Second Amendment to HPA — Florida 

TAMPA/134427.1

SECOND AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Second Amendment to Commitment to Purchase Financial Instrument and HFA 

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

Schedule A attached hereto as the Second 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”; and 

together with the Original HPA as amended thereby, the “Current HPA”), dated as of the First 

Amendment Date, all 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, on September 24, 2010 Treasury indicated that it would make $3.5 billion of 

additional assistance available under the HHF Program for foreclosure prevention programs for 

homeowners struggling to make their mortgage payments in certain states that had previously 

received HHF Program funding for such purposes; 

WHEREAS, Treasury desires to increase the available HHF Program funds available to Eligible 

Entity and as such, Treasury, HFA and Eligible Entity wish to enter into this Second Amendment 

to document all modifications and additional provisions necessary to address the additional HHF 

Program funds; 

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 Second Amendment; and all references in the 
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TAMPA/134427.1 

Current HPA to Schedules A or B shall mean the Schedules A or B attached to this Second 

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

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

Treasury in connection with this Second 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 

Second Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Administrative Expenses

Notwithstanding anything to the contrary contained in the Current HPA as amended by this 

Second Amendment, HFA and Eligible Entity may from time to time submit adjusted budgets to 

Treasury requesting approval to re-allocate HHF Funds to pay actual program expenses as set 

forth on a proposed Schedule C. In the event that Treasury shall approve an adjusted budget, in 

Treasury’s sole discretion, the parties shall enter into an amendment to the HPA to modify 

Schedules A, B and C as necessary. 
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TAMPA/134427.1 

4. Miscellaneous

A. The recitals set forth at the beginning of this Second 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 Second 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 Second Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 

[Signature Page to Second Amendment to HPA — Florida] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

FLORIDA HOUSING FINANCE 

CORPORATION 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Steve Auger By: 

Name: Steve Auger Name: Herbert M. Allison, Jr. 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

FLORIDA HOUSING FINANCE 

CORPORATION 

By: /s/ Steve Auger 

Name: Steve Auger 

Title: Executive Director 

 
TAMPA/134427.1 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/134427.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Florida Housing Finance Corporation1

Corporate or other organizational form: a public corporation and a public body 

 corporate and politic, established and 

 existing under the Florida Housing Finance 

 Corporation Act, as amended, Chapter 420, 

 Part V, Florida Statutes.

Jurisdiction of organization: Florida

Notice Information: 

 

 

 

 

 

 

HFA Information: 

Name of HFA: Florida Housing Finance Corporation1

Organizational form: a public corporation and a public body 

 corporate and politic, established and 

 existing under the Florida Housing Finance 

 Corporation Act, as amended, Chapter 

 420m, Part V, Florida Statutes. 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

 

1

 References in the Agreement to the term “HFA” shall mean the Florida Housing Finance Corporation, 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 the Florida Housing Finance Corporation, in its capacity as Eligible Entity as such term is used in 

the Agreement. 

Notwithstanding anything to the contrary in the Agreement, (A) for purposes of Section 4(G) thereof, annual audited 

financial statements shall be due no later than one hundred eighty (180) day’s after the end of Florida Housing 

Finance Corporation’s fiscal year, and (B) for purposes of Section 7 thereof, the powers and authority of Florida 

Housing Finance Corporation shall be governed by and construed in accordance with the laws of the State of 

Florida. 
TAMPA/134427.1 

Notice Information: Same as notice information for Eligible 

 Entity. 

Program Participation Cap: $1,057,839,136.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $418,000,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $238,864,755.00 

Permitted Expenses: $65,550,750.00

Closing Date: June 23, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 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/134427.1 

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/134427.1 

SERVICE SCHEDULE B-1

Florida Hardest Hit Fund 

Mortgage Intervention Strategy 

Summary Guidelines 

1. Program Overview The Mortgage Intervention Strategy focuses on the creation of a 

sustainable solution to keep Florida unemployed or substantially 

underemployed homeowners in their current homes by helping 

those who are struggling to make their current mortgage 

payments because of hardships sustained since purchasing the 

home. Florida Housing will use HHF Program funds to pay up to 

eighteen months of all or a portion of the mortgage payments on 

behalf of a qualified homeowner based on the criteria and 

requirements of each servicer. This will provide a reasonable 

period of time for homeowners to become re-employed at a salary 

that is sufficient for them to either resume making full mortgage 

payments or qualify for a mortgage modification that will lower 

the payments and terms of the mortgage to an affordable level. 

2. Program Goals • Preserving homeownership. 

• Protecting home values. 

3. Target Population/ 

Areas 

To determine geographic targeting for HHF Program funding, 

Florida Housing carried out an analysis of data, relying on data 

similar to that used by Treasury to allocate funding, to determine 

the hardest hit areas of the state. Florida Housing evaluated three 

measures across all 67 Florida counties – housing price decline 

from peak prices, unemployment rate and seriously delinquent 

mortgage loans – and then combined ratios for each to create an 

allocation methodology that will guide how funding is 

geographically targeted. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$992,288,386.00.

5. Borrower Eligibility 

Criteria 

• At least one co-borrower must be able to document that he or 

she is unemployed or substantially underemployed through no 

fault of his/her own and must provide a financial hardship 

affidavit. 

• The maximum household income level for participation will 

be 140% of the Area Median Income (AMI). 

• Borrowers who have unencumbered assets or cash reserves 

(not including retirement or qualified education plans) equal 

to or exceeding three times the total monthly mortgage 

payment (including tax and insurance payments) or $5,000, 
TAMPA/134427.1 

whichever is greater, must first use those assets towards 

mortgage payments before being eligible for HHF Program 

funds. 

6. Property/Loan 

Eligibility Criteria 

• The property must be the borrower’s principal residence, be 

located in Florida, and not be abandoned, vacant or 

condemned. 

• The borrower’s mortgage must be under the maximum 

mortgage amount of $400,000. 

• The maximum loan to value ratio cannot exceed 200%. 

• Borrowers may not be more than six months in arrears on 

their first mortgage. 

• HHF Program funds will only be used to pay, directly to the 

first mortgage loan servicer, principal and interest plus any 

required escrow payments (such as taxes and insurance) 

required under the first mortgage loan. 

7. Program Exclusions • Termination of employment by the homeowner without a 

necessitous cause or termination of the homeowner’s 

employment by an employer for willful misconduct. 

• The homeowner has sufficient income to pay the mortgage 

but has failed to do so – in this regard, if the homeowner’s 

total housing expense is less than or equal to 31% of 

calculated income, and no reasonable cause for financial 

hardship is demonstrated by the homeowner, then the 

nonpayment of the mortgage debt will not be considered to be 

a circumstance beyond the homeowner’s control. 

8. Structure of 

Assistance 

HHF Program funds under the Mortgage Intervention Strategy 

will be made available to homeowners in the form of a zeropercent interest, non-recourse, forgivable loan. This loan will be 

evidenced by a Note and Mortgage in favor of Florida Housing. 

Once the homeowner resumes making mortgage payments on 

his/her own, the forgivable provisions of the loan will begin. The 

loan will be forgiven over a 5 year period, at a rate of 20% per 

year as long as the borrower remains current on their first 

mortgage and continues to live in the house as their principal 

residence. 

During the five year forgiveness period, Florida Housing, or its 

designated loan servicer, will be making annual residency 

verifications to ensure continued principal residence status and 

will verify payment history on the first mortgage loan during the 

previous 12 month period. 

If the homeowner sells the home during any part of the loan term, 

the remaining principal balance will be due to Florida Housing in 
TAMPA/134427.1 

the event there are sufficient equity proceeds from the sale. If 

there is not enough equity in the home to repay the entire amount 

due, Florida Housing will forgive the excess portion or all of the 

remaining principal balance so as to not create additional 

hardships on the seller at closing. Any loans repaid will be 

recycled back into the program and used to provide assistance to 

additional homeowners for the duration of the program up to 

December 31, 2017. After December 31, 2017, all funds 

remaining or received shall be returned to Treasury. 

9. Per Household 

Assistance 

Estimated Median Amount Mortgage Payments - $25,000 

Maximum Amount – $40,000 

10. Duration of Assistance The homeowner can receive up to 18 months of monthly 

mortgage payments from Florida Housing. This assistance may 

be in the form of up to six months worth of accrued arrearage 

payments (provided the arrearage time corresponds to a period of 

unemployment or substantial underemployment) and/or ongoing 

monthly payments for up to 18 months worth of total assistance. 

11. Estimated Number of 

Participating 

Households 

Florida Housing anticipates that this strategy will be able to serve 

approximately 20,000 homeowners over a five year period. 

12. Program Inception/ 

Duration 

Florida Housing anticipates launching its pilot program in Lee 

County, Florida in early fall, followed by statewide 

implementation in early 2011. It is anticipated that this strategy 

will last for up to 5 years. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

None.

14. Program Interactions 

with HAMP 

HHF funds would be utilized prior to the HAMP forbearance 

described in Supplemental Directive 10-04. Implementing the 

program in this order is the most beneficial to the customer and 

investor since payments would continue to be made instead of 

capitalized and no late charges or adverse credit reporting would 

occur. If the borrower has already been through an UP 

forbearance before applying for this program, then this program 

may follow UP. 

15. Program Leverage 

with Other Financial 

Resources 

Many servicers have in-house mortgage modification products 

that can be used in conjunction with this Program. Florida 

Housing will work with servicers to determine how these 

programs may best be combined. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No