American Economic Recovery Act and the Department of Defense Housing Assistance Program (HAP) Expansion

The Homeowners Assistance Program was originally enacted by Congress in 1966. This law provides for assistance to eligible federal personnel who were stationed at or near an installation scheduled for closure or realignment and who, through no fault of their own, are unable to sell their homes under reasonable terms and conditions.

 Earlier in 2009, the President signed the American Economic Recovery Act which included expansion of the HAP to include Members of the Active Armed Forces (only) permanently reassigned during the mortgage crisis who meet certain criteria. In a nutshell, if you are a member of the active military and subject to a permanent reassignment that meets the HAP criteria, you may be eligible for assistance benefits under this expanded DoD program.

At the time of this writing the DoD had not yet finalized policy guidance on applicant processing and benefits, however potential applicants who meet the published criteria may still submit their applications to the appropriate HAP districts. No action will be taken on the applications until the change to the HAP authority has been enacted, the interim draft rule is published in the Federal Register and DoD guidance is received by the HAP districts.

The Current Published Criteria for Expanded HAP Eligibility Are:

•1)      Must be Military Personnel Only

•2)      Subject to a Permanent Change of Station (PCS) that requires move of more than 50 miles

•3)      Reassignment ordered between 1 February 2006 and 30 September 2012 (or earlier date designated by Secretary of Defense)

•4)      For a Property purchased (or contract to purchase signed) before 1 July 2006.

•5)      Property sold by the military owner between 1 July 2006 and 30 September 2012 (or earlier date designated by Secretary of Defense)

•6)      Property was the primary residence of the military owner

•7)      Owner has not previously received these benefit payments.

If you are a member of the Armed Forces who is PCSing or has PCSed, you are encouraged to download the application packet available at http://hap.usace.army.mil/homepage.html , carefully read all instructions, complete the application, and mail your completed application to the USACE district responsible for the area in which your home is. Once DoD implementing guidance is received the district will contact you concerning your eligibility and benefits.