HAP Overview

Background Information

The Homeowners Assistance Program (HAP) is authorized in Section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966, as amended. The law provides some monetary relief to eligible service member (including Coast Guard) and federal employee (including non-appropriated fund) homeowners who suffer financial loss on the sale of their primary residences when a base closure or realignment announcement causes a decline in the residential real estate market and they are not able to sell their homes under reasonable terms or conditions.

The US Army Corps of Engineers will analyze your community’s real estate market, conduct market impact studies, and make a recommendation to the Deputy Assistant Secretary of the Army for Installations and Housing for a final determination. If it is found and proven that an announcement caused a significant decline in a residential real estate market, a HAP may be approved.

If the two basic conditions are met, a HAP program will be established. This will be administered by real estate personnel of The Corps of Engineers District Office in coordination with the Installation Commander.

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:
- 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 announcement date.
A Non-Appropriated employee who was assigned at the installation on the closure/realignment announcement date may also apply.
Also eligible are personnel transferred or terminated within six months prior to the announcement who were owner May 24, 2010
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:

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 Soldiers, & Surviving Spouses of Fallen Soldiers

BRAC 05 Personnel

PCS Members

*All information was provided by the official DOD HAP Program Web Site