Defense Department Homeowners Assistance Checks on Their Way

Relocating military families who qualified for assistance from the Department of Defense Homeowners Assistance Program (HAP) under the American Recovery and Reinvestment Act of 2009 have had a long wait for their checks. But now the checks have begun to make it into the mail.

The first check went to a Fallen Warrior’s surviving spouse (under the law, the first checks must go to either to servicemen and women who are relocating in order to obtain medical care after being wounded or falling ill in the line of duty, or to surviving family members of servicemen or women who died while serving their country). Now the checks are being issued regularly, and new applications are being processed.

The disbursement of checks from the HAP was delayed at first. Once the assistance funds became available, the Office of the Secretary of Defense had to review and approve the program rules. Then the program was subject to another delay while Congress passed House Resolution 3548 in order to remove the 25 percent tax penalty that families originally would have been expected to pay after receiving the assistance.

The HAP provides financial relief to military families whose service to the nation has required them to move and to sell their homes at a loss. The program does not cover 100 percent of each home’s decline in value, but it offsets financial losses to some extent. In addition to HAP assistance, the Department of Defense offers reimbursement for certain relocation expenses, such as moving and storage. Storage of household items and personal effects is covered by relocation reimbursements, as long as the total weight of stored items is under 18,000 pounds. In some cases, families can also seek reimbursement for storage of personal vehicles, if they are required to move out of the continental United States and have not been able to obtain permission to bring a vehicle along.