SERVICEMEMBERS CIVIL RELIEF ACT 50 U.S.C. App. 501-596 Homeowners Assistance Program 42 USC 3374

1. SERVICEMEMBERS CIVIL RELIEF ACT 50 U.S.C. App. �� 501-596Homeowners Assistance Program42 USC � 3374

2. 2 (1) to provide for, strengthen, and expedite the national defense through protection extended by this Act to servicemembers of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and (2) to provide for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of servicemembers during their military service.

3. 3 SUPREME COURT ON SSCRA �Protect those who have been obliged to drop their own affairs to take up the burdens of the nation.� Boone v. Lightner 319 U.S. 561, 575 (1943) �The Act should be read with an eye friendly to those who dropped their affairs to answer their country�s call.� Le Maistre v. Leffers 333 U.S. 1, 6 (1948)

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5. 5 Soldiers� & Sailors� Civil Relief Act (SSCRA) of 1918 Authored by Major John Wigmore, U.S. Army JAGC Introduction of �Material Effect� Act expired by its terms following WW I

6. 6 HISTORY OF SSCRA/SCRA SSCRA of 1940 Reenactment to protect those �called to arms� Enactment of 6% interest rate cap (old � 526) 1991 Amendments After Desert Shield Desert Storm Partial update; added non-discrimination provisions and addressed suspension of malpractice insurance for health care professionals

7. 7 NEW, IMPROVED SCRA On 19 December 2003, President Bush signed the SCRA, a complete revision of the SSCRA. The SCRA was written to: Clarify the language of the SSCRA Incorporate and codify many years of judicial interpretation of the SSCRA Update the SSCRA to reflect developments in American life since 1940

8. 8 2004 TECHNICAL AMENDMENTS Judgment defined: �Any judgment, decree, order or ruling, final or temporary.� Waivers of SCRA protections must be in separate writing, not less than 12 point type Stay provisions (� 522) apply to both plaintiffs and defendants Termination of joint leases effective as to member and spouse Termination of vehicle leases clarified

9. 9 2008 AMENDMENTS Default judgment protections clarified: �applies to any civil proceeding, including child custody proceeding� (� 521) Stay procedures clarified: �applies to any civil proceeding, including child custody proceeding� (� 522) Interest rate cap for mortgage type obligations extended one year beyond end of active duty (� 527) Violations of interest rate caps made punitive (� 527) Protections for pre-service mortgage obligations extended to 9 months after active duty (stays/ foreclosures) (� 533) Authority to terminate some cell phone contracts (� 535A)

10. 10 ORGANIZATION Found at 50 USC App. �� 501-596 (cites herein are to 50 U.S.C. App. � ___) Title I - General Provisions Persons protected and jurisdiction Non-discrimination provision Title II - General Relief Default judgments and stays --�� 521, 522, 524, 525 Fines & Penalties in contracts - � 523 Statutes of Limitation --� 526 Maximum rate of interest - � 527

11. 11 ORGANIZATION (cont.) Title III (�� 531-538) Major substantive protections against evictions, termination of installment contracts, foreclosure on mortgages, and termination of leases by lessees, protection to dependents Title IV - Life Insurance (�� 541-549) Title V - Taxes and Public Lands � 571 - Residence for tax purposes

12. 12 ORGANIZATION (cont.) Title VI - Administrative Remedies Inappropriate use of act - � 581 Title VII - Further Relief Anticipatory relief - � 591 Malpractice insurance - � 593 Self-funded medical insurance coverage reinstatement - � 594 Voting residency - � 595 Non-availability of non-business assets for business or trade obligations - � 596

13. 13 Servicemember Active Duty Military of 5 services - includes Reserves and Guard under Title 10 National Guard under 32 U.S.C. � 502(f) Public Health Service Officers National Oceanic & Atmospheric Officers Dependents SM�s spouse or child Person that SM provided more than 1/2 support for 180 days preceding application for relief under act DEFINITIONS � 511

14. 14 Court includes All courts -- including bankruptcy All administrative agencies Whether or not of record �Judgment� � defined for the first time �Any judgment, decree, order or ruling, final or temporary� DEFINITIONS � 511 (cont.)

15. 15 SCRA applies to all courts & administrative agencies � federal, state and local -- ALL MEANS ALL SCRA applies to civil cases only May apply to ANY court that would otherwise have jurisdiction

16. 16 PERSONS SECONDARILY LIABLE � 513 If court grants relief (stay, postponement, suspension of obligation) to servicemember, the relief may also be granted to persons primarily or secondarily liable with the SM Surety, guarantor, endorser Accommodation maker, comaker (added by SCRA) Other person who may be primarily or secondarily subject to the obligation or liability

17. 17 RESERVES ORDERED TO DUTY � 516 Members of Reserve component entitled to protection of SCRA from receipt of mobilization orders Allows for time to put affairs in order

18. 18 WAIVER OF RIGHTS � 517 Member may waive protections Must be made during or after period of service Must be in separate writing not less than12-point type (2004 amendment) ? Contract, lease, or bailment ? Mortgage, trust, deed, lien, other security ? Repossession, retention, foreclosure, sale, forfeiture, taking possession of property

19. 19 NON-DISCRIMINATION � 518 Claiming rights under SCRA cannot be basis for: Determination by lender that the member is unable to pay Denial or revocation of credit Change in terms of existing credit arrangement Refusal to grant credit to the member Adverse credit report Refusal by insurer to insure member Identifying SM as member of NG or Reserve Changing the conditions or terms of insurance

20. 20 LEGAL REPRESENTATIVES� 519 SCRA adds a provision recognizing a legal representative of the Servicemember: An attorney acting on the behalf of a Servicemember; or An individual possessing a power of attorney Legal representative can take the same actions as a Servicemember

21. 21 FINES & PENALTIES � 523 NO penalties under a contract if performance stayed by Court, and if no stay -- Court may reduce or waive fine or penalty if SM was in military service at time of fine or penalty Performance materially affected by military service

22. 22 Tolling Statutes of Limitation� 526 Military service tolls statutes of limitation. Tolled for entire period of military service. Applies whether as a plaintiff or defendant. Does not require �material effect.�

23. 23 MAXIMUM RATE OF INTEREST� 527 PRE-SERVICE loans incurred by SM, or SM and spouse jointly But not guaranteed student loans (20 USC � 1078(d)) Cap of 6% per annum; all excess FORGIVEN Recompute payments at 6% rate Cap may be rescinded if creditor shows no material effect SM must give written notice with copy of orders

24. 24 MAXIMUM RATE OF INTEREST � 5272008 Amendment 2008 AMENDMENT PRE-SERVICE obligation consisting of mortgage, trust deed, or other mortgage-type obligation 6% Interest Cap extends for one year after military service Only during the period of military service for any other obligation or liability. Effective 30 Jul 08 Definition of �military service� is broad.

25. 25 EVICTIONS & DISTRESS � 531 Can ONLY evict upon court order: no self-help Applies to SM or dependents Residential rent does not exceed $2,932.31/mo (CPI adjusted for 2009) Ability to pay materially affected by service Court SHALL stay for minimum 90 days, or Adjust the lease obligations Criminal sanctions for violation Dependents have right to invoke

26. 26 INSTALLMENT CONTRACTS FOR PURCHASE OR LEASE � 532 In event of breach of contract, no termination or repossession of property without VALID court order Applies to pre-service obligation Purchase, lease, or bailment of real or personal property Payment or deposit made prior to service Misdemeanor offense for violation After hearing, a court may order repayment to SM to terminate contract, or SHALL stay the proceeding if SM�s ability to comply is materially affected and SM applies� length of stay determined by Court May stay on court�s own motion

27. 27 MORTGAGE FORECLOSURE PROTECTION � 533 Similar protection as for installment contracts and leases under �� 531/532, but applies to obligations on real or personal property secured by a mortgage Applies only to pre-service obligations Applicable: period of service + 9 months (reverts to 90 days as of January 1, 2011). No sale, foreclosure, or seizure of property shall be valid if w/in 9 months of active duty absent VALID court order

28. 28 TERMINATION OF PREMISES LEASES � 535 Applies to pre-service leases of premises; or Premises leases signed by SM (or on SM�s behalf) after entering military service when SM receives PCS orders or deployment orders for not fewer than 90 days Qualifying lease is terminated by delivery of written notice with copy of orders to lessor or lessor�s agent (hand delivery, mail, FedEx) Obviates the need for �military clauses.�

29. 29 TERMINATION OF VEHICLE LEASES � 535 Pre-service vehicle leases If SM is called up or enters service for 180 days or more; or Vehicle lease executed after service commences if SM receives orders : For permanent change of station outside continental US, or For deployment for 180 days or more Notice of termination must be in writing, delivered to lessor (or lessor�s agent or grantee) along with copy of military orders (by hand, mail or FedEx)

30. 30 TERMINATION OF VEHICLE LEASES (cont.) Vehicle must be surrendered within 15 days of termination notice Lease terminated effective date vehicle surrendered No penalties allowed for early termination Misdemeanor to wrongfully retain personal property or security deposit Leasing companies were initially unaware of this new section; now have industry and DoD-approved form for cancellation

31. 31 TERMINATION OF CELL PHONE CONTRACTS � 535A Limited application: SM w/orders: to deploy outside the continental US for at least 90 days to permanently change duty stations within the US SM may request termination/suspension Requires material effect Provider must either cancel or suspend with no cancellation/reactivation fee Potential Revision/Expansion: H.R. 2647, Sec. 583

32. 32 ENFORCEMENT OF LIENS � 537 ONLY Court ordered enforcement; no foreclosure or enforcement of lien (no sales, repossession of property) w/o court order Liens include: storage, repair, or cleaning property of SM Doesn�t matter if pre-service obligation or not Protections extend during any period of military service and for 90 days thereafter Stay of proceedings Court SHALL stay or adjust the obligations of all parties if SM applies and ability to comply is materially affected Court may do same on own motion

33. 33 Applies only if defendant has not appeared Plaintiff�s Affidavit required: Whether or not defendant is in military; or If unable to determine status - court may require plaintiff to post bond If defendant is a military member, court cannot enter default judgment until attorney is appointed to represent military member

34. 34 STAY OF DEFAULT PROVISIONS � 521 If defendant is in military, court SHALL stay proceedings Minimum 90 days on application of counsel or court�s own motion Court must determine that there May be a defense that cannot be presented without presence of defendant; or After due diligence counsel has been unable to contact defendant or otherwise determine if a meritorious defense exists

35. 35 Court SHALL reopen a default judgment entered while SM on active duty or within 60 days thereafter, when SM applies while on active duty or within 90 days thereafter, and shows Material effect, plus Meritorious defense BONA FIDE purchasers protected

36. 36 Temporary delay in civil actions until servicemember can appear During period of service plus 90 days, and Servicemember has received notice of proceeding Automatic 90 day stay if: SM shows military duty materially affects ability to appear, and date when can appear Commanding officer writes letter stating duty prevents appearance and leave not authorized

37. 37 SM may apply for additional stay based on continuing material effect of military duty on SM�s ability to participate in the litigation If Court does not grant additional stay, it shall appoint counsel to represent SM EXTENSION OF STAY

38. 38 STAY OR VACATION OFJUDGMENTS � 524 If military service materially affects compliance with judgment or order: Court SHALL on application of SM Stay execution; and Vacate or stay attachment or garnishment Court may also act on its own motion

39. 39 DURATION OF STAYS � 525 May be for the period of service plus 90 days, or any part thereof Court may set the terms and amounts of any installment payments Plaintiff may proceed against any codefendants not in military service with court approval

40. 40 CERTIFICATES OF SERVICE � 582 A Certificate of the Service Secretary shall be prima facie evidence as to all aspects of a person�s military service, or non-service. Such a certificate shall be furnished upon application (to each service) � SUGGESTION -- use DMDC website https://www.dmdc.osd.mil/scra/owa/scra.home A SM missing in action is presumed to continue in service until accounted for.

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42. 42 DMDC Website Should be used with all affidavits of Service � 521 Currently can only indicate Active Duty under a call of at least 30 days as of the date of inquiry Quality of determination depends on information provided (name, SS#, DOB) Improvements in the works: Last day of AD Date-specific requests

43. 43 KEY CONCEPTS OF NEW SCRA Protection of rights, not avoidance of responsibility Private causes of action recognized Criminal sanctions continued for Title III violations Liberal construction in favor of the SM should still be the rule Private Cause of Action: See Cort v. Ash, 422 US 66 (1975) 4-part test to determine whether a private cause of action exists. Successful: Moll v. Ford Consumer Finance, (E.D. ILL. Mar 16, 1998) Marin v. Armstrong (ND Tex Sep 1, 1998) Cathy v. First Republic Bank WD LA 2001 LA On 13 September 2001, the Deputy Assistant Attorney General for DOJ's Civil Division approved the request for representation of a CG member against a creditor who refused to lower the interest rate on a pre-service debt. DOJ found that it was in the interest of the United States to provide representation, which has been delegated to the U.S. Attorney's Office for the District of Hawaii. Private Cause of Action: See Cort v. Ash, 422 US 66 (1975) 4-part test to determine whether a private cause of action exists. Successful: Moll v. Ford Consumer Finance, (E.D. ILL. Mar 16, 1998) Marin v. Armstrong (ND Tex Sep 1, 1998) Cathy v. First Republic Bank WD LA 2001 LA On 13 September 2001, the Deputy Assistant Attorney General for DOJ's Civil Division approved the request for representation of a CG member against a creditor who refused to lower the interest rate on a pre-service debt. DOJ found that it was in the interest of the United States to provide representation, which has been delegated to the U.S. Attorney's Office for the District of Hawaii.

44. 44 SUMMARY SCRA provides protections for citizens called to military duty and their dependents Provides for suspension of certain civil liabilities during the period of service SCRA requires education for bench and bar � it really means what it says

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47. 47 Homeowners� Assistance Program American Recovery and Reinvestment Act�The Stimulus Act. Expands previously existing Homeowners� Assistance Program (HAP)(42 USC 3374) Appropriates $555M Previously existing HAP tied to BRAC Tied to relocation and drop in housing prices due to closing and realignment �causation� The American Recovery and Reinvestment Act expanded the long-existing HOMEOWNERS� Assistance Program � by appropriating what appears to be truly free money -- $555M. It expands the previous program that only applied to BRAC situations where military and civilians lost their jobs at the affected military installation and were forced to relocate. AND because of the base realignment or closure, the cost of their homes had gone down. There was a causation request in the old law --- . The American Recovery and Reinvestment Act expanded the long-existing HOMEOWNERS� Assistance Program � by appropriating what appears to be truly free money -- $555M. It expands the previous program that only applied to BRAC situations where military and civilians lost their jobs at the affected military installation and were forced to relocate. AND because of the base realignment or closure, the cost of their homes had gone down. There was a causation request in the old law --- .

48. 48 Homeowners� Assistance Program ARRA Expands previously existing HAP (Feb 09) to cover: Service member who PCSs and sells for loss, or can�t sell BRAC 2005 (no causation required) Wounded, Injured, Ill Warriors Civilians Surviving Spouses: warriors or civilians The NEW LAW expands the old BRAC-specific coverage now to include certain Service members who PCSt and have lost value in their home. It then gets rid of the causation piece with respect to the BRAC 2005 announcement. And covers certain Wounded Warriors, Certain Civilians, and Surviving Spouses. The NEW LAW expands the old BRAC-specific coverage now to include certain Service members who PCSt and have lost value in their home. It then gets rid of the causation piece with respect to the BRAC 2005 announcement. And covers certain Wounded Warriors, Certain Civilians, and Surviving Spouses.

49. 49 Homeowners� Assistance Program General Principles (statutory) PCS Reassigned > 50 miles Reassignment orders: 1 Feb 06 thru 30 Sep 12 Primary Residence purchased < 1 Jul 06 BRAC 2005 (no causation) Fed/NAFI employee Employment ended w/BRAC�d entity Primary Residence purchased < 1 Jul 06 Forced to accept employment outside normal commuting distance In general, the statutory guidance is fairly broad: For PCS, there must be a reassignment of more than 50 miles and the reassignment orders must have been dated between Feb 06 and 2012 And the house must have been purchased before Jul 06. FOR BRAC, Applies to Fed employees, NAFI employees and could be Service members too. --Their employment at the BRAC�d installation was ended --Primary Residence was purchased before Jul 06 (which is problematic since the BRAC announcement was May 2005 � but there is discretion to fix that). AND the peson is foreced to accept employment outside the normal commuting distance. In general, the statutory guidance is fairly broad: For PCS, there must be a reassignment of more than 50 miles and the reassignment orders must have been dated between Feb 06 and 2012 And the house must have been purchased before Jul 06. FOR BRAC, Applies to Fed employees, NAFI employees and could be Service members too. --Their employment at the BRAC�d installation was ended --Primary Residence was purchased before Jul 06 (which is problematic since the BRAC announcement was May 2005 � but there is discretion to fix that). AND the peson is foreced to accept employment outside the normal commuting distance.

50. 50 Homeowners� Assistance Program General Principles (statutory) (con�t) Wounded Warrior (some civilians) Wound, injury, illness in LOD � deployed Disabled 30% Reassigned for medical treatment or medical retirement Surviving Spouse Member or civilian employee killed in LOD or during deployment after 9-11 in support of Armed Forces Member dies from wound, injury, or illness during such a deployment Spouse relocates from residence w/in 2 years For wounded warriors � there doesn�t appear to be a statutory time limit for when the Wound, Injury, or Illness was incurred. Must have incurred wound, injury, or illness while deployed. � Not defined. Must have resulted in 30% disability. Reassigned for medical treatment or retirement (although there is no requirement in the statute that the reassignment actually necessitate or be linked to the need to move.) Civilians, also applied to certain civilians forward deployed with the Armed Forces. And to suriving spouses of Service members killed in Line of Duty during a deployment after 9-11 in support of the Armed Forces. Spouse must have re-located within 2 years of the death. For wounded warriors � there doesn�t appear to be a statutory time limit for when the Wound, Injury, or Illness was incurred. Must have incurred wound, injury, or illness while deployed. � Not defined. Must have resulted in 30% disability. Reassigned for medical treatment or retirement (although there is no requirement in the statute that the reassignment actually necessitate or be linked to the need to move.) Civilians, also applied to certain civilians forward deployed with the Armed Forces. And to suriving spouses of Service members killed in Line of Duty during a deployment after 9-11 in support of the Armed Forces. Spouse must have re-located within 2 years of the death.

51. 51 Homeowners� Assistance Program Principles of Compensation (statutory) Discretion w/ SECDEF to pay not more than: Private sale: 95% of Prior Fair Market Value (PFMV) minus FMV at time of sale (generally sales price) Can�t sell: DoD buys or subsidizes sale: 90% of PFMV or amount of outstanding mortgage The law sets up a general compensation scheme that works mainly the same way for each of the three catogories: PCS BRAC 2005 Wounded Warriors. Although the Secretary has the authority to pay less and as implemented he likely will, but as far as the maximum amount payable: If there is a private sale and the owner loses money, the SECRETARY can pay up to 95% of the Prior Fair Market Value ( which will probably be the sales price when the member bought the house -- as a matter of policy) MINUS the sales price. Or if the member can�t sell, then DOD can buy by paying either 90% of the prior FMV or pay off the existing mortgage. NOW those amounts can be adjusted down as a matter of policy. So that�s the STATUTORY provisions � now how is it likely that this will be implemented as a matter of policy. THIS IS STILL UP IN THE AIR TO SOME SMALL DEGREE BECAUSE THE DEPSECDEF has not signed off on anything, but that is imminent. But as of now, what I am going to present is what it is likely to be. Again, it�s NOT BEEN APPROVED. The law sets up a general compensation scheme that works mainly the same way for each of the three catogories: PCS BRAC 2005 Wounded Warriors. Although the Secretary has the authority to pay less and as implemented he likely will, but as far as the maximum amount payable: If there is a private sale and the owner loses money, the SECRETARY can pay up to 95% of the Prior Fair Market Value ( which will probably be the sales price when the member bought the house -- as a matter of policy) MINUS the sales price. Or if the member can�t sell, then DOD can buy by paying either 90% of the prior FMV or pay off the existing mortgage. NOW those amounts can be adjusted down as a matter of policy. So that�s the STATUTORY provisions � now how is it likely that this will be implemented as a matter of policy. THIS IS STILL UP IN THE AIR TO SOME SMALL DEGREE BECAUSE THE DEPSECDEF has not signed off on anything, but that is imminent. But as of now, what I am going to present is what it is likely to be. Again, it�s NOT BEEN APPROVED.

52. 52 Homeowners� Assistance Program Policy Implementation AT&L/Comptroller US Army (Corps of Engineers) executive agent Timeline May: SECDEF Approves General Principles June Army completes implementing regulations June: Regulations coordinated with P&R/Services July: Regulations approved by AT&L Aug: OMB/Interagency coordination Sep: Regulations published in FR for public comment and processing of applications begins But first who are the players to implement this policy? ATL and the Comptroller are running the show. ATL has the authority granted by DOD issuance from a number of years back. And the Army is the executive agent. � P&R has done it�s best to elbow its way to the table because a lot of this looks much more like personnel issues than straight real estate, but I can�t tell you we have been wildly successful. TIME LINE: This points out that OSD has not approved the big picture issues yet, many of which deal with eligibility. Once it�s approved, then we are looking at the USACOE drafting implementing guidance. Guidance that P&R has insisted we and the SERVICES get to a meaningful opportunity to review. Our points have been made that this needs to be done right, rather than fast. But there is extreme pressure from above to get this out there. So I personally am not convinced that we will have this chance. The thought is that payments could be made as early as July. But first who are the players to implement this policy? ATL and the Comptroller are running the show. ATL has the authority granted by DOD issuance from a number of years back. And the Army is the executive agent. � P&R has done it�s best to elbow its way to the table because a lot of this looks much more like personnel issues than straight real estate, but I can�t tell you we have been wildly successful. TIME LINE: This points out that OSD has not approved the big picture issues yet, many of which deal with eligibility. Once it�s approved, then we are looking at the USACOE drafting implementing guidance. Guidance that P&R has insisted we and the SERVICES get to a meaningful opportunity to review. Our points have been made that this needs to be done right, rather than fast. But there is extreme pressure from above to get this out there. So I personally am not convinced that we will have this chance. The thought is that payments could be made as early as July.

53. 53 Homeowners� Assistance ProgramExamples $300K Purchase Price $250K Mortgage Outstanding $200K Sales Price Maximum Statutory Benefits: 95% Purchase Price � Sales Price = $285K - $200K = $85K $50K satisfies the mortgage; $35K to the SM Benefits are taxable as the law is now written: $85K But first who are the players to implement this policy? ATL and the Comptroller are running the show. ATL has the authority granted by DOD issuance from a number of years back. And the Army is the executive agent. � P&R has done it�s best to elbow its way to the table because a lot of this looks much more like personnel issues than straight real estate, but I can�t tell you we have been wildly successful. TIME LINE: This points out that OSD has not approved the big picture issues yet, many of which deal with eligibility. Once it�s approved, then we are looking at the USACOE drafting implementing guidance. Guidance that P&R has insisted we and the SERVICES get to a meaningful opportunity to review. Our points have been made that this needs to be done right, rather than fast. But there is extreme pressure from above to get this out there. So I personally am not convinced that we will have this chance. The thought is that payments could be made as early as July. But first who are the players to implement this policy? ATL and the Comptroller are running the show. ATL has the authority granted by DOD issuance from a number of years back. And the Army is the executive agent. � P&R has done it�s best to elbow its way to the table because a lot of this looks much more like personnel issues than straight real estate, but I can�t tell you we have been wildly successful. TIME LINE: This points out that OSD has not approved the big picture issues yet, many of which deal with eligibility. Once it�s approved, then we are looking at the USACOE drafting implementing guidance. Guidance that P&R has insisted we and the SERVICES get to a meaningful opportunity to review. Our points have been made that this needs to be done right, rather than fast. But there is extreme pressure from above to get this out there. So I personally am not convinced that we will have this chance. The thought is that payments could be made as early as July.

54. 54 Homeowners� Assistance ProgramExamples $300K Purchase Price $250K Mortgage Outstanding Could not sell Maximum Statutory Benefits: 90% of Purchase Price ($270K) or Mortgage Payoff ($250K) $270K is higher $250K to satisfy the mortgage; $20K to the SM Benefits are taxable: the difference between the FMV and the 90% of the purchase price. Say the FMV was $150K, then taxable benefits would be $270K-$150K=$120K But first who are the players to implement this policy? ATL and the Comptroller are running the show. ATL has the authority granted by DOD issuance from a number of years back. And the Army is the executive agent. � P&R has done it�s best to elbow its way to the table because a lot of this looks much more like personnel issues than straight real estate, but I can�t tell you we have been wildly successful. TIME LINE: This points out that OSD has not approved the big picture issues yet, many of which deal with eligibility. Once it�s approved, then we are looking at the USACOE drafting implementing guidance. Guidance that P&R has insisted we and the SERVICES get to a meaningful opportunity to review. Our points have been made that this needs to be done right, rather than fast. But there is extreme pressure from above to get this out there. So I personally am not convinced that we will have this chance. The thought is that payments could be made as early as July. But first who are the players to implement this policy? ATL and the Comptroller are running the show. ATL has the authority granted by DOD issuance from a number of years back. And the Army is the executive agent. � P&R has done it�s best to elbow its way to the table because a lot of this looks much more like personnel issues than straight real estate, but I can�t tell you we have been wildly successful. TIME LINE: This points out that OSD has not approved the big picture issues yet, many of which deal with eligibility. Once it�s approved, then we are looking at the USACOE drafting implementing guidance. Guidance that P&R has insisted we and the SERVICES get to a meaningful opportunity to review. Our points have been made that this needs to be done right, rather than fast. But there is extreme pressure from above to get this out there. So I personally am not convinced that we will have this chance. The thought is that payments could be made as early as July.

55. 55 Homeowners� Assistance ProgramIssues Implementation Ceilings/Floors Amount to be paid: adjusting percentages down? 95% / 90% Cut off dates for applications Raising the dead � dealing with sales for losses/completed foreclosures occurring prior to the effective date of law Order for processing applications Establishing definitions for deployments and other terms Issues Minimum efforts to sell � we don�t want houses in the inventory HAP Benefits are taxable (for now) �withholding required How do we get all the parties to the table? Lender�s forgiveness? But first who are the players to implement this policy? ATL and the Comptroller are running the show. ATL has the authority granted by DOD issuance from a number of years back. And the Army is the executive agent. � P&R has done it�s best to elbow its way to the table because a lot of this looks much more like personnel issues than straight real estate, but I can�t tell you we have been wildly successful. TIME LINE: This points out that OSD has not approved the big picture issues yet, many of which deal with eligibility. Once it�s approved, then we are looking at the USACOE drafting implementing guidance. Guidance that P&R has insisted we and the SERVICES get to a meaningful opportunity to review. Our points have been made that this needs to be done right, rather than fast. But there is extreme pressure from above to get this out there. So I personally am not convinced that we will have this chance. The thought is that payments could be made as early as July. But first who are the players to implement this policy? ATL and the Comptroller are running the show. ATL has the authority granted by DOD issuance from a number of years back. And the Army is the executive agent. � P&R has done it�s best to elbow its way to the table because a lot of this looks much more like personnel issues than straight real estate, but I can�t tell you we have been wildly successful. TIME LINE: This points out that OSD has not approved the big picture issues yet, many of which deal with eligibility. Once it�s approved, then we are looking at the USACOE drafting implementing guidance. Guidance that P&R has insisted we and the SERVICES get to a meaningful opportunity to review. Our points have been made that this needs to be done right, rather than fast. But there is extreme pressure from above to get this out there. So I personally am not convinced that we will have this chance. The thought is that payments could be made as early as July.

57. 57 Protecting Tenants at Foreclosure Act General Principles When a Landlord is foreclosed on, immediate successor in interest takes subject to existing lease Applies to federally-related mortgage loan or to any dwelling or residential real property as of effective date of the law Exceptions When a successor in interest sells the property to a purchaser who will occupy the unit as a primary residence, subject to 90-day notice When tenant has month-to-month lease or an otherwise terminable lease, successor in interest may force tenant to vacate subject to 90-day notice For wounded warriors � there doesn�t appear to be a statutory time limit for when the Wound, Injury, or Illness was incurred. Must have incurred wound, injury, or illness while deployed. � Not defined. Must have resulted in 30% disability. Reassigned for medical treatment or retirement (although there is no requirement in the statute that the reassignment actually necessitate or be linked to the need to move.) Civilians, also applied to certain civilians forward deployed with the Armed Forces. And to suriving spouses of Service members killed in Line of Duty during a deployment after 9-11 in support of the Armed Forces. Spouse must have re-located within 2 years of the death. For wounded warriors � there doesn�t appear to be a statutory time limit for when the Wound, Injury, or Illness was incurred. Must have incurred wound, injury, or illness while deployed. � Not defined. Must have resulted in 30% disability. Reassigned for medical treatment or retirement (although there is no requirement in the statute that the reassignment actually necessitate or be linked to the need to move.) Civilians, also applied to certain civilians forward deployed with the Armed Forces. And to suriving spouses of Service members killed in Line of Duty during a deployment after 9-11 in support of the Armed Forces. Spouse must have re-located within 2 years of the death.

58. 58 Protecting Tenants at Foreclosure Act Why is this important to SMs? SMs rent at a higher rate than does the general public How does this Act differ from protections already in place? Establishes a baseline of protections Standardizes protection across the country States, however, may provide renters greater protections What can the Services do to help if the SM must still move? Provide legal assistance�SCRA can still help Pay for local moves For wounded warriors � there doesn�t appear to be a statutory time limit for when the Wound, Injury, or Illness was incurred. Must have incurred wound, injury, or illness while deployed. � Not defined. Must have resulted in 30% disability. Reassigned for medical treatment or retirement (although there is no requirement in the statute that the reassignment actually necessitate or be linked to the need to move.) Civilians, also applied to certain civilians forward deployed with the Armed Forces. And to suriving spouses of Service members killed in Line of Duty during a deployment after 9-11 in support of the Armed Forces. Spouse must have re-located within 2 years of the death. For wounded warriors � there doesn�t appear to be a statutory time limit for when the Wound, Injury, or Illness was incurred. Must have incurred wound, injury, or illness while deployed. � Not defined. Must have resulted in 30% disability. Reassigned for medical treatment or retirement (although there is no requirement in the statute that the reassignment actually necessitate or be linked to the need to move.) Civilians, also applied to certain civilians forward deployed with the Armed Forces. And to suriving spouses of Service members killed in Line of Duty during a deployment after 9-11 in support of the Armed Forces. Spouse must have re-located within 2 years of the death.

59. 59 QUESTIONS? Office of Legal Policy 703-697-3387 david.shumake@osd.mil For wounded warriors � there doesn�t appear to be a statutory time limit for when the Wound, Injury, or Illness was incurred. Must have incurred wound, injury, or illness while deployed. � Not defined. Must have resulted in 30% disability. Reassigned for medical treatment or retirement (although there is no requirement in the statute that the reassignment actually necessitate or be linked to the need to move.) Civilians, also applied to certain civilians forward deployed with the Armed Forces. And to suriving spouses of Service members killed in Line of Duty during a deployment after 9-11 in support of the Armed Forces. Spouse must have re-located within 2 years of the death. For wounded warriors � there doesn�t appear to be a statutory time limit for when the Wound, Injury, or Illness was incurred. Must have incurred wound, injury, or illness while deployed. � Not defined. Must have resulted in 30% disability. Reassigned for medical treatment or retirement (although there is no requirement in the statute that the reassignment actually necessitate or be linked to the need to move.) Civilians, also applied to certain civilians forward deployed with the Armed Forces. And to suriving spouses of Service members killed in Line of Duty during a deployment after 9-11 in support of the Armed Forces. Spouse must have re-located within 2 years of the death.