Press Release: Councilmember Anita Bonds Introduces Legislation to Expand HPAP for First-Time Homebuyers
News Release — At-large DC Council member Anita Bonds
Tuesday, December 03, 2019
Contact: Emmanuel Brantley
Washington, D.C. – Today, At-Large Councilmember Anita Bonds, Chairperson of the Committee on Housing and Neighborhood Revitalization, introduced the “Home Purchase Assistance Amendment Act of 2019.” If passed into law, this legislation would expand opportunities for low-to-moderate-income households to purchase their first homes by 1) increasing the maximum amount of down payment assistance from $80,000 to $100,000; 2) providing an additional grant of up to $15,000 for essential home repairs; and 3) providing buyers and sellers flexibility in their negotiations to resolve home repair issues.
The Housing Purchase Assistance Program (HPAP), which was established about 30 years ago, provides interest-free loans and down payment and closing cost assistance to qualified applicants for first-time home purchases in the District.
Currently, any home purchased in part with HPAP funding must undergo an inspection, and all housing code issues must be resolved by the seller before HPAP dollars are expended. This practice unnecessarily complicates buyer-seller negotiations and ultimately tarnishes HPAP’s reputation among real estate professionals. As a result, both real estate professionals and sellers prefer to avoid sales to HPAP recipients due to the burden on the seller and processing times associated with the home repair requirements.
This bill resolves this issue by allowing the buyer and seller to freely negotiate a solution regarding issues raised during the home inspection and provides for the home to be purchased with HPAP dollars and repaired before or after the sale date.
“By increasing down payment assistance and removing financial and procedural barriers around home repairs, we are empowering many more residents to purchase the homes they desire to live on and not simply the homes that HPAP will allow them to,” said Councilmember Bonds.
The legislation was referred to the Committee on Housing and Neighborhood Revitalization for further consideration and review. For more information about the Committee and its legislation or general Council updates, visit www.dccouncil.us.
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