HHF District of Columbia Date: January 31, 2018

B-1-1

SERVICE SCHEDULE B-1

District of Columbia Housing Finance Agency

HOMESAVER PROGRAM

Summary Guidelines

1. Program Overview The HomeSaver Program will offer lump sum assistance and/or 

ongoing monthly mortgage payments to eligible District of 

Columbia (“District”) homeowners at risk of foreclosure. 

The HomeSaver Program is made up of two components:

• The Unemployment and Underemployment Assistance

component will provide assistance to unemployed and 

underemployed homeowners through a one-time payment of 

up to nine (9) months of mortgage and/or condo fee 

delinquency in order to bring the mortgage current. This 

component will provide up to twenty four (24) months of 

mortgage and/or condo fee payments going forward in order 

to keep the homeowner current.

• The Restore Assistance component will be available for 

homeowners who have suffered a financial hardship and 

who need a lump-sum payment to catch up on arrears, but 

who have sufficient resources to continue making their 

regular payments going forward. Restore assistance may

cover any property-related payments necessary to cure a 

default and prevent a foreclosure, including but not limited 

to mortgage payments, property taxes, hazard insurance, late 

fees, condo fees, homeowners association fees, and legal 

fees. For applicants whose delinquency involved an 

inability to pay property tax charges, non-escrowed property 

taxes, such as in the case of a reverse mortgage, may be prepaid through the remainder of the fiscal year at settlement.

Applicants will be referred to the HomeSaver Program after 

completion of an intake package. Intake packages will be 

reviewed by a U.S. Department of Housing and Urban 

Development (“HUD”) approved housing counseling agency 

and then forwarded to the HomeSaver Program for approval. 

2. Program Goals Foreclosure prevention – The primary goal of the HomeSaver 

Program is to prevent foreclosures that will erode the base of 

homeowners in the District, which already lags behind the 

national average in the rate of homeownership. Additionally, 

each applicant will work with a HUD approved housing 

counseling agency.
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Synergistic interaction – The DCHFA will partner with other 

organizations (i.e. DOES and the Urban Institute) to define the 

universe of potential candidates for the HomeSaver Program, 

perform outreach and intake and ultimately deliver timely 

assistance to prevent foreclosure. DOES is the District agency 

that administers the District’s Unemployment Insurance and job 

training programs. The Urban Institute (the “Institute”) has 

conducted extensive research into housing issues in the District, 

including mortgage delinquencies and foreclosures. The Institute 

gathers data, conducts research, evaluates programs, offers 

technical assistance overseas, and educates Americans on social 

and economic issues to foster sound public policy and effective 

government.

Simplicity – The DCHFA will employ a HomeSaver Program 

design that seeks to minimize administrative costs, thereby 

maximizing the amount of dollars available for assistance.

3. Target Population / 

Areas

The HomeSaver Program will be available to eligible 

homeowners throughout the District.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$23,006,159

5. Borrower Eligibility 

Criteria

Eligible program participants will be District homeowners 

identified on the most recent deed of trust, or deed, who 

currently occupy their home as a primary residence. 

In addition, candidates must also meet the following criteria:

• Unemployment and Underemployment Assistance –

unemployed homeowners who have received UI benefits 

within six (6) months of application; or underemployed

homeowners who (i) have had an involuntary reduction 

in gross income such that the homeowner’s income is 

90% or less of the homeowner’s pre-hardship income 

(which reduction occurred after the origination of the 

current mortgage), (ii) have a current gross income less 

than or equal to 120% of Area Median Income (“AMI”), 

and (iii) have a monthly PITI payment that is greater 

than 38% of the homeowner’s gross monthly income.

• Restore –homeowners who 
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o have suffered an eligible financial hardship, and, 

through no fault of their own, are at risk of a 

foreclosure due to unpaid mortgage payments, 

property taxes, hazard insurance, late fees, condo 

fees, homeowners association fees, legal fees or other 

property-related payments; and 

o if the default is cured, can afford to resume future 

payments without additional assistance by 

demonstrating a housing payment ratio of 38% or 

less of the homeowner’s gross monthly income. 

All program participants will be required to sign a Hardship 

Affidavit attesting to their inability to make mortgage payments 

or reinstate their delinquency due to unemployment, substantial 

underemployment, or other eligible financial hardship that 

occurred through no fault of their own.

6. Property / Loan 

Eligibility Criteria

Single-family home or condominium. 

7. Program Exclusions • Homeowners with an outstanding mortgage balance greater 

than $729,750;

• Homeowners whose income is over 120% of AMI;

• Homeowners who are in active bankruptcy;

• Residential cooperative units;

• Homeowners unable to substantiate past and present income 

or who fail to provide required program documentation as 

requested.

8. Structure of Assistance All loans will be recorded as non-recourse junior liens against 

the property and will be non-amortizing. Loans will be forgiven 

at a rate of 20% per year such that in year six (6) the loan will be 

forgiven and the lien released.

If assistance is paid directly (or through a settlement agent) to 

the District of Columbia Office of Tax and Revenue and/or to a 

condominium or homeowners association, the homeowner will 

execute an additional, simultaneous Demand Note in the amount 

required to redeem a property (if applicable). 

The loan will only be repayable if the program participant sells 

or refinances the property prior to expiration of the lien period, 

and then only to the extent there is sufficient equity to pay that 

portion of the loan that has not been forgiven. Notwithstanding 

the foregoing, if a program participant refinances prior to full 

forgiveness, and the participant is not receiving any cash from 
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the refinance, the HomeSaver loan will subordinate to the new 

loan and will continue to be forgiven.

Loan funds repaid by program participants will be returned to 

the program or recaptured in accordance with the Agreement.

9. Per Household 

Assistance

Maximum program assistance is $60,000 per household.

10. Duration of Assistance Unemployment and Underemployment Assistance. The 

maximum duration of assistance is twenty-four (24) months. 

Eligible homeowners may combine lump-sum catch-up 

assistance and forward-paying assistance so long as the total 

duration of assistance does not exceed the cap. For example, if 

an unemployed homeowner receives catch-up assistance to bring 

his/her mortgage current after a six (6) month delinquency, the 

homeowner may still be eligible for up to eighteen (18) months 

of forward-paying assistance, as long as the total duration does

not exceed twenty-four (24) months.

Restore Assistance. One-time lump-sum payment capped at 

$60,000.

11. Estimated Number of 

Participating 

Households

900-1,200

12. Program Inception / 

Duration

The HomeSaver Program began January 18, 2011 and is 

expected to continue until all funds are exhausted, but not later 

than December 31, 2020.

13. Program Interactions 

with Other HFA 

Programs

Homeowners may access other District programs. The DCHFA 

will explore partnerships with other District agencies that have 

programs assisting District residents at risk of foreclosure, 

including the Department of Housing and Community 

Development (“DHCD”) and the Department of Insurance 

Securities and Banking (“DISB”). DISB provides foreclosure 

mitigation assistance and DHCD funds foreclosure prevention 

counseling and other federal programs including the 

Neighborhood Stabilization Program.

14. Program Interactions 

with HAMP

Eligible homeowners may also access Federal programs 

including HAMP and HAMP UP. Homeowners may utilize 

HAMP UP before or after the HomeSaver Program.
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15. Program Leverage with 

Other Financial 

Resources

The HomeSaver Program requires no financial contribution 

from servicers or lenders, however, loan modifications or 

contributions/fee waivers are permitted (but not required). 
HHF District of Columbia Date: January 31, 2018

C-1

SCHEDULE C

PERMITTED EXPENSES

Washington D.C.

One-time / Start-Up Expenses:

Initial Personnel $76,829.00

Building, Equipment, Technology $166,968.00

Professional Services $12,000.00

Supplies / Miscellaneous $0.00

Marketing /Communications $7,500.00

Travel $5,000.00

Website development /Translation $1,412.00

Contingency $0.00

Subtotal $269,709.00

Operating / Administrative 

Expenses:

Salaries $1,683,615.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $236,300.00

Travel $9,000.00

Buildings, Leases & Equipment $209,650.00

Information Technology & 

Communications $804,834.00

Office Supplies/Postage and 

Delivery/Subscriptions $22,123.00

Risk Management/ Insurance $0.00

Training $0.00

Marketing/PR $37,426.00

Miscellaneous $10,000.00

Subtotal $3,012,948.00

Transaction Related Expenses:

Recording Fees $938,705.00 

Wire Transfer Fees $152,762.00 

Counseling Expenses

File Intake $0.00 

Decision Costs $0.00 

Successful File $1,286,769.00
HHF District of Columbia Date: January 31, 2018

C-2

Key Business Partners On-Going $107,215.00 

Subtotal $2,485,451.00

Grand Total $5,768,108.00

% of Total Award 20.05%

Award Amount $28,774,267.00