Homeowners Assistance Program (HAP) for BRAC 05 Impacted Organizations May 2009 Homeowners Assistance Program, CEMP-CR, HQUSACE 18 May 2009

Homeowners Assistance Program, CEMP-CR, HQUSACE 2 Basis for HAP Section 1013 of the Demonstration Cities and Metropolitan Development Act of Loss must be “…as the result of the actual or pending closing of a base...” Expanded HAP – no requirement to prove market decline was caused by the BRAC announcement.

Homeowners Assistance Program, CEMP-CR, HQUSACE 3 Home Purchase Price Cap of Expanded HAP 2009 Fannie Mae/Freddie Mac conforming loan limits by county $417,000 - $729,750 Applies to all ARRA applicant homes.

Homeowners Assistance Program, CEMP-CR, HQUSACE 4 HAP Expansion: BRAC 05 Eligibility Military personnel and civilian employees. Assigned to announced organization / installation. Position is relocated or eliminated. Must have purchased home prior to 1 July County home values must have declined at least 10%. Individual home value must have declined at least 10%.

Homeowners Assistance Program, CEMP-CR, HQUSACE 5 HAP Expansion: BRAC 05 Eligibility (Continued) Organization and home must move at least 50 miles to new location. Retirees eligible only when position relocated or eliminated. Sell home between 1 Jul 2006 and 30 Sep 2012.

Homeowners Assistance Program, CEMP-CR, HQUSACE 6 Tax Liability of Expanded HAP Benefits Benefit amounts above current fair market value will be taxed as part of applicant’s gross income. Taxes will be withheld when possible; Forms W-2 / 1099 will be issued.

Homeowners Assistance Program, CEMP-CR, HQUSACE 7 Benefits Foreclosure Private Sale Private Sale Augmentation Government Acquisition (Only with approval of three star level DoD official responsible for HAP execution following a mandatory 120 day marketing effort.)

Homeowners Assistance Program, CEMP-CR, HQUSACE 8 Foreclosure Assist after the foreclosure Costs may include direct cost of judicial foreclosure, expenses and enforceable liabilities according to the terms of the promissory note

Homeowners Assistance Program, CEMP-CR, HQUSACE 9 Private Sale Applicant eligible to receive the greater of: 90% of the purchase price – sale price + closing costs OR Mortgage payoff + closing costs Note: HAP will not reimburse or pay-off second mortgages, including equity lines of credit, unless obtained when home purchased, or funds were used to improve home.

Homeowners Assistance Program, CEMP-CR, HQUSACE 10 Private Sale and DNRP DNRP contractor purchases homes at their current fair market value. HAP treats a DNRP purchase as a private sale – HAP offsets a portion of any loss experienced when selling in a declining market.

Homeowners Assistance Program, CEMP-CR, HQUSACE 11 Private Sale Purchase price of $200,000 X 90% = $180,000 Applicant sells house for $150,000 Mortgage payoff $130,000 Benefits to applicant ( Incl. closing costs estimated $40,500 at 7%) Cash after mortgage payoff $60,500 Taxable liability (benefit amount above current value) $40,500 Benefit pays up to 90% of purchase price.

Homeowners Assistance Program, CEMP-CR, HQUSACE 12 Private Sale Augmentation Purchase price: $200,000 X 90% = $180,000 Less sales price ($150,000) Pvt sale benefit payment ($30,000 + closing costs $ 40,500 (cc) estimated at 7%) Mortgage pay off (Incl. 2 nd mortgage used for home) $225,000 Sale of home (value of home at sale) ($150,000) Greater of mortgage balance + cc, OR $ 75,000 Pvt sale benefit payment $ 40,500 Mort. payoff + closing costs (75, ,500) $ 85,500 Taxable liability $ 85,500 Cash after mortgage payoff$0

Homeowners Assistance Program, CEMP-CR, HQUSACE 13 Government Acquisition: When not able to sell home within 120 days, and approved by three star level DOD official, applicant eligible to receive the greater of: 75% of the purchase price OR Mortgage payoff Note: HAP will not reimburse or pay-off second mortgages, including equity lines of credit, unless obtained when home purchased, or funds were used to improve home. Government Acquisition

Homeowners Assistance Program, CEMP-CR, HQUSACE 14 Government Acquisition Purchase price of $200,000 X 75% Balance of existing mortgages Value on date of acquisition Cash payment to applicant (Equity) Taxable Liability (Benefit = mortgage payoff) $150,000 $130,000 $150,000 $20,000 $ 0 Acquire home for 75% of the purchase price or the balance of existing mortgages, whichever is greater... $150,000 $190,000 $150,000 $ 0 $40,000

Homeowners Assistance Program, CEMP-CR, HQUSACE 15 Applicant Processing Applicants submit application packet. Required documents include: –Form HUD-1 – Proof of home purchase price. –Proof of ownership - copy of deed with recording information. –Proof of occupancy prior to 1 July 2006 (e.g., utility bill). –Proof of program eligibility: assignment to BRAC 05 impacted organization/installation and position relocated or eliminated and copy of PCS orders.

Homeowners Assistance Program, CEMP-CR, HQUSACE 16 HAP Centers of Expertise Pacific Europe Sacramento DistrictSavannah DistrictFt. Worth District

Homeowners Assistance Program, CEMP-CR, HQUSACE 17