Third Amendment to HPA — Arizona 

TAMPA/139504.1

THIRD AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Third Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “Third Amendment”) is entered into as of the date set forth on Schedule A

attached hereto as the Third 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”; and together with the 

Original HPA as amended thereby and by the First 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 and Treasury has agreed to the same; 

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

document all approved modifications to the Service Schedules and Permitted Expenses; 

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 Third 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 Third 
- 2 - 

TAMPA/139504.1

Amendment. All references herein to the “HPA” shall mean the Current HPA, as further 

amended by this Third 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 Third 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 Third 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 Third 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 Third Amendment and any other closing documentation delivered to 

Treasury in connection with this Third 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 

Third Amendment and any other closing documentation delivered to Treasury in 

connection with this Third Amendment, and to perform its obligations hereunder and 

thereunder. 

3. Miscellaneous

A. The recitals set forth at the beginning of this Third 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. 
- 3 - 

TAMPA/139504.1

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 Third 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 Third Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Third Amendment to HPA — Arizona] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

STATE OF ARIZONA, ARIZONA 

DEPARTMENT OF HOUSING 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Michael Trailor By: 

Name: Michael Trailor Name: Timothy G. Massad 

Title: Director Title: Acting Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

ARIZONA HOME FORECLOSURE 

PREVENTION FUNDING CORPORATION 

By: /s/ Michael Trailor 

Name: Michael Trailor 

Title: Director 

 

TAMPA/139504.1

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/139504.1

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Arizona Home Foreclosure Prevention 

Funding Corporation

Corporate or other organizational form: Arizona Non-Profit corporation

Jurisdiction of organization: Arizona domiciliary

Notice Information: 

 

 

 

 

 

 

HFA Information: 

Name of HFA: State of Arizona, Arizona Department of 

Housing 

Organizational form: Constituent Department of the State of 

Arizona 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

 

 

 

 

 

 

Program Participation Cap: $267,766,006.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $125,100,000.00 
TAMPA/139504.1

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: N/A 

Permitted Expenses: $ 19,466,006.00

Closing Date: August 3, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010 

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. 
TAMPA/139504.1

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. 
TAMPA/139504.1

SERVICE SCHEDULE B-1

SAVEMYHOMEAZ 

Permanent Modifications Component 

Summary Guidelines 

1. Program Overview The Permanent Modification Component is being 

administered by the Arizona Department of Housing 

(“ADOH”). Efforts may include principal reduction, interest 

rate reduction, and/or term extension to achieve a monthly 

payment that does not exceed 31% of the borrower’s 

monthly income. Borrowers that are suffering an approved 

hardship, demonstrate personal responsibility, and whose 

principal outstanding mortgage balance exceeds 120% of the 

present market value of the borrower’s residence may be 

eligible for principal reduction assistance. 

Soft second loans will be made to eligible borrowers for up 

to $50,000 which will be applied to reduce the principal 

balance of a borrower’s primary mortgage. A borrower’s 

primary mortgage lender must agree to make a matching 

reduction to the principal balance of the primary mortgage. 

Loans will be for a term of ten (10) years and will include 

provisions that will reduce the loan amount by twenty 

percent (20%) per year for every year the borrower stays in 

the home after five (5) years. Each loan, to the extent not 

previously forgiven, will be due upon the sale of the property 

to the extent that the equity in the home has increased. 

2. Program Goals The central goal of the Permanent Modification Component 

is to help homeowners avoid foreclosure by permanently 

modifying a borrower’s primary mortgage to achieve a 

monthly payment that does not exceed 31% of the 

borrower’s monthly income. Loan modifications may 

include principal reduction (the amount of any principal 

reduction provided by HHF Program funds must be matched 

by a borrower’s lender/servicer), interest rate reduction, 

and/or term extension. The Permanent Modification 

Component aspires to achieve a ninety percent (90%) 

success rate in modifying loans with the borrowers’ 

lenders/servicers. 

3. Target Population/Areas The targeted populations are households whose income does 

not exceed 120% Area Median Income (“AMI”) and that 

exhibit a commitment to retaining their home and can 
TAMPA/139504.1

demonstrate an ability to maintain a financial obligation for 

the home. These households will be analyzed based on two 

primary factors which are affordability and profitability. 

Each household will be evaluated to determine an affordable 

and sustainable monthly mortgage payment according to its 

gross monthly income. 

It is projected that program assistance will be provided to 

targeted areas according to the following breakdown of 

counties. These projections are based on population, 

delinquent loans and pending foreclosures in these areas. 

Maricopa County, 79% of program funds 

Pima County, 9% of program funds 

Pinal County, 9% of program funds 

All other areas, 3% of program funds 

4. Program Allocation 

(Excluding Administrative 

Expenses) 

$216,800,000.00 

5. Borrower Eligibility 

Criteria 

• Eligible financial hardship. Eligible financial hardships 

include: reduced income due to under employment, 

medical condition divorce or death. Borrower will be 

required to provide a financial hardship affidavit. 

• Property must be borrower’s primary residence (single 

family unit). 

• 120% of AMI maximum household income 

(underemployed). 

• Present dollar value of 31% of monthly gross income 

must be equal to or greater than NPV of REO. 

• Eligibility determined through application process and 

application evaluation by ADOH and HUD approved 

counselors. 

• Funds will be monitored, allocated and distributed based 

on approved application request and adjusted upon 

successful modification. No commitments will be made 

to borrowers beyond the capacity of Permanent 

Modification Component funds. 

6. Property/Loan Eligibility 

Criteria 

• Property must be owner occupied. 

• Mortgage amount must be equal to or less than GSE 

conforming limits. 

• Mortgage must be a traditional fixed rate, 30-year, fully 

amortized and full income documented mortgage to 

qualify. 
TAMPA/139504.1

• Purchase money mortgage(s) or rate and term refinance 

of purchase money mortgage(s). 

• 60 days delinquent on mortgage. 

• At least 60 days prior to the scheduled date of a trustee’s 

sale with respect to borrower’s residence. 

7. Program Exclusions • Refinance cash out mortgages. 

• Cash out second mortgages and home equity lines of 

credit. 

• Current mortgage payment is equal to or less than 31% 

of borrower’s monthly gross income. 

8. Structure of Assistance The Permanent Modifications Component will provide upfront, soft second loans to eligible borrowers for up to 

$50,000 depending upon individual circumstances. Notes on 

the soft second loans will be for a term of ten (10) years in 

favor of the Eligible Entity. A forgiveness clause will 

reduce the loan amount due by 20 percent (20%) a year for 

every year the consumer stays in the home after five years. 

At the end of the ten (10) years the note will be considered 

satisfied and ADOH will release the second lien connected 

with the note. These soft second loans will be utilized to 

reduce a portion of the principal on the loan, the amount of 

which will be required to be matched by the primary 

lender/servicer. During the period of the loan it will be “due 

on sale.” Any remaining amount not previously “forgiven” 

will be due, if the home has increased in equity. If the home 

has not increased in equity to the degree necessary to repay 

the note, all or a portion of the note may be forgiven so as 

not to create additional hardships on the borrower/seller at 

the time of closing. Any loan proceeds that are returned to 

the Program would be reutilized to assist additional 

homeowners. 

9. Per Household Assistance • $50,000 is the Maximum Amount of Assistance. 

• $30,000 is the Estimated Median Amount of Assistance. 

10. Duration of Assistance Permanent modification assistance will be disbursed in full 

at the initial completion of the modification agreement. 

11. Estimated Number of 

Participating Households 

It is anticipated that the Permanent Modification Component 

will assist a minimum of 4,336 households in avoiding 

imminent foreclosures. Based upon the median or estimated 

average amount of assistance we could assist as many as 

7,227 households. 
TAMPA/139504.1

12. Program 

Inception/Duration 

It is expected that the program will be available in a 

controlled rollout environment 3 weeks from Treasury’s 

approval of the program. The complete rollout of the 

program will occur approximately 4 weeks later, after the 

satisfactory assessment and adjustments as determined 

necessary in the controlled rollout.

It is projected that assistance will be expended over a three 

year period of time. However, repayment of assistance may 

extend this time frame one or two additional years. 

13. Program Interactions with 

Other Programs (e.g. other 

HFA programs) 

N/A

14. Program Interactions with 

HAMP 

Borrowers for the Permanent Modification Component must 

be ineligible or denied for HAMP. 

15. Program Leverage with 

Other Financial Resources 

In order to leverage the funds, ADOH requires the 

lender/servicer to match any principal reduction provided 

through the Permanent Modification Component. It is 

expected that this match will be no less than one to one. In 

some instances the lender/servicer will need to contribute a 

larger amount based upon the affordability/ profitability 

assessment of the transaction and the Permanent 

Modification Component maximum assistance per 

household. Lender match amounts up to and equal to the 

amount of program funds for any homeowner shall be 

credited at the time of closing of the modification. Lender 

match amounts greater than the amount of program funds 

may be credited after closing according to a schedule 

satisfactory to ADOH. 

16. Qualify as an 

Unemployment Program 

N/A 
TAMPA/139504.1

SERVICE SCHEDULE B-2

SAVEMYHOMEAZ 

Second Mortgage Assistance Component 

Summary Guidelines 

1. Program Overview Under the Second Mortgage Assistance Component, 

assistance of up to $5,000 will be provided to remove 

second mortgages if necessary to modify the terms of 

primary loans. This amount may also be available to 

borrowers where the second mortgage itself is 

burdensome. 

2. Program Goals The goals of the Second Mortgage Assistance Component 

is to help homeowners avoid foreclosure by eliminating a 

second mortgage if necessary to modify the terms of the 

primary loan, and to reduce the likelihood that a borrower 

will re-default under its primary loan as a result of the 

burden of a second mortgage. 

3. Target Population/Areas The targeted populations are households whose income 

does not exceed 120% AMI and that exhibit a 

commitment to retaining their home and can demonstrate 

an ability to maintain a financial obligation for the home. 

These households will be analyzed based on two primary 

factors which are affordability and profitability. Each 

household will be evaluated to determine an affordable 

and sustainable monthly mortgage payment according to 

its gross monthly income. 

It is projected that program assistance will be provided to 

targeted areas according to the following breakdown of 

counties. These projections are based on population, 

delinquent loans and pending foreclosures in these areas. 

Maricopa County, 75% of program funds 

Pima County, 8% of program funds 

Pinal County, 9% of program funds 

All other areas, 8% of program funds 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

$7,500,000.00

5. Borrower Eligibility • Eligible financial hardship. Eligible financial 

hardships include: reduced income due to under 
TAMPA/139504.1

Criteria employment, medical condition divorce or death. 

Borrower will be required to provide a financial 

hardship affidavit. 

• Property must be borrower’s primary residence (single 

family unit). 

• 120% of AMI maximum household income. 

• Present dollar value of 31% of monthly gross income 

must be equal to or greater than NPV of REO. 

6. Property/Loan Eligibility 

Criteria 

• Property must be owner occupied. 

• Mortgage amount must be equal to or less than GSE 

conforming limits. 

• Mortgage must be a traditional fixed rate, 30-year, 

fully amortized and full income documented mortgage 

to qualify. 

• Purchase money mortgage(s) or rate and term 

refinances. 

• 60 days delinquent on mortgage. 

• At least 60 days prior to the scheduled date of a 

trustee’s sale with respect to borrower’s residence. 

7. Program Exclusions • Refinance cash out mortgages. 

• Cash out second mortgages and home equity lines of 

credit 

• Current mortgage payment is equal to or less than 

31% of borrower’s monthly gross income. 

8. Structure of Assistance The Second Mortgage Assistance Component will provide 

up-front, soft second loans to eligible borrowers 

depending upon individual circumstances. Notes on the 

soft second loans will be for a term of ten (10) years in 

favor of the Eligible Entity. A forgiveness clause will 

reduce the loan amount due by 20 percent (20%) a year 

for every year the consumer stays in the home after five 

years. At the end of the ten (10) years the note will be 

considered satisfied and ADOH will release the second 

lien connected with the note. These soft second loans will 

be utilized to reduce a portion of the principal on the loan, 

the amount of which will be required to be matched by the 

primary lender/servicer. During the period of the loan it 

will be “due on sale.” Any remaining amount not 

previously “forgiven” will be due, if the home has 

increased in equity. If the home has not increased in 

equity to the degree necessary to repay the note, all or a 

portion of the note may be forgiven so as not to create 

additional hardships on the borrower/seller at the time of 
TAMPA/139504.1

closing. Any loan proceeds that are returned to the 

Program would be reutilized to assist additional 

homeowners. 

9. Per Household Assistance • $5,000 Maximum of Second Mortgage Settlement 

Assistance. 

• $4,000 is the Estimated Median Amount of 

Assistance. 

10. Duration of Assistance Second mortgage settlement will be disbursed in full at 

the initial completion of the modification agreement. 

11. Estimated Number of 

Participating Households 

It is anticipated that the Second Mortgage Assistance 

Component will assist a minimum of 1,500 households in 

avoiding imminent foreclosures. Based upon median or 

estimated average amount of assistance ADOH could 

assist as many as 1,875 households. 

12. Program 

Inception/Duration 

It is expected that the program will be available in a 

controlled rollout environment 3 weeks from Treasury’s 

approval of the program. The complete rollout of the 

program will occur approximately 4 weeks later, after the 

satisfactory assessment and adjustments as determined 

necessary in the controlled rollout.

It is projected that assistance will be expended over a 

three year period of time. However, repayment of 

assistance may extend this time frame one or two 

additional years. 

13. Program Interactions 

with Other Programs (e.g. 

other HFA programs) 

N/A

14. Program Interactions 

with HAMP 

Borrowers for the Second Mortgage Assistance 

Component must be ineligible or denied for HAMP. 
TAMPA/139504.1

15. Program Leverage with 

Other Financial 

Resources 

In order to leverage the funds, ADOH requires the 

lender/servicer to match any principal reduction provided 

through the Second Mortgage Assistance Component. It 

is expected that this match will be no less than seven to 

one. Lender match amounts up to and equal to the 

amount of program funds for any homeowner shall be 

credited at the time of closing of the modification. Lender 

match amounts greater than the amount of program funds 

may be credited after closing according to a schedule 

satisfactory to ADOH. 

16. Qualify as an 

Unemployment Program 

N/A 
TAMPA/139504.1

SERVICE SCHEDULE B-3

SAVEMYHOMEAZ 

Temporary Modification Component 

Summary Guidelines 

1. Program Overview The Temporary Modification Component is designed to 

give unemployed or underemployed borrowers relief for 

up to 24 months while seeking to become reemployed or 

sufficiently employed (maximum of $12,000 of 

assistance). This assistance may be used to pay monthly 

mortgage payments or to remove second mortgages as 

necessary in order to modify the terms of the primary 

mortgage. 

2. Program Goals The goal of the Temporary Modification Component is to 

help homeowners remain in their homes and prevent 

avoidable foreclosures despite loss of income due to 

unemployment or underemployment. The Temporary 

Modification Component funds will reduce past due 

payments, and provide borrower’s additional time to find 

alternate employment and replace income deeded to make 

mortgage payments. The Temporary Modification 

Component is designed to complement other components 

of the HHF Program. Funds available under the 

Temporary Modification Component may also be applied 

to remove second mortgages as necessary to modify the 

terms of the primary loan. 

3. Target Population/Areas The targeted populations are households whose income 

does not exceed 120% AMI and that exhibit a 

commitment to retaining their home and can demonstrate 

an ability to maintain a financial obligation for the home. 

These households will be analyzed based on two primary 

factors which are affordability and profitability. Each 

household will be evaluated to determine an affordable 

and sustainable monthly mortgage payment according to 

its gross monthly income. 

It is projected that program assistance will be provided to 

targeted areas according to the following breakdown of 

counties. These projections are based on population, 

delinquent loans and pending foreclosures in these areas. 

Maricopa County, 78% of program funds 

Pima County, 9% of program funds 
TAMPA/139504.1

Pinal County, 9% of program funds 

All other areas, 4% of program funds 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

$24,000,000.00 

5. Borrower Eligibility 

Criteria 

• Eligible financial hardship. Eligible financial 

hardships include: reduced income due to under 

employment, medical condition divorce or death. 

Borrower will be required to provide a financial 

hardship affidavit. 

• Property must be borrower’s primary residence (single 

family unit). 

• 120% of AMI maximum household income. 

• Present dollar value of 31% of monthly gross income 

must be equal to or greater than NPV of REO. 

6. Property/Loan Eligibility 

Criteria 

• Property must be owner occupied. 

• Mortgage amount must be equal to or less than GSE 

conforming limits. 

• Mortgage must be a traditional fixed rate, 30-year, 

fully amortized and fully income documented 

mortgage to qualify. 

• Purchase money mortgage(s) or rate and term 

refinances. 

• 60 days delinquent on mortgage. 

• At least 60 days prior to the scheduled date of a 

trustee’s sale with respect to borrower’s residence. 

7. Program Exclusions • Refinance cash out mortgages. 

• Cash out second mortgages and home equity lines of 

credit. 

• Current mortgage payment is equal to or less than 31% 

of borrower’s monthly gross income. 

8. Structure of Assistance The Temporary Modification Component will provide upfront, soft second loans to eligible borrowers depending 

upon individual circumstances. Notes on the soft second 

loans will be for a term of ten (10) years in favor of the 

Eligible Entity. A forgiveness clause will reduce the loan 

amount due by 20 percent (20%) a year for every year the 

consumer stays in the home after five years. At the end of 

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

ADOH will release the second lien connected with the 

note. These soft second loans will be utilized to reduce a 
TAMPA/139504.1

portion of the principal on the loan, the amount of which 

will be required to be matched by the primary 

lender/servicer. During the period of the loan it will be 

“due on sale.” Any remaining amount not previously 

“forgiven” will be due, if the home has increased in 

equity. If the home has not increased in equity to the 

degree necessary to repay the note, all or a portion of the 

note may be forgiven so as not to create additional 

hardships on the borrower/seller at the time of closing. 

Any loan proceeds that are returned to the Program would 

be reutilized to assist additional homeowners 

9. Per Household Assistance • $12,000 Maximum of Mortgage Payment Assistance. 

• $8,400 is the Estimated Median Amount of 

Assistance. 

10. Duration of Assistance Temporary Modification assistance will be disbursed 

monthly up to 24 months. Provided the borrower can 

demonstrate they qualify for a permanent modification 

prior to the expiration of the temporary assistance the 

provisions of the permanent modification will commence 

at that time. Assistance under the Permanent Modification 

Component will be disbursed at conversion to a 

permanent modification. 

11. Estimated Number of 

Participating Households 

It is anticipated that the Temporary Modification 

Component will assist a minimum of 2,000 households in 

avoiding imminent foreclosures. Based upon the median 

or estimated average amount of assistance ADOH could 

assist as many as 2,857 households. 

12. Program 

Inception/Duration 

It is expected that the program will be available in a 

controlled rollout environment 3 weeks from Treasury’s 

approval of the program. The complete rollout of the 

program will occur approximately 4 weeks later, after the 

satisfactory assessment and adjustments as determined 

necessary in the controlled rollout.

It is projected that assistance will be expended over a 

three year period of time. However, repayment of 

assistance may extend this time frame one or two 

additional years. 

13. Program Interactions 

with Other Programs (e.g. 

other HFA programs) 

N/A
TAMPA/139504.1

14. Program Interactions 

with HAMP 

Borrowers for the Temporary Modification Component 

must be ineligible or denied for HAMP. 

15. Program Leverage with 

Other Financial 

Resources 

In the event a permanent modification is achieved in order 

to leverage funds, ADOH requires the lender/servicer to 

match any principal reduction provided through the 

Permanent Modification Component. It is expected that 

this match will be no less than one to one. In some 

instances the lender/servicer will need to contribute a 

larger amount based upon the affordability/profitability 

assessment of the transaction and the Permanent 

Component maximum assistance per household. Lender 

match amounts up to and equal to the amount of program 

funds for any homeowner shall be credited at the time of 

closing of the modification. Lender match amounts 

greater than the amount of program funds may be credited 

after closing according to a schedule satisfactory to 

ADOH. 

16. Qualify as an 

Unemployment Program 

N/A 
TAMPA/139504.1

SCHEDULE C

PERMITTED EXPENSES

Arizona 

 One-time / Start-Up Expenses: 

Initial Personnel $0.00

Building, Equipment, Technology $9,000.00

Professional Services $4,192.00

Supplies / Miscellaneous $0.00

Marketing /Communications $25,000.00

Travel $0.00

Website development /Translation $550,000.00

Contingency $100,000.00

 Subtotal $688,192.00

 

Operating / Administrative Expenses: 

Salaries $2,144,826.45

Professional Services (Legal, Compliance, 

Audit, Monitoring) $86,895.00

Travel $12,000.00

Buildings, Leases & Equipment $238,685.55

Information Technology & Communications $190,710.00

Office Supplies/Postage and 

Delivery/Subscriptions $47,310.00

Risk Management/ Insurance $11,400.00

Training $20,000.00

Marketing/PR $30,000.00

Miscellaneous $280,091.00

 Subtotal $3,061,918.00

 

 Transaction Related Expenses: 

Recording Fees $4,295,296.00 

Wire Transfer Fees $117,540.00 

 Counseling Expenses 

File Intake $2,000,000.00 

Decision Costs $78,360.00 

Successful File $2,546,700.00 

Key Business Partners On-Going $6,678,000.00 

 Subtotal $15,715,896.00

 

 Grand Total $19,466,006.00

 

% of Total Award 7.27%

Award Amount $267,766,006