Fifth Amendment to HPA — Rhode Island 

TAMPA/200833.2

FIFTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

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

attached hereto as the Fifth 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”), and as further amended by that certain 

Fourth Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “Fourth Amendment”; and together with the Original HPA as amended thereby 

and by the First Amendment, Second Amendment and Third 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 Fifth 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. 
- 2 - 

TAMPA/200833.2 

Agreement 

1. Amendments

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

Current HPA, as further amended by this Fifth 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 Fifth 

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

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

Treasury in connection with this Fifth 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 

Fifth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 
- 3 - 

TAMPA/200833.2 

3. Miscellaneous

A. The recitals set forth at the beginning of this Fifth 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 Fifth 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 

Fifth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Fifth Amendment to HPA — Rhode Island] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Richard Godfrey By: 

Name: Richard Godfrey Name: Timothy G. Massad 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION 

By: /s/ Richard Godfrey 

Name: Richard Godfrey 

Title: Executive Director 

 

TAMPA/200833.2 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules

Schedule C Permitted Expenses 
TAMPA/200833.2 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Rhode Island Housing and Mortgage Finance Corporation1

Corporate or other organizational form: a public corporation of the state of Rhode 

Island, established and existing under the 

Rhode Island Housing and Mortgage Finance 

Corporation Act, as amended Chapter 42-55, 

State of Rhode Island General Laws.

Jurisdiction of organization: Rhode Island

Notice Information: Rhode Island Housing 

 44 Washington Street 

 Providence, RI 02903 

 Attn: Richard H. Godfrey, 

 Executive Director 

 E-mail: RGodfrey@rhodeislandhousing.org 

 Phone: (401) 457-1212 

 Fax: (401) 457-1136 

 

 With copies to: 

 Rhode Island Housing 

 44 Washington Street 

 Providence, RI 02903 

 Attn: Susan Bodington, 

 Deputy Director 

 E-mail: SBodington@rhodeislandhousing.org 

 Phone: (401) 457-1286 

 Fax: (401) 457-1136 

 Rhode Island Housing 

 44 Washington Street 

 Providence, RI 02903 

 Attn: Michael V. Milito, 

 Deputy Director for Law and Human Resources 

 E-mail: MMilito@rhodeislandhousing.org

 

1

 References in the Agreement to the term “HFA” shall mean the Rhode Island Housing and Mortgage Finance 

Corporation (“Rhode Island Housing”) in its capacity as HFA as such term is used in the Agreement; and references 

in the Agreement to the term “Eligible Entity” shall mean Rhode Island Housing, in its capacity as Eligible Entity as 

such term is used in the Agreement. 
TAMPA/200833.2 

 Phone: (401) 457-1173 

 Fax: (401) 450-1371 

 and 

 Rhode Island Housing 

 Attn: Cathleen A. Paniccia, 

 Director of Homeownership 

 44 Washington Street 

 Providence, RI 02903 

 Phone: (401) 457-1226 

 Fax: (401) 457-1371 

 E-mail: CPaniccia@rhodeislandhousing.org

 

HFA Information: 

Name of HFA: Rhode Island Housing and Mortgage Finance Corporation1

Organizational form: a public corporation of the state of Rhode 

Island, established and existing under the 

Rhode Island Housing and Mortgage Finance 

Corporation Act, as amended Chapter 42-55, 

State of Rhode Island General Laws. 

Date of Application: May 27, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Same as notice information for Eligible Entity. 

Program Participation Cap: $79,351,573.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $43,000,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $13,570,770.00 

Permitted Expenses: $11,568,830.00

Closing Date: August 3, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010 
TAMPA/200833.2 

Fourth Amendment Date: May 25, 2011 

Fifth Amendment Date: January 25, 2012 

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/200833.2 

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/200833.2 

SERVICE SCHEDULE B-1 

Rhode Island Housing’s 

Loan Modification Assistance (LMA) 

Summary Guidelines 

1. Program Overview Loan Modification (LMA) will provide up to $25,000 to assist 

homeowners achieve a modification. Lender must first attempt to 

qualify homeowner for a HAMP or Non-HAMP modification or 

workout solution driven by investor guidelines and regulatory 

oversight. If the homeowner fails these workout solutions, the lender 

may utilize LMA to achieve an affordable modification. This 

assistance must bring the total housing debt to income ratio to 38% 

or below and will, at a minimum, temporarily adjust a homeowner’s 

payment to an affordable level for a 12 month period. 

Rhode Island Housing will review and approve on a case-by-case 

basis investor program guidelines that utilize affordable mortgage 

definitions that result in a modification with a total housing debt to 

income ratio greater than 38%. 

Lender must present modification plan for HHFRI approval prior to 

release of funds. 

For homeowners that received a modification wherein the resulting 

housing debt to income ratio is in excess of 38% LMA funds may be 

used as monthly supplemental mortgage payment assistance to 

achieve a 31% housing debt to income ratio. Homeowners receiving 

a monthly mortgage payment supplement will be responsible for 

making a partial monthly payment contribution which will be 

determined according to household income as referenced below or at 

lenders option but not greater than 38%: 

Gross Annual 

Household Income 

Maximum Monthly Mortgage 

Payment Contribution

<$35,999 $250 

$36,000 to $59,999 $500 

$60,000 to $69,999 $750 

>70,000 31% of gross monthly household 

income 

In special circumstances, targeted homeowners who are at risk of 

foreclosure may receive up to $50,000 assistance. 
TAMPA/200833.2 

Targeted homeowners include: 

 HHF-eligible homeowners age 62 and over who are unable to 

refinance an unaffordable mortgage and need assistance to meet 

the lender’s minimum refinancing requirements 

 HHF-eligible homeowners who have a deed restricted property 

and have received federal or state subsidies and are at risk of 

foreclosure 

 HHF-eligible multi-family property homeowners who have 

experienced a loss of rental income that has compromised their 

ability to afford their mortgage payment 

 HHF-eligible homeowners who have received FEMA or other 

natural disaster assistance and still need assistance due to 

extensive property damage 

 HHF-eligible homeowners who are deployed members of the 

US Armed Forces or those discharged within the last 12 months 

(includes enlisted personnel in all regular and reserve units of 

the Army, Navy, Air Force, Marines and Coast Guard). 

LMA is designed to address items that may be negatively impacting 

the homeowners ability to obtain a modification. Funding can be 

used to address: 

• insufficient income: unemployment or underemployment 

• insufficient equity 

• delinquent mortgage payments including escrows 

• escrow shortage payments 

• payment of non-escrowed taxes or insurances 

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments 

satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property 

2. Program Goals To help Rhode Island homeowners at risk of foreclosure obtain a 

modification. 

3. Target 

Population/Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities with 

the highest unemployment rates. Using a combination of the 

number of delinquencies and the number of unemployed, it is 

estimated that 70% of all Hardest-Hit funds will be spent in these 

twelve communities. Thirty one of the thirty nine communities in 

Rhode Island experienced an unemployment rate of 12% or higher 

in January of 2010, representing 85.45% of the state’s population. 

Therefore, we anticipate that 85% of all Hardest-Hit funding will be 

targeted to communities with unemployment rates of greater than 

12%. 
TAMPA/200833.2 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$17,500,000.00 

5. Borrower 

Eligibility Criteria 

Eligible borrower must have a monthly mortgage payment that is 

greater than 31% of their gross monthly household income. 

All homeowners will be required to complete a Hardship Affidavit. 

Homeowner must be able to document hardship circumstances that 

place the borrower at risk of foreclosure. A hardship is defined as an 

uncontrollable increase in expense (excluding consumer debt) or an 

uncontrollable decrease in income that places the homeowner at risk 

of foreclosure. Examples of a hardship include: underemployment, 

reduction of income, unemployment, death or disability in family, 

unforeseen medical expense, costly home repairs necessary for 

habitability or an extended loss of rental income due to an inability 

to secure a tenant. A loss of home value does not, in itself, 

constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for assistance. 

Borrowers with a gross annual household income of $50,000 or less 

and a housing debt-to-income ratio greater than 35% are considered 

to have a qualified hardship. This must be referenced in their 

hardship affidavit. No further hardship test is applicable given these 

circumstances. 

Homeowners with total debt-to-income ratios in excess of 55% will 

be encouraged to seek debt management services from a HUDapproved counseling agency. The costs of such counseling or 

services shall not be paid with HHF funds. 

Rhode Island’s Mortgage Revenue Bond income limits apply to all 

assistance programs. These eligibility limits are based on current 

income and family size. They are generally up to 140% of area 

median income. Currently, one or two person households can earn 

up to $87,800. Households of three or more can earn up to 

$102,400. 

Borrower is able to satisfy program guidelines. 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums provided the original 

mortgage was not greater than $729,750. 
TAMPA/200833.2 

7. Program 

Exclusions 

Homeowner has cash reserves, non-retirement liquid assets, 

exceeding $15,000. 

8. Structure of 

Assistance 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner fulfills 

his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. Recycled funds will be returned to the HHF 

Program for additional use through December 31, 2017. After 

December 31, 2017 all repayments will be returned to Treasury. 

9. Per Household 

Assistance 

LMA will provide up to $25,000 to assist the borrower and lender to 

achieve a loan modification and reinstatement assistance when 

necessary. 

In special circumstances, up to $50,000 in total assistance may be 

available for targeted homeowners who are at risk of foreclosure. 

10. Duration of 

Assistance 

The duration of the assistance is determined by the individual need 

of each eligible borrower. Assistance will be paid directly to the 

existing servicer and may be distributed in a lump sum or on a 

monthly basis until the maximum program amount is reached. 

11. Estimated Number 

of Participating 

Households 

700 households will be served 

12. Program 

Inception/Duration 

November 1, 2010 until program funds have been exhausted 

13. Program 

Interactions with 

Other HFA

Programs 

Additional aid may be available to eligible homeowners through 

other HHFRI programs up to program limits. 

14. Program 

Interactions with 

HAMP 

Funds will be paid to the servicer through this program to help the 

homeowner qualify for a modification for a minimum of 12 months 

15. Program Leverage 

with Other 

Financial 

Resources 

This program is designed to complement and supplement HAMP, 

Non-HAMP or other lender workout solutions. 
TAMPA/200833.2 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/200833.2 

SERVICE SCHEDULE B-2 

Rhode Island Housing’s 

Temporary and Immediate Homeowner Assistance (TIHA) 

Summary Guidelines 

1. Program Overview The Temporary and Immediate Homeowner Assistance (TIHA) can 

provide up to $25,000 for partial or full reinstatement or other 

mortgage related default assistance. Mortgage related default 

assistance may help pay delinquent taxes, insurances and association 

dues. 

For homeowners who have experienced a temporary loss of income, 

TIHA can also be used to provide supplemental mortgage payment 

assistance provided that a minimum of 12 months mortgage 

payment assistance can be offered. 

In special circumstances, targeted homeowners who are at risk of 

foreclosure may receive up to $50,000 assistance. 

Targeted homeowners include: 

 HHF-eligible homeowners age 62 and over who are unable to 

refinance an unaffordable mortgage and need assistance to meet 

the lender’s minimum refinancing requirements 

 HHF eligible homeowners who have a deed restricted property 

and have received federal or state subsidies and are at risk of 

foreclosure 

 HHF-eligible owner-occupied multi-family property 

homeowners who have experienced a loss of rental income that 

has compromised their ability to afford their mortgage payment 

 HHF-eligible homeowners who have received FEMA or other 

natural disaster assistance and still need assistance due to 

extensive property damage 

 HHF-eligible homeowners who are deployed members of the 

US Armed Forces or those discharged within the last 12 months 

(includes enlisted personnel in all regular and reserve units of 

the Army, Navy, Air Force, Marines and Coast Guard). 

There are many situations where payments made by or on behalf of 

the borrower toward the first mortgage are not sufficient to prevent 

an avoidable foreclosure. These include, but are not limited to, 

situations where a borrower has had a temporary loss of income or 

increase in expenses that have created a first mortgage delinquency 
TAMPA/200833.2 

or another delinquency that has or may result in a default under the 

first mortgage, which, if not cured, may result in foreclosure. This 

situation could arise even when the borrower’s current income may 

be sufficient to pay the first mortgage going forward. There are also 

situations where the borrower needs temporary supplemental 

mortgage payment assistance for the borrower and lender to agree 

on a mortgage modification. This is frequently the result of a 

temporary interruption in or reduction of employment. 

As such, these funds can be used by homeowners who may or may 

not qualify for permanent modifications. Funding can be used to 

address: 

• insufficient income caused by a temporary interruption or a 

reduction in employment 

• insufficient equity 

• delinquent mortgage payments including escrows 

• escrow shortage payments 

• payment of non-escrowed taxes or insurances 

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments 

• satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property 

2. Program Goals To help a homeowner avoid foreclosure when faced with temporary 

or immediate crisis. 

3. Target 

Population/Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities with 

the highest unemployment rates. Using a combination of the 

number of delinquencies and the number of unemployed, it is 

estimated that 70% of all Hardest-Hit funds will be spent in these 

twelve communities. Thirty-one of the thirty-nine communities in 

Rhode Island experienced an unemployment rate of 12% or higher 

in January of 2010, representing 85.45% of the state’s population. 

Therefore, we anticipate that 85% of all Hardest-Hit funding will be 

targeted to communities with unemployment rates of greater than 

12%. 

4. Program Allocation

(Excluding 

Administrative 

Expenses) 

$10,000,000.00 
TAMPA/200833.2 

5. Borrower 

Eligibility Criteria 

Reinstatement Assistance: 

TIHA provides one-time lump sum mortgage reinstatement 

or other mortgage default assistance for eligible 

homeowners. 

Borrower must demonstrate that the hardship resulted in a 

housing debt-to-income ratio greater than 31% and caused 

the delinquency. 

The monthly mortgage payment includes principal, interest, 

property taxes, hazard insurance, mortgage insurance, flood 

insurance, condominium association fees and other 

homeowner association fees, as applicable, regardless of 

whether these expenses are included in the borrowers current 

mortgage payment. It also includes any escrow payment 

shortage amounts that are subject to a repayment plan. The 

monthly mortgage payment does not include payments due to 

holders of subordinate liens. 

Homeowners with total debt-to-income ratios in excess of 

55% will be referred to a HUD-approved counseling agency 

for debt management services. The costs of such counseling 

or services shall not be paid with HHF funds. 

Supplemental Mortgage Payment Assistance: 

TIHA provides supplemental mortgage payment assistance 

for eligible homeowners who have experienced a temporary 

loss of income. 

Borrower must demonstrate that the temporary loss of 

income resulted in a housing debt-to-income ratio greater 

than 31%. 

The monthly mortgage payment includes principal, interest, 

property taxes, hazard insurance, mortgage insurance, flood 

insurance, condominium association fees and other 

homeowner association fees, as applicable, regardless of 

whether these expenses are included in the borrowers current 

mortgage payment. It also includes any escrow payment 

shortage amounts that are subject to a repayment plan. The 

monthly mortgage payment does not include payments due 

to holders of subordinate liens. 

When TIHA is used as supplemental mortgage payment 

assistance the term cannot exceed 60 months or $25,000 
TAMPA/200833.2 

whichever is reached first. Homeowners receiving 

supplemental payment assistance will be required to 

contribute to their contractual monthly mortgage payment. 

Homeowners monthly payment contribution will be 

determined according to household income as stated below: 

Gross Annual 

Household Income 

Maximum Monthly Mortgage Payment 

Contribution

<$35,999 $250 

$36,000 to $59,999 $500 

$60,000 to $69,999 $750 

>70,000 31% of gross monthly household income 

Homeowners with total debt-to-income ratios in excess of 

55% will be referred to a HUD-approved counseling agency 

for debt management services. The costs of such counseling 

or services shall not be paid with HHF funds. 

All homeowners will be required to complete a Hardship Affidavit. 

Homeowner must be able to document the reason for the hardship. 

A hardship is defined as an uncontrollable increase in expenses 

(excluding consumer debt) or an uncontrollable decrease in income 

that has placed the homeowner at risk of foreclosure. 

Examples of a hardship include: underemployment, reduction of 

income, unemployment, death or disability in family, unforeseen 

medical expense, costly home repairs necessary for habitability or 

an extended loss of rental income due to an inability to secure a 

tenant. A loss of home value does not, unto itself, constitute a 

financial hardship, but may be considered to be a contributing factor 

in the evaluation of the request for assistance. 

Borrowers with a gross annual household income of $50,000 or less 

and a housing debt-to-income ratio greater than 35% are considered 

to have a qualified hardship. This must be referenced in their 

hardship affidavit. No further hardship test is applicable given these 

circumstances. 

Rhode Island’s Mortgage Revenue Bond income limits apply to all 

assistance programs. These eligibility limits are based on current 

income and family size. They are generally up to 140% of area 

median income. Currently, one or two person households can earn 

up to $87,800. Households of three or more can earn up to 

$102,400. 

Borrower is able to satisfy program guidelines. 
TAMPA/200833.2 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums provided the original 

mortgage was not greater than $729,750. 

7. Program 

Exclusions 

Homeowner has cash reserves, non-retirement liquid assets, 

exceeding $15,000. 

 

8. Structure of 

Assistance 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner fulfills 

his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. Recycled funds will be returned to the HHF 

Program for additional use through December 31, 2017. After 

December 31, 2017 all repayments will be returned to Treasury. 

9. Per Household 

Assistance 

The amount of assistance under TIHA is $25,000 per household. 

In special circumstances, up to $50,000 in total assistance may be 

available for targeted homeowners who are at risk of foreclosure. 

10. Duration of 

Assistance 

The duration of the assistance is determined by the individual need 

of each eligible borrower. Assistance will be paid directly to the 

existing servicer, taxing authority or lien holder, and may be 

distributed in a lump sum or on a monthly basis until the maximum 

program amount is reached. 

11. Estimated Number 

of Participating 

Households 

400 households will be served 

12. Program 

Inception/Duration 

November 1, 2010 until program funds are exhausted 

13. Program 

Interactions with 

Other HFA 

Programs 

Additional aid may be available to eligible homeowners through 

other HHFRI programs up to program limits. 

14. Program 

Interactions with 

HAMP 

This program does not interact with HAMP. 

15. Program Leverage 

with Other 

Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/200833.2 

SERVICE SCHEDULE B-3 

Rhode Island Housing’s 

Moving Forward Assistance 

Summary Guidelines 

1. Program Overview The Moving Forward Assistance Program (MFA) will provide 

eligible homeowners who can no longer afford to stay in their 

home with up to $10,000 to assist in the transition. 

The MFA assistance can be used to facilitate a short sale or 

deed in lieu of foreclosure and/or assist with moving and 

relocation expenses. Eligible homeowners can receive a $2,000 

allowance to pay for moving and relocation expenses. Moving 

and relocation expenses may be disbursed directly to eligible 

homeowners. Moving and relocation expenses above this 

amount will be paid when documented. The total amount 

available for facilitation of short sale/deed in lieu plus moving 

expenses cannot exceed $10,000. When MFA funds are used to 

encourage a short sale or satisfy other real estate liens the 

amount cannot exceed the amount of the lender charge-off. 

This assistance is available to homeowners who have not 

vacated the property or to those who have vacated the property 

within 6 months of application for assistance as long as a sale or 

deed in lieu has not occurred. 

In addition, up to $50,000 in total assistance may be available 

to facilitate a short sale or deed in lieu of foreclosure for 

homeowners of targeted affordable properties that are at risk of 

foreclosure. 

Targeted homeowners are: 

 HHF-eligible homeowners who have a deed restricted 

property and have received federal or state subsidies and 

are at risk of foreclosure. 

 HHF-eligible homeowners who are deployed members 

of the US Armed Forces or those discharged within the 

last 12 months (includes enlisted personnel in all regular 

and reserve units of the Army, Navy, Air Force, Marines 

and Coast Guard). 
TAMPA/200833.2 

In some circumstances the best outcome for borrower, lender 

and community may be for the borrower to relinquish the 

property in an orderly process. MFA assistance can take the 

form of a contribution to the primary or secondary lender to 

help facilitate a short sale or deed in lieu of foreclosure. It could 

also be used to provide the borrower relocation assistance 

including a security deposit/first and last months rent, moving 

expenses, or utility deposit MFA assistance could be used to 

satisfy subordinate or superior real estate tax liens against the 

real estate that prevent the homeowner from transferring clear 

title. These liens may include mechanics liens, defects, 

inheritance taxes, water fees, fire district or sewer fees, condo 

fees, PUD lien sale or other legal encumbrances on the property 

or to satisfy judgments or loan deficiency balances resulting 

from a short sale.

2. Program Goals Rhode Island Housing envisions that these monies would be 

used to complement other federal or lender programs designed 

specifically to stabilize communities by providing assistance to 

borrowers who have suffered a financial hardship and as a 

result are no longer financially able to stay in their home. 

3. Target 

Population/Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities 

with the highest unemployment rates. Using a combination of 

the number of delinquencies and the number of unemployed, it 

is estimated that 70% of all Hardest-Hit funds will be spent in 

these twelve communities. Thirty one of the thirty nine 

communities in Rhode Island experienced an unemployment 

rate of 12% or higher in January of 2010, representing 85.45% 

of the state’s population. Therefore, we anticipate that 85% of 

all Hardest-Hit funding will be targeted to communities with 

unemployment rates of greater than 12%. 

4. Program Allocation

(Excluding 

Administrative 

Expenses) 

$3,500,000.00 

5. Borrower 

Eligibility Criteria 

Borrower must be able to document the reason for the hardship 

and will be required to complete a Hardship Affidavit. 

A hardship is defined as an uncontrollable increase in housing 

expense or an uncontrollable decrease in income that has placed 

the homeowner at risk of foreclosure. Examples of a hardship 

include: underemployment, reduction of income, 

unemployment, death or disability in family, unforeseen 
TAMPA/200833.2 

medical expense, and costly home repairs necessary for 

habitability. A loss of home value does not, unto itself, 

constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for 

assistance. 

Borrowers with a gross annual household income of $50,000 or 

less and a housing debt-to-income ratio greater than 35% are 

considered to have a qualified hardship. This must be 

referenced in their hardship affidavit. No further hardship test is 

applicable given these circumstances. 

Rhode Island’s Mortgage Revenue Bond income limits apply to 

all assistance programs. These eligibility limits are based on 

current income and family size. They are generally up to 140% 

of area median income. Currently, one or two person 

households can earn up to $87,800. Households of three or 

more can earn up to $102,400. 

Borrower is able to satisfy program guidelines. 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums provided the 

original mortgage was not greater than $729,750. 

7. Program 

Exclusions 

Homeowner has cash reserves, non-retirement liquid assets, 

exceeding $15,000. 

8. Structure of 

Assistance 

None, funds are provided to eligible homeowners as a nonrecoverable grant. 

9. Per Household 

Assistance 

Assistance under this program will be limited up to $10,000 per 

family to facilitate a short sale or deed in lieu of foreclosure 

and/or to assist the homeowner with relocation. 

In addition, up to $50,000 in total assistance may be available 

to facilitate a short sale or deed in lieu of foreclosure for 

homeowners of targeted affordable properties that are at risk of 

foreclosure. 

10. Duration of 

Assistance 

Participation in this program is a one-time payment. 

11. Estimated Number 

of Participating 

Households 

350 households will be served 

12. Program Inception/

Duration 

November 1, 2010 until program funds have been exhausted 
TAMPA/200833.2 

13. Program Leverage 

/Interactions with 

Other HFA 

Programs 

MFA can provide assistance, up to the household cap, if a 

homeowner has used other HHF programs and subsequently 

can no longer afford to stay in the home. 

14. Program 

Interactions with 

HAMP 

MFA can provide assistance, up to the household cap, if a 

homeowner has obtained a HAMP or other HHF program 

assistance and subsequently can no longer afford to stay in the 

home. 

15. Program Leverage 

with Other 

Financial 

Resources 

Rhode Island Housing intends to leverage its current emergency 

and rental assistance programs which include 

www.homelocatorri.net and other relocation services which 

include Homeless Protection and Rapid Placement (HPRP) and 

Road Home Emergency Housing Assistance. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/200833.2 

SERVICE SCHEDULE B-4 

Rhode Island Housing 

Mortgage Payment Assistance - Unemployment Program (MPA-UP) 

 for Unemployed and/or Underemployed Homeowners 

Summary Guidelines 

1. Program Overview The Mortgage Payment Assistance - Unemployment Program 

(MPA-UP) will provide up to $25,000 in assistance to help 

stabilize unemployed and/or underemployed homeowners. 

MPA-UP assistance may be used to pay partial mortgage and 

mortgage-related expenses until the maximum household 

assistance amount is reached or the homeowner returns to work. 

MPA-UP funds may also be used for partial and or full 

reinstatement assistance or other mortgage related default 

assistance provided that a minimum of 12 months mortgage 

payment assistance can be offered. 

Mortgage related default assistance may help pay delinquent 

taxes, insurances and association dues. 

Monthly mortgage payment assistance term cannot exceed 60 

months or $25,000 whichever is reached first. 

Homeowners monthly payment contribution will be determined 

according to household income as stated below: 

Gross Annual Household 

Income 

Maximum Monthly Payment Contribution

<$35,999 $250 

$36,000 to $59,999 $500 

$60,000 to $69,999 $750 

>70,000 31% of gross monthly household income 

The homeowner may continue receiving assistance for up to 2 

months after reemployment as long as the program household 

assistance limit has not been reached. Assistance funds will be 

paid directly to the lender/servicers. Rhode Island Housing or its 

designee will collect the homeowner’s portion of the payment. 

Assistance funds will be paid directly to the lender/servicers. 

MPA-UP assistance may be used to make ongoing partial 

mortgage payments and related expenses such as: 

• Escrows 
TAMPA/200833.2 

• Taxes and insurance 

• Condo association fees 

This Program will work as both a stand alone program or to 

complement other HHFRI programs. Homeowners may receive 

assistance from one or more HHFRI Programs up to the 

maximum total benefit amount for which the homeowner 

qualifies. 

2. Program Goals To assist unemployed and/or underemployed homeowners to 

remain in their homes and make on-time, monthly payments on 

their mortgages during their hardship so that they may avoid 

delinquency and foreclosure; and to help stabilize homeowners 

so that they can obtain a sustainable loan modification, if 

necessary, after they have regained full employment. 

3. Target Population / 

Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities 

with the highest unemployment rates. Using a combination of 

the number of delinquencies and the number of unemployed, it 

is estimated that 70% of all Hardest-Hit funds will be spent in 

these twelve communities. Thirty-one of the thirty-nine 

communities in Rhode Island experienced an unemployment 

rate of 12% or higher in January of 2010, representing 85.45% 

of the state’s population. Therefore, we anticipate that 85% of 

all Hardest-Hit funding will be targeted to communities with 

unemployment rates of greater than 12%. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$34,282,743.00 

5. Borrower Eligibility 

Criteria 

Eligible borrowers are unemployed or underemployed 

homeowners, who through no fault of their own, are unable to 

make their mortgage payments and are at risk of imminent 

default or foreclosure, as specified in the program guidelines. 

Borrowers will be required to provide a financial hardship 

affidavit with appropriate documentation on the cause of their 

unemployment or underemployment. Unemployment will be 

verified by obtaining a copy of the homeowner’s unemployment 

benefit rate decision letter and copies of 2 months bank 

statements to verify the unemployment direct deposit, or by 

automated verification through the Rhode Island Department of 

Labor and Training (DLT).
TAMPA/200833.2 

If information from DLT is unavailable, a letter or other written 

verification from the former employer indicating job loss was 

not the fault of the borrower will serve as a substitute. 

Eligible borrowers must have monthly mortgage payments that 

are greater than 31% of their gross monthly household income 

and must be able to document the unemployment hardship that 

has placed them at risk of imminent default or foreclosure. 

Household income must be fully documented and verifiable, 

income limits apply based on borrowers household gross annual 

income and family size. Rhode Island’s Mortgage Revenue 

Bond income limits apply to all assistance programs. These 

eligibility limits are based on the current income and family 

size. Currently, one or two person households can earn up to 

$87,800. Households of three or more can earn up to $102,400. 

Self-employed borrowers will be required to document loss of 

business and income and submit appropriate documentation. 

Homeowner must contribute the greater of $250 or 31% of the 

total gross monthly household income toward their mortgage 

obligation. They must make their portion of the mortgage 

payment as directed by Rhode Island Housing or its designee, on 

time; and must actively seek reemployment during the 

assistance period. 

Borrower is able to satisfy program guidelines. 

6. Property / Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums provided the 

original mortgage was not greater than $729,750. 

7. Program Exclusions Homeowner has cash reserves, non-retirement liquid assets, 

exceeding $15,000. 

8. Structure of Assistance Funds will be provided in the form of a zero-percent interest, 

non-recourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner 

fulfills his or her obligations on a timely basis under the 

assistance agreement. Borrowers who refinance, transfer title or 

sell the property within the five-year period must repay the loan 

on a pro-rata basis provided there is sufficient equity from such 

refinance, title transfer or sale. Recycled funds will be returned 

to the HHFRI Program for additional use through December 31, 
TAMPA/200833.2 

2017. After December 31, 2017, all remaining and recaptured 

funds will be returned to Treasury. 

9. Per Household 

Assistance 

The amount of assistance under MPA-UP is $25,000 per 

household. 

Additionally, in special circumstances, up to $50,000 in total 

assistance may be available for targeted homeowners who are at 

risk of foreclosure. 

10. Duration of Assistance The duration of the assistance is determined by the individual 

need of each eligible borrower up to the maximum household 

limit. The homeowner may continue receiving assistance for up 

to 2 months after reemployment as long as the program 

household limit has not been reached. 

Assistance will be paid directly to the existing servicer, 

municipality, association, insurer or lien holder and may be 

distributed in a lump sum or on a monthly basis until the 

maximum program amount is reached. 

11. Estimated Number of 

Participating 

Households 

Based on the allocation of funds it is anticipated that 

approximately 1,371 households will receive up to $25,000. It 

is estimated that 1,000 of these households may receive 

additional assistance through other HHFRI programs. 

12. Program Inception / 

Duration 

December 1, 2010 until program funds have been exhausted 

13. Program Interactions 

with Other HFA 

Programs 

MPA-UP program provides up to $25,000 assistance and acts as 

a gateway to other HHFRI programs. 

 

MPA-UP program funds may be used in combination with other 

HHFRI programs up to program limits. 

14. Program Interactions 

with HAMP 

MPA-UP compliments the federal HAMP-UP Program by 

providing assistance to unemployed homeowners who do not 

qualify for it. For those that do qualify for HAMP-UP, MPA-UP 

assistance may precede a HAMP-UP forbearance or be used to 

extend it. 

15. Program Leverage with 

Other Financial 

Resources 

There is no investor match required for this program. However, 

lender/servicers must be willing to participate. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No 
TAMPA/200833.2 

SERVICE SCHEDULE B-5 

Principal Reduction Program 

Hardest Hit Fund 

Summary Guidelines 

1. Program 

Overview 

In the current housing crisis, many borrowers have found themselves 

owing more than their homes are worth (i.e. are “underwater”); there 

is also growing evidence that these loans are more likely to default, 

and that principal reduction may further the long-term sustainability 

of a loan. This program, designed by Bank of America, provides 

financial assistance, matched by the investor, to reduce the principal 

balance of underwater mortgages. The assistance ($25,000) will be 

matched on a dollar-for-dollar basis. Assistance will be provided over 

a three-year period. Borrowers may access the program through the 

HFA either directly or by referral from servicer (with HFA approval). 

2. Program Goals Leverage HHF dollars by reducing the principal balances of 

“underwater mortgages” (specifically mortgages for which the markto-market LTV is greater than 115%) and provide financial assistance 

to qualifying homeowners to remain in their homes during this period 

of steep declines in value. 

A reduction in principal can achieve desired income and loan-to-value 

ratios that result in an affordable payment for a customer on the 

existing mortgage loan or can be used in conjunction with a loan 

modification. 

3. Target 

Population / 

Areas 

The target population includes customers whose loans are at least 60 

days or more delinquent, where hardship is documented. The goal of 

the program is to target and address the needs of a customer’s specific 

situation in lieu of targeting certain regions or counties. 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

$2,500,000.00 

5. Borrower 

Eligibility 

Criteria 

Generally consistent with HAMP Criteria 

• At least 60 days delinquent or in imminent default 

• Signed hardship affidavit, that complies with HAMP 

• Low to Moderate Income – AMI <= 120% (based on 4 person 

household; states to provide county income limits) 
TAMPA/200833.2 

6. Property/Loan 

Eligibility 

Criteria 

The property must be the customer’s principal residence; other 

criteria include: 

• Owner Occupied, Single Family 1-4 unit property 

• First Lien, Purchase or Rate & Term Refinance 

• Unpaid principal balance below $729,750 

• Property not vacant or condemned 

7. Program 

Exclusions 

Exclusions include: 

• Mortgage is a Cash-out-Refinance

• Loan Originated after 1/1/2009

• LTV < 115%

• Notice of trustee sale has been recorded and the trustee sale is 

scheduled within 7 days of date application received by 

servicer. 

8. Structure of 

Assistance 

Assistance will not be structured as a loan, since there is a dollar-fordollar match on assistance. Principal balance for qualifying 

mortgages will be reduced in equal installments over a three year 

period. 

9. Per Household 

Assistance 

$25,000 HHF dollars (not including investor match). 

10. Duration of 

Assistance 

Three years. 

11. Estimated 

Number of 

Participating 

Households 

100. 

12. Program 

Inception / 

Duration 

Approximately one to three years or until HHF funds are fully 

utilized. 

13. Program 

Interactions 

with Other HFA 

Programs 

Additional aid may be available to eligible homeowners under 

Temporary and Immediate Homeowner Assistance (TIHA) and 

Moving Forward Assistance (MFA) up to program limits. 
TAMPA/200833.2 

14. Program 

Interactions 

with HAMP and 

other Programs 

HHF / Investor principal reduction will be the first step in the 

principal reduction assistance waterfall, prior to the HAMP 

alternative waterfall (per the guidance contained within the MHA 

Handbook) and any proprietary servicer programs. Borrower may 

access this program after unemployment assistance, but must be able 

to demonstrate their ability to sustain the modified mortgage. 

15. Program 

Leverage with 

Other Financial 

Resources 

The applicable investor matches state contributed HHF principal 

reduction funds on a dollar-for-dollar basis. Servicer waives certain 

NSF and late charges. 

16. Servicer 

reporting to 

HFA 

The servicer will be able to identify all loans which received 

assistance through a HHF program and provide the HFA updates on 

the status of the loan (e.g. current/delinquent, foreclosure, short sale, 

etc.) on a quarterly basis for a period of 12 months after assistance 

ends. 

17. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/200833.2 

SCHEDULE C

PERMITTED EXPENSES

Rhode Island 

One-time / Start-Up Expenses: 

Initial Personnel $0.00

Building, Equipment, Technology $0.00

Professional Services $0.00

Supplies / Miscellaneous $0.00

Marketing /Communications $0.00

Travel $0.00

Website development /Translation $0.00

Contingency $0.00

 Subtotal $0.00

Operating / Administrative Expenses: 

Salaries $5,421,507.00

Professional Services (Legal, Compliance, 

Audit, Monitoring) $238,062.00

Travel $0.00

Buildings, Leases & Equipment $590,974.00

Information Technology & Communications $204,268.00

Office Supplies/Postage and 

Delivery/Subscriptions $50,872.00

Risk Management/ Insurance $153,147.00

Training $0.00

Marketing/PR $480,000.00

Miscellaneous $1,730,000.00

 Subtotal $8,868,830.00

Transaction Related Expenses: 

Recording Fees $0.00

Wire Transfer Fees $100,000.00

Counseling Expenses   

File Intake $2,600,000.00

Decision Costs $0.00

Successful File $0.00

Key Business Partners On-Going $0.00

Subtotal $2,700,000.00

Grand Total $11,568,830.00

% of Total Award 14.58% 

Award Amount $79,351,573.00