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Council debates converting HPAP loans to grants for displaced homeowners
Summary
Councilmembers pressed DHCD on whether converting HPAP loans to grants for displaced homeowners would help equity now but reduce future HPAP funding that depends on repayments; DHCD said converting loans to grants could negatively affect future budget recycling unless alternate funding is identified.
Councilmembers and DHCD officials debated proposals to convert HPAP (Home Purchase Assistance Program) loans to grants for homeowners displaced by building failures and relocations.
Chair Robert White and other members reviewed assistance already provided in the River East/Grandview and Talbot cases, with figures cited during the hearing including $4,800,000 in rent after displacement, about $403,000 for a Talbot relocation period, and a $30,000 cash payment to some Talbot homeowners. Councilmembers urged more relief; DHCD acknowledged the need but warned that HPAP repayments recycle into the agency's HPAP budget and converting loans to one‑time grants would reduce funds available for future buyers unless additional funding sources are identified.
Director Green said HPAP repayments are a durable part of the agency's budgeting assumptions and converting existing loans into grants would lower the repayment stream that helps finance future HPAP awards. The committee did not adopt a funding mechanism at the hearing and said it will continue discussions with DHCD and the Budget Office.
