Chapter 26. Home Purchase Assistance Fund.

Subchapter I. General Provisions.

§ 42–2601. Establishment; purpose; unexpended balance.

There is hereby established in the District of Columbia and there is authorized, and accounted for in the General Fund as a separate revenue source allocable to provide financial assistance to low and moderate income persons, and District of Columbia Government employees participating in the District of Columbia Employer-Assisted Housing Program, and families seeking to purchase homes in the District of Columbia, for the purposes of enabling them to purchase decent, safe, and sanitary homes in the District of Columbia. Any unexpended balance at the end of the year shall be reserved as a restricted fund balance and used to provide authorization to expend for subsequent years subject to the direction of the Mayor.

(Sept. 12, 1978, D.C. Law 2-103, § 2, 25 DCR 1977; June 14, 1980, D.C. Law 3-70, § 7(1), 27 DCR 1776; Oct. 24, 1981, D.C. Law 4-44, § 2(b), 28 DCR 4265; Sept. 23, 1986, D.C. Law 6-151, § 2(a), 33 DCR 4783; June 11, 1992, D.C. Law 9-118, § 8(a), 39 DCR 3189; Mar. 20, 1998, D.C. Law 12-60, § 1101, 44 DCR 7378; Apr. 20, 1999, D.C. Law 12-259, § 2(a), 46 DCR 1316; May 9, 2000, D.C. Law 13-96, § 9(a), 47 DCR 1081.)

Prior Codifications

1981 Ed., § 45-2201.

1973 Ed., § 45-1801.

Effect of Amendments

D.C. Law 13-96 inserted “the District of Columbia Government employees participating in the District of Columbia Employer-Assisted Housing Program” following “low and moderate income persons.”

Section 11 of D.C. Law 13-96 provided: “This act shall apply as of October 1, 1997.”

Emergency Legislation

For temporary (90-day) amendment of section, see § 9(a) of the Government Employer-Assisted Housing Emergency Amendment Act of 1999 (D.C. Act 13-188, December 1, 1999, 46 DCR 10407).

For temporary (90-day) amendment of section, see § 9(a) of the Government Employer-Assisted Housing Legislative Review Emergency Amendment Act of 1999 (D.C. Act 13-258, February 9, 2000, 47 DCR 1124).

Repeal of Law

Repeal of Law 9-118

Section 1101 of D.C. Law 12-60 repealed the District of Columbia Employer-Assisted Housing Act of 1992, D.C. Law 9-118.

§ 42–2602. Deposits to credit of Fund.

There shall be deposited to the credit of the Fund such amounts as may be appropriated pursuant to this subchapter; grants and gifts from public and private sources to the Fund or to the District of Columbia for the purposes of the Fund; repayments of principal and any interest on loans provided from the Fund; proceeds realized from the liquidation of any security interests held by the District of Columbia under the terms of any assistance provided from the Fund; interest earned from the deposit or investment of monies of the Fund; repayments of principal and any interest on loans provided under the District of Columbia Government Employer-Assisted Housing Program; and all other revenues, receipts and fees of whatever nature derived from the operation of the Fund.

(Sept. 12, 1978, D.C. Law 2-103, § 3, 25 DCR 1977; June 11, 1992, D.C. Law 9-118, § 8(b), 39 DCR 3189; Mar. 20, 1998, D.C. Law 12-60, § 1101, 44 DCR 7378; May 9, 2000, D.C. Law 13-96, § 9(b), 47 DCR 1081.)

Prior Codifications

1981 Ed., § 45-2202.

1973 Ed., § 45-1802.

Effect of Amendments

D.C. Law 13-96 inserted “repayments of principal and any interest on loans provided under the District of Columbia Government Employer-Assisted Housing Program;” following “interest earned from the deposit or investment of monies of the Fund;”.

Emergency Legislation

For temporary (90-day) amendment of section, see § 9(b) of the Government Employer-Assisted Housing Emergency Amendment Act of 1999 (D.C. Act 13-188, December 1, 1999, 46 DCR 10407).

For temporary (90-day) amendment of section, see § 9(b) of the Government Employer-Assisted Housing Legislative Review Emergency Amendment Act of 1999 (D.C. Act 13-258, February 9, 2000, 47 DCR 1124).

Editor's Notes

Because of the enactment of subchapter II of this chapter by D.C. Law 12-266, “subchapter” has been substituted for “chapter”.

Section 11 of D.C. Law 13-96 provided: “This act shall apply as of October 1, 1997.”

Repeal of Law

Repeal of Law 9-118

Section 1101 of D.C. Law 12-60 repealed the District of Columbia Employer-Assisted Housing Act of 1992, D.C. Law 9-118.

§ 42–2602.01. Home Purchase Assistance Program Revision.

*NOTE: This section includes amendments by temporary legislation that will expire on November 3, 2024. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Past Permanent Version.*

(a) The Mayor shall review and revise the repayment structure of the Home Purchase Assistance Program ("Program"), established by Chapter 25 of Title 14 of the District of Columbia Municipal Regulations, to include greater flexibility in the Program by supplementing the Program with additional repayment options for the lowest income loan recipients.

(1) Examples of additional repayment options include:

(A) A graduated repayment system;

(B) The postponement of the repayment of individual loans until the sale of a home; and

(C) An exploration of the establishment of an incentive program to forgive a portion of the loan if cash refinancing is carried out within a certain timeframe.

(2) The maximum amount of financial assistance for very low income applicants available under the Program shall be $202,000, and shall be adjusted based on the applicant's income according to 14 DCMR § 2503.1(b)(1); provided, that no qualifying applicant shall be approved to receive less than $70,000. For purposes of this paragraph, the term "very low income" shall have the same meaning as set forth in 14 DCMR § 2599.1.

(3) Any applicant who received a notice of eligibility for the Program before October 11, 2023, and has not already received a loan, shall be eligible to receive loans that exceed 30% of the purchase price of a property or that exceed the amount of the first trust mortgage.

(b) The Mayor shall submit the revised repayment system to the Council for review, pursuant to § 42-2604(a), within 60 days after July 1, 2016.

(c)(1) Financial assistance provided pursuant to subsection (a)(2) of this section may be used for purposes of a mortgage rate buydown if an applicant meets other Program criteria, regardless of whether the qualifying applicant is required to provide a down payment on the home the applicant intends to purchase.

(2) If there are no closing costs associated with the purchase of the home the applicant intends to purchase, a qualifying applicant shall receive the full amount of Program funding available to the applicant, inclusive of any funding initially set aside for closing costs, which may be used for purposes of a down payment or a mortgage rate buydown.

(d)(1) No later than April 1, 2023, the Mayor shall establish a grant program that provides qualifying applicants up to $25,000 for repairs on a home purchased with Program financial assistance that are identified by a certified home inspector in writing.

(2) Grant funds disbursed to a qualifying applicant pursuant to the program established by paragraph (1) of this subsection shall be in addition to financial assistance provided to a qualifying applicant for purposes of a down payment or mortgage rate buydown on the home the applicant intends to purchase.

(e)(1)(A) At the beginning of each quarter in a fiscal year, funds necessary to administer the Program and provide financial assistance to qualifying applicants shall be disbursed to a grantee who has an agreement or contract with the District to administer the Program.

(B) Repealed.

(2)(A) Within 15 days of a settlement on a loan for a qualifying applicant, a grantee shall submit any information and documentation considered necessary by the Mayor to verify compliance with Program requirements and any other applicable laws or regulations.

(B) The Mayor may determine corrective actions or penalties for non-compliance.

(3) This subsection shall not apply to any District agencies providing financial assistance to qualifying applicants directly.

(f)(1) The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, shall issue rules as necessary to implement the provisions of this section.

(2) Proposed rules promulgated pursuant to paragraph (1) of this subsection shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within this 45-day period, the proposed rules shall be deemed to be approved.

(g) For purposes of this section, the term "qualifying applicant" means an applicant who has been approved to receive financial assistance through the Program for purposes of a down payment or a mortgage rate buydown.

§ 42–2603. Availability; use prescribed by Mayor.

The Fund shall be available without fiscal year limitation for the purpose of providing financial assistance for down payments or interim financing to recipients for the purpose of purchasing or securing housing, including single family homes, condominium units, or occupancy rights to cooperative housing in the District of Columbia as their principal place of residence and of providing financial assistance to District of Columbia government employees eligible under the District of Columbia Employer-Assisted Housing Program to purchase a home in the District of Columbia. Under terms and conditions prescribed by the Mayor of the District of Columbia (“Mayor”), the Fund shall be used for making loans and providing other forms of financial assistance. The assistance provided pursuant to the Fund may be used in conjunction with other available home assistance programs.

(Sept. 12, 1978, D.C. Law 2-103, § 4, 25 DCR 1977; Oct. 24, 1981, D.C. Law 4-44, § 2(c), 28 DCR 4265; June 11, 1992, D.C. Law 9-118, § 8(c), 39 DCR 3189; Mar. 20, 1998, D.C. Law 12-60, § 1101, 44 DCR 7378; May 9, 2000, D.C. Law 13-96, § 9(c), 47 DCR 1081.)

Prior Codifications

1981 Ed., § 45-2203.

1973 Ed., § 45-1803.

Effect of Amendments

D.C. Law 13-96 rewrote the first sentence which formerly provided: “The Fund shall be available without fiscal year limitation for the purpose of providing financial assistance for down payments or interim financing to recipients for the purpose of purchasing or securing housing, including single family homes, condominium units, or occupancy rights to cooperative housing in the District of Columbia as their principal place of residence and of providing financial assistance to District of Columbia government employees eligible under the District of Columbia Employer-Assisted Housing Program to purchase a home in the District of Columbia.”

Emergency Legislation

For temporary (90-day) amendment of section, see § 9(c) of the Government Employer-Assisted Housing Emergency Amendment Act of 1999 (D.C. Act 13-188, December 1, 1999, 46 DCR 10407).

For temporary (90-day) amendment of section, see § 9(c) of the Government Employer-Assisted Housing Legislative Review Emergency Amendment Act of 1999 (D.C. Act 13-258, February 9, 2000, 47 DCR 1124).

Editor's Notes

Section 11 of D.C. Law 13-96 provided: “This act shall apply as of October 1, 1997.”

Repeal of Law

Repeal of Law 9-118

Section 1101 of D.C. Law 12-60 repealed the District of Columbia Employer-Assisted Housing Act of 1992, D.C. Law 9-118.

§ 42–2604. Promulgation of rules and regulations by Mayor; review by Council; contents of loan agreements.

(a) The Mayor is authorized to promulgate rules and regulations to govern the operation of the Fund, including but not limited to, rules and regulations establishing standards for determining the eligibility and selection of applicants; procedures for applying for assistance and for notifying applicants (including the development of appropriate forms); and criteria for determining the terms and conditions under which loans or other forms of financial assistance may be made from the Fund which, among things, shall reflect the ability of the recipient to pay and may provide for the deferred payment or forgiveness of loans. The rules and regulations issued by the Mayor for the purpose of implementing the provisions of this subchapter shall be submitted by the Mayor to the Council of the District of Columbia for a 45 calendar day review period, excluding days of Council recess. No such rules or regulations shall take effect until the end of the 45 calendar day period beginning on the day such rules or regulations are transmitted by the Mayor to the Chairman of the Council, and then only if during such period, the Council does not adopt a resolution disapproving such rules and regulations in whole or in part.

(b) Any loan agreement entered into pursuant to such rules and regulations shall provide that:

(1) All applicants for and recipients of financial assistance from the Funds shall be tenant organizations (as defined in § 42-3401.03(18) or a first time homebuyer seeking to purchase housing in the District of Columbia as a primary residence including, but not limited to, single family homes, condominium units, or occupancy rights to cooperative housing. For the purposes of this section, the term “first time homebuyer” means a real property purchaser who had no ownership interest in his or her principal residence at any time during the 3 year period ending on the date of his or her application for assistance, but including an applicant who has divorced or separated during the 3 year period where a formal settlement has been made under which the applicant does not receive an ownership interest in a primary residence which had been jointly owned, and who has no other current ownership interest in residential real property.

(1A) Priority in the allocation of assistance under the Fund shall be given to residents of the District of Columbia and District of Columbia residents who are low income, elderly, displaced applicants, or residents with disabilities.

(2) If the home purchased ceases to be the primary residence of the recipient of financial assistance from the Fund, the payments to such Fund by the recipient shall be accelerated on terms and conditions prescribed by the Mayor; provided, that such obligation shall not be inconsistent with the applicable law or regulations of any federal home purchase assistance program made available to the recipient.

(3) Repealed.

(c)(1) No later than 120 days after October 1, 2022, the Mayor shall issue updated rules that will allow organizations that meet the following criteria to provide homebuyer education and counseling and to underwrite eligibility for the Home Purchase Assistance Program:

(A) The organization is approved by the United States Department of Housing and Urban Development to provide housing counseling services, including homebuyer education workshops, pre-purchase counseling, and financial management.

(B) The organization provides access to below market, fixed-rate mortgages with no down payment or closing costs.

(2) The rules shall require any such organizations to provide closing disclosure verifying the mortgage and use of any Home Purchase Assistance Program funds.

(Sept. 12, 1978, D.C. Law 2-103, § 5, 25 DCR 1977; Oct. 24, 1981, D.C. Law 4-44, § 2(d), 28 DCR 4265; Sept. 23, 1986, D.C. Law 6-151, § 2(b), 33 DCR 4783; Apr. 20, 1999, D.C. Law 12-259, § 2(b), 46 DCR 1316; Apr. 24, 2007, D.C. Law 16-305, § 61, 53 DCR 6198; Sept. 21, 2022, D.C. Law 24-167, § 2062(b), 69 DCR 009223.)

Prior Codifications

1981 Ed., § 45-2204.

1973 Ed., § 45-1804.

Section References

This section is referenced in § 47-3502.

Effect of Amendments

D.C. Law 16-305, in subsec. (b)(1A), substituted “displaced applicants, or residents with disabilities” for “handicapped, disabled, or displaced applicants”.

Cross References

Lower income homeownership households, qualifications, see § 47-3502.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 2062(b) of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).

Editor's Notes

Because of the enactment of subchapter II of this chapter by D.C. Law 12-266, “subchapter” has been substituted for “chapter” in the second sentence of (a).

Home Purchase Assistance Program Loan Repayment Resolution of 1998: Pursuant to Resolution 12-(PR12-890), effective October 7, 1998, the Council approved the amendment of Chapter 25 of the Home Purchase Assistance Program Regulations to authorize the use of loan repayment funds to pay reasonable administrative costs associated with making loans.

Resolutions

Resolution 16-651, the “Home Purchase Assistance Program Approval Resolution of 2006”, was approved effective May 29, 2006.

§ 42–2605. Annual audit; report to Congress and Council; appropriations.

(a) An annual audit of the operations of the Fund shall be conducted by the Office of the Inspector General of the District of Columbia.

(b) Not later than 6 months after the end of each fiscal year, the Mayor shall submit to the Congress of the United States and to the Council of the District of Columbia a report of the financial condition of the Fund and the results of the operations for such fiscal year.

(c) The Mayor shall include in the budget estimates of the District of Columbia for each fiscal year, and there is authorized to be appropriated annually, such amounts out of the revenues of the District of Columbia as may be required for the Fund.

Subchapter II. Step Up Program.

§ 42–2621. Definitions.

For the purpose of this subchapter, the term:

(1) “Closing Costs” means expenses in addition to the purchase price of the property which must be paid by the purchaser or deducted from the proceeds of the sale to the seller at time of closing.

(2) “Department” means the Department of Housing and Community Development.

(3) “Downpayment” means the unamortized amount paid by the purchaser at closing, which when added to the mortgage amount equals the total sale price.

(4) “Earnest money contract” means a contract created between the buyer and seller when the buyer makes a deposit to indicate both the ability and good faith intention to complete the purchase of a property. If the contract is fulfilled, then the earnest money deposit is applied toward the purchase price.

(5) “Fund” means the Home Purchase Assistance Step Up Fund.

(6) “Household” means an individual or 2 or more persons who reside together in a housing unit in the District.

(7) “Single family home” means a housing unit designed and maintained for occupancy by only one family.

§ 42–2622. Establishment; funding; annual audit.

(a) There is established in the Department of Housing and Community Development, a Home Purchase Assistance Step Up Program to provide one-time housing assistance to residents of the District of Columbia in low- to moderate-income households, who own condominiums, cooperatives, or starter homes and seek to purchase single family housing in the District of Columbia that is larger, or otherwise more appropriate for their households.

(b) There is authorized to be appropriated from the general revenues of the District of Columbia, and accounted for in the General Fund as a separate revenue source, such amounts as may be needed to establish a permanent revolving fund to be known as the Home Purchase Assistance Step Up Fund. From this Fund the District shall provide financial assistance to residents of the District of Columbia in low- to moderate-income households, who own condominiums, cooperatives, or starter homes and seek to purchase single family housing in the District of Columbia.

(c) There shall be deposited to the credit of the Fund any amounts as may be appropriated pursuant to this subchapter; any grants and gifts from public and private sources to the Fund or to the District of Columbia government for the purposes of the Fund; repayments of principal and any interest on loans provided from the Fund; any proceeds realized from the liquidation of any security interests held by the District under the terms of any assistance provided from the Fund; any interest earned from the deposit or investment of monies of the Fund; and all other revenues, receipts, penalties, and fees of whatever nature derived from the operation of the Fund.

(d) The Fund shall be available, without fiscal limitation, to provide financial assistance for down payments or closing costs to recipients for the purpose of purchasing a single family residence that is larger or otherwise more appropriate than the home previously owned by the recipient. Such financial assistance may be used in conjunction with other available home purchase assistance programs.

(e) An annual audit of the operations of the Fund shall be conducted by the Office of the Inspector General of the District of Columbia. Not later than 6 months after the end of the fiscal year, the Mayor shall submit to the Congress and to the Council of the District of Columbia a report on the financial condition of the Fund and the results of the operations for such fiscal year.

§ 42–2623. Eligibility.

(a) An applicant shall be eligible for the Home Purchase Assistance Step Up Program if the applicant:

(1) Is a District of Columbia resident;

(2) Is the head of the household and will occupy the property to be purchased with assistance from the program as his or her primary residence;

(3) Has a satisfactory credit rating as shall be defined by rules deemed necessary to carry out the purposes of this subchapter;

(4) Has adequate income to qualify for a mortgage from a private lender;

(5) Has sold or otherwise disposed of all interests in any other real property before the closing of any loan under this subchapter;

(6) Has insufficient assets to pay the down payment or reasonable closing costs, or both, without assistance from this program;

(7) Would have liquid assets not exceeding the limit established by the Mayor by rulemaking, after purchasing property under this subchapter or through this program; and

(8) Meets qualifying income levels as provided by regulation.

(b) Property shall be eligible for the Home Purchase Assistance Step Up Program if the property:

(1) Is an existing single family residence in the District of Columbia;

(2) Meets the requirements of the Construction Codes promulgated pursuant to the Construction Codes Approval and Amendments Act of 1980, effective February 2, 1987 (D.C. Law 6-216; 12 DCMR) and the Housing Regulations of the District of Columbia, effective August 11, 1955 (C.O. 55-1503; 14 DCMR Chapters 1-14); and

(3) Has a purchase price that neither exceeds the maximum price requirement established by rulemaking nor the appraised value of the property.

§ 42–2624. Assistance.

(a) Assistance available pursuant to this subchapter is limited to a one-time loan of up to $15,000 with a maximum 20-year amortized term.

(b) The interest rate shall be 3%, unless otherwise provided by the Mayor by rulemaking.

§ 42–2625. Rulemaking.

The Mayor is authorized to promulgate rules to govern the operation of the Fund, including but not limited to, rules establishing eligibility requirements for applicants and homes and for establishing operating procedures for the program. The proposed rules shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within the 45-day review period, the proposed rules shall be deemed approved. Nothing in this section shall affect any requirements imposed upon the Mayor by subchapter I of Chapter 5 of Title 2.

§ 42–2626. Applicability.

The provisions of this subchapter shall apply to the purchase of a single family home for which an earnest money contract is dated after April 1, 1999.