R 060148Z OCT 09 

ALCOAST 579/09
COMDTNOTE 7000
SUBJ: HOMEOWNERS ASSISTANCE PROGRAM (HAP) UPDATE ONE
A. COMDT COGARD WASHINGTON DC 191327Z MAR 09/ALCOAST 156/09
B. HOMEOWNERS ASSISTANCE PROGRAM, 42 USC 3374
C. AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
1. EFFECTIVE 30 SEP 2009 THE ARMY CORPS OF ENGINEERS HAS STARTED
PROCESSING HAP APPLICATIONS.  THE RESPECTIVE HAP DISTRICT OFFICE
WILL CONTACT EACH APPLICANT CONCERNING YOUR ELIGIBILITY AND
BENEFITS.
2. AS REPORTED IN REF (A), THE EXISTING HOMEOWNERS ASSISTANCE
PROGRAM (HAP), REF (B), HAS BEEN AMENDED BY REF (C) AND EXPANDS
COVERAGE TO (1) HOMEOWNERS ADVERSELY AFFECTED BY MILITARY BASE
REALIGNMENT OR CLOSURE (BRAC), (2) WOUNDED WARRIORS AND SURVIVING
SPOUSES, AND (3) TEMPORARY HOMEOWNER ASSISTANCE FOR MEMBERS OF THE
ARMED FORCES PERMANENTLY REASSIGNED OUTSIDE A 50 MILE RADIUS OF
THEIR CURRENT ASSIGNMENT DURING A SPECIFIED MORTGAGE CRISIS.
3. CONGRESS PROVIDED 555 MILLION DOLLARS FOR THE PROGRAM TO INCLUDE
TEMPORARY ASSISTANCE IN THE FORM OF PARTIAL REIMBURSEMENT FOR
LOSSES ON THE SALE OF A HOMEOWNERS PRIMARY RESIDENCE DUE TO
RELOCATING ON FEDERAL ORDERS DURING THE PRESENT DOWNTURN IN THE
HOUSING MARKET.
4. TO BE ELIGIBLE FOR ONE-TIME PCS HAP ASSISTANCE, MEMBERS MUST
HAVE:
 A. PURCHASED PROPERTY PRIOR TO 01 JUL 2006, NOT EXCEEDING THE
MAXIMUM ELIGIBLE HOME PURCHASE PRICE BASED ON FANNIE MAE AND
FREDDIE MAC MAXIMUM CONFORMING LOAN LIMITS. (THESE LIMITS HAVE BEEN
ESTABLISHED FOR EACH CITY / COUNTY / PARISH AND RANGE FROM 417,000
DOLLARS TO 729,750 DOLLARS), AND
 B. RECEIVED PCS ORDERS BETWEEN 01 FEB 06 AND 31 DEC 2009 AND
REPORTED TO A UNIT MORE THAN 50 MILES AWAY BY 28 FEB 2010 (NEW
ACCESSIONS AND NON-MANDATORY RETIREMENT MEMBERS ARE NOT ELIGIBLE),
(THESE PCS DATES MAY BE EXTENDED BASED ON AVAILABILITY OF FUNDS),
AND
 C. SOLD THEIR PRIMARY RESIDENCE FOR AT LEAST TEN PERCENT LESS THAN
THEIR PURCHASE PRICE, AND
 D. NOT PREVIOUSLY RECEIVED ANY BENEFIT PAYMENTS FROM THIS PROGRAM.
5. IF YOU ARE ELIGIBLE, AND WANT TO SEEK ASSISTANCE, REVIEW ALL THE
PROGRAM PARAMETERS AND ELIGIBILITY REQUIREMENTS AT THE ARMY CORPS
OF ENGINEERS WEB SITE AT WWW.HAP.USACE.ARMY.MIL, DOWNLOAD THE
APPLICATION PACKET AND COMPLETE THE APPLICATION. CAREFULLY READ ALL
INSTRUCTIONS, AND MAIL YOUR COMPLETED APPLICATION TO THE USACE
DISTRICT RESPONSIBLE FOR THE AREA IN WHICH YOUR PROPERTY IS
LOCATED.
6. ANOTHER HAP OPTION ALLOWS THE GOVERNMENT TO PURCHASE THE HOME IF
AN ELIGIBLE MEMBER CANNOT SELL IT.  REIMBURSEMENT RATES UNDER THAT
OPTION ARE LIMITED TO 75 PERCENT OF ORIGINAL PRICE FOR PCS MOVES.
ADDITIONAL INFORMATION IS LOCATED AT THE ARMY CORPS OF ENGINEERS
WEB SITE AT WWW.HAP.USACE.ARMY.MIL.
7. PRESENTLY, EXPANDED HAP BENEFITS RECEIVED UNDER THIS PROGRAM ARE
TREATED AS EARNED INCOME AND WILL BE TAXED AS PART OF THE
APPLICANTS GROSS INCOME (FEDERAL, STATE, AND LOCAL) IN THE YEAR
RECEIVED.  TAX LAWS REQUIRE THAT TAXES BE WITHHELD PRIOR TO
PAYMENT.  CONTACT A FINANCIAL PLANNER, LEGAL ASSISTANCE OFFICER, OR
TAX ATTORNEY FOR MORE INFORMATION CONCERNING TAXABLE INCOME.  THERE
IS PROPOSED LEGISLATION, HR 3590, THAT WOULD ELIMINATE THE TAX
LIABILITY WHEN SIGNED INTO LAW.
8. POC IS JOHN BYCZEK, JBYCZEK(AT)USCG.MIL, COMDT (CG-1222)
202-475-5390.
9. MR. CURTIS B. ODOM, DIRECTOR OF PERSONNEL MANAGEMENT, SENDS.
10. INTERNET RELEASE AUTHORIZED.