Federal Daily News
Military groups back bill to aid servicemembers hurt by housing market
- By FederalSoup Staff
- Mar 01, 2011
Military groups are throwing support behind a bill that would
provide relief to servicemembers forced to sell their homes in slumping
housing markets when they are permanently reassigned to a new duty
station, said bill sponsor Gerry Connolly, D-Va.
The bill, H.R. 237, would expand the eligibility period for the
Homeowners Assistance Program so that more servicemembers would be
eligible, Connolly said in a Feb. 25 statement. HAP offers federal
reimbursement or other assistance to servicemembers and certain
civilians when they face financial losses on home sales due to
Current law requires that homes had to be purchased by or before
July 1, 2006, to qualify for the program. But Connolly said the 2006
cutoff for eligibility is too restrictive, because the full extent of
the mortgage crisis was not apparent until some months later.
The legislation would provide DoD with the ability to change the
eligibility dates for a specific military base or installation based on
the local housing market, Connolly said.
“Many servicemembers who are reassigned and must sell their current
homes discover that their homes are worth less than their mortgages and
they face a financial nightmare,” Connolly said.
The bill has received support from a number of groups, including the
Military Officers Association of America; the Air Force Sergeants
Association; and the National Military Family Association.
To see more, go to: http://connolly.house.gov.