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Council hears criticism of DHCD's HPAP lottery rollout and calls for clearer timelines
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Summary
First-time homebuyers, housing counselors and real estate groups told the committee the Housing Purchase Assistance Program's shift to a lottery and later communications created confusion, lost contracts and extra costs; DHCD and DCHFA said most approved cases will be paid but acknowledged transition problems.
Homebuyers, housing counselors and real estate professionals told the Committee on Housing that the Housing Purchase Assistance Program (HPAP) transition to a lottery system this season created confusion that cost some buyers contracts and added uncertainty to closings. Testimony at the March 3 oversight hearing pressed the District to adopt clearer notice rules and predictable timelines for applicants.
Several HPAP recipients testified they were under contract when agency rules changed. HPAP recipient Kristen Ewing said she closed on a Capitol Hill condo last year but described the process as "convoluted, complicated, and secretive" and said operators and applicants received conflicting instructions from DHCD and other program administrators. Dr. Elise Anderson said she received one day's notice that the program would shift to a lottery and said that caused undue risk for buyers under contract.
Real estate and non-profit housing groups, including the DC Association of Realtors and community partners, told the committee HPAP remained a vital anti-displacement tool but that the sudden rule change and limited communications undermined trust. DCAR public policy chair Hillary Nash said the lottery's timing left applicants, sellers and lenders uncertain and raised the risk that sellers would refuse to wait for HPAP approvals.
DHCD Director Colleen Green said the lottery was intended to create greater certainty for applicants that are selected because money is committed to those winners; she acknowledged the transition introduced complications for buyers who had already ratified contracts. DCHFA Executive Director Christopher Donald said the agency closed 193 HPAP loans in FY 2024 and supported the program's role in serving buyers across all wards. DHCD said it will provide a clearer portal and better outreach as it moves forward; DCHFA said it will supply specifics on loan counts and timing.
Committee members asked the agencies to produce numbers that show how many ratified sales contracts were submitted for the transitional process, how many subsequently closed, and how many fell out because of delays. Several council members urged DHCD to publish a clear schedule of communications and to avoid mid-year procedural changes in the future.
Ending: DHCD agreed to provide a detailed reconciliation of approved applicants, closings and outstanding cases; the committee asked to be updated before the next budget season, and to review whether statutory guardrails are needed to ensure predictable timelines for HPAP applicants.
