D.C. Mun. Regs. tit. 14, r. 14-9214

Current through Register 71, No. 45, November 7, 2024

Rule 14-9214 - RECAPTURE OF ASSISTANCE

9214.1

Recapture Provision.

(a) The HCV/HOAP shall recapture a percentage of the homeownership proceeds provided to the Family upon the sale of the home, unless the proceeds are invested in the purchase of another home under the HCV/HOAP program.

(b) The HCV/HOAP shall recapture a percentage of any proceeds realized upon refinancing that are retained by the household (example during a "cash-out" of the refinanced debt).

9214.2

Recapture Amount.

(a) In the case of the sale of the home, the recapture amount shall be, subject to paragraph (c) below, in the amount equaling the lesser of the following:

(1) The amount the HCV/HOAP provided to the household, adjusted to reflect the automatic reduction provided in paragraph (c) below; and

(2) The difference between the sales price and the purchase price of the home minus:

(i) The cost of any documented capital expenditures; and

(ii) The cost incurred by the household in the sale of the home, such as brokerage fees or repair and fix-up costs; and

(iii) The amount of the difference between the sales price and purchase price that is being used upon sale, toward the purchase of a new home under HCV/HOAP; and

(iv) Any amounts previously recaptured.

(b) In the case of a refinancing of the home, the recapture shall be, subject to paragraph (c) below, in an amount equaling the lesser of the following:

(1) The amount the HCV/HOAP provided to the household, adjusted to reflect the automatic reduction provided in paragraph (c) below; or

(2) The difference between the current mortgage debt and the new mortgage debt; minus:

(i) The cost of any documented capital expenditures; and

(ii) The cost incurred by the household in the refinancing of the home, such as reasonable and customary closing costs; and

(iii) Any amounts previously recaptured.

(c) Reduction of Recapture Amount. The amount of the recapture shall be reduced in increments of ten percent (10%) for each full year of receipt of HCV/HOAP subsidies with no recapture required after the end of the 10th year of participation.

9214.3

Recapture Agreement and Mortgage Lien.

(a) At the time of purchase, the household shall execute a Recapture Agreement and Mortgage document which obligates the household to repay a portion of the Subsidy under certain circumstances, and secures the HCV/HOAP right to recapture the HOAP Subsidy.

(b) Subordinate Lien. The lien securing the recapture may be subordinated to the mortgage lien of the primary loan and other subordinate liens securing repayment of down-payment assistance.

D.C. Mun. Regs. tit. 14, r. 14-9214

Notice of Final Rulemaking published at 49 DCR 5767 (June 21, 2002); as amended by Final Rulemaking published at 52 DCR 6180 (July 1, 2005)