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Topic: HAP Hot off the press! |
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Posted By Denise Korpinen on 09-24-2009 04:00 PM
Thanks Joe and Karen for connecting me with this forum. I am so excited that my first post is about some real progress!
Department of Defense Expanded Homeowner's Assistance Program Update- The Interim Draft Rule for Expanded HAP was approved for publishing yesterday, September 24th! Presuming all services will come out with a message as soon as Interum Rule publishes.
Here's the process:
1) Interim Rule should publish on the Federal Register some time next week as DOD-2009-os-0090. You can go to the Federal Register site to watch for it to post. Then check http://hap.usace.army.mil/homepage.html to confirm via Army site.
2) There will likely be a 60 day comment period on the rules.
3) Final Rule will publish after that.
What does this mean to Service Members who have applied?
Good news- PROGRESS! Army Corps will begin to process applications as soon as rule publishes. Wounded Warrior and Surviving Spouse claims will process first. According to source new rule states PCS applications will process in chronological order by report date as packages are complete. Translation- if your package is not complete you will be skipped till it is, even though you have already transferred. The benefit to having applied before final rules is that your application should have already been reviewed by HAP reps and you have been contacted for missing paperwork. If you haven't already, get Army Corps what they need asap!
Bad news- Federal and State taxes will still be withheld from any benefit payment processed prior to Legislators passing H.R. 3590, The Servicemembers Home Ownership Act of 2009. Hopefully this bill will be fast tracked. So, if you process early, you may have your own "recovery" effort on the taxes to rectify once the bill passes.
Pass it on to those who have been waiting for news!
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RE: HAP Hot off the press! |
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| Topic Review |  | |
BmbSqdWife
Posts:633
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| 02-16-2011 10:17 PM |
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Thank you Joe. I'm worried about the house here in Alaska. It doesn't make sense that the cut off date is 1 JUL 2006 since the at that time the market was still doing well. When we PCSd and purchased in SEPT / OCT of 2006 Alaska houses were at unbelievable high prices! Then later the bottom started to fall out. 
Thanks again I'll give them a call. |
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Denise Korpinen
Posts:633
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| 02-16-2011 01:52 PM |
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Chris- If you are still out there, hope you had your question answered by now! If not- the scenario you described indicates you may not have had a 10% loss in value on the property. HAP told you to list it at less than $99,000 because that would be a 10% loss. If you accept a contract for more, you are disqualified from receiving HAP benefits. On the other hand, if you have not received at least 3 showings and an offer by now in over 2 weeks at that price, you should reduce it. Documentation of lack of activity as the price reduces is what HAP wants to see to justify price at low end of market.
You have to keep in mind that an appraisal is one person's opinion of value at a given moment in time. It can change in an instant based on what closes or comes on the market. In our current real estate environment it is not a guarantee that someone will be willing to pay that price. Marketing response determines true value. Also, I have heard from numerous people they are getting "appraisals" from an appraiser before listing. In my opinion, this is a completely unnecessary expense. Any Realtor worth their salt should be able to give you a very accurate projection of what someone will be willing to pay in their market area for free. |
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Denise Korpinen
Posts:633
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| 02-16-2011 01:28 PM |
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BmbSqdWife- If your Alaska home was purchased in October 2006, Joe would be correct in his answer. That purchase date cannot be appealed. It would not qualify as it had to be purchase no later than June 30, 2006. The government does not consider the date arbitrary due to data they have on the housing market, thus they have no motivation to change that criteria.
Sounds like the Kentucky property may qualify. Joe or I can give you a referral (offline) to a qualified Realtor to help work HAP on the Kentucky house if you like. For the Kentucky property you would not be dealing with the Sacramento District. |
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Joe
Senior Member
Posts:125
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| 02-16-2011 09:00 AM |
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Sorry for the late response. You discuss two different homes in your post. As I understand the HAP program eligibility, the first home in KY, purchased before July 1, 2006, is probably HAP eligible. I don't believe your second home in Alaska is. I would suggest you google Homeowner's Assistance Program and obtain the phone number for the Sacremento HAP office. My experience is that they have been very good about responding to such questions. I do believe that the arbitrary date of July 1, 2006, makes little sense and that many military families suffer because of this. I strongly encourage you to contact your home state elected officials continuously to get them engaged with this issue. Joe Gladden
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Joe
Senior Member
Posts:125
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| 02-16-2011 08:59 AM |
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Sorry for the late response. You discuss two different homes in you post. As I understand the HAP program eligibility, the first home in KY, purchased before July 1, 2006, is probably HAP eligible. I don't believe your second home in Alaska is. I would suggest you google Homeowner's Assistance Program and obtain the phone number for the Sacremento HAP office. My experience is that they have been very good about responding to such questions. I do believe that the arbitrary date of July 1, 2006, makes little sense and that many military families suffer because of this. I strongly encourage you to contact your home state elected officials continuously to get them engaged with this issue. Joe Gladden |
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BmbSqdWife
Posts:633
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| 02-13-2011 08:33 PM |
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I have read the HAP brochure and I still need help understanding it. While stationed at Ft. Campbell, Kentucky my husband received orders for Ft. Richardson, Alaska in May 2006. We rented out the house in Kentucky and purchased a house in Alaska in October 2006. He then received orders to Ft. Hood, Texas in April 2009. Since our request to stay in Alaska was denied (his report date was 2/10 and his deployment date 8/10 so to keep our son who was to graduate 5/10 from having to move 4 months away from graduation date) I stayed in Alaska. The prices of homes in the Palmer area have continued to drop and I have to list this house next month. I am really worried.
Anyways, based on our PCS dates and purchase date do we qualify?
Thanks. |
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Chris
Posts:633
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| 01-18-2011 06:27 PM |
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Thanks for all the info. I have one question. I have had my home on the market for $119,00. We paid $110,000 for it back in 2005. I called the HAP office in Fort Worth to get guidance on the program and my application. They told me that I have to list my house for no more than $99,000 in order for me to qualify, so we did just that. Something tells me that this is wrong and that I have to list it at fair market value. Not sure what it is, but the house if appraised for $120,000 I think.
Chris Botello |
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KAREN
Posts:633
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| 10-15-2009 11:26 PM |
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Just received this new information:
Applicants,
It is my pleasure to announce to you that approved procedures for implementation of the HAP program have been received. In an effort to expedite determination of eligibility for each of our applicants, our main focus will be to concentrate upon a thorough review of the application and its' pertinent documentation. To assist us in expediting a determination of eligibility, we, respectfully, request that you review the updated information posted on the website (http://hap.usace.army.mil); and, for a short period of time, limit your telephone calls to our office. Once your application and documentation has been thoroughly reviewed, you will receive written notification as to the determination of your eligibility.
Please read the below information regarding your tax liabilities:
Section 1001 of the American Recovery and Reinvestment Tax Act of 2009 (ARRA) expanded the categories of eligible beneficiaries of the Homeowner's Assistance Program (42 U.S.C. § 3374) to include wounded, injured and ill, surviving spouses, and military members required to relocate during the mortgage foreclosure and credit crisis, and personnel impacted by the BRAC 05 announcement. Because section 132 of the Internal Revenue Code was not amended at that time, these formerly marginally taxable payments became very taxable. The requirement to withhold taxes on these payments prevents this program from successfully assisting needy individuals and those whom this program specifically intended to help. The House Ways and Means Committee introduced legislation to revise the Internal Revenue Code to make ARRA expanded HAP payments nontaxable. Just when this bill will be signed into law is unknown. Unless or until this bill is signed into law, current tax law requires USACE to withhold Federal income tax from HAP benefit and reimbursement payments amounts above applicant homes' current fair market value prior to disbursing payments to applicants or lending institutions.
Districts must, early in the application process, ensure applicants are aware of this tax liability and the Congress' intention to change it.
Additionally, applicants must be advised that state and local taxes may be due on HAP benefits as well as the Federal taxes withheld.
We, at USACE, strongly recommend that you consult with a financial and/or tax advisor so that you will fully understand your tax liability prior to receiving HAP benefits. If you need this assistance, you can contact the Military OneSource at 800-342-9647, and representatives will be able to refer you to a tax/financial advisor in your local area. Again, it is our pleasure to finally be able to provide this program to you.
If you listed major improvements in your application, you must provide receipts for these items if you would like them to be considered. Current guidance is that the Prior Fair Market Value is the purchase price, but it is anticipated that there may be an adjustment for improvements in the final guidance. Improvements and receipts must be in accordance with the guidelines established in IRS publications 552 & 527 (http://www.irs.gov/).
An appraiser will review any provided improvement receipts to determine what additional value will be credited.
If you are unable to provide receipts in accordance with IRS publications 552 & 527, and would like for us to proceed without providing additional receipts for these improvements (which would mean not receiving additional credit for these improvements), please send us an email requesting that we continue to process your application without receipts.
We will be contacting you regarding your eligibility in the near future.
Respectfully,
Homeowners Assistance Program
Savannah District
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Tracy Moulton Peterson
Posts:633
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| 09-30-2009 06:27 PM |
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| Great news, but long overdue. Thanks so much for the update. |
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jr
Posts:633
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| 09-25-2009 01:38 AM |
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| Thanks for the update...that's the first good news I've heard in 6 months! |
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Denise Korpinen
Basic Member
Posts:7
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| 09-24-2009 09:00 PM |
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Thanks Joe and Karen for connecting me with this forum. I am so excited that my first post is about some real progress!
Department of Defense Expanded Homeowner's Assistance Program Update- The Interim Draft Rule for Expanded HAP was approved for publishing yesterday, September 24th! Presuming all services will come out with a message as soon as Interum Rule publishes.
Here's the process:
1) Interim Rule should publish on the Federal Register some time next week as DOD-2009-os-0090. You can go to the Federal Register site to watch for it to post. Then check http://hap.usace.army.mil/homepage.html to confirm via Army site.
2) There will likely be a 60 day comment period on the rules.
3) Final Rule will publish after that.
What does this mean to Service Members who have applied?
Good news- PROGRESS! Army Corps will begin to process applications as soon as rule publishes. Wounded Warrior and Surviving Spouse claims will process first. According to source new rule states PCS applications will process in chronological order by report date as packages are complete. Translation- if your package is not complete you will be skipped till it is, even though you have already transferred. The benefit to having applied before final rules is that your application should have already been reviewed by HAP reps and you have been contacted for missing paperwork. If you haven't already, get Army Corps what they need asap!
Bad news- Federal and State taxes will still be withheld from any benefit payment processed prior to Legislators passing H.R. 3590, The Servicemembers Home Ownership Act of 2009. Hopefully this bill will be fast tracked. So, if you process early, you may have your own "recovery" effort on the taxes to rectify once the bill passes.
Pass it on to those who have been waiting for news!
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| Denise Korpinen
Realtor
Prudential California Realty
Cell (858)442-7233
Denise@theREAgent4me.com |
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