HPAP Funding Suspended – Petition to Keep Funding in ’09

UPDATE – January 11th, 2009…

I wanted to write you to update you on the latest status on HPAP funding. While this is not concrete yet, it appears that new HPAP guidelines for down payment and closing cost assistance will be released between January 19 and 30th 2009. However, HPAP funds for down payment will significantly decrease. In the past applicants could receive up to $70,000 for down payment assistance. I have insight that the maximum HPAP funds for down payment will be $40,000. EPAP funds will more than likely remain unchanged. What we are waiting to hear is if there be any closing cost assistance and what are the income requirements and the loan amount of HPAP down payment for different income levels.
Whether or not you have been approved for HPAP assistance will not make a difference, all existing Notice of Eligibility Certifications will have to be re-issued.

If you are interested in more information please feel free to email me at jesse@buildingdc.com, however if you are reading this you will be updated with more information as soon as it is available.

Jesse Kaye

BuildingDC.com Owner

Launched November 18th, 2008…

Sign the Petition to Keep HPAP Funding in 2009

2009 HPAP funding is in jeopardy. DC proposed funding cuts have hit this critical housing program. I strongly encourage you to inforn your HPAP clients AND Sellers (individuals and developers) to contact their DC Councilmembers (by phone or e-mail) and expressing your concerns about HPAP and/or lower recordation and transfer taxes.

On Monday, November 10, the DC Council passed the Fiscal Year 2009 Balanced Budget Request Emergency Act of 2008. There were no public hearings on this legislation. The legislation passed unanimously by a vote of 13-0 with only Councilmember Marion Barry asking for a delay in the vote for public debate of the proposal.

This emergency legislation closed a projected $131 million shortfall in projected 2009 revenues by agreeing to cuts proposed by Mayor Fenty. The Council then went further by creating a $47 million revenue surplus for possible further budget revenue shortfalls that are expected when the CFO announces revised revenue estimates next month (December) and again early next year (February).

Unfortunately, the Council created that $47 million surplus by freezing program funding scheduled for fiscal year 2009, but not yet implemented. One of those programs was $11 million dollars in increased HPAP assistance slated for 2009, but not yet used. If the CFOs revenue estimates in December or February show signs of improving the Council can unfreeze the $47 million in reserves and move the programs forward again.

Even if this does not immediately affect you, your property or your development, without HPAP assisting the sale of affordable housing in the district the floor of the real estate market could be swept out from under ALL OF US. Prices would likely continue fall and nearly all DC owners would be affected with negative home values within the next SIX MONTHS!

PLEASE SIGN THE PETITION BELOW TO SUPPORT KEEPING HOME OWNERSHIP IN DC AFFORDABLE AND HPAP ALIVE!

PLEASE forward to anyone else who may be affected (this means just about every home owner in DC)

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This has an effect on everyone!

Buyer – “HPAP was the only way I could possibly have afforded to buy a house in DC.” -C

Seller – “I am a seller with a ratified contract. I was almost finished with my deal and preparing to move back to my home city to be with my family. With no notice at all HPAP was gone and of course my contract was all contingent on it and it thus void. How can the city not honor the obligations of those already in process? Completely irresponsible.” -A

Agent – “I have a client that has given notice to her landlord that she and her daughter will move out to in order to settle next week. They will be homeless if the City does not honor its contractural obligation to keep their word and fund her loan.
These prospective homeowners will add to the City’s revenues not subtract. The City will receive transfer and recordation tax revenue for each settled transaction and will ultimately receive property tax revenue, not to mention sales tax revenue when these homeowners go to Home Depot and other retailers.
This cannot be what the Council intended. The Council needs to understand that HPAP is funded in arrears and not in advance. Whenever it receives funding from DHCD that money goes toward reimbursing expenses from the previous quarter. This is a huge mistake and will ruin Thanksgiving and Christmas for countless families, not to mention pull the bottom out of the real estate market.” -D

Commercial Lender – “[My Company] is headquartered in Columbia, Maryland, but has a major office in the District. Through our efforts to promote workforce housing, we are keenly aware of how successful the HPAP program has been, and how this critical link in the real estate chain is for District buyers. Please restore the program’s funding!” -D

Residential Lender – “I’m a lender that relies heavily on the HPAP program in assisting low to moderate income 1st time home buyers. The “move-up” buyers will be drastically affected if 1st time hoem buyers can’t get the financing they need to purchase.” -C