and were under contract to purchase prior to 1 July 2006 and closed after that date, you would qualify. For applicants eligible as Wounded, Injured or Ill and Surviving Spouses the requirement to purchase the primary residence prior to July 1, 2006 does not apply.

If you have further questions, call me at 808 723 0900. I have listed and sold more HAP homes in Hawaii than any other agent.