by JamesClarke, Esq.

Orlans PC *

USFN Member (DC, DE, MD, MA, MI, NH, RI, VA)

D.C. provides additional protections for homeowners impacted by COVID-19 and the availability of HAF funds.

In June, City Council passed B24-0883 (Act 24-0508) – “Foreclosure Moratorium Extension Revision and Homeowner Assistance Fund Promotion Emergency Amendment Act of 2022,” which expired October 23, 2022, and B24-0884 (Act 24-0532/Law 24-0186) “Foreclosure Moratorium Extension Revision and Homeowner Assistance Fund Promotion Temporary Amendment Act of 2022,” which will expire May 4, 2023. On November 1, 2022, the D.C. City Council passed additional legislation both in emergency and temporary form - B24-1080 (Act 24-0674) “Foreclosure Moratorium and Homeowner Assistance Fund Coordination Emergency Amendment Act of 2022” and B24-1081 “Foreclosure Moratorium and Homeowner Assistance Fund Coordination Temporary Amendment Act of 2022.” Both bills are substantively the same, except that the Emergency Bill expires 90 days after enactment or February 20, 2023, and the Temporary Bill will expire 225 days after taking effect.

First – the purpose of the legislation is to provide homeowners with information regarding the D.C. HAF (Homeowner Assistance Fund) prior to filing first legal or, if pending, prior to resuming foreclosure.

Second – Unlike the previous legislation, which provided a deadline of September 30, 2022 for homeowners to apply for HAF, the current legislation is silent as to any deadlines, instead deferring to the HAF program.  Also, the HAF program administrators are still accepting applications from homeowners impacted by COVID-19, and funds apparently still remain available.

Third – Like the previous legislation, which required a warning letter be sent prior to September 30, the current legislation requires a similar 30-day warning notice be sent after October 1 to proceed to first legal or before continuing a foreclosure action. Once the letter is sent, the file should remain on hold until expiration of the warning letter. The current legislation no longer directs the mayor to publish a form notice. Our recommendation is to utilize the current form published on the HAF website. An editable sample foreclosure warning notice to be used for this purpose may be found here (dc.gov) , but with references to the September 30, 2022 application deadline deleted.

Fourth – Both bills have an effective date of November 19, 2022.

To view the status, effective dates, and copies of the legislation, please see:

B24-1080  View Signed Act (dccouncil.gov)  (Effective November 19 - Expires February 20, 2023)

B24-1081  DC Legislation Information Management System (dccouncil.gov) (pending mayoral approval and Congressional review and will expire 225 days after taking effect)

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December 2022 USFN e-Update