I too was unable to get through to the Savanahh region via phone but was able to when I emailed them. Go to the web site and each region has an email address I believe. They answered me within three days. We had sent in our package on 3/3/09 and some of the paperwork needs to be updated so I needed to
know what to do. This is the communication I received.

Sir,
No, you need not submit another mortgage release form to your mortgage company or the District at this time; nor do we need updated mortgage information now.

Yes, we will need a copy of the new listing agreement you have entered into, but not now. Now that you have submitted your initial application package the District asks that you please retain any additional documents you collect until you are contacted by the realty specialist assigned to work your case. The chance is highly likely that other documents will be needed to process your claim and you can mail them all in together to the attention of your case worker. In this way the District lessens the risk that documents you provide to us separate from your application package will not be misplaced in the wrong folder or lost altogether. Thank you for your cooperation.

Applications are still receiving only a cursory review as applications are date stamped (with the date of receipt), logged into an Excel spreadsheet, and documents sorted for placement in file folders. On this spreadsheet, your name is listed at line item #192. This in no way implies the official HAP tracking number that will be assigned to your case.

Also be advised no actual processing of applications will begin until DOD policy guidance is officially approved and the District is released by HQ to begin the process.

B. M. Reed, Realty Specialist
HAP Section, Acquisition Branch,
Real Estate Division
US Army Corps of Engineers
PO Box 889
Savannah, GA 31402-0889

I hope that this helps you in someway. At least someone reads the emails. Try emailing them and see what happens. I wrote on behalf of my husband, an 06 in the Air Force, but he was TDY at the time. I sure hope that this gets settled soon or else what good is this program? I have to admit I have written to President Obama, my senators and to several news stations to see if they can speed up the process.
We have an offer (first one is over six months) , I can borrow funds from my sister to pay the realtors fees and closing cost but still have to come up with the funds to pay off the mortgage since our asking price won't cover it. I hope someone gets the ball rolling soon.

Thank you for sharing your letter, Karen! That's great you received a response.

We've actually gotten a pre-offer on our home as well but in our listing we stipulate that it is based solely on HAP paying the remainder of the mortgage because our listing price (and market value) is 120K LESS than what we now owe. There is no way, borrow or not, we could come up with this sort of money to close.

This interested party wanted to make an offer but they needed assurance we could close by Dec. 31 of this year so they'd qualify for the first time home buyers credit. Since we have NO idea when HAP will get their act together, we had to tell them no. We cannot make any garauntees on a closing date. Not sure if you saw, but at one point the HAP site said they were backlogged about 6 months before they may even get to "your" application. Add to that 90-120 days to receive paymenthuh Urgh.

I don't know what your realtor or HAP office is saying regarding coming to closing with borrowed money, but I personally would be very very leary about doing this unless you will absolutely sell your house whether you're reimbursed totally or not. For us, if we'd pull together 120K (not possible) to bring to closing and then HAP doesn't come through, we'd be in HUGE financial trouble. Its more worth it (even though its only half our mortgage) to try to rent it in that case and not even utilize HAP.

I cannot believe they are dragging their feet so much on this. I feel that many who fall into this window have either sold and moved already prior to the stimulus or are doing so this summer (I mean who that is active duty is at a station for 3+ years, righthuh) It does not help in any way if they're not going to straighten this out before the majority of us PCS - it will be a bigger mess cause then all the paperwork is retroactive.

I know the language of the stimulus was a mess, but come on.. Its been 4 months to just establish guidance on this matterhuh Even if they haven't gotten to the apps, they should have some ground rules after 120 days. We're all just waiting. It also doesn't help they continue "updating" the HAP site and then just taking it down saying they can't tell us anything.

Anyway, best of luck to you..... Enough rant from me for tonight. wink

Hi Anon,
You need to get to bed earlier!!! As to your comment about coming to the table with borrowed funds-- if we don't have enough funds to close with then we just borrow from my sister. We plan on being debt free before we go overseas next year so I can start to pay her then what we owe her. We have thought of letting the person that wants to buy our house, if willing to wait for HAP, to rent our home. Have not heard back from realtor as to that case. We are not in such dire straights as some we have been reading about and my heart goes out to them. We have dropped our price by only $30k and we could do this if they are willing to accept our asking price. I am just furious about how long it is taking. Don't they realise that if military homeowners have to forclose then their security rating could be affected? It makes my head hurt when I think of what is going on. But it is not HAP that is slowing the works down but DOD. We are also waiting for DOD to get their act together with the post 911 GI bill so that we know if we can transfer benefits to our son. Oh well tomorrow is another day. And many dollars less. Take care and talk soon.

This is Joe Gladden, responding to Karen and anon. Thanks for adding this info and your thoughts. Earlier I had questions on whether there are tax consequences on any forgiven money provided by the HAP, assuming it ever gets off the ground. We were hearing some rumblings that there might be taxes involved. I discussed this with a retired military CPA friend who, while not certain, thought that it would likely not be. I am now hearing from folks who have gone through the application process that there probably 1099s issues making it a taxable event! In one case, it could cost them an additional $60,000 in federal taxes given the large amount that "might" be forgiven, again if the program ever grows legs. Be advised that each state may have a different version of the tax consequences of HAP as well.

I certainly don't want to be an alarmist or discourage anyone from applying / pursuing HAP, but ask all the questions you can, and ultimately, check with a CPA. Then do as much due diligence as you can on this as the tax law may not be fully formed. If it is indeed a taxable event, it makes a short sale relatively more attractive in that it there is a moratorium on federal taxes on the "forgiven" amount through at least the end of this year. Again, individual states may take a different approach.

Thanks for you comments. I believe this is about the only forum for folks to share comments / learn about this. It is quite apparent that the folks required to implement this have very little guidance on their program. Joe

New information concerning HAP follows:

http://www.recovery.gov/?q=content/agency-summary&agency_code=97

Major Planned Actions:
On June 8, DoD will participate in the "Roadmap to Recovery" cabinet meeting to discuss the effects of the Recovery Act, as well as plans to accelerate execution over the next 100 days.
Continue to award contracts and monitor execution with a target of $1.9 billion in military construction and facility repair work underway by August 31.
The Homeowners Assistance Program (HAP) Rule for the Federal Register is still being revised and is expected to be submitted to OMB by June 15. The HAP Circular used for execution is in final draft and should be completed on June 10.



Hoping that means more information will be available shortly

Below is the response we received concerning renting our house to a prospective buyer while we wait for HAP to come forward. I know there have been questions concerning whether you can rent your house out during this time. Hope it helps. undecided


Colonel Davis,

Leasing (or renting) the residence in question does not disqualify you from the ARRA Expanded HAP. Your eligibility will be determined based on the statutory requirements and policy guidance (when officially approved).
Your application will be reviewed for approval based only on these criteria.

You may want to consider a pre-settlement occupancy. This is a special form of renting that is delineated in a sales agreement. This concept might be an option for you in light of the uncertain timeline for the ARRA Expanded HAP getting under way and having to wait your turn for your application to be processed. It could offer you an option to move on to your next duty station while biding time to schedule a Closing to coincide with the program and thus taking advantage of the Private Sale Augmentation option. Your realtor may be able to provide you with details of this concept or you can begin your own research at http://www.brincefield.com/publications/occupancy_agreements.php. Be advised this is not any form of recommended action by the District (or myself); this is merely something I have heard about from other potential applicants of the program and may have drawbacks for both the seller and renter/buyer that need to be researched.

B. M. Reed, Realty Specialist
Acquisition Section, HAP Branch,
Real Estate Division
US Army Corps of Engineers

These are the weekly updates for the Road To Recovery. So far it has been a slippery road but perhaps there is light at the end. Have faith and we will persevere!!!!

June 2 Complete proposed rule for the Homeowners Assistance Program (HAP) and submit to the federal rulemaking process.

June 9The Homeowners Assistance Program (HAP) Rule for the Federal Register is still being revised and is expected to be submitted to OMB by June 15.
The HAP Circular used for execution is in final draft and should be completed on June 10.

June 16 On June 12, the draft Interim Final Rule documents for the Homeowners Assistance Program (HAP) were sent to Washington Headquarters
Service (WHS) and the DoD General Counsel for final internal DoD review.

June 23 The Interim Final Rule for HAP is expected to be submitted to OMB soon.

June 30 On June 29, DoD Inspector General has scheduled an initial entrance conference with DoD officials for the Expanded HAP. This meeting will
familiarize auditors with the parties responsible for Expanded HAP and support enhanced accountability

July 7The Expanded Homeowners Assistance Program has received over 3,100 applications with 98% being in the Permanent Change of Station
category. The applications will begin to be processed after the Interim Final Rule is published in the Federal Register for public comment,
which is expected in the next few weeks.

Karen, thank you for the very timely updates. I have not doubt that this will be invaluable for many folks reading this forum in making critical decisions. I am most interested in the 98% PCS category you quoted. I am not surprised by this. No doubt our "wounded warriors" deserve head of the line privileges on any benefits, but I always felt that in the big scheme of things, they would represent very small numbers competing for the $550M. Combined with the fact that the only traditional BRAC closure group was Brunswick, Maine, I felt there would be plenty of money for PCSing families. However, this still doesn't answer the issues of the very narrow window (prior to Jul 1, 2006) that eliminates so many. Nor does it resolve the issue of any forgiven amounts being considered a taxable event, nor the fact that the actual benefit categories (95%/90% / 75% of appraised value) still leaves our families holding a very big bag.

Thanks for all the information. I look forward to speaking with you in the near future!

Joe

I received an email today from the HAP office in Savanah Georgia requesting more information for our package. I am taking that as a good sign that things are starting to move-slow but getting there. They asked for an updated realtor agreement and my HUD-1 statement. This is what was written in part:

Your application for benefits under the American Recovery and Reinvestment Act of 2009 (ARRA) Expanded Homeowners Assistand Program (HAP) has been received and assigned the above application number. Please refer to this number in all correspondence regarding your application.

Althought the district has not received the directive required to determine eligibility or ascertain benefits for qualified applicants we have performed a review of the documentation you submitted as part of your package. In order to continue processing your application, once the district begins determining eligibility, the following documents will be required. Upon receipt of the above documents, your application will be ready for further processing.

At least it is something. My husband does not have much faith that this will work so I have to have faith for the both of us. Take care and talk soon.

Karen

I have been doing some more research on the Federal Register. Yes I don’t have a life and no I am not a glutton for punishment. I found the actual docket ID that pertains to HAP. It was published on June 16th and is now awaiting public comments to be submitted. Everyone is eligible to submit comments on the proposal and the law requires that the agency review each comment that it receives. After the comment period is ended (the end date for the HAP comments is August 18th) the agency can then publish a final form of the regulation. So far only one comment has been made about this document. It concerns how to determine qualifications for priority payment when it comes to those killed, wounded or injured in combat. So at least we know the next time frame is Aug 18th. Perhaps after that they will be able to publish their rules and regulations and get on with this. Take care and talk soon. Karen

Hi Joe. I have spoken with the main main office again this morning(the Federal Register) and they “say” they are very close to a resolution with the IRS and are planning on making payments on claims by the end of September. They have to post the changes on regulations.gov for 30 days, but will start to process claims before the 30 days are up and, if any changes are made, they will then impliment them. Another month, lets all hope this is the end of the waiting game. As of last week there were 3 isuues being worked on to include the tax question. She explained that when this program was re-funded iand approved in Febuary through the stimulous package, the White House was" unaware" that the entire bill needed to be re-written. This is the office number for the Federal Register (703)602-4353 and it seems to be more useful than calling the HAP office. Hopefully, one day in the near future, HAP will no longer be thought of as HAPLESS but as Hopefull. Will let you know if I hear anything else. Have a blessed weekend all of you. Karen

I was my understanding that it would come down to the definition of primary residence, and that simply because you had rented it out, didn't necessarily change that primary residence status.   Otherwise stated, it shouldn't, according to what I was told when I spoke with BRAC folks, prevent you from receivng BRAC assistance if you were otherwise qualified.   

I think the real road block is the Corps of Engineer actually getting the program implemented and the back up of applications.   I am still waiting to hear from anyone who has been successful at this. 

HOpe this helps.  Joe

Karen, this is good news to be sure and I can't tell you how much I appreciate your dedicated research and willingness to update all of our readers with your posts.  I have no doubt a lot of folks need this info that you provide.  Could I bother you to shoot me an email at homesformilitary@vrsam.com?    Would like to discuss a couple of issues with you off line.  Or, you could call at 703 754-3036.  

 

Thanks.  Joe

Joe I tried the email address listed and it was sent back to me. I left my cell number on your cell. You can reach me after 1700 most evenings. Looking forward to hearing from you.

You unfortunately have real good company on this.  By the way, while the amounts lost are substantially more now days, Military Families have been suffering losses on their homes for decades when handed "orders."   I have long felt that unless the military provides ready and adequate housing for families, that a loss on a home should be considered an expense of employment.  And by the way, I experienced this in my own 25 year career. 

OK, that said, the more detail you can give us the better.  Specifically with any communications you have had with the ACE that would shed light on where they are with policies and implementation would be useful. 

As always, I strongly encourage everyone to engage their Congressment UNTIL they get this fixed!  It is unacceptable that our Military Families have to deal with this along with deployments, risks, etc. to serve our country. 

Please keep us updated and will keep you and all of our families in our prayers. 

 

Joe

I was able to sell my house to the government under the expanded HAP program. Today I received a 1099S. It does not indicate that the gross proceeds are except from federal taxes. Am I missing something?