January 1979 HOMEOWNERS ASSISTANCE FUND, DEFENSE (In Thousands) FY 1980 Program $11,200 Purpose and Scope This program is authorized in Public Law 89-754 (80 Stat. 1255, 1290), as amended. It reduces losses of military and civilian employee homeowners incurred through disposal of their homes because of base closures or reductions in scope of operations. Assistance is by either reimbursement for certain losses on private sales or foreclosures, or purchase by the Secretary of Defense. The Department of the Army administers this program. Only properties improved with a one- or twofamily dwelling are eligible. Program Summary Authorization is requested for appropriation of $5,000,000. This amount, together with estimated resources of $6,200,000 derived mainly from recovery of the Government's investment in properties through sale, will completely fund the Fiscal Year 1980 program of $11,200,000. A summary of the funding program for Fiscal Year 1980 follows: 40-264 O - 79 - 37 NOTES: 1/ Reimbursements to homeowners for losses; private sales or foreclosures. Work unit, "number of payments". 2/ DOD and FHA expenses. Work unit, "total number of applications 3/ Payments to homeowners for equity in properties acquired by the 4/ Unpaid balance of mortgages at time of assumption by Government. 5/ Recovery of Government's investment by sale of properties. Page No. 53 January 1979 DEPARTMENT OF DEFENSE FY 1980 Narrative Justification This program was initiated during the latter part of FY 1968. By the end of FY 1978, a total of 14,137 applications had been received. Action was completed on 13,944 applications; 3,379 were rejected because the applicants did not qualify for assistance, 1,357 settlements were completed which did not require payment to the applicant and 9,208 applications were processed to payment. Total obligations were $81.028 million, including $24.318 million for assumption of 2,132 mortgages. Sales of Department of Defense acquired properties by the Federal Housing Administration amounted to 2,674 units with gross sales amounting to $39.024 million. For current year (FY 1979) we are programming the receipt of 679 new applications and completed action on 853 cases which include 180 rejections, 23 settlements without payment and 650 applications to be processed to payment. Total obligations are programmed to be $8.700 million, including $1.600 million for assumption of 100 mortgages. Sales of DOD properties by FHA are programmed at 162 units with gross sales amounting to $4.300 million. For the budget year (FY 1980) we are programming the receipt of 857 new applications and completed action on 913 cases which include 75 rejections, 49 settlements without payment and 789 applications to be processed to payment. Total obligations are programmed to be $11.200 million, including $1.356 million for assumption of 80 mortgages. Sales of DOD properties by FHA are programmed at 199 units with gross sales amounting to $5.750 million FY 1980 operations will require new appropriation of $5.000 million to cover the impact of base realignments. |