The District of Columbia recently amended the District of Columbia Housing Finance Agency Act to temporarily expand and extend the Reverse Mortgage Insurance and Tax Payment Program (the Program). The amendment is effective from June 17, 2020, through January 28, 2021.
The Program was originally an 18-month pilot program designed to allow qualified reverse mortgage borrowers to apply for and receive financial assistance for payment of past due property taxes and property insurance debts that have put the borrowers at risk of foreclosure. However, the Program, as amended, will now also provide financial assistance for payment of delinquent condominium fees and homeowners association fees. Additionally, the amendment extends the 18-month Program to 24 months, subject to available funds. The financial assistance provided, capped at $25,000 per homeowner, is in the form of a zero-interest, non-recourse loan that becomes due and payable “upon satisfaction of the first priority mortgage or relinquishment of the subject property to the reverse mortgage lender.”