Home Purchase Assistance Program Enhancement
Home Purchase Assistance Program (HPAP) Enhancement
The Home Purchase Assistance Program (HPAP) Enhancement Neighborhood Stabilization Program 2 (NSP2), referred to as HPAP “E”, will help stabilize the housing market and revitalize neighborhoods hardest hit by high rates of foreclosure and vacant properties. The program will create housing opportunities for low and moderate-income residents in the three hardest hit targeted neighborhoods: Deanwood, Ivy City/Trinidad and Historic Anacostia.
Under HPAP “E”, Home Purchase Assistance Program gap financing assistance funding increases from its current maximum amount of $44,000 to $77,000 (including closing costs) in the three targeted areas. The amount will be determined by the household size and income. Funding for this program is available on a first come first serve basis and ends on February 11, 2013. The HPAP “E” Assistance Table is available online at dhcd.dc.gov.
HPAP “E” can be used in conjunction with other DHCD homebuyer programs, including the Employer Assisted Housing Program (EAHP), the Negotiated Employee Affordable Housing Program (NEAHP), and the Home Purchase Rehabilitation Pilot Program.
HPAP “E” Target Areas
The qualifying census tract numbers within each target area are listed below. No other areas are eligible for the HPAP “E” funds. Maps of these target areas are available online at dhcd.dc.gov.
|Target Area||Qualifying Census Tract Numbers|
|Deanwood||78.3; 78.6; 78.7; 78.8; 78.9; 99.4; 99.5; 99.6|
|Historic Anacostia||75.3; 75.4; 76.1|
|Ivy City/Trinidad||79.1; 79.3; 85; 88.2; 88.3; 88.4; 89.3; 89.4|
Properties Eligible for Purchase
Recipients of HPAP “E” assistance must purchase properties that are currently vacant and foreclosed with a free and clear title and are ready for re-sale. If the property is not in livable condition, the new purchaser can finance the rehabilitation costs that are needed to bring the home to health safety and building code, through a rehabilitation loan that must be completed within six (6) months from the day of closing. This can be evidenced through a FHA 203(k) streamline loan or via the applicant’s bank statement and work write up. All properties, including properties that were rehabilitated, must pass a Housing Quality Inspection. The maximum first trust loan amount cannot exceed the conventional conforming loan limit of $417,000.
The loan repayment for HPAP “E” will not be deferred for the five (5) years, as is the case with standard HPAP loans. The terms for the HPAP “E” enhancement program will be on a graduated schedule for the first five years based on a 40 year amortization of the note loan amount, as follows:
- The first year of repayment will be 20% of the amortized note;
- 20% the second year;
- 40% the third year;
- 60% the fourth year;
- 80% the fifth year and;
- beginning in year 6, 100% of the balance owed on the mortgage will be amortized over a 35 year period;
Note: DHCD received funding for the NSP2 from the U.S. Department of Housing and Urban Development (HUD) under the American Recovery and Reinvestment Act (ARRA). As part of the application, DHCD agreed to increase the increase assistance for home purchase in the specified areas.
How to Apply
To apply, please contact one of the following organizations:
3939 South Capitol Street, SW
Washington, DC 20032
University Legal Services - DHCD Housing Resource Center
1800 Martin Luther King, Jr. Ave., SE, 1st Floor
Washington, DC 20020
University Legal Services
220 I Street, NE, Suite 130
Washington, DC 20002
University Legal Services - Far NE
Lloyd E. Smith Center
3939 Benning Road, NE
Washington, DC 20019