Seventh Amendment to HPA — South Carolina - 1-

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SEVENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Seventh Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the “Seventh Amendment”) is entered into as of the date set forth on 

Schedule A attached hereto as the Seventh Amendment Date (the “Amendment Date”), by and 

among the United States Department of the Treasury (“Treasury”), the undersigned party 

designated as HFA whose description is set forth in Schedule A attached hereto (for 

convenience, a “state housing finance agency” or “HFA”) and the undersigned institution 

designated by HFA to participate in the program described below (“Eligible Entity”). 

Recitals 

WHEREAS, Treasury, HFA and Eligible Entity entered into that certain Commitment to 

Purchase Financial Instrument and HFA Participation Agreement (the “Original HPA”) dated as 

of the Closing Date, as previously amended by that certain First Amendment to Commitment to 

Purchase Financial Instrument and HFA Participation Agreement (the “First Amendment”), as 

further amended by that certain Second Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement (the “Second Amendment”), as further amended 

by that certain Third Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the “Third Amendment”), as further amended by that certain Fourth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the “Fourth Amendment”), as further amended by that certain Fifth Amendment to Commitment 

to Purchase Financial Instrument and HFA Participation Agreement (the “Fifth Amendment”), 

and as further amended by that certain Sixth Amendment to Commitment to Purchase Financial 

Instrument and HFA Participating Agreement (the “Sixth Amendment”; and together with the 

Original HPA as amended thereby and by the First Amendment, the Second Amendment, the 

Third Amendment, the Fourth Amendment and the Fifth Amendment the “Current HPA”), dated 

as of their respective dates as set forth on Schedule A attached hereto, in connection with 

Treasury’s federal housing program entitled the Housing Finance Agency Innovation Fund for 

the Hardest Hit Housing Markets (the “HHF Program”), which was established pursuant to the 

Emergency Economic Stabilization Act of 2008 (P.L. 110-343), as amended, as the same may be 

amended from time to time (“EESA”); 

WHEREAS, HFA and Eligible Entity submitted a request to Treasury to make certain revisions 

to their Service Schedules and Permitted Expenses, as applicable, and Treasury has agreed to the 

same; 

WHEREAS, HFA, Eligible Entity and Treasury wish to enter into this Seventh Amendment to 

document all approved modifications to the Service Schedules and Permitted Expenses, as 

applicable; 
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Accordingly, in consideration of the representations, warranties, and mutual agreements set forth 

herein and for other good and valuable consideration, the receipt and sufficiency of which are 

hereby acknowledged, Treasury, HFA and Eligible Entity agree as follows. 

Agreement 

1. Amendments 

A. Definitions. All references in the Current HPA to the “Agreement” shall mean 

the Current HPA, as further amended by this Seventh Amendment; and all references in 

the Current HPA to Schedules A, B or C shall mean the Schedules A, B or C attached to 

this Seventh Amendment. All references herein to the “HPA” shall mean the Current 

HPA, as further amended by this Seventh Amendment. 

B. Schedule A. Schedule A attached to the Current HPA is hereby deleted in its 

entirety and replaced with Schedule A attached to this Seventh Amendment. 

C. Schedule B. Schedule B attached to the Current HPA is hereby deleted in its 

entirety and replaced with Schedule B attached to this Seventh Amendment. 

D. Schedule C. Schedule C attached to the Current HPA is hereby deleted in its 

entirety and replaced with Schedule C attached to this Seventh Amendment. 

2. Representations, Warranties and Covenants 

A. HFA and Eligible Entity. HFA and Eligible Entity, each for itself, make the 

following representations, warranties and covenants to Treasury and the truth and 

accuracy of such representations and warranties and compliance with and performance of 

such covenants are continuing obligations of HFA and Eligible Entity, each as to itself. 

In the event that any of the representations or warranties made herein cease to be true and 

correct or HFA or Eligible Entity breaches any of its covenants made herein, HFA or 

Eligible Entity, as the case may be, agrees to notify Treasury immediately and the same 

shall constitute an Event of Default under the HPA. 

(1) HFA and Eligible Entity each hereby certifies, represents and warrants as 

of the date hereof that each of the representations and warranties of HFA or 

Eligible Entity, as applicable, contained in the HPA are true, correct, accurate and 

complete in all material respects as of the date hereof. All covenants of HFA or 

Eligible Entity, as applicable, contained in the HPA shall remain in full force and 

effect and neither HFA, nor Eligible Entity is in breach of any such covenant. 

(2) Eligible Entity has the full corporate power and authority to enter into, 

execute, and deliver this Seventh Amendment and any other closing 

documentation delivered to Treasury in connection with this Seventh Amendment, 

and to perform its obligations hereunder and thereunder. 

(3) HFA has the full legal power and authority to enter into, execute, and 

deliver this Seventh Amendment and any other closing documentation delivered to 
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Treasury in connection with this Seventh Amendment, and to perform its 

obligations hereunder and thereunder. 

3. Miscellaneous 

A. The recitals set forth at the beginning of this Seventh Amendment are true and 

accurate and are incorporated herein by this reference. 

B. Capitalized terms used but not defined herein shall have the meanings ascribed to 

them in the HPA. 

C. Any provision of the HPA that is determined to be prohibited or unenforceable in 

any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such 

prohibition or unenforceability without invalidating the remaining provisions of the HPA, 

and no such prohibition or unenforceability in any jurisdiction shall invalidate such 

provision in any other jurisdiction. 

D. This Seventh Amendment may be executed in two or more counterparts (and by 

different parties on separate counterparts), each of which shall be deemed an original, but 

all of which together shall constitute one and the same instrument. Facsimile or 

electronic copies of this Seventh Amendment shall be treated as originals for all 

purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Seventh Amendment to HPA — South Carolina]

In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

hereby execute and deliver this Seventh Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

SOUTH CAROLINA STATE HOUSING 

FINANCE AND DEVELOPMENT 

AUTHORITY

UNITED STATES DEPARTMENT OF THE 

TREASURY

By: /s/ Valarie M. Williams By:

Name: Valarie M. Williams Name: Timothy J. Bowler

Title: Executive Director Title: Acting Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

SC HOUSING CORP.

By: /s/ Valarie M. Williams

Name: Valarie M. Williams

Title: Executive Director
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EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
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SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: SC Housing Corp. (“SCHC”)

Corporate or other organizational form: Nonprofit corporation

Jurisdiction of organization: South Carolina

Notice Information: 

 

 

HFA Information: 

Name of HFA: South Carolina State Housing Finance and 

 Development Authority 

Organizational form: a public body, corporate and politic under 

 the laws of the State of South Carolina 

Date of Application: June 1, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

Program Participation Cap: $295,431,547.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $138,000,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $58,772,347.00 

Permitted Expenses: $54,005,984.00

Closing Date: August 3, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 
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Third Amendment Date: December 16, 2010 

Fourth Amendment Date: August 31, 2011 

Fifth Amendment Date: November 15, 2012 

Sixth Amendment Date: October 30, 2013 

Seventh Amendment Date: July 31, 2014 

Eligible Entity Depository Account Information: See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 
SCHEDULE B 

SERVICE SCHEDULES

The Service Schedules attached as Schedule B to the Current HPA are hereby deleted in their 

entirety and replaced with the attached Service Schedules (numbered sequentially as Service 

Schedule B-1, Service Schedule B-2, et. seq.), which collectively comprise Schedule B to the 

HPA. 
SERVICE SCHEDULE B-1 

SC State Housing Finance and Development Authority

Monthly Payment Assistance Program

Summary Guidelines 

1. Program Overview The Monthly Payment Assistance Program will assist eligible 

households that are experiencing a temporary reduction in income 

by making the full monthly first mortgage payment for a 

specified period of time or until the Assistance cap is reached. 

This Program will give eligible households the time and 

opportunity to replace lost income and/or make other household 

financial adjustments and decisions while remaining current on 

first mortgage payments. Eligibility will be reevaluated 

periodically during the assistance period. 

2. Program Goals To bridge eligible borrowers across a gap in employment or other 

temporary reduction in income, and allow them to stay current on 

their mortgages. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a short-term 

affordability problem. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$100,425,563.00

5. Borrower Eligibility 

Criteria 

An eligible borrower must have at least one of the following 

qualifying hardships: 

• Unemployment 

• Underemployment 

• Significant reduction in self-employment income 

Additional eligibility criteria: 

• To qualify as unemployed for the Program, a borrower 

must be unemployed and receiving unemployment 

insurance (“UI”) payments as administered by the State of 

South Carolina, or unemployed with available UI benefits 

exhausted within the previous 12 months. 

• To qualify as underemployed, a borrower must show a 

minimum 20% reduction in available household income. 

• To qualify as self-employed with a significant reduction 

in income, a borrower must show that gross receipts for a 

primary borrower’s business have been reduced by a 

minimum of 20%. 

• Payment to Income ratio must exceed an affordable level 

as outlined in program and underwriting guidelines. 

• Borrower must provide documentation to evidence 
qualifying hardship per program guidelines. 

• All final eligibility determinations will be made by 

SCHC. 

• Funds will be available on a first-come first-served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, amortizing loans, and the 

original loan amount cannot exceed $729,750. 

• Eligible properties must be owner-occupied 1-4 family 

primary residences located in South Carolina.

7. Program Exclusions • Borrowers already under a non-South Carolina HFA HardestHit Fund program. 

• Borrowers without a documented eligible hardship as 

described above in Section 5. 

8. Structure of Assistance Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $36,000 per 

household. The sum of assistance provided through all Programs 

when a household is participating in multiple Programs is capped 

at $36,000 per household. 

Expected Median: $17,000

10. Duration of Assistance Assistance under this Program will be capped at 24 months. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 5,000 – 6,000 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program was originally rolled out statewide on January 20, 

2011 and is expected to be available for 36-48 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with: 

• Direct Loan Assistance Program - Households that are 

delinquent at the time monthly assistance begins may 

be eligible for Direct Loan Assistance to help with any 

arrearage that exists. 

• Property Disposition Assistance Program - 

Households that are not self-supporting after 

exhausting allowable funding under this Program may 

be eligible for the Property Disposition Assistance 
Program. 

• Total Assistance for households participating in 

multiple Programs is capped at $36,000 per 

household. 

14. Program Interactions 

with HAMP 

The Program could effectively “hand off” the borrower to HAMP 

once the borrower is reemployed, if required. Households 

successfully coming out of the Program may be eligible for 

HAMP to obtain a permanent modification. 

The funds from this Program would be utilized prior to UP. 

Implementing the Program in this order is most beneficial to the 

borrower and the investor since payments would continue to be 

made instead of capitalized and no late charges or adverse credit 

report would occur. Should the borrower still be unemployed 

after the assistance from this Program ends, they may be eligible 

to roll into UP. 

Beneficiaries who participated in UP prior to making application 

to SC HELP would be eligible to participate in this Program. 

It is also expected that this Program may act as a front-end 

extension of existing forbearance with deed-in-lieu wrap 

programs. 

15. Program Leverage with 

Other Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

 Yes  No
SERVICE SCHEDULE B-2 

SC State Housing Finance and Development Authority

Direct Loan Assistance Program

Summary Guidelines 

1. Program Overview In some cases borrowers may have fallen behind on their 

mortgage payments, and have since regained the ability to make 

the full payment, or are eligible for funding under the Monthly 

Payment Assistance (“MPA”) program and have an accrued 

arrearage owed to the lender. Under the Direct Loan Assistance 

Program, funding in the form of a one-time payment will be 

provided to bring such loans current. Funds may also be made 

available for principal reductions ancillary to a reinstatement and 

to reduce or eliminate any forbearance in order ensure long-term 

affordability. 

2. Program Goals To help borrowers become current on their mortgage during or 

following a brief interruption or reduction in income and to 

ensure long-term affordability. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$92,500,000.00 

5. Borrower Eligibility 

Criteria 

An eligible borrower must have at least one of the following 

qualifying hardships: 

• Unemployment 

• Underemployment 

• Significant reduction in self-employment income 

• Death of a spouse 

• Divorce 

• Catastrophic health-related expenses or income 

interruption 

Additional Eligibility criteria: 

• Payment to Income ratio must not exceed an affordable 

level as outlined in program and underwriting guidelines 

unless borrower is approved for funding under the MPA 

program. 

• Borrower must provide documentation to evidence 

qualifying hardship per program guidelines. 

• Borrower must demonstrate that circumstances that led to 

the delinquency have been resolved unless borrower is 

approved for funding under the MPA program. 

• All final eligibility determinations will be made by 

SCHC. 
• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, amortizing loans and the 

original loan amount cannot exceed $729,750. 

• Eligible properties must be owner-occupied 1-4 family 

primary residences located in South Carolina. 

7. Program Exclusions • Borrowers without a documented eligible hardship as 

described above in Section 5. 

• Borrowers already under a non-South Carolina HFA HardestHit Fund program. 

8. Structure of Assistance Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $36,000 per 

household for eligible borrowers deemed INELIGIBLE for the 

MPA program. 

Assistance under this Program will be capped at $25,000 per 

household for eligible borrowers also deemed ELIGIBLE for the 

MPA program. 

The sum of assistance provided through all Programs when a 

household is participating in multiple Programs is capped at 

$36,000 per household. 

Expected Median: $8,000. 

10. Duration of Assistance Program is a one-time payment per household. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 10,500 – 11,500 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program was originally rolled out statewide on January 20, 

2011 and is expected to be available for 48-60 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• Monthly Payment Assistance Program – Households 

with an arrearage and a temporarily reduced level of 

income may be eligible for the Program and the MPA 

program to cure the immediate delinquency and to 
insure that further delinquencies are not incurred. 

• Property Disposition Assistance Program - 

Households that are not self-supporting after 

exhausting allowable funding under this Program may 

be eligible for the Property Disposition Assistance 

Program. 

• Total Assistance for households participating in 

multiple Programs is capped at $36,000 per 

household.

14. Program Interactions 

with HAMP 

Households successfully coming out of the Program may be 

eligible for HAMP to obtain a permanent modification. 

15. Program Leverage with 

Other Financial 

Resources 

Servicer/Investor will be required to waive all non-expense fees 

(i.e. late fees). 

16. Qualify as an 

Unemployment 

Program 

 Yes  No
SERVICE SCHEDULE B-3 

SC State Housing Finance and Development Authority

Modification Assistance Program

Summary Guidelines 

1. Program Overview The majority of lenders in South Carolina are offering troubled 

borrowers the opportunity to modify their loans under certain 

circumstances, with the most notable of these programs being the 

Home Affordable Modification Program (“HAMP”). Under the 

Modification Assistance Program, funding in the form of a onetime payment will be provided to help borrowers qualify for a 

HAMP or other acceptable modification (including, in the case 

of Borrowers with a Long Term/Permanent qualifying hardship 

ONLY, a recast (re-amortization) of outstanding principal in lieu 

of a modification), and to improve a borrower’s likelihood of 

long term success. 

Funds provided under this Program can be used to reinstate 

delinquent amounts, to reduce or eliminate any forbearance 

amounts, and to provide limited reductions in outstanding 

principal. 

2. Program Goals To improve a borrower’s likelihood of receiving a modification 

or lower payment, and to help ensure long term affordability for 

eligible borrowers. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$12,000,000.00 

5. Borrower Eligibility 

Criteria 

An eligible borrower must have at least one qualifying hardship 

as outlined below. 

Short-Term Qualifying Hardships (eligible for modification 

option ONLY): 

• Unemployment 

• Underemployment 

• Significant reduction in self-employment income 

• Divorce 

• Catastrophic health-related expenses or income 

interruption 

• Disability (short- or long-term) not documented as 

Permanent by the Social Security Administration 

 

Long-Term/Permanent Qualifying Hardships (eligible for 

modification or recast option): 
• Death of a wage-earning spouse or co-borrower 

• Permanent Disability resulting in an inability to work as 

documented by the Social Security Administration 

• Retirement following involuntary unemployment (Must 

be a minimum of 24 months after the original subject 

property purchase date.) 

Additional eligibility criteria: 

• Borrower must provide documentation to evidence 

qualifying hardship per program guidelines. 

• Borrower must meet all requirements of the lender 

modification or recast. 

• Borrower must successfully complete any required 

modification trial period prior to disbursement. 

• Payment-to-Income ratio prior to modification or recast 

must exceed an affordable level as outlined in program 

underwriting guidelines; 

• Payment-to-Income ratio after modification or recast 

must not exceed an affordable level as outlined in 

program and underwriting guidelines; and per lender and 

servicer guidelines. 

• All final eligibility determinations will be made by 

SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and the 

original loan amount cannot exceed $729,750. 

• Eligible properties must be owner-occupied 1-4 family 

primary residences located in South Carolina. 

7. Program Exclusions • Borrowers without a documented eligible hardship as 

described above in Section 5. 

• Borrowers already under a non-South Carolina HFA HardestHit Fund program. 

• Borrowers who have previously received funding through the 

Direct Loan Assistance and/or the Monthly Payment 

Assistance programs in an amount that exceeds limits as 

defined in underwriting guidelines for each program. 

8. Structure of Assistance Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional 
homeowners until December 31, 2017, at which time any 

proceeds shall be returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $36,000 per 

household. 

No more than $20,000 of the Assistance provided under this 

program may be used to reduce the outstanding principal (after 

payment of any reinstatement and/or forbearance amounts.) 

Expected Median: $25,000 

10. Duration of Assistance Program is a one-time payment per household. 

11. Estimated Number of 

Participating 

Households 

It is expected that 450 – 550 families will be assisted under this 

Program. 

12. Program Inception/ 

Duration 

This Program was rolled out in January 2014, and is expected to 

run for 30 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• Monthly Payment Assistance Program - Households that are 

not self-supporting after exhausting allowable funding under 

the Monthly Payment Assistance Program may be eligible 

for this Program, subject to any previous assistance caps 

defined in underwriting guidelines. 

• Direct Loan Assistance Households that are not selfsupporting after exhausting allowable funding under the 

Direct Loan Assistance Program may be eligible for this 

Program, subject to any previous assistance caps defined in 

underwriting guidelines. 

14. Program Interactions 

with HAMP 

This Program can be used in conjunction with HAMP to improve 

a borrower’s likelihood of success and to help ensure long term 

affordability for borrowers. 

15. Program Leverage with 

Other Financial 

Resources 

Servicer/Investor will be required to waive all non-expense fees 

(i.e., late fees). 

16. Qualify as an 

Unemployment 

Program 

 Yes  No 
SERVICE SCHEDULE B-4 

SC State Housing Finance and Development Authority

Property Disposition Assistance Program

Summary Guidelines 

1. Program Overview There may be a segment of borrowers whose position is 

unrecoverable, and who need assistance in gracefully exiting 

homeownership. The Property Disposition Assistance Program 

will be used to assist households who are able to complete a short 

sale or deed-in-lieu of foreclosure. The funds are provided as a 

one-time payment and are intended to provide deposits and other 

funds needed to transition from homeownership to renting. 

2. Program Goals To assist households who are able to complete a short sale or 

deed-in-lieu of foreclosure by providing deposits and other funds 

needed to transition from homeownership to renting. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a long-term or 

permanent affordability problem with little expectation for 

financial recovery. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$1,500,000.00 

5. Borrower Eligibility 

Criteria 

• Borrower must provide documentation to evidence qualifying 

hardship per program guidelines. 

• Delinquency event must be ongoing with little or no 

expectation for financial recovery (i.e. prolonged underemployment, divorce, death of a spouse, etc.). 

• Application for assistance must be completed prior to 

completion of short sale or deed-in-lieu of foreclosure. 

• Short sale or deed-in-lieu of foreclosure must be complete 

prior to final approval and funding. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible properties must be owner-occupied 1-4 family 

primary residences located in South Carolina. 

7. Program Exclusions • Borrowers already under a non-South Carolina HFA HardestHit Fund program. 

• Borrower receiving assistance under the Home Affordable 

Foreclosure Alternative (HAFA) Program. 

8. Structure of Assistance Assistance under this Program will be provided directly to the 

homeowner, and will not be structured as a loan, nor will it be 

secured by the subject property. No payments may be made 

directly to homeowners until a short sale or deed-in-lieu is 

completed. 
9. Per Household 

Assistance 

Assistance under this Program will be capped at $5,000 per 

household. 

Expected Median: $5,000

10. Duration of Assistance Program is a one-time payment. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 250 – 300 families will be assisted under 

this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide during the third quarter 

of 2011. It is expected that it will run for 60-72 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• Monthly Payment Assistance Program - Households that are 

not self-supporting after exhausting allowable funding under 

the Monthly Payment Assistance Program may be eligible for 

this Program. 

• Direct Loan Assistance - Households that are not selfsupporting after exhausting allowable funding under the 

Direct Loan Assistance Program may be eligible for this 

Program. 

14. Program Interactions 

with HAMP 

None. 

15. Program Leverage with 

Other Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

 Yes  No

 
SERVICE SCHEDULE B-5 

SC State Housing Finance and Development Authority

Neighborhood Initiative Program (NIP) 

Summary Guidelines 

1. Program Overview Under the Neighborhood Initiative Program (“NIP”), the South 

Carolina State Housing Finance and Development Authority 

(“SCSHFDA”) will work with units of local government and 

qualified non-profit organizations (together, “Partners”) to 

strategically target residential (single and multifamily) properties 

for demolition, site improvement, and acceptable reuse within the 

state of South Carolina. 

2. Program Goals The primary purpose and goal of NIP is to decrease foreclosures 

and stabilize homeowner property values in communities across 

South Carolina through the demolition of vacant, abandoned, and 

blighted residential structures, and subsequent 

greening/improvement. SCSHFDA will work with program 

Partners to identify meaningful indicators that will enable them to 

track and quantify the NIP’s impact in the designated 

communities. 

3. Target Population/ 

Areas 

NIP will be available in all 46 counties in South Carolina, but will 

only be authorized in areas with a demonstrated need and 

comprehensive implementation plan in place. SCSHFDA 

program guidelines will ensure that demolition and 

greening/improvement will promote increased values of 

neighboring properties and will have a positive effect on 

preserving existing neighborhoods. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$35,000,000.00 

5. Property Eligibility 

Criteria 

• Vacant, abandoned, and blighted standard residential (1-4 

units) and multifamily residential (4+ units) properties located 

in South Carolina. 

• Properties that qualify for demolition under state and federal 

law. 

In addition, SCSHFDA will determine property eligibility using 

information provided by the participating Partners. SCSHFDA’s 

determination will be based on factors including, but not limited 

to: 

• Habitability 

• Structural condition 

• Impact on community preservation and public safety 
6. Ownership/Loan 

Eligibility Criteria 

• Participating Partner must hold title to the property (may 

acquire title as part of the NIP transaction). 

• Property must be subject to a loan that can be modified or 

extinguished. 

7. Program Exclusions • Commercial (non-residential) structures. 

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

8. Structure of Assistance SCSHFDA will determine acceptability of project sites (targeted 

neighborhoods, communities, etc.) in direct consultation with 

participating Partners. 

Participating Partners will be responsible for property acquisition 

(if applicable), demolition work, final site improvements/site 

greening, and on-going property maintenance. 

Partners will submit to SCSHFDA the following for each 

proposed demolition site: 

• Property ownership and/or acquisition information including 

full address and deed. 

• Pre-demolition inspection with photos. 

• Cost estimates and/or evidence of the expenditures necessary 

to carry out any environmental remediation required by law. 

• Any other miscellaneous information identified regarding the 

property (e.g., hazards, adverse findings, easements...etc.). 

• Invoice for demolition costs. 

• Proof of any acquisition cost (if applicable). 

• Post-demolition inspection with photos. 

• Summary post-demolition plan/goal for the property. 

Upon receipt of the above documentation, SCSHFDA will 

provide Hardest Hit funding to the participating Partner after said 

Partner’s execution of a mortgage and note in favor of SC 

Housing Corp., which note shall be in an amount equal to the 

total assistance requested. 

Total assistance will provide for acquisition costs (if applicable), 

demolition, final site improvements/site greening costs, and a 

$2,000 one-time project management and property maintenance 

fee to cover management and maintenance expenses for a period 

of three (3) years. The participating Partner may request up to two 

disbursements per property after meeting project milestones as 

described in NIP guidelines. The mortgage in favor of SC 

Housing Corp. must be executed prior to any disbursement. 

The note will be 0%, non-amortizing loan, forgivable over a three 

(3) year term at 33.33% per year as long as covenants are met; 
outstanding balance of loan will be due on sale, transfer, or 

unauthorized use of the property. The mortgage will be recorded 

through public records and ongoing loan servicing (i.e., 

repayments and lien releases) and monitoring will be handled by 

SCSHFDA. Any repayment of NIP funds will be re-invested 

back into the NIP allocation. All funds remaining in NIP will be 

returned to Treasury after December 31, 2017. 

Special considerations may be made by SCSHFDA to release or 

subordinate its lien prior to the end of the term based on the merit 

of the request and to promote positive economic impact on the 

local community, as set forth in the NIP guidelines. 

9. Per Property Assistance Maximum of $35,000 per residential property. Maximum 

assistance amount includes acquisition costs (if applicable); 

demolition and greening/improvement costs; and a one-time 

project management and maintenance fee to cover management 

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

10. Duration of Assistance One-time assistance per property payable in multiple 

disbursements. 

11. Estimated Number of 

Properties Assisted 

It is expected that 1,000 – 1,300 properties will be served. 

12. Program Inception/ 

Duration 

NIP will be available statewide during the third quarter of 2014. 

It is expected that it will run for 36 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

NIP will not interact with other SCSHFDA Hardest-Hit Fund 

Programs. SCSHFA-owned or mortgaged properties may be 

eligible under NIP.

14. Program Interactions 

with HAMP 

NIP will not interact with HAMP. 

15. Program Leverage with 

Other Financial 

Resources 

None 

16. Qualify as an 

Unemployment 

Program 

 Yes  No 

 

 
SCHEDULE C 

Permitted Administrative 

Expenses 

South Carolina 

 Total 

 One-time / Start-Up Expenses: 

Initial Personnel $169,280

Building, Equipment, Technology $82,000

Professional Services $125,000

Supplies / Miscellaneous $55,000

Marketing /Communications $10,000

Travel $10,000

Website development /Translation $25,000

Contingency $50,000

 Subtotal $526,280

 

Operating / Administrative 

Expenses: 

Salaries $5,505,917

Professional Services (Legal, 

Compliance, Audit, Monitoring) $430,000

Travel $265,000

Buildings, Leases & Equipment $1,528,000

Information Technology & 

Communications $1,225,000

Office Supplies/Postage and 

Delivery/Subscriptions $215,000

Risk Management/ Insurance $270,000

Training $290,000

Marketing/PR $3,390,000

Miscellaneous $255,690

 Subtotal $13,374,607

 4.53%

 Transaction Related Expenses: 

Recording Fees $21,500 

Wire Transfer Fees $1,115,200 

 Counseling Expenses 

File Intake $2,317,502 

Decision Costs $1,755,700 

Successful File $17,693,250 

Key Business Partners On-Going $17,201,945 

 Subtotal $40,105,097

 

 Grand Total $54,005,984

 

% of Total Award 18.28%

Award Amount $295,431,547