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PCS moves spark mortgage woes, Congress told

The services’ senior enlisted advisers told lawmakers that the housing mortgage crisis is forcing military homeowners to make some difficult choices when they try to sell their homes to make a permanent change-of-station move.

And, they said, the services are considering what they can do to help.

“We’re seeing a big problem in California,” said Sergeant Major of the Marine Corps Carlton Kent. “What we’re looking at is not picking up and moving people. We used to move people constantly … every couple of years from California.”

Kent and the other senior enlisted advisers testified before the House Appropriations subcommittee on military construction, veterans affairs and related agencies at a Feb. 4 hearing.

Master Chief Petty Officer of the Navy Rick West echoed Kent’s statements, and said the Navy is working that issue “real hard.”

Sergeant Major of the Army Kenneth Preston said the Army doesn’t have exact numbers of those who are having trouble, but from his experience in talking to soldiers, it is a lot. “In many cases, they’re leaving their families in place because they can’t afford to sell their house,” he aid. “They can’t afford to move out. So now what you end up with is a lot of geographic bachelors.”

Chief Master Sergeant of the Air Force Rodney McKinley said some service members “have to make a very difficult decision to maybe even separate and leave the military that they love because otherwise they’d be taking a $200,000 loss on their home.”

The Army has proposed expanding the Homeowners Assistance Program (HAP), which is currently designed to assist military and civilian homeowners living at installations affected by base realignment and closure actions.

“I think this is an important problem that I’m sure we’re going to address,” said Rep. Ander Crenshaw, R-Fla.

A provision in the Senate Appropriations Committee’s version of the economic stimulus package now pending in the Senate would carry out the Army’s idea, adding about $411 million to help military homeowners caught in the housing market crisis, including wounded warriors, surviving spouses, those affected by base realignments and closures, and those forced to move on PCS orders.

The Senate has been debating its version of the stimulus bill this week, and although Senate leaders hoped to complete work on the Senate version by tonight, some aides predict a final Senate vote won’t come before early next week.

The House version of the economic stimulus package has no similar provision. If the Senate language on expanding HAP stays in that version of the bill, lawmakers will consider it when they reconcile differences between the House and Senate versions and come up with a final compromise bill.