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District of Columbia Code Division VII. Property. § 42-2604. Promulgation of rules and regulations by Mayor; review by Council; contents of loan agreements.

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) The Mayor is authorized to promulgate rules and regulations to govern the operation of the Fund, including but not limited to, rules and regulations establishing standards for determining the eligibility and selection of applicants; procedures for applying for assistance and for notifying applicants (including the development of appropriate forms); and criteria for determining the terms and conditions under which loans or other forms of financial assistance may be made from the Fund which, among things, shall reflect the ability of the recipient to pay and may provide for the deferred payment or forgiveness of loans. The rules and regulations issued by the Mayor for the purpose of implementing the provisions of this subchapter shall be submitted by the Mayor to the Council of the District of Columbia for a 45 calendar day review period, excluding days of Council recess. No such rules or regulations shall take effect until the end of the 45 calendar day period beginning on the day such rules or regulations are transmitted by the Mayor to the Chairman of the Council, and then only if during such period, the Council does not adopt a resolution disapproving such rules and regulations in whole or in part.

(b) Any loan agreement entered into pursuant to such rules and regulations shall provide that:

(1) All applicants for and recipients of financial assistance from the Funds shall be tenant organizations (as defined in § 42-3401.03(18) or a first time homebuyer seeking to purchase housing in the District of Columbia as a primary residence including, but not limited to, single family homes, condominium units, or occupancy rights to cooperative housing. For the purposes of this section, the term “first time homebuyer” means a real property purchaser who had no ownership interest in his or her principal residence at any time during the 3 year period ending on the date of his or her application for assistance, but including an applicant who has divorced or separated during the 3 year period where a formal settlement has been made under which the applicant does not receive an ownership interest in a primary residence which had been jointly owned, and who has no other current ownership interest in residential real property.

(1A) Priority in the allocation of assistance under the Fund shall be given to residents of the District of Columbia and District of Columbia residents who are low income, elderly, displaced applicants, or residents with disabilities.

(2) If the home purchased ceases to be the primary residence of the recipient of financial assistance from the Fund, the payments to such Fund by the recipient shall be accelerated on terms and conditions prescribed by the Mayor; provided, that such obligation shall not be inconsistent with the applicable law or regulations of any federal home purchase assistance program made available to the recipient.

(3) Repealed.

(c)(1) No later than 120 days after October 1, 2022, the Mayor shall issue updated rules that will allow organizations that meet the following criteria to provide homebuyer education and counseling and to underwrite eligibility for the Home Purchase Assistance Program:

(A) The organization is approved by the United States Department of Housing and Urban Development to provide housing counseling services, including homebuyer education workshops, pre-purchase counseling, and financial management.

(B) The organization provides access to below market, fixed-rate mortgages with no down payment or closing costs.

(2) The rules shall require any such organizations to provide closing disclosure verifying the mortgage and use of any Home Purchase Assistance Program funds.

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Cite this article: FindLaw.com - District of Columbia Code Division VII. Property. § 42-2604. Promulgation of rules and regulations by Mayor; review by Council; contents of loan agreements. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-vii-property/dc-code-sect-42-2604/

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