The governing council of the nation’s capital, Washington, D.C. is taking steps to establish a permanent program seeking to protect its older residents with reverse mortgages from foreclosure.
In mid-January, the D.C. council enacted the “Fairness and Stability in Housing Amendment Act of 2024,” which amends specific housing agency laws to allow for protections for older district residents with a reverse mortgage loan. D.C. Mayor Muriel Bowser approved the measure on Jan. 16, and its said to take effect following a 60-day period of congressional review.
It creates a permanent reverse mortgage foreclosure prevention program, expands financial assistance coverage to include condominium and homeowners association (HOA) fees, and also broadens program availability to include the spouses of primary reverse mortgage borrowers.
The new measure also updates appeal timelines and mediation procedures for residents in rental housing, allows virtual meetings for condos and co-operative living spaces, and updates legislative references and council review procedures for returning citizens.
The amendments appear to apply to the pre-existing Reverse Mortgage Insurance & Tax Payment Program (ReMIT), which was initially started in 2019 as a pilot program. It was extended to last until the end of 2021. Last year, the program was relaunched on a pilot basis.
But the program was revived last year. Tikisha Wilson, director of single-family programs at the District of Columbia Housing Finance Agency (DCHFA), told HousingWire’s Reverse Mortgage Daily (RMD) that the program was not renewed at the end of 2021 due to the impacts of inflation on the economy, but that the D.C. council had been seeking ways to make the relief program permanent.
“We’re just trying to help as many seniors as we can with the bucket of funds that we have that carried over from the previous legislation,” she said. “When the funds that were implemented under the previous legislation run out, the new legislation should be passed by then, so we won’t have a lapse in assistance.”
It’s unclear whether or not the new legislation has actually been implemented. A spokesperson for DCHFA indicated that information about what is actually active right now is forthcoming.
Wilson also said that the program was a “no-brainer” considering its measured impact on older D.C. residents.
“It was very successful,” she said of the program’s first run. “Around $200,000 was distributed, and our average loan size was around $3,900. So, that’s roughly 50 loans — 50 Washingtonians that we were able to help save their homes. It was very successful.”
