B-1-1

HHF Tennessee Date: October 1, 2018

SCHEDULE B-1

Tennessee Housing Development Agency 

Hardest Hit Fund Program (HHFP) 

Summary Guidelines

1. ProgramOverview The Tennessee Housing Development Agency (THDA) Hardest 

Hit Fund Program (HHFP) will provide loans to unemployed or 

substantially underemployed homeowners, or those homeowners 

impacted by a recent divorce or death of a spouse, who, through 

no fault of their own, are financially unable to make their 

mortgage payments and are in danger of losing their homes to 

foreclosure.

Loan proceeds will be used to pay all mortgage and mortgagerelated expenses (e.g., property taxes, homeowner insurance, 

homeowner dues) (i) until, for those unemployed or substantially 

underemployed homeowners, the homeowner secures 

employment or completes training for a new career and (ii) for 

all eligible homeowners, subject to maximum assistance criteria 

described in Section 9.

For homeowners who were unemployed or substantially 

underemployed and accumulated payment arrearages, but have 

since found a new job, reinstatement assistance will be available.

2. Program Goals To assist unemployed or substantially underemployed 

homeowners, or those homeowners impacted by a recent divorce 

or death of a spouse, to remain in their homes and make monthly 

payments on their mortgages and mortgage related expenses such 

as property taxes, homeowner insurance, homeowner dues, and/or 

past-due mortgage payments (arrearages) so that they may avoid

delinquency and foreclosure.
B-1-2

3. Target Population / 

Areas

This program will be available in all Tennessee counties.

THDA previously provided additional assistance over a longer 

period of time to eligible homeowners living in targeted or 

“hardest hit” counties, defined as those counties showing greater 

than average distress based on a combination of unemployment 

rate, the percent of the state’s foreclosures in that county, and 

delinquency rates. Twenty-nine counties were chosen as targeted 

based on the fact that they scored high on two of three factors, as 

follows: having an unemployment rate at or above the state 

average rate, having a high percentage of the state’s foreclosure
B-1-3

filings (in the 75th percentile of counties), having a high 

delinquency rate (again, in the 75th percentile of counties).

4. ProgramFunds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. BorrowerEligibility 

Criteria

Unemployed or substantially underemployed homeowners, or 

those homeowners impacted by a recent divorce or death of a 

spouse, who, through no fault of their own, are unable to make 

their mortgage payments and are at risk of foreclosure. 

Homeowners will be required to provide a financial hardship 

affidavit with appropriate documentation as to the cause of their 

hardship, as specified in the program guidelines. Homeowners 

will be required to provide continual documentation certifying to 

their ongoing hardship.

Employed homeowners who have previously been unemployed or 

substantially underemployed and who are delinquent, but who can 

resume future payments without additional assistance.

Substantially underemployed homeowners are those homeowners

whose income has been reduced by 30% or more.

The event or incident which results in unemployment or 

substantially underemployment, or the applicable divorce or death 

of a spouse impacting a homeowner, must have occurred after 

January 1, 2008.

Principal, Interest, Taxes and Insurance > 31% of household 

income after job loss/reduction of income.

Asset test: Borrower must not have > 6 months reserves.

Borrower must be a low- or moderate-income homeowner 

(maximum $92,680 household income).

Eligibility for program assistance will be determined primarily by 

participating foreclosure prevention partners using THDA 

underwriting criteria statedabove.

Funds will be allocated on a first-come/approved, first-served 

basis.
B-1-4

6. Property / Loan 

EligibilityCriteria

Existing single-family homes or condominiums (attached or 

detached) including manufactured homes on foundations 

permanently affixed to real estate owned by the borrower.

Tennessee owner-occupied, primary residences only.

7. Program Exclusions Total unpaid principal balances > $275,000. 

Manufactured homes not considered real property. 

Non-legal U.S. resident.

8. Structure of Assistance 0% interest, non-recourse, deferred-payment, forgivable, 

subordinate loan. A forgiveness clause will reduce the loan 

amount by 20% a year for every year the borrower stays in the 

home up until five years. At the end of five years, the note will be 

considered satisfied and THDA will release the lien securing the

note.

Loan funds are due and payable if property is sold, refinanced or 

no longer owner occupied and there are sufficient equity proceeds 

available (unless otherwise prohibited under applicable federal 

law).

All deferred, subordinate mortgages will be evidenced by a Home 

Equity Line of Credit promissory note and secured by a deed of 

trust on the property. Borrowers will be required to sign and 

acknowledge via written agreement indicating the program

guidelines.

Any funds returned according to established program guidelines 

will be recaptured and used to assist additional homeowners 

in accordance with the Agreement.

9. Per Household 

Assistance

Maximum amount available per homeowner:

• Assistance for up to 36 months, subject to a maximum 

assistance cap of $40,000.

• There is no maximum monthly payment amount; 

however, total loan amount cannot exceed applicable 

benefit.

10. Duration of Assistance Homeowners may receive assistance up to a maximum of 36 

months. Should a homeowner become reemployed withinthe 

applicable period, the homeowner may continue receiving

assistance for up to an additional two months after
B-1-5

reemployment. Additionally, if a homeowner becomes 

reemployed within the applicable period and the homeowner’s 

mortgage payment exceeds 31% of their current income, they 

are eligible for continued assistance.

Any reinstatement assistance shall be made in one payment.

11. Estimated Number of 

Participating 

Households

Based on the current average amount of assistance of $25,000, 

we would expect to assist approximately 7,355 homeowners. 

With the increase in available assistance amounts and terms, we 

do expect the average amount of assistance to increase and the 

number of homeowners assisted to decrease.

12. Program Inception / 

Duration

The program began serving the targeted, hardest hit counties 

January 1, 2011. On March 1, 2011, the program was expanded 

and all counties became eligible for the program. All funds are 

expected to be committed by December 31, 2014. Any recaptured 

funds will be used to fund other HHF Programs through 

December 31, 2020 or until funding is fully reserved, whichever 

comes first.

13. Program Interactions 

with Other HFA 

Programs

None.

14. Program Interactions 

with HAMP

Borrowers can receive HAMP assistance (including UP program 

assistance), as applicable, prior to or after receiving Hardest Hit 

Fund assistance.

15. Program Leverage with 

Other Financial 

Resources

None.
B-2-1

SCHEDULE B-2

Tennessee Housing Development Agency 

HHF Blight Elimination Program (BEP) 

Summary Guidelines

1. Program Overview The Tennessee Housing Development Agency (THDA) will 

administer the Hardest Hit Fund Blight Elimination Program 

(BEP) to assist in the removal of blighted properties in targeted

areas within the State of Tennessee.

THDA will work in partnership with approved non-profit agencies 

and land banks (collectively, Program Participants) to strategically 

target blighted residential single-family properties for demolition, 

site improvement, and acceptable reuse.

2. ProgramGoals The BEP will reduce foreclosures, promote neighborhood 

stabilization, and maintain or improve property values through the 

demolition of vacant, abandoned, blighted residential structures, 

and subsequent greening/improvement of the remaining parcels.

THDA has identified meaningful indicators that will enable 

THDA to track and quantify the program’s impact in the 

targetedareas.

3. TargetPopulation/ 

Areas

This program will focus on targeted counties in Tennessee with 

high numbers of vacancies and foreclosures. The presence of a 

land bank will also be considered. This program will be made 

available to the following counties: Shelby, Madison, 

Montgomery, Hamilton, Knox and Anderson.

THDA program guidelines will ensure that demolition and 

greening/improvement is designed to increase values of 

neighboring properties and will promote a positive effect on 

preserving existing neighborhoods.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.
B-2-2

5. Property

Eligibility Criteria

• Existingsingle-family(one to four unit) home.

• The propertymust be located in the State of Tennessee.

• The property must be located in a targeted area as defined 

in the programguidelines.

• The propertymust be vacant at the time of acquisition. For 

any requests submitted on or after January 15, 2016, the 

property must not be legally occupied at the time of any 

review or approval by the HFA or eligible entity (as 

applicable)for blight elimination activity.

• The propertyis a nuisance due to abandonment and/or other 

adverse conditions asidentified in the program guide.

• The cost to acquire (if necessary), demolish, green, and 

maintain the property for up to three years does not exceed

$25,000.

• THDA will determine property eligibility including the 

following requirements:

(1) Pass a PropertyCondition test;

(2) Meet the State of Tennessee’s definition of “Blight” 

according to Title 13, Public Planning and Housing; 

and

(3) Qualifyforlawful demolition.

6. Ownership /Loan 

Eligibility 

Criteria

Program Participant must hold title to the property (may 

acquire title in conjunction with the program transaction).

The property must be subject to a loan that can be modified or 

extinguished.

7. ProgramExclusions • Commercialproperties,multifamilyproperties.

• Properties listed on a state, national, or local historic 

register.

• Properties not meeting THDA’s eligibility requirementsas 

specifiedin the programguidelines.
B-2-3

8. Structure of Assistance THDA will determine acceptability of project sites.

Program Participant will be responsible for acquisition of the 

property (if applicable), demolition work, greening/site 

improvement and on-going property maintenance.

The Program Participant will submit an application to THDA 

containing the location of the property, neighborhood conditions, 

estimated cost of structure removal, estimated cost of greening (if 

applicable), and the end use of the vacant lot.

Required documentation must be submitted by the Program 

Participant to THDA for review and approval in THDA’s sole 

discretion pursuant to the program guidelines.

HHF funds will be provided in the form of a loan to the Program 

Participant, upon completion of blight elimination activity on the 

property, verification by THDA and execution of loan 

documentation. Total assistance will provide for acquisition costs (if 

applicable), demolition work, greening/site improvement costs, ongoing property maintenance, and a one-time administrative fee of 

$1,000 per property for the ProgramParticipant.

The loan will be evidenced by a promissory note in favor of THDA 

and secured by a deed of trust on the property. The loan will be up 

to a maximum of $25,000 with a deferred payment, forgivable over 

a 3 year term at 33.3% per year with a 0% interest rate so long as 

THDA’s requirements are met.

Eligible costs include removal of debris, contractor’s fees, permit 

fees, final inspections, environmental assessments, greening and 

maintenance fees in the amount of $1,800 for a three-year period, 

and any other fees or charges required to complete the property 

demolition, removal and site improvement, not to exceed

$25,000. If the cost to demolish the property exceeds the $25,000 

maximum, the non-profit Participant must pay the excess amount 

upfront.
B-2-4

The outstanding loan balance will become due and payable if the 

property or any interest in it is sold, or otherwise conveyed, or its 

title transferred, or it is used for an unauthorized purpose prior to 

the end of the loan term or if any ownership interest in the property 

owner is sold or otherwise conveyed. Special considerations may be 

made by THDA to release or subordinate its lien prior to the end of 

the loan term based upon the merit of the request and the proposed 

positive impact to the community. The method for calculating the 

portion of the outstanding balance to be forgiven or released will be 

determined based upon the closingdate ofthe HHF funding.

Any funds returned according to established program guidelines 

will be recaptured and used in the program in accordance with the

Agreement.

9. Per Property Assistance Maximum amount of assistance may not exceed $25,000 per 

property. Maximum assistance amount includes acquisition costs (if 

applicable); demolition and greening/improvement costs; and a onetime project management and maintenance fee to cover management 

and maintenance expenses for a period of three (3) years.

10. Duration of Assistance Funds will be disbursed on a first-come-first-served basis.

11. Estimated Number 

of Properties 

Demolished

Based on the maximum amount of assistance of $25,000, 

approximately 400 blighted properties are anticipated to be 

demolished and greened. Program will be expanded if funds are 

available.

12. Program Inception

/ Duration

The program will begin on November 1, 2015 and will last as long 

as the allocation of funds is available or until December 31, 2020. 

Any recaptured funds will be used to fund HHF Programs through 

December 31, 2020 or until funding is fully reserved, whichever 

comes first.

13. Program

Interactions with 

Other HFA 

Programs

None.

14. Program

Interactions with 

HAMP

None.

15. Program Leverage with 

Other Financial 

Resources

If the cost to demolish and green the property are in excess of the

$25,000 programcap, the ProgramParticipantmust paythe 

excess amount up front.
B-3-1

SCHEDULE B-3

Tennessee Housing Development 

Agency

Principal Reduction with Recast Program or Lien Extinguishment 

(PRRPLE) Summary Guidelines

1. ProgramOverview The Tennessee Housing Development Agency (THDA) Principal 

Reduction with Recast Program or Lien Extinguishment 

(PRRPLE) will lower monthly mortgage payments to affordable 

levels for eligible homeowners by providing (i) a reduction in the 

principal balance of their first mortgage loan, combined with a loan 

recast or modification, or (ii) principal reduction which results in a 

full lien extinguishment.

In conjunction with the principal reduction described above, 

PRRPLE will also pay mortgage-related expenses (e.g., principal, 

interest, property taxes, homeowner insurance, and servicer-related 

fees) necessary to bring homeowners current on theirmortgage.

2. Program Goals The goal of the program isto reduce delinquencies and foreclosures 

by lowering mortgage payments to affordable levels for 

homeowners who have encountered a financial burden due to an 

eligible hardship, including but not limited to homeowners who are 

living on social security, long-term disability or other fixed income 

source.

3. Target Population

/ Areas

This program will be available statewide in all Tennessee 

counties.

THDA will target homeowners who are low-to-moderate income 

and meet THDA mortgage loan income limits.

4. Program 

Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.
B-3-2

5. BorrowerEligibility 

Criteria

In order to be eligible for assistance under PRRPLE, 

homeowners must meet the following criteria:

• Asset test: homeowner must not have more than 12 months of 

principal, interest, taxes, and insurance (PITI) in reserves.

• Homeowner must be a U. S. citizen or a permanent resident 

alien.

• Homeowner has experienced an eligible financial hardship (as 

set forth in the program guidelines) which occurred after 

January 1, 2010. (Permanently disabled homeowners are

exempt from this requirement.)

• Homeowner is required to complete a budgeting/housing 

counseling session before closing.

• For a non-fixed income homeowner, maximum household 

income not to exceed $95,900.

• For a fixed income homeowner, maximum household income

not to exceed $68,700.

In order to receive principal reduction with a loan recast or 

modification, the following additional criteria apply:

• Homeowner suffered a loss of income equal to or greater than 

20% due to a divorce, death of a spouse, underemployment or 

other financial hardship.

• Pre-assistance monthly PITI exceeds 30% of household 

income.

• Post-assistance monthly PITI does not exceed 38% of 

household income, and is not lower than 25% of household 

income.

• Unpaid principal balance of first mortgage loan does not exceed

$275,000.

• For a non-fixed income homeowner, post-assistance loan-tovalue (LTV) ratio is not less than 78%.

• For a fixed income homeowner, there is no minimum LTV 

ratio.

In order to receive a full lien extinguishment, the following 

additional criteria apply:

• Primary household income is from social security, long-term 

disability or other fixed income source.

• Pre-assistance monthly PITI exceeds 30% of household 

income.

• Homeowner has a first mortgage loan with an unpaid principal

balance that does not exceed $40,000.

Eligibility for program assistance will be determined by THDA 

in its sole discretion, based on the criteria stated above and as 

otherwise set forth in the program guidelines. Funds will be 

allocated on a first-come/approved, first-served basis.
B-3-3

6. Property / Loan 

EligibilityCriteria

Existing single-family homes or condominiums (attached or 

detached) including manufactured homes on permanent 

foundations assessed by taxing authority as real property.

Owner-occupied, primary residences only.

7. Program Exclusions  Manufactured homes not considered real property.

 Homeowners who have previously received HHF funds 

through the HHFP program.

• Homeowners who are in an “active” bankruptcy.

 Homeowners with a subordinate lien that is delinquent or in 

foreclosure status.

8. Structure of Assistance THDA will structure the PRRPLE assistance as a 0% interest, nonrecourse, deferred-payment, forgivable, subordinate loan with a 

term of 10 years. The loan will be forgiven 20% per year in years 

6 through 10. At the end of tenth year, the note will be considered

satisfied and THDA will, upon request, release the lien securing the

note.

Loan funds are due on sale or, refinance or if the property is no 

longer owner-occupied.

The loan will be evidenced by a promissory note and secured by a 

Deed of Trust against the property.

Any funds returned according to established program guidelines 

will be recaptured and used to assist additional homeowners 

through December 31, 2020 in accordance with the Agreement.

After December 31, 2020, any unused funds will be returned to the 

U. S. Department of the Treasury in accordance with the 

Agreement.

9. Per Household 

Assistance

Maximum amount available per homeowner is $40,000.

10. Duration of Assistance One-time payment to servicer.
B-3-4

11. Estimated Number of 

Participating 

Households

Based on the maximum of $40,000 of PRRPLE assistance 

available to homeowners, we anticipate providing 125 

homeowners with assistance.

Recaptured funds will be returned to the program and used to help 

additional homeowners in accordance with the Agreement.

12. Program Inception / 

Duration

The statewide launch of the PRRPLE will occur on March 1, 

2017. The program will begin accepting applications on launch 

date.

All funds are expected to be committed by September 30, 2020. 

Any recaptured funds will be used to fund HHF Programs 

through December 31, 2020 or until funding is fully reserved, 

whichever comes first.

13. Program Interactions 

with Other HFA 

Programs

Homeowners who have received assistance through the HHF 

funds in the HHFP program are not eligible to apply for the 

PRRPLE program.

14. Program Interactions 

with HAMP

No.

15. Program Leverage with 

Other Financial 

Resources

No.
B-4-1

SCHEDULE B-4

Tennessee Housing Development Agency 

Down Payment Assistance Program (HHF-DPA)

Summary Guidelines

1. ProgramOverview The Tennessee Housing Development Agency (THDA) will provide 

a Down Payment Assistance Program (HHF-DPA) as an incentive to 

qualified first-time homebuyers to purchase a residence in HHF 

Targeted Zip Codes (as specified in Section 3) within Tennessee. 

Providing incentives to qualified homebuyers in housing markets that 

have been hardest hit by serious delinquency, negative equity, 

distressed sales, and foreclosures will strengthen demand in those 

distressed zip codes, stabilize housing prices and help to prevent 

future foreclosures.

2. Program Goals The HHF-DPA Program will help homeowners avoid foreclosure by 

supporting the stabilization of housing prices in targeted zip codes.

THDA will identifymeaningful indicatorsthat will track and quantify 

the HHF-DPA Program’s impact in HHF Targeted Zip Codes.

3. Target 

Population / 

Areas

This program will be available in the following approved HHF 

Targeted Zip Codes within Tennessee:

37037, 37040, 37042, 37073, 37086, 37110, 37115, 37148, 37172,

37186, 37207, 37208, 37217, 37218, 37303, 37311, 37321, 37323,

37404, 37406, 37411, 37412, 37416, 37660, 37716, 37721, 37813,

37821, 37871, 37912, 37914, 37917, 37921, 37924, 38012, 38016,

38018, 38053, 38063, 38105, 38107, 38109, 38111, 38115, 38116,

38122, 38125, 38127, 38128, 38133, 38134, 38135, 38141, 38301,

38305; and 37877, 37890, 37920, 37354, 37874, 38118, 37650.

For these zip codes, THDA evaluated five housing market distress 

indicators—seriously delinquent mortgage loans, negative equity, 

short sales, REO sales, and foreclosures—as well as origination data. 

Each of these zip codes exceeded the statewide rate in at least four 

out of the five distressed housing market indicators, and achieved a 

minimum threshold origination volume.
B-4-2

4. ProgramFunds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any program 

included in Schedule B.

5. Borrower

Eligibility Criteria

Eligible borrowers must qualify for and meet all requirements to 

receive a THDA Great Choice mortgage loan. For example, the loan 

must be a first lien, 30-year, fixed-rate mortgage loan originated 

through a THDA-approved lender, and either conventional or insured 

or guaranteed by the Federal Housing Administration (FHA), 

Veterans Administration (VA), or U.S. Department of Agriculture –

Rural Development (RD).

Eligible borrowers must also meet the following criteria:

• Income may not exceed THDA household income limits.

• Must be First-Time Homebuyers as defined by IRS Tax Code.

• Must complete a THDA-approved homebuyer education course 

prior to closing.

• Must be a legal U.S. citizen or lawful permanent resident.

• Must have a minimum FICO score of 640 (middle score of three 

scores or lowest if two scores).

• Maximum debt-to-income ratio may not exceed 45%.

Eligibility for program assistance will be determined by THDA in its 

sole discretion, subject to the requirements stated above and as 

otherwise set forth in the program guidelines.

Funds will be allocated on a first-come/approved, first-served basis.

6. Property / Loan 

Eligibility 

Criteria

• The property must be a single-family home, a condominium unit, 

a townhome, a manufactured home on a foundation permanently 

affixed to real estate owned by the borrower, or a two-to-four 

family dwelling unit of which one unit is to be occupied by the 

mortgagor as his or her principal residence.

• Must be the borrower’s primary residence.

• Property must be located in an HHF Targeted Zip Code.

• Property must meet Insurer or Guarantor’s guidelines.

• Property must meet the HHF-DPA purchase price limits as 

specified in the THDA Originating Agent Guide.
B-4-3

7. Program Exclusions • Borrowers who received assistance from other HHF Programs.

• Borrowers convicted of any mortgage-related felonies or other 

prohibited crimes in the past ten years, in accordance with 

Section 1481(d) of the Dodd-Frank Wall Street Reform and 

Consumer Protection Act.

8. Structure ofAssistance Down payment assistance, including reasonable and customary 

closing costs, will be made available to homeowners in the form of a 

zero-percent (0%) interest, non-recourse, and forgivable second 

mortgage loan with a ten year term. This loan will be evidenced by a 

note and deed of trust in favor of THDA. The second mortgage loan 

will be forgivable at a rate of 20% per year, in years 6 through 10. 

THDA reserves the right to subordinate the second mortgage loan as 

further detailed in the HHF-DPA Program Guide.

The HHF-DPA loan shall be due on sale. . Any HHF-DPA loan funds 

recovered before September 30, 2020 will be recycled back into HHFDPA and used to provide assistance to additional homeowners for the 

duration of HHF-DPA in accordance with the Agreement.

9. Per 

Household 

Assistance

$15,000 per household.

10. Duration of Assistance HHF-DPA Program funds will be used to reimburse participating 

lenders who fund the loan at closing once it is determined that all 

HHF-DPA Program requirements have been met. The loan must close 

prior to December 31, 2020.

11. Estimated Number 

of Participating 

Households

It is anticipated that the HHF-DPA Program will assist 

approximately 4,000 homeowners.

Funds recaptured prior to September 3, 2020, will be returned to the 

HHF-DPA and used to assist additional homeowners in accordance 

with the Agreement.

12. Program

Inception / 

Duration

The HHF-DPA Program will begin in March 2017. The program will 

accept applications within 30 days from the launch date. The 

program will begin accepting applications for the expansion of ZIP 

Codes on November 1, 2017.

All funds are expected to be committed by October 31,2020. Funds 

recaptured prior to September 30, 2020, will be returned to the HHFDPA and used to assist additional homeowners in accordance with 

the Agreement through December 31, 2020 or until funding is fully 

reserved, whichever comes first.
B-4-4

13. Program

Interactions with 

Other HFA 

Programs

The HHF-DPA Program will take advantage of an existing 

infrastructure of participating lenders who are already actively 

originating both first mortgage and down payment assistance loans 

as part of THDA’s mortgage loan origination programs.

Homeowners may have received assistance through other HFA 

Programs.

14. Program

Interactions with 

HAMP

None.

15. Program Leverage 

with Other Financial 

Resources

THDA uses tax-exempt bond proceeds as a source of funding for the 

accompanying first mortgage loans. In addition, funds may be 

leveraged by our lenders using additional subsidy programs such as 

state housing grants, Federal Home Loan Bank down payment 

assistance, Neighborhood Stabilization Program (NSP) Funds or 

HOME funds. HHF-DPA may not be leveraged with USDA-RD 

Grant Funding.
B-5-1

SCHEDULE B-5

Tennessee Housing Development Agency 

HHF Reinstatement Only Program (HHF-ROP)

Summary Guidelines

1. ProgramOverview The Tennessee Housing Development Agency (THDA) Hardest 

Hit Fund Reinstatement Only Program (ROP) will provide 

assistance to homeowners who have fallen behind on their 

mortgage loans and are in imminent danger of losing their home 

to foreclosure due to a qualified hardship that occurred after they 

acquired their home.

Loan proceeds will be used to pay all mortgage loan and mortgagerelated expenses to Servicer (e.g., escrowed property taxes, 

homeowner insurance, homeowner dues) to bring the 

homeowner’s mortgage loan(s) current, subject to maximum 

assistance criteria described in Section 9. Homeowners may 

receive assistance to bring their mortgage loan current through the 

month the reinstatement payment is made.

2. Program Goals To prevent foreclosures and preserve homeownership by providing 

reinstatement assistance to homeowners who have been impacted 

by an involuntary loss of income that caused them to become 

delinquent on their mortgage loan(s).

3. Target Population / 

Areas

This program will be available in all Tennessee counties.

4. ProgramFunds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.
B-5-2

5. BorrowerEligibility 

Criteria

In order to be eligible for assistance under ROP, homeowners 

must meet the following criteria:

• Maximum household income not to exceed $95,900.

• Asset test: homeowner must not have more than 6 months of 

principal, interest, taxes, and insurance (PITI) in reserves 

(excludes retirement accounts).

• Homeowner must be a U. S. citizen or a permanent resident 

alien.

• Homeowner has experienced an eligible financial hardship of 

involuntary loss of income equal to or greater than 20% due to 

a divorce, death of a spouse, or temporary loss of wages which 

occurred after the purchase of the home and after January 1, 

2010 (permanently disabled homeowners do not need to meet 

the January 1, 2010 requirement).

• Post-Assistance: homeowner’s monthly PITI must not exceed 

38% of household income.

• Homeowner is required to co m p l et e an d s i g n a 

financial hardship affidavit with appropriate documentation as 

to the cause of the hardship, as specified in the program 

guidelines.

• Homeowner is required to complete a budgeting/housing 

counseling session before closing.

Eligibility for program assistance will be determined by THDA in 

its sole discretion, based on the criteria stated above and as 

otherwise set forth in the program guidelines. The ROP funds will 

be allocated on a first-come/approved, first-served basis.

6. Property / Loan 

EligibilityCriteria

The property must be an existing single-family home or 

condominium (attached or detached) including manufactured 

homes on foundations permanently affixed to real estate owned 

by the borrower.

Tennessee owner-occupied, primary residences only.

7. Program Exclusions • Homeowner has a total unpaid principal balance >$275,000.

• Homeowner has received assistance through other HHF 

funded programs.

• Homeowner is in “active” bankruptcy.
B-5-3

8. Structure of Assistance ROP assistance is structured as a 0% interest, non-recourse, 

deferred-payment, forgivable, subordinate m o r t ga ge loan with 

a ten (10) year term. A forgiveness clause will reduce the loan 

amount by 20% per year for every year the homeowner stays in 

the home in years 6 through 10. At the end of the ten

(10) years, the note will be considered satisfied and the 

homeowner may request to release the lien securing the note.

The mortgage loan will be evidenced by a promissory note and 

secured by a deed of trust on the property in favor of THDA. 

Borrowers will be required to sign and acknowledge the program 

guidelines pursuant to a written agreement.

Loan funds are due and payable if the property is sold, refinanced 

or no longer owner occupied and there are sufficient equity 

proceeds available (unless otherwise prohibited under applicable 

federal law).

Any funds returned according to established program guidelines 

will be recaptured and used to assist additional homeowners 

in accordance with the Agreement.

9. Per Household 

Assistance

Up to $20,000.

10. Duration of Assistance ROP assistance is provided as a one-time disbursement per 

mortgage loan.

11. Estimated Number of 

Participating 

Households

Based on the maximum amount of ROP assistance, THDA 

anticipates assisting approximately 285 homeowners.

12. Program Inception / 

Duration

The program will began serving Tennesseans across the state 

November 1, 2017.

All funds are expected to be committed by December 31, 2020. 

Any recaptured funds will be used to fund HHF Programs through 

December 31, 2020 or until funding is fully reserved, whichever 

comes first.

13. Program Interactions 

with Other HFA 

Programs

None.

14. Program Interactions 

with HAMP

None.
B-5-4

15. Program Leverage with 

Other Financial 

Resources

None.
C-1

HHF Tennessee Date: October 1, 2018

SCHEDULE C

PERMITTED EXPENSES

Tennessee

One-time / Start-Up Expenses:

Initial Personnel $50,264.40

Building, Equipment, Technology $230,209.59

Professional Services $19,668.00

Supplies / Miscellaneous $3,265.33

Marketing /Communications $741.73

Travel $1,786.15

Website development /Translation $15,000.00

Contingency $0.00

Subtotal $320,935.20

Operating / Administrative Expenses:

Salaries $18,233,044.07

Professional Services (Legal, Compliance,

Audit, Monitoring) $429,776.36

Travel $134,186.56

Buildings, Leases & Equipment $0.00

Information Technology & Communications $723,697.19

Office Supplies/Postage and 

Delivery/Subscriptions $348,098.82

Risk Management/ Insurance $0.00

Training $85,236.42

Marketing/PR $2,118,848.92

Miscellaneous $198,394.29

Subtotal $22,271,282.63

Transaction Related Expenses:

Recording Fees $4,185,602.93

Wire Transfer Fees $421,778.31

Counseling Expenses

File Intake $30,000.00

Decision Costs $0.00

Successful File $9,211,000.00

Key Business Partners On-Going $100,000.00

Subtotal $13,948,381.24

Grand Total $36,540,599.07
C-2

HHF Tennessee Date: October 1, 2018

% of Total Award 12.09%

Award Amount $302,336,993.00