D.C. Stepping Up Some More Amidst Shutdown Woes

Photo by PoPville flickr user Eric P.

From the Mayor’s Office:

“Today, as the partial federal government shutdown extends into its second month, Mayor Bowser and the DC Housing Finance Agency (DCHFA) have announced a new program to provide mortgage assistance to District homeowners who are furloughed federal government employees. Through the District of Columbia Mortgage Assistance Program (DC MAP), financial assistance will be made available to qualified homeowners in the form of a zero-interest, recourse loan. DCHFA has allocated $9,000,000 for DC MAP and qualified homeowners will be able to receive up to $5,000 a month.

“Many people – myself included – who make a monthly mortgage payment depend on having a steady paycheck to be able to do so,” said Mayor Bowser. “Unfortunately, this unprecedented shutdown has created a tremendous amount of economic uncertainty for federal employees and their families, and so we are doing everything we can to ease the burden and alleviate stress. It is very unfortunate that this is what it has come to and I join millions of Americans in urging the President to work with Congress to end this shutdown and get our federal employees back to work.”

To qualify for DC MAP, a homeowner must:

be a furloughed full-time federal government employee;
maintain their primary residence within the District;
have documentation to reflect applicant is not eligible for forbearance through their current lender/servicer;
reflect satisfactory 12 month payment history prior to furlough (from January 2018 through December 2018 – no more than 1 x 30 day late);
have first trust mortgage loan current through December 31, 2018; and
be at-risk of first trust mortgage default potentially leading to foreclosure.

“At DCHFA we recognize that retaining homeownership is as important as becoming a homeowner. We created DC MAP to provide emergency mortgage support at this urgent time for District homeowners that are experiencing an unanticipated financial hardship due to the partial shutdown of the federal government. With DC MAP we want to help DC residents across all Wards keep the homes that they have worked so hard to purchase and maintain their good payment history,” stated Todd A. Lee, DCHFA Executive Director and CEO.

Borrowers who utilize this program must repay the full amount within sixty days of the date of the government reopening or when back pay is made available to the borrower, whichever is earlier.

Starting Friday, January 25, homeowners can call 1-833-429-0537 to begin the DC MAP application process. Financial assistance will be granted on a first come first serve basis until the program allocation has been exhausted.”

Related:

“Today, the Office of the Chief Financial Officer released the results of an analysis of economic activity and tax revenues related to the partial federal government shutdown. In response to the results, Mayor Bowser released the following statement:

“Today marks the beginning of the second month of the federal government shutdown, and the District of Columbia’s Chief Financial Officer has confirmed the ripple effect of this unnecessary and unprecedented shutdown.

“More than 144,000 federal workers and contractors in the DC region are directly impacted by the shutdown, including over 53,000 Washingtonians. We have thousands of dedicated public servants who want to work, who should be working, and who have jobs that are essential to the functioning of our government. But they can’t go to work because they’re locked out. And this lockout is having a devastating impact on their financial stability.

“But it’s not just federal workers and their families who are impacted by the shutdown–it is restaurant workers, child care providers, hair salons, and so many others. With less money and more economic anxiety, people are spending less, and we are seeing the effects throughout the regional economy. According to this new report by our Chief Financial Officer, we are already facing roughly $40 million in revenue loss, and if the shutdown continues until February 15th, the District of Columbia Government could face upwards of $85 million in lost revenue.

“Fortunately, because we have managed our finances effectively and built up strong cash reserves, the District of Columbia is in a strong position to step up and assist residents. And while we are confident that no immediate changes are on the horizon, we know that if this shutdown continues, at some point, the projections will become more dire and it will impact the services we provide to our residents.

“Once again, in recognizing that it is workers, families, and small businesses that are paying the highest price, we urge President Trump to work with Congress to bring an immediate end to this shutdown.”

Also:

Today, which marks the beginning of the second month of the partial federal government shutdown, Mayor Bowser announced that she is sending emergency legislation to the Council of the District of Columbia that will give DC Government the ability to provide more federal employees with much-needed unemployment insurance benefits. Additionally, the Mayor also committed $2 million in additional support from DC’s local contingency fund to the Department of Human Services (DHS) for disbursement to new and recertifying DC Supplemental Nutrition Assistance Program (SNAP) beneficiaries starting in February. This commitment ensures that despite the lapse in federal funding for SNAP due to the persisting federal government shutdown, vital food assistance to tens of thousands of DC households and families will continue. SNAP is a nationwide program that offers nutrition assistance to millions of eligible, low-income individuals and families and is the largest program in the domestic hunger safety net.

“As we enter the second month of this aimless and unsustainable government shutdown, millions of Americans, including hundreds of thousands of District workers and families, are feeling the full impact of lost income and the anxiety that comes with not knowing when you’ll receive a steady paycheck,” said Mayor Bowser. “We know that what Americans need is a resolution to this shutdown, but until that happens, we’re going to keep doing what we can to make sure our residents have their basic needs taken care of – and that includes stepping up to fund SNAP and provide unemployment insurance benefits.”

Last week, Mayor Bowser sent a letter to United States Secretary of Labor Alexander Acosta urging the U.S. Department of Labor to work with the DC Government to make more federal workers eligible for unemployment insurance benefits. Currently, federal workers who are deemed excepted or essential must remain on the job on a full-time basis without pay and without the ability to claim unemployment insurance benefits. The Department of Labor denied the Mayor’s request and reaffirmed their position that these excepted and essential employees will remain ineligible for unemployment insurance benefits. In light of this decision, Mayor Bowser is sending emergency legislation to the Council of the District of Columbia that will allow the DC Government to provide unemployment insurance benefits to those essential federal employees who are working without pay or financial assistance.

A significant portion of families and individuals receiving SNAP benefits have no other source of income, and SNAP benefits provide a basic level of food assistance. On average, a family receives about $220 of food benefits per month, a small yet vital lifeline for approximately 110,000 Washingtonians. Of these beneficiaries, 41,000 are children under the age of 18, and 16,000 are seniors over the age of 60.

At today’s announcement, Mayor Bowser also joined Congresswoman Eleanor Holmes Norton in calling on the Trump Administration to work with Congress to immediately end the partial government shutdown, while highlighting local leaders, like the Capital Area Food Bank, that are assisting thousands of DC residents, including furloughed federal employees and their families.

Capital Area Food Bank, the largest organization in the District working to solve hunger, has seen a 20 percent increase in demand since the shutdown began. To mitigate the impacts of the shutdown on residents, the organization is hosting weekly, free grocery distributions for federal workers and contractors, and have committed to operate their “pop-up” grocery giveaways until the shutdown ends. For a list of other non-profit and private businesses stepping in to provide individuals and families affected during this unexpected time of need, visit dcfoodpolicy.org/federal-government-shutdown-resources.

For a full list of available resources for impacted federal workers, families, and businesses, or to see how you can help, visit dc.gov/shutdown.”