The Military Homeowners Assistance Program has been expanded to help members who have been ordered to Permanently Change Stations (PCS).  The military loves to abbreviate everything so the program is affectionately known as HAP.  I was in a class yesterday given by one of the directors at the Savannah HAP Field Office.  Here is the information he relayed to us.

HAP was initially designed in 1966 to provide monetary relief to service members (including Coast Guard) and federal employees who suffer financial loss on the sale of their home (primary residence) due to base closure or realignment.   In 2009 Congress passed the American Recovery & Reinvestment Act (ARRA) which expanded HAP to service members with permanent reassignment orders.  The following are the eligibility requirements:

Eligibility Requirements

1. Active Duty military personnel only.
2. PCS orders dated 1 Feb 2006 thru 30 Sep 2010 (subject to funds availability).
3. Must have purchased home prior to 1 Jul 2006, and sold home after 1 Jul 2006.
4. County and City home values must have declined at least 10%.
5. Individual home value must have declined at least 10%.
6. Members can only receive benefits from this program once.
7. Property is/was member's primary residence.
8. Member orders must move them at least 50 miles (duty station and home).
9. Member must have been in the military prior to purchasing the home.
10. Retiring personnel - only mandatory retirements eligible.

Note - HAP will not reimburse or pay-off second mortgages, including equity lines of credit, unless obtained when the home was purchased, or funds were used to improve the home.

Private Sale Reimbursement Calculations:

90% of original purchase price - sales price + closing costs (including Realtor fees).

Example:

• Purchase Price of $200K X 90% = $180K
• Applicant sells house for -          - $150K (mortgage paid at 150K)
  
•                                                    $30K
• Closing Costs (7% of sales price)   $10,500
• Total =   $40,500                                

On very rare occasions the government may employ the government acquisition program.  This occurs only after you were not able to sell your home within 120 days and it must be approved by military headquarters at the Army Corp of Engineers (HQUSACE) in Washington DC.  If approved the applicant may be eligible to receive the greater of 1) 75% of the purchase price, or 2) Mortgage payoff.

For more information visit the HAP Website, or contact Michael Johnson at 843-817-5299.

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Charleston Air Force Base History

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Crowfield Plantation Goose Creek SC

The economic downturn of the last year has caused a great many heartaches.  But, perhaps those most unfairly hit are our nation's military.  They come and go not on a whim but rather by the orders of good ole Uncle Sam.  That means that the average military member who was not fortunate enough to get on base housing a few years ago, and who went out and bought a home, probably is in a very difficult situation if they now have to sell because of PCS (permanent change of station) orders.

Many have had no recourse but to utilize the option of short sale or foreclosure.  Short sale is an industry term which simply means that the market will not allow the person to sale their home for what they now owe the lender.  The house is essentially upside down.  If the lender allows for a short sale they will accept a fair market price and often forgive the home owner for the dept.  This is not without consequence as this will be reported on the seller's credit report and could remain there from 2-7 years depending on the bank.  For the military member who has little choice in when and where he is stationed, the short sale can be a horrible alternative.

The American Investment and Recovery Act of 2009 passed by Congress and signed by President Obama in February hopes to address this issue.  This "stimulus package" has $555 million dedicated to expanding the Homeowners Assistance Program (HAP).  HAP is a program administered by the US Army Corp of Engineers and was initially designed in 1966 to "provide some monetary relief to eligible service member (including Coast Guard) and federal employee (including non-appropriated fund) homeowners who suffer financial loss on the sale of their primary residences when a base closure or realignment announcement causes a decline in the residential real estate market and they are not able to sell their homes under reasonable terms or conditions." 

The stimulus package will expand the HAP to "provide assistance to relocating military service members, civilian employees, and their families who face financial loss due to the ongoing housing crisis."  The Corp of Engineers website has stated that "the Directorate of Real Estate is developing policy guidance for implementing new authorities provided in the recovery act."

The HAP website has stated on the website that the "American Recovery and Reinvestment Act funding policy has yet to be determined. While potential applicants are free to submit application paperwork, we will process the applications based on the implementation guidance, which we expect to receive in the next few weeks." 

If you are a military member assigned to Charleston AFB, the Navy Weapons Station, or anywhere else in the Charleston SC Area and would like assistance selling or buying a home please contact me, a U.S. Air Force Veteran:

Michael J. Johnson, Realtor

843-817-5299

www.providingthelight.com

www.metrocharlestonhomes.com

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1. Crowfield Plantation Real Estate

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3.  Things to Do in Charleston

4.  Real Estate Gumbo

5.  History of Charleston AFB

Charleston Air Force Base is a valuable member of the community of Charleston SC. Its history stretches back over 66 years from WWII, the Cold War, and into the 21st century.

The land that the base is currently located on was purchased by the city of Charleston in 1931 for the purposes of building a new airfield.  By December of 1941, America was at War and Army Air Force units deployed to the Charleston area to establish coastal defense operations.   By March of 1942 the city signed a lease with the federal government so that the Army Air Force gained full control of the facility.  In late 1942 it was officially named the Charleston Army Air Base and in early 1943 it was renamed Charleston Army Air Field.  During World War II the base was utilized to train the B-17 Flying Fortress and the B-24 Liberator.

By the end of the war, the US war department and the military began to reduce its enormous size as the global threat was perceived to be eliminated.   Thus the airfield was returned to civilian control.  But, by the late 1940's and early 1950's the threat of the Soviet Union and its communist influence caused the military to renew its commitment to Charleston's airfield.  Agreements were made for joint use of the airstrip between military and civilian aircraft.  In 1952 the Tactical Airlift Command (TAC) was reestablished in Charleston and in 1953 the name of the airfield was forever changed to Charleston Air Force Base.  In 1956 TAC relinquished control of the base to the Military Airlift Transport Service (MATS) command.  In 1966 MATS changed its name to MAC, Military Airlift Command, and the 437 Military Airlift Wing was activated and assumed host unit responsibility for the base.  Charleston AFB was a major MAC base and home to several MAC cargo and passenger aircraft including the C-141 and the enormous C-5.  In 1991 MAC was retired and renamed AMC or the Air Mobility Command.

In 1993 the new generation cargo and passenger military aircraft was introduced to the world at Charleston AFB.  The C-17 Globemaster is currently the most versatile cargo aircraft in the world.  This valuable weapon was made war ready by the blood, sweat, and tears, or the men and women assigned to Charleston AFB.  It has since been used in countless campaigns all over the world to include the 90's Bosnia campaign, and in the post 9/11 war on terror campaigns in Afghanistan and Iraq.