D.C. Code § 42-2084: HPAP loan conversion to grant and shortening the length of IZ or ADU affordability covenant for Property Owners and Former Property Owners.

(a)

(1)

DHCD shall make Property Owners or Former Property Owners who have not purchased another primary residence since leaving the Property eligible for HPAP assistance, pursuant to subchapter I of Chapter 26 of this title, in the form of a grant toward the purchase of a primary residence in the District, and exclude them from the HPAP program's credit requirements.

(2)

(A)

DHCD shall convert outstanding HPAP loans for Property Owners or Former Property Owners who previously received HPAP assistance to purchase a primary residence in the District to grants. This provision shall not apply to any subsequent purchase beyond the first primary residence.

(B)

DHCD and the Office of Tax and Revenue shall record any release, modification, or other instrument necessary to reflect the conversion in the land records.

(3)

DHCD shall award HPAP grants of up to $50,000 to be used towards the payment of a primary residence mortgage principal balance, in the form of a recast or refinance of the current mortgage, for Property Owners or Former Property Owners who purchased a primary residence in the District of Columbia without HPAP assistance. This provision shall not apply to any subsequent purchase beyond the first primary residence.

(4)

A Property Owner or Former Property Owner who has purchased, or will purchase, an IZ or ADU unit as their next primary residence under Chapter 22 of Title 14 of the District of Columbia Municipal Regulations (14 DCMR § 2200 et seq.) shall receive priority when applying for an IZ or ADU ownership unit. The affordability covenant on that unit shall terminate 15 years after the date the Property Owner or Former Property Owner closed on a condominium unit at the Property. This provision applies only to the first qualifying unit and does not apply to any later purchases. DHCD shall record and make publicly available the termination of any covenant pursuant to this paragraph.

(b)

By September 1, 2027, and annually thereafter through Fiscal Year 2032, DHCD shall submit to the Council a report identifying:

(1)

The number of individuals receiving relief and the total amount of relief received under each paragraph of subsection (a) of this section;

(2)

The ward in which each grant recipient purchased a property; and

(3)

Any administrative or fiscal challenges in implementing this section.

(c)

Nothing in this section shall be construed to create an entitlement or to require the District to make payments in excess of funds appropriated for the purpose of this section.

(d)

This section shall sunset after December 31, 2032.