Dozens of D.C. homebuyers say their dreams of homeownership may be shattered after the District government promised them funding but ran out of money.
The buyers had qualified for interest-free loans and help with closing costs through D.C.’s Home Purchase Assistance Program (HPAP) for families with low-to-moderate incomes.
The D.C. government increased the maximum funding from $80,000 to $200,000 in fiscal year 2023.
But now the HPAP website says it’s out of money until the new fiscal year starts in October.
We've got the news you need to know to start your day. Sign up for the First & 4Most morning newsletter — delivered to your inbox daily. Sign up here.
“Whomever is managing the money, if you know that you are running out, something needs to be said before time,” an impacted mother who wished to remain anonymous said. “There’s no way that folks can be under contract, ready to close, to find out two weeks prior that there’s no money.”
“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,” the D.C. Department of Housing and Community Development said. “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.”
Housing lender Alexis Vining said in 17 years, she’s never seen HPAP run out of money this early in the fiscal year.
Local
Washington, D.C., Maryland and Virginia local news, events and information
“It’s a hard call to take,” she said. “You have people whose dreams have been impacted.”
“The mayor needs to stand behind her word,” Vining said. “She said she would find money. She needs to find money for all of these people that are currently under contract.”
DHCD said it will still provide the money for buyers who had a signed contract before last Friday.
The buyer who wished to remain anonymous said she’s not sure what’s going on because no one in the government will return her calls.
“If this money doesn’t come through, then I don’t have a home for myself, my husband, my four boys,” she said.
DCHD said the program is giving out a total of $67 million this year. It said it will help buyers under contract find funding from other D.C. home-buying programs but also encouraged “buyers to work with their lenders to find additional down payment assistance programs to assist them in their homebuying process.”
News4 sends breaking news stories by email. Go here to sign up to get breaking news alerts in your inbox.
