[Federal Register Volume 74, Number 188 (Wednesday, September 30, 2009)]
[Rules and Regulations]
[Pages 50109-50115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23418]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[DOD-2009-OS-0090]
RIN 0790-AI58

32 CFR Part 239


Homeowners Assistance Program--Application Processing

AGENCY: Under Secretary of Defense for Acquisition, Technology, and 
Logistics, Office of the Deputy Under Secretary of Defense 
(Installations and Environment), DoD.

ACTION: Interim final rule.

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SUMMARY: This part continues to authorize the Homeowners Assistance 
Program (HAP) to financially compensate eligible military and civilian 
Federal employee homeowners when the real estate market is adversely 
affected directly related to the closure or reduction-in-scope of 
operations due to Base Realignment and Closure (BRAC).
    The American Recovery and Reinvestment Act of 2009 expanded the HAP 
to provide assistance to: Wounded members of the Armed Forces (30% or 
greater disability), surviving spouses of fallen warriors, and wounded 
Department of Defense (DoD) civilian homeowners reassigned in 
furtherance of medical treatment or rehabilitation or due to medical 
retirement in connection with their disability; Base Realignment and 
Closure (BRAC) 2005 impacted homeowners relocating during the mortgage 
crisis; and Service member homeowners undergoing Permanent Change of 
Station (PCS) moves during the mortgage crisis.
    The Department of Defense will provide financial assistance to 
offset financial losses of homeowners who need to sell their homes in 
conjunction with PCS moves, base closures, combat injuries, or loss of 
spouse in the line of duty.

DATES: This rule is effective September 30, 2009. Comments must be 
received by October 30, 2009.

ADDRESSES: You may submit comments, identified by docket number and or 
RIN number and title, by any of the following methods:
     Federal Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Federal Docket Management System Office, 1160 
Defense Pentagon, Washington, DC 20301-1160.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
Federal Register document. The general policy for comments and other 
submissions from members of the public is to make these submissions 
available for public viewing on the Internet at http://www.regulations.gov as they are received without change, including any 
personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Deanna Buchner, (703) 602-4353.

SUPPLEMENTARY INFORMATION: The prompt implementation of the interim 
final rule is of critical importance in meeting the goals of the 
Department of Defense to provide financial stability and increase 
quality of life for those impacted by the mortgage crisis.
    The Under Secretary of Defense for Acquisition, Technology, and 
Logistics has overall responsibility and provides oversight for this 
program through the Deputy Under Secretary of Defense for Installations 
and Environment (DUSD(I&E)). The Army, acting as the DoD Executive 
Agent for administering the HAP and Expanded HAP, uses the 
Headquarters, U.S. Army Corps of Engineers (HQUSACE) to implement the 
program.

a. Executive Order 12866, ``Regulatory Planning and Review''

    Under Executive Order 12866, ``Regulatory Planning and Review,'' 58 
FR 51735 (Oct. 4, 1993), a ``significant regulatory action'' is subject 
to Office of Management and Budget (OMB) review and the requirements of 
Executive Order 12866. Section 3(f) of the Executive Order defines 
``significant regulatory action'' as one that is likely to result in a 
rule that may:
    (1) Have an annual effect on the economy of $100 million or more, 
or may adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local or Tribal governments or communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs, or the rights and obligations of 
recipients thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    This rule is an economically significant regulatory action under 
section 3(f) of Executive Order 12866 because it is expected to have an 
annual effect on the economy of more than $100 million, and materially 
alter the budgetary impact of the Homeowners Assistance Program. 
Accordingly, OMB has reviewed this rule.

b. Sec. 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    It has been certified by the DUSD(I&E) that 32 CFR part 239 does 
not contain a Federal mandate that may result in expenditure by State, 
local and Tribal governments, in aggregate, or by the private sector, 
of $100 million or more in any one year.

c. Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    It has been certified by the DUSD(I&E) that 32 CFR part 239 is not 
subject to the Regulatory Flexibility Act (5 U.S.C. 601) because it 
would not, if promulgated, have a significant economic impact on a 
substantial number of small entities.

d. Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 
35)

    It has been certified by the DUSD(I&E) that 32 CFR part 239 does 
impose reporting or recordkeeping requirements under the Paperwork 
Reduction Act of 1995. These requirements have been submitted to the 
Office of Management and Budget for approval.

e. Executive Order 13132, ``Federalism''

    It has been certified by the DUSD(I&E) that 32 CFR part 239 does 
not have federalism implications, as set forth in Executive Order 
13132. This rule does not have substantial direct effects on:
    (1) The States;
    (2) The relationship between the Federal Government and the States; 
or
    (3) The distribution of power and responsibilities among the 
various levels of Government.

List of Subjects in 32 CFR Part 239

    Government employees; Grant programs--housing and community 
development; Housing; Military personnel.


[[Page 50110]]



0
Accordingly, 32 CFR Part 239 is revised to read as follows:

PART 239--HOMEOWNERS ASSISTANCE PROGRAM--APPLICATION PROCESSING

Sec.
239.1 Purpose.
239.2 Applicability and scope.
239.3 Policy.
239.4 Definitions.
239.5 Benefit elections.
239.6 Eligibility.
239.7 Responsibilities.
239.8 Funding.
239.9 Application processing procedures.
239.10 Management controls.
239.11 Appeals.
239.12 Tax documentation.
239.13 Program performance review.
239.14 On-site inspections.
239.15 List of HAP field offices.

    Authority: 42 U.S.C. 3374 as amended by Section 1001, ARRA, 
Public Law 111-5.


Sec.  239.1.  Purpose.

    This part:
    (a) Continues to authorize the Homeowners Assistance Program (HAP) 
under section 3374 of title 42, United States Code, to assist eligible 
military and civilian Federal employee homeowners when the real estate 
market is adversely affected directly related to the closure or 
reduction-in-scope of operations due to Base Realignment and Closure 
(BRAC). Additionally, in accordance with Section 1001, American 
Recovery and Reinvestment Act of 2009 (ARRA), Public Law 111-5, this 
part temporarily expands authority provided in section 3374, title 42, 
United States Code, to provide assistance to: Wounded, Injured, or Ill 
members of the Armed Forces (30% or greater disability), wounded 
Department of Defense (DoD) and Coast Guard civilian homeowners 
reassigned in furtherance of medical treatment or rehabilitation or due 
to medical retirement in connection with their disability, surviving 
spouses of fallen warriors, Base Realignment and Closure (BRAC) 2005 
impacted homeowners relocating during the mortgage crisis, and Service 
member homeowners undergoing Permanent Change of Station (PCS) moves 
during the mortgage crisis. This authority is referred to as ``Expanded 
HAP.''
    (b) Establishes policy, authority, and responsibilities for 
managing Expanded HAP and defines eligibility for financial assistance.
    (c) In accordance with this part, The Under Secretary of Defense 
for Acquisition, Technology, and Logistics (USD(AT&L) has overall 
responsibility and, through the Deputy Under Secretary of Defense for 
Installations and Environment (DUSD(I&E)), provides oversight for this 
program. The Army, acting as the DoD Executive Agent for administering 
the HAP, uses the Headquarters, U.S. Army Corps of Engineers (HQUSACE) 
to implement the program.


Sec.  239.2.  Applicability and scope.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments (including the U.S. Coast Guard), the Chairman of 
the Joints Chiefs of Staff, the Combatant Commands, the Inspector 
General of the Department of Defense, the Defense Agencies, DoD Field 
Activities, and all other organizational entities within the Department 
of Defense (hereafter referred to collectively as the ``DoD 
Components''). This part for Expanded HAP is applicable until September 
30, 2012, or as otherwise extended by law.


Sec.  239.3.  Policy.

    (a) It is DoD policy, in implementing section 3374 of title 42, 
United States Code, as amended by Section 1001 of the ARRA (Public Law 
111-5), that those eligible (see Sec.  239.6 of this part) to 
participate in the HAP and Expanded HAP are treated fairly and receive 
available benefit as quickly as practicable.
    (b) Detailed regulations regarding the determination of available 
benefits, can also be found in the circular (EC 405-1-18a) published by 
the HQUSACE, as directed by the Secretary of the Army as the DoD 
Executive Agent for the Expanded HAP. Changes to the Engineering 
Circular for the Expanded Homeowners Assistance Program will be 
submitted for OMB review as required.


Sec.  239.4.  Definitions.

    (a) Armed Forces. The Army, Navy, Air Force, Marine Corps, and 
Coast Guard (see section 101(a) of Title 10, United States Code, as 
stipulated in section 1001(p) of Pub. L. 111-5).
    (b) Deficiency judgment. Judicial recognition of personal liability 
under applicable State law against a Service member whose property was 
foreclosed on or who otherwise passed title to another person for a 
primary residence through a sale that realized less than the full 
outstanding mortgage balance.
    (c) Deployment. Performing service in a training exercise or 
operation at a location or under circumstances that make it impossible 
or infeasible for the member to spend off-duty time in the housing in 
which the member resides when on garrison or installation duty at the 
member's permanent duty station, or home port, as the case may be.
    (d) Eligible mortgage. A mortgage secured by the primary residence 
that was incurred to acquire or improve the primary residence. For a 
mortgage refinancing the original mortgage(s) or for a mortgage 
incurred subsequent to purchasing the property, funds from the 
refinanced or subsequent mortgages must be traced to the purchase of 
the primary residence or have been used to improve the primary 
residence. Funds from a refinanced or subsequent mortgage that were 
used for other purposes are not eligible and may not be considered. For 
permanently reassigned members of the Armed Forces, all payments on an 
eligible mortgage must be current as of the report-not-later-than date.
    (e) Forward deployment. Performing service in an area where the 
Secretary of Defense or the Secretary's designee has determined that 
Service members are subject to hostile fire or imminent danger under 
Section 310(a)(2) of title 37, United States Code.
    (f) Market impact zone. The county, city, or parish in which the 
primary residence is located.
    (g) Primary residence. The one- or two-family dwelling from which 
employees or members regularly commute (or commuted) to their primary 
place of duty. Under Sec.  239.6(a) and (b) of this part, the relevant 
property for which compensation might be offered must have been the 
primary residence of the member or civilian employee at the time of the 
relevant wound, injury, or illness. The first field grade officer (or 
civilian equivalent) in the member or employee's chain of command may 
certify primary residence status.
    (h) Prior fair market value (PFMV). The PFMV is the purchase price 
of the primary residence.
    (i) Reasonable effort to sell. Applicant's primary residence must 
be listed, actively marketed, and available for purchase for a minimum 
of 120 days. With regard to marketing, applicant must demonstrate that 
the asking price was within the current market value of the home as 
determined by the USACE automated value model (AVM) for no less than 30 
days. It is the applicant's responsibility to explain marketing efforts 
by detailing how the asking price was gradually reduced until it 
reached the true current fair market value (i.e., maintaining a log 
containing date and asking price recorded over period of time 
indicating number of visits by prospective buyers and offers to 
purchase). If an applicant is unable to sell the primary residence, the 
HQUSACE will determine whether efforts to sell were reasonable.

[[Page 50111]]

    (j) Permanent change of station (PCS). The assignment or transfer 
of a member to a different permanent duty station (PDS), to include 
relocation to place of retirement, under a competent authorization/
order that does not specify the duty as temporary, provide for further 
assignment to a new PDS, or direct the military service member return 
to the old PDS.


Sec.  239.5.  Benefit elections.

    Section 3374 of Title 42, United States Code, as amended by Section 
1001 of the ARRA, Public Law 111-5, authorizes the Secretary of 
Defense, under specified conditions, to acquire title to, hold, manage, 
and dispose of, or, in lieu thereof, to reimburse for certain losses 
upon private sale of, or foreclosure against, any property improved 
with a one- or two-family dwelling owned by designated individuals.
    (a) General Benefits: (1) If an applicant is unable to sell the 
primary residence after demonstrating reasonable efforts to sell (see 
Definitions, Sec.  239.4(i) of this part), the Government may purchase 
the primary residence for the greater of:
    (i) The applicable percentage (identified by applicant type in 
Sec.  239.5(a)(4)) of the PFMV of the primary residence, or
    (ii) The total amount of the eligible mortgage(s) that remains 
outstanding.
    (2) If an applicant sells, has sold, or otherwise has transferred 
title of the primary residence, the benefit calculation shall be the 
amount of closing costs plus an amount not to exceed the difference 
between the applicable percentage of the PFMV and the sales price.
    (3) If an applicant is foreclosed upon, the benefit will pay all 
legally enforceable liabilities, directly associated with the 
foreclosed mortgage, for example, a deficiency judgment.
    (4) Applicable Percentage. (i) If an applicant is eligible under 
Sec.  239.6(a)(3) or (4) and sells the primary residence, the 
applicable percentage shall be 90% of the PFMV. In addition, closing 
costs incurred on the sale may be reimbursed.
    (ii) If an applicant is eligible under Sec.  239.6(a)(3) or (4) and 
is unable to sell the primary residence after demonstrating reasonable 
efforts to sell, the applicable percentage shall be 75% of the PFMV. 
Closing costs incurred on the sale will not be reimbursed.
    (iii) If an applicant is eligible under Sec.  239.6(a)(1) or (2), 
the applicable percentage, regardless of whether the applicant sells 
the primary residence, shall be 95% of the PFMV. In addition, closing 
costs incurred on the sale may be reimbursed.
    (b) Rules Applicable to All Benefit Calculations. (1) Prior to 
making any payment, the Government must determine that title to the 
property has been transferred or will be transferred as the result of 
making such payment. If the Government determines that making a benefit 
payment will not result in the transfer of title to the property, no 
payment will be made.
    (2) A short sale will be treated as a private sale. If an applicant 
remains personally liable for a deficiency between the outstanding 
mortgage and the sale price, the amount of this deficiency may be 
included in the benefit, provided that the total amount of the benefit 
does not exceed the difference between 95 percent of the PFMV and the 
sales price.
    (c) Payment of Benefits. (1) Private Sale: Where a benefit payment 
exceeds funds required to clear the mortgage and pay closing costs, 
benefit is paid directly to the applicant.
    (2) Government Purchase: Benefit is paid directly to the lender in 
exchange for government possession of the property. Since the benefit 
reimburses the applicant a percentage of the applicant's purchase 
price, if the benefit exceeds the mortgage payoff amount, the applicant 
will receive a benefit payment for the difference between the mortgage 
payoff and the total benefit payment.
    (3) Foreclosure: In the case of a foreclosure, benefit is paid to 
lien holder for legally enforceable liabilities.
    (d) Tax Implications. Under current law, Expanded HAP benefits, 
including any payment of closing costs, are taxable and subject to 
withholding.
    (1) Expanded HAP payments to, or on behalf of, all civilian 
applicants are considered income and are taxable as wages.
    (2) Payments to, or on behalf of, all members of the Armed Forces 
are considered income and are taxable. Payments to military members are 
not subject to social security or Medicare taxes.


Sec.  239.6.  Eligibility.

    (a) Eligibility by Category. Those eligible for benefits under the 
Expanded HAP include the following categories of persons:
    (1) Wounded, Injured, or Ill. (i) Members of the Armed Forces:
    (A) Who receive a disability rating of 30% or more for an unfitting 
condition (using the Department of Veterans Affairs Schedule for 
Ratings Disabilities), or who are eligible for Service member's Group 
Life Insurance Traumatic Injury Protection Program, or whose treating 
physician (in a grade of at least captain in the Navy or Coast Guard or 
colonel in Army or Air Force) certifies that the member is likely, by a 
preponderance of the evidence, to receive a disability rating of 30% or 
more for an unfitting condition (using the Department of Veterans 
Affairs Schedule for Ratings Disabilities) for wounds, injuries, or 
illness incurred in the line of duty while deployed, on or after 
September 11, 2001 and
    (B) Who are reassigned in furtherance of medical treatment or 
rehabilitation, or due to retirement in connection with such 
disability, and
    (C) Who needs to market the primary residence for sale due to the 
wound, injury or illness. (For example, the need to be closer to a 
hospital or a family member caregiver or the need to find work more 
accommodating to the disability.)
    (ii) Civilian employees of DoD or the United States Coast Guard 
(excluding temporary employees or contractors, but including employees 
of non-appropriated fund instrumentalities):
    (A) Who suffer a wound, injury, or illness (not due to own 
misconduct), on or after September 11, 2001, in the performance of 
duties while forward deployed in support of the Armed Forces, whose 
treating physician provides written documentation that the member, by a 
preponderance of the evidence, meets the criteria for a disability 
rating of 30% or more. As described in paragraph (a)(1) of this 
section, this documentation will be certified by a physician in the 
grade of at least captain in the Navy or Coast Guard or colonel in Army 
or Air Force.
    (B) Who relocate from their primary residence in furtherance of 
medical treatment, rehabilitation, or due to medical retirement 
resulting from the wound, injury, or illness, and
    (C) Who needs to market the primary residence for sale due to the 
wound, injury or illness. (For example, the need to be closer to a 
hospital or a family member caregiver or the need to find work more 
accommodating to the disability.)
    (2) Surviving Spouse. The surviving spouse of a Service member or 
of a civilian employee:
    (i) Whose spouse dies as the result of a wound, injury, or illness 
incurred in the line of duty while deployed (or forward deployed for 
civilian employees) on or after September 11, 2001, and
    (ii) Who relocates from the member's or civilian employee's primary 
residence within two years of the death of spouse.

[[Page 50112]]

    (3) BRAC 2005 Members and Civilian Employees. Members of the Armed 
Forces and civilian employees of the Department of Defense and the 
United States Coast Guard (not including temporary employees or 
contractors) and employees of non-appropriated fund instrumentalities 
assigned on May 13, 2005, to an installation or unit identified for 
closure or realignment under the 2005 round of the Base Realignment and 
Closure Act of 1990:
    (i) Whose position is eliminated or transferred because of the 
realignment or closure; and
    (ii) Who accepts employment or is required to relocate because of a 
transfer beyond the normal commuting distance from the primary 
residence (50 miles).
    (4) Permanently Reassigned Members of the Armed Forces. Members who 
are reassigned under permanent PCS orders:
    (i) Dated between February 1, 2006 and September 30, 2012 (subject 
to availability of funds),
    (ii) To a new duty station or home port outside a 50-mile radius of 
the member's former duty station or home port.
    (b) Eligibility based on Economic Impact, Timing, Price, Orders, 
and Submission of Application.
    (1) Minimum Economic Impact. (i) BRAC 2005 Members and Civilian 
Employees as well as Permanently Reassigned Members of the Armed Forces 
whose primary residence:
    (A) Has suffered at least a 10% market impact zone home value loss 
between July 1, 2006 and date of application for Expanded HAP benefits 
for the county/parish/city in which their primary residence is located, 
and
    (B) A decline of at least a 10% personal home value loss from the 
date of purchase to date of sale.
    (ii) The Wounded, Injured, or Ill and surviving spouses do not need 
to show either type of minimum economic impact.
    (2) Timing of Purchase. (i) BRAC 2005 Members and Civilian 
Employees must have purchased their primary residence before May 13, 
2005, the date of the BRAC 2005 announcement.
    (ii) Permanently reassigned members of the Armed Forces must have 
purchased their primary residence before July 1, 2006.
    (iii) Wounded, injured, or ill or Surviving Spouses are eligible 
for compensation without respect to date of purchase.
    (3) Maximum Home Purchase Price. The PFMV may not exceed an amount 
equal to the 2009 Fannie Mae/Freddie Mac conforming loan limits (as 
amended by the ARRA of 2009). These conforming loan limits range from 
$417,000 to $729,500. They apply for the duration of the Expanded HAP 
and are established for each city/county/parish as appropriate.
    (4) Date of Assignment; Report Date; Basis for Relocation. (i) Date 
of Assignment, Report Date. (A) On May 13, 2005, BRAC 2005 Members and 
Civilian Employees must have been assigned to an installation or unit 
identified for closure or realignment under the 2005 round of the Base 
Realignment and Closure Act of 1990.
    (B) For initial implementation, Permanently Reassigned Members of 
the Armed Forces must have received qualifying orders to relocate dated 
between February 1, 2006, and December 31, 2009. The orders must 
specify a report-no-later-than date of on or before February 28, 2010. 
These dates may be extended to September 30, 2012 at the discretion of 
the DUSD(I&E) based on availability of funds.
    (ii) Basis for Relocation: Permanently Reassigned Members of the 
Armed Forces who are reassigned or who otherwise relocate for the 
following reasons are not eligible for Expanded HAP benefits:
    (A). Members who retire prior to reaching their mandatory 
retirement date,
    (B) Members who are a new accession into the Armed Forces or who 
are otherwise entering active duty,
    (C) Members who are voluntarily separated or discharged,
    (D) Members whose separation or discharge is characterized as less 
than honorable,
    (E) Members who request and receive voluntary release from active 
duty (REFRAD),
    (F) Members who are REFRAD for misconduct or poor performance.
    (c) Applications will be processed according to eligibility 
category in the following order:
    (1) Wounded, Injured, and Ill. Within this category, applications 
will generally be processed in chronological order of the wound, 
injury, or illness.
    (2) Surviving Spouses. Within this category, applications will 
generally be processed in chronological order of the date of death of 
the member or employee.
    (3) BRAC 2005 Members and Civilian Employees. Within this category, 
applications will generally be processed in chronological order of the 
date of job elimination.
    (4) Permanently Reassigned Members of the Armed Forces. Within this 
category, applications will generally be processed beginning with the 
earliest report-not-later-than date of PCS orders.


Sec.  239.7.  Responsibilities.

    (a) The DUSD(I&E), under the authority, direction, and control of 
the USD(AT&L), shall, in relation to the Expanded HAP:
    (1) Prescribe and monitor administrative and operational policies 
and procedures.
    (2) Determine applicable personnel benefits and policies, in 
coordination with the Under Secretary of Defense (Comptroller) and the 
Under Secretary of Defense for Personnel and Readiness.
    (3) Serve as senior appeals authority for appeals submitted by 
applicants.
    (b) The Under Secretary of Defense (Comptroller) shall, in relation 
to the Expanded HAP:
    (1) Implement policies and prescribe procedures for financial 
operations.
    (2) Review and approve financial plans and budgets.
    (3) Issue financing and obligation authorities.
    (4) Administer the DoD Homeowners Assistance Fund.
    (c) The Deputy Assistant Secretary of the Army for Installations 
and Housing (DASA(I&H)), as the DoD Executive Agent for administering, 
managing, and executing the Expanded HAP, shall:
    (1) Establish detailed policies and procedures for execution of the 
program.
    (2) Maintain necessary records, prepare reports, and conduct 
audits.
    (3) Publish regulations and forms, subject to review by the 
DUSD(I&E).
    (4) Disseminate information on the program.
    (5) Forward copies of completed responses to congressional 
inquiries and appeals to the DUSD(I&E) for information.
    (6) Serve as the initial approval authority for HAP appeals. The 
DASA(I&H) may approve appeals. The DASA(I&H) will forward 
recommendations for Expanded HAP denial to the DUSD(I&E) for decision.
    (d) The Heads of the DoD Components and the Commandant of the Coast 
Guard, by agreement of the Secretary of Homeland Security, shall:
    (1) Designate at least one representative at the headquarters level 
to work with DASA(I&H) and HQUSACE HAP offices.
    (2) Require each installation to establish liaison with the nearest 
HAP field office to obtain guidance or assistance on the Expanded HAP.
    (3) Supply the HQUSACE HAP office a copy of any internal 
regulation, instruction, or guidance published relative to the Expanded 
HAP program.
    (4) Disseminate information on the Expanded HAP and, upon request, 
supply HAP field offices with data pertaining to the Expanded HAP.

[[Page 50113]]

    (e) HQUSACE. (1) Real Estate Community of Practice (CEMP-CR). The 
Director of Real Estate, acting for the Chief of Engineers, has been 
delegated authority and responsibility for the execution of HAP. CEMP-
CR, as the central office for HAP, is responsible for the following:
    (i) Supervision, interagency coordination, development of 
procedures, policy guidance, and processing of appeals forwarded from 
the districts and HQUSACE Major Subordinate Commands (MSC).
    (ii) Maintaining an Expanded HAP central office and Expanded HAP 
field offices.
    (iii) Process appeal cases from the MSC where applicant agreement 
cannot be reached. Such appeal cases will be forwarded, in turn, to 
DASA(I&H) for consideration.
    (2) Districts. Districts designated by the Director of Real Estate, 
and their Chiefs of Real Estate, have been delegated the authority to 
administer, manage and execute the HAP on behalf of all claimants.
    (i) Districts (as identified in Sec.  239.9) will accept 
applications (DD Form 1607) for HAP and Expanded HAP benefits.
    (ii) Determine the eligibility of each applicant for Expanded HAP 
assistance using the criterion established by the DUSD(I&E).
    (iii) Determine and advise each applicant on the most appropriate 
type of assistance.
    (iv) Determine amounts to be paid, consistent with DoD policy, and 
make payments or authorize and arrange for acquisition or transfer of 
the applicant's property.
    (v) Maintain, manage, and dispose of acquired properties or 
contract for such services with private contractors.
    (vi) Process all cases, except where applicant agreement cannot be 
reached. Such appeal cases will be forwarded, in turn, to the MSC, 
CEMP-CR, and DASA(I&H) for consideration.
    (3) HQUSACE Major Subordinate Commands. MSCs have been delegated 
the authority to perform oversight and review of district program 
management, and based upon that review, or in response to specific 
requests, to provide local policy guidance to the districts and 
recommend program changes or appeal cases to CEMP-CR for consideration.


Sec.  239.8.  Funding.

    (a) Revolving Fund Account. The revolving fund account contains 
money appropriated in accordance with the ARRA, and receipts from the 
management, rental, or sale of the properties acquired.
    (b) Appropriation, Receipts and Allocation. Funds required for 
administration of the program will be made available by DoD to the 
HQUSACE. Funds provided will be used for purchase or reimbursement as 
provided herein and to defray expenses connected with the acquisition, 
management, and disposal of acquired properties, including payment of 
mortgages or other indebtedness, as well as the cost of staff services, 
contract services, insurance, and other indemnities.
    (c) Obligation of Funds. For government acquisition of homes under 
the authority of this part, funds will be committed not to exceed 60 
days following the date the government's offer to purchase is conveyed 
to the applicant. The obligation will occur upon timely receipt of the 
accepted offer returned by the applicant.


Sec.  239.9.  Application Processing Procedures.

    (a) Acceptance of Applications. The district will accept 
applications (DD Form 1607) for HAP and Expanded HAP benefits submitted 
through the single point of entry at http://hap.usace.army.mil/.
    (b) Application Form (DD Form 1607). Should the DD form 1607 not 
provide all the information required to process Expanded HAP 
applications, Districts must provide applicants appropriate 
supplemental instructions.
    (c) Assignment of Application Numbers. (1) Assignment of 
Application Numbers. When a district receives an application, it will 
assign the application number and develop and maintain an individual 
file for each property. Applications for programs located in another 
district will not be assigned a number, but will be forwarded 
immediately to the district having jurisdiction. An application number, 
once assigned, will not be reassigned regardless of the disposition of 
the original application. Reactivation or reopening of a withdrawn 
application does not require a new application or application number.
    (2) Method of Assignment. An application will be numbered in the 
following manner:
    (i) Agency code to indicate the Federal agency accountable for 
installation being closed or applicant support:
    (A)1--Army.
    (B)2--Air Force.
    (C)3--Navy.
    (D)4--Marine Corps.
    (E)5--Defense Agencies.
    (F)6--Non-Defense Agencies.
    (G)7--U.S. Coast Guard.
    (ii) District Code.
    (A) Sacramento Dist.: L2.
    (B) Savannah Dist.: K6.
    (C) Fort Worth Dist.: M2.
    (iii) Applicant Category Code (Military/Civilian/Wounded/Surviving 
Spouse/PCS):
    (A)1 = Civilian (BRAC).
    (B)2 = Military (BRAC).
    (C)3 = Non-appropriated Fund Instrumentalities.
    (D)4 = Military Wounded.
    (E)5 = Civilian Wounded.
    (F)6 = Surviving Spouse (military deceased).
    (G)7 = Surviving Spouse (civilian employee deceased).
    (F)8 = Military PCS.
    (iv) State: State abbreviation.
    (v) Installation Number: The five digit ZIP code of the applicant's 
present (former, if they have already moved) installation, office or 
unit address. Examples are:
    (A) For a BRAC 05 applicant moving from the closing Saint Louis, 
MO, DFAS office to Minneapolis, MN, use the ZIP code of the city from 
which he or she is moving, e.g., 63101, for St. Louis, MO.
    (B) For wounded warrior or surviving spouse who moved from primary 
residence, use present installation or hometown.
    (C) For service members who are eligible based on PCS criteria, use 
ZIP code of installation from which they depart.
    (vi) Application Number: Sequential beginning with 0001.

[[Page 50114]]

[GRAPHIC] [TIFF OMITTED] TR30SE09.249

    (d) Real Estate Values. (1) Because the PFMV is the purchase price 
for Expanded HAP, no appraisal of the property is required. Supporting 
documentation to establish purchase price must be furnished by the 
applicant. Generally, Form HUD-1 will suffice.
    (2) Districts are responsible for ensuring primary residence values 
are appropriate and applicants receive deserved benefit payments.
    (i) Trend indications of applicants' county, city or parish: 
HQUSACE subscribes the CoreLogic real estate value database system. 
Districts will use the CoreLogic trend report to determine the 
eligibility of an applicant's county, city, or parish.
    (ii) Valuation of Individual Primary Residences: Run CoreLogic AVM 
on an applicant's primary residence.


Sec.  239.10.  Management Controls.

    (a). Management Systems. Headquarters, USACE has an existing 
information management system that manages all information related to 
the HAP program.
    (1) HAPMIS. The Homeowners Assistance Program Management 
Information System (HAPMIS) provides program management assistance to 
field offices and indicators to managers at field offices, regional 
headquarters and HQUSACE at the Service Member level of detail. The 
Privacy Act applies to this program and the management in formation 
system to protect the privacy information of Expanded HAP applicants.
    (2) CEFMS. The Corps of Engineers Financial Management System 
(CEFMS) will provide detailed funds execution and tracking, to include:
    (i) Funds issued to field offices for execution accountability.
    (ii) Funds committed and obligated by applicant category, 
installation, State and county.
    (b) System of Records Notice (SORN). The Privacy Act limits 
agencies to maintaining ``only such information about an individual as 
is relevant and necessary to accomplish a purpose of the agency 
required to be accomplished by statute or Executive order of the 
President.'' 5 U.S.C. 552a(e)(1). The SORN for the Homeowners 
Assistance Program can be found at http://www.defenselink.mil/privacy/notices/army/A0405-10q_CE.shtml. The Privacy Impact Assessment for the 
system can be reviewed at: http://www.army.mil/ciog6/privacy.html.
    Individuals seeking to determine whether information about them is 
contained in this system should address written inquiries to the Chief 
of Engineers, Headquarters U.S. Army Corps of Engineers, ATTN: CERE-R, 
441 G Street, NW., Washington, DC 20314-1000.


Sec.  239.11.  Appeals.

    Applicant appeals will be processed at the District level and 
forwarded through the MSC, CEMP-CR to the DASA(I&H) for review and 
consideration. DASA(I&H) may approve an appeal but must forward 
recommendations for denial to the DUSD(I&E) for decision.


Sec.  239.12.  Tax Documentation.

    For disbursed funds, tax documents will be certified by HQUSACE 
Finance Center, and distributed to applicants

[[Page 50115]]

and the Internal Revenue Service (IRS) on an annual basis.


Sec.  239.13.  Program Performance Reviews.

    HQUSACE will prepare monthly program performance reviews using the 
Homeowners Assistance Program Management Information System; HQUSACE 
Annual Management Command Plan and Management Control Checklist. In 
addition, program monitoring will also be conducted (through HAPMIS and 
CEFMS reports) at the Headquarters Department of the Army and at the 
DUSD(I&E) levels.


Sec.  239.14.  On-Site Inspections.

    The HQUSACE and MSCs may conduct periodic on-site inspections of 
district offices and monitor program execution through HAPMIS and CEFMS 
reports.


Sec.  239.9.  List of HAP field offices.

    Homeowners Assistance Program field offices that process HAP 
applications for installations and applicants located in the State 
indicated. Questions should be directed to the field office listed 
within the State applicable to the installation.

------------------------------------------------------------------------
              Field office                 For installations located in
------------------------------------------------------------------------
U.S. Army Engineer District,             Alaska, Arizona, California,
 Sacramento, CESPK, 1325 J Street,        Nevada, Utah, Idaho, Oregon,
 Sacramento, CA 95814-2922. (916) 557-    Pacific Ocean Rim, Washington,
 6850 or 1-800-811-5532. Internet         Montana and Hawaii.
 Address: http://www.spk.usace.army.mil.
U.S. Army Engineer District, Savannah,   Georgia, North Carolina, South
 CESAS, ATTN: RE-AH, P.O. Box 889,        Carolina, Alabama,
 Savannah, GA 31402-0889. 1-800-861-      Mississippi, Tennessee,
 8144. Internet Address: http://          Florida, Illinois, Indiana,
 www.sas.usace.army.mil/hapinv/           Kentucky, Michigan, Ohio,
 index.html.                              Maryland, Delaware, District
                                          of Columbia, Pennsylvania,
                                          Virginia, Rhode Island, New
                                          York, Vermont, New Hampshire,
                                          Massachusetts, Connecticut,
                                          Maine, New Jersey, West
                                          Virginia and Europe.
U.S. Army Engineer District, Fort        Arkansas, Louisiana, Oklahoma,
 Worth, CESWF, P.O. Box 17300, Fort       Texas, New Mexico, Colorado,
 Worth, TX 76102-0300. (817) 886-1112.    Iowa, Nebraska, Michigan,
 1-888-231-7751. Internet Address:        Minnesota, North and South
 http://www.swf.usace.army.mil.           Dakota, Wisconsin, Wyoming,
                                          Kansas and Missouri.
------------------------------------------------------------------------

    HAP Central Office, Homeowners Assistance Program, Real Estate 
Directorate, Military Division, 441 G Street, NW., Washington, DC 
20314-1000.

    Dated: September 23, 2009.
Patricia L. Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. E9-23418 Filed 9-29-09; 8:45 am]
BILLING CODE 5001-06-P