DC's Home Purchase Assistance Program is out of money

The D.C. Home Purchase Assistance Program is out of money until the fall. This is now leaving residents in need of financial help to buy a house upset and stuck in a rut. FOX 5’s Sierra Fox reports from Southeast after speaking with a father who is affected by this inconvenience.

WASHINGTON - The DC Home Purchase Assistance Program is out of money until the fall. This is now leaving residents — who are in need of financial help to buy a house — upset and stuck in a rut.

"I found the home of my dreams. Detached home in D.C., not an easy thing to do, and [it] had enough space for myself, my children," said one D.C. resident who does not want FOx 5 to reveal his identity in fear of retaliation.

After months of searching for the right place, he got a notice of eligibility – which meant he was one step away from being able to move to Call Place in Southeast with his family. However, his world turned upside down when he found out the District’s Home Purchase Assistance program also known as HPAP no longer had sufficient funds.

"Now I have to rent out Airbnbs or get hotels," he said. "It’s an additional cost where that could’ve gone towards the mortgage of the house I was hoping to get through this program."

HPAP offers a maximum of $202,000 in down payment assistance to eligible first time homebuyers who have lower levels of income. Now, this father is left in a bind and even his four kids who are staying with him during the summer are disappointed.

"I have to dig into savings and spend additional money that was supposed to be allocated towards this lodging," he explained.

His realtor Cedrece Watson with Long & Foster says she hopes the program is more efficient moving forward.

"Utter frustration, utter frustration," Watson said. "I appreciate Mayor Bowser having a program like this in place. It is great. I think it just needs more support."

The Department of Housing and Community Development (DHCD) Director Colleen Green responded to FOX 5’s questions about the issue at hand:

How did this happen?

The FY23 budget appropriated $26.2 million for HPAP. The District added an unprecedented additional $41 million from multiple sources – local and federal – to meet the increased demand this year, for a total of $67 million, a 156% increase over the initial budget.

This year, more than 460 first-time homebuyers will have received down payment and closing cost assistance from the program; about 366 first-time homebuyers received assistance last year.

How many homebuyers will be impacted?

The D.C. Department of Housing and Community Development (DHCD) has been working to find additional funding to meet the demand to the best of our ability to continue the HPAP program for as long as possible to support as many District residents as possible. We have supported an unprecedented number of homeowners at lower levels of income with the mayor’s commitment of providing up to $202,000 in down payment assistance. We have provided resources to the revised HPAP program for as long as possible through various reallocations. Our resources are not limitless.

What is being done to help residents and what’s the city’s message to them?

The D.C. Department of Housing and Community Development (DHCD) will assist prospective homebuyers to find other down payment assistance sources, such as DC Open Doors and The Neighborhood Assistance Corporation of America (NACA). All of the District’s housing resource programs are available at frontdoor.dc.gov.

We also encourage buyers to work with their lenders to find additional down payment assistance programs to assist them in their homebuying process.

Prospective homebuyers with a Notice of Eligibility (NOE) that expires before October 1 will be extended through December 31 to continue their homebuying search.

When will more funds be made available again?

Funds will become available October 1 at the start of the new fiscal year.