Defense Department expands homeowners' assistance

Army Corps of Engineers now accepting applications from affected civilians

Corporate Communications

DFAS HEADQUARTERS, Nov. 19, 2009 – Military and civilian employees who worked for an organization affected by the 2005 base realignment and closure and who have suffered a financial loss selling a primary residence in the community can now seek aid from the Homeowners Assistance Program.

The U.S. Army Corps of Engineers, which administers the HAP for the Defense Department, has been waiting for additional guidance since the American Recovery and Reinvestment Act of 2009 was signed into law by President Barack Obama Feb. 17. Expansion of HAP under the new legislation is intended to offer direct relief from the mortgage foreclosure and credit crisis for civilian employees assigned to organizations affected by the BRAC announcement.

One of the key differences in the expanded HAP is that applicants seeking relief are no longer required to prove that the real estate market decline was caused by the BRAC announcement. 

The BRAC 2005 eligibility criteria are:

• Employee was assigned to an announced organization/installation when BRAC 2005 was announced May 13, 2005; and
• Position is relocated or eliminated; and
• Must have been owner occupant of home on May 13, 2005; and
• County/city/parish home values must have declined at least 10 percent; and
• Individual home value must have declined at least 10 percent; and
• Must relocate at least 50 miles to the new work duty station; and
• Home must be sold between July 1, 2006, and Sept. 30, 2012.

The benefits an applicant may receive vary depending on the individual circumstances.

Employees should be aware that any payments they receive associated with the HAP, including the payment of closing costs, are taxable as income. Anyone contemplating whether to submit an "Application for Homeowners Assistance" (DD 1607) should visit the HAP Web site to learn more about the tax implications.

The completed DD 1607 should be submitted to the Human Resources Shared Services Center's PCS Team for completion of Section IV (Verification of Employment or Service).

Applications can be scanned and submitted to the team at PCS@dfas.mil or they can be sent via facsimile machine to (317) 275-0345. Once Human Resources completes and signs their portion of the form it will be returned to the employee for submission to the Army Corps of Engineers.