Congress created the HAP program in 1966 (see Section 3374, Title 42 United States Code) to financially compensate eligible military and civilian Federal employee homeowners when the real estate market was adversely affected directly related to the closure or reduction-in-scope of operations due to Base Realignment and Closure (BRAC).  More recently the HAP program was reviatlized as part of the American Recovery and Reinvestment Act of 2009 to assist military members that are forced to PCS from a declining housing market.   

Most analysts expressed concern that the actual program requirements and the tax implications were not clear enough to have anyone in the military program actually benefit.  Was this another federally ordered stimulus package that would never trickle down to benefit the intended.  I tried, for grins,to call about the emergency refinancing plans that were announced last year. You could not benefit if you were not yet behind on your mortgage but if you credit was bad, you were almost ousted from the phone tree…… so where oh where is the place between “behind on mortgage” and “still good credit”… hmmmm?

Almost against odds, the HAP program is starting to chug along like the Little Engine that could.  Payments are actually being processed.  People are actually benefitting.  Most importantly the tax questions were clear up when Presdient Obama signed the HR3548, making payments made to military members under the HAP exempt from taxation. 

Please review all the information about the HAP program carefully before filing.   HAP Program FAQ’s and HAP Program Overview

Does anyone out there have personal experience with HAP so far??? Is there really a pulse?