1

Doc#: US1:10590311v5

THIRTEENTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Thirteenth Amendment to Commitment to Purchase Financial Instrument and HFA

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

Schedule A attached hereto as the Thirteenth 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 set forth on Schedule A attached hereto, as previously amended by those

certain Amendments to Commitment to Purchase Financial Instrument and HFA Participation

Agreement dated as of their respective dates as set forth on Schedule A attached hereto (each, 

an “Amendment” and together with the Original HPA as amended thereby, the “Current

HPA”), 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 (12 U.S.C. 

5201 et seq.), as amended, and as the same may be amended from time to time (“EESA”);

WHEREAS, on February 19, 2016 Treasury announced that it would (i) extend the HHF 

Program through 2020, and (ii) make $2 billion of additional assistance available under the HHF 

Program (the “Fifth Round Funding”) to help prevent foreclosure and stabilize housing markets

in certain states that had previously received HHF Program funding for such purposes; and

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

memorialize the extension of the HHF Program, increase the amount of HHF Program funds

available to Eligible Entity hereunder, and make certain other changes to the terms of the Current 

HPA and the Exhibits and Schedules attached thereto.

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. End of Term. The definition of End of Term in Section 2(A)(14) of the Current 

HPA is hereby deleted and replaced with the following: 
2

Doc#: US1:10590311v5

“End of Term” shall mean the last day of the calendar month in which the Eligible Entity 

makes the last disbursement of HHF Program funds in furtherance of the Services, which

shall occur no later than December 31, 2021 (or such later date as Treasury may 

determine in its sole discretion with written notice to Eligible Entity and HFA). For the 

sake of clarity, Capital Draws shall not be permitted after the End of Term other than for 

payment of Permitted Expenses.

B. Bring Down Certificate. Section 2(A)(15) of the Current HPA is hereby amended 

by (i) striking “on each anniversary of the Effective Date during the Term (as defined 

below)” and replacing it with “on each anniversary of the Effective Date through

September 30, 2016, and from and after October 1, 2016, no later than one hundred 

twenty (120) days after the end of each of their respective fiscal years”, and (ii) by adding 

to the end “A final certification shall be delivered by each of HFA and Eligible Entity on 

the Final Repayment Date (as defined in the Financial Instrument).”

C. Program Participation Cap. Section 3(D) of the Current HPA is hereby deleted in 

its entirety and replaced with the following: 

D. The value of this Agreement is limited to the amount set forth in Schedule A as the 

Program Participation Cap, as may be adjusted from time to time as set forth on Schedule 

F attached hereto (the “Program Participation Cap”). Notwithstanding anything to the 

contrary contained herein, the aggregate Purchase Price payable to Eligible Entity under 

this Agreement with respect to all Services described on the Service Schedules may not 

exceed the amount of the Program Participation Cap.

D. Performance Reports. Section 4(A) is hereby amended by (i) striking the third 

sentence and replacing it with “HFA shall submit the Performance Report to Treasury or 

its designee no later than forty-five (45) days after the end of each calendar quarter and 

otherwise as requested by Treasury. After Treasury has communicated in writing that the 

Performance Report is in a form acceptable to Treasury, HFA shall promptly post the 

Performance Report to its website”; and (ii) adding to the end “A final Performance 

Report shall be delivered no later than forty-five (45) days after the end of the calendar 

quarter in which the End of Term occurs.”

E. Financial Reporting. Section 4(G) of the Current HPA is hereby deleted in its 

entirety and replaced with the following:

G. Each of HFA and Eligible Entity shall provide annual audited financial 

statements to Treasury no later than one hundred twenty (120) days after the end of 

its respective fiscal year, commencing with the first fiscal year ending after the 

Effective Date, and concluding with the fiscal year in which the End of Term occurs. 

Eligible Entity shall provide quarterly unaudited financial statements to Treasury no 

later than forty-five (45) days after the end of each quarter, commencing with the 

first full quarter ending after the Effective Date and concluding with the quarter in 

which the End of Term occurs.
3

Doc#: US1:10590311v5

F. Term. Section 5(A) of the Current HPA is hereby deleted in its entirety and 

replaced with the following:

(A) The term of this Agreement (“Term”) shall begin on the Effective Date and 

extend to the End of Term, or earlier termination of this Agreement by Treasury 

pursuant to the provisions hereof, or earlier suspension or termination of the Services 

by Treasury. Subject to the foregoing, new Services may be undertaken (e.g., 

approval of assistance actions with respect to unique homeowners or properties, 

including, where applicable, final underwriting decisions and payment schedules), 

through and including December 31, 2020 (or such later date as may be determined 

by Treasury in its sole discretion upon prior written notice to Eligible Entity). It is 

understood and agreed that certain administrative, monitoring, reporting, compliance 

and oversight obligations and requirements set forth in this Agreement and the 

Financial Instrument survive the expiration or termination of this Agreement or the 

End of Term, and that funds are to be reserved as set forth in Schedule C to pay for 

the cost of the same, through and including the Final Repayment Date.

G. Modifications. 

(a) Section 9(A) of the Current HPA is hereby amended by inserting “and except as 

expressly set forth herein,” after “Subject to Section 9.B.,”

(b) Section 9(B) of the Current HPA is hereby amended by adding the following at the 

end: 

Notwithstanding anything to the contrary contained herein, Treasury may approve 

revisions proposed by Eligible Entity and HFA to any Schedule or Exhibit attached 

hereto, by written notice to Eligible Entity and HFA, pursuant to a procedure 

established by Treasury in its sole discretion and provided to Eligible Entity and 

HFA. The applicable Schedule or Exhibit shall be deemed modified for all 

purposes hereunder as of the date such written notice is received pursuant to 

Section 8 hereof.

(c) Section 9(C) of the Current HPA is hereby amended by deleting the last sentence 

in its entirety.

H. Exhibit A. Exhibit A attached to the Current HPA is hereby deleted in its entirety 

and replaced with Exhibit A attached to this Amendment.

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

entirety and replaced with Schedule A attached to this Amendment.

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

entirety and replaced with Schedule B attached to this Amendment.

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

entirety and replaced with Schedule C attached to this Amendment.
4

Doc#: US1:10590311v5

L. Schedule F. A new Schedule F is added to the Current HPA in the form attached 

to this Amendment as Schedule F.

M. Definitions. All references in the Current HPA to the "Agreement" shall mean the 

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

to the “Financial Instrument” shall mean the Second Amended and Restated Financial 

Instrument in the form attached to this Amendment as Exhibit A; and all references in the 

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

Schedules A, B, C or F attached to this Amendment. All references herein to the "HPA" 

shall mean the Current HPA, as further amended by this Amendment.

2. Substitution of Financial Instrument. 

Eligible Entity shall deliver to Treasury on the date hereof a Second Amended and 

Restated Financial Instrument in the form attached to this Amendment as Exhibit A. By 

executing this Amendment, Treasury, HFA and Eligible Entity authorize The Bank of 

New York Mellon to cancel the Financial Instrument previously delivered under the 

Current HPA against delivery of such Second Amended and Restated Financial 

Instrument and direct The Bank of New York Mellon to return the cancelled Financial 

Instrument to (or at the direction of) the Eligible Entity.

3. 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 Amendment, the Second Amended and Restated Financial 

Instrument, and any other closing documentation delivered to Treasury in connection

therewith, and to perform its obligations hereunder and thereunder.

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

this Amendment and any other closing documentation delivered to Treasury in 

connection therewith, and to perform its obligations hereunder and thereunder.
5

Doc#: US1:10590311v5

4. Miscellaneous

A. The recitals set forth at the beginning of this 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 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 Amendment, the Second Amended and Restated Financial 

Instrument, and any other closing documentation delivered in connection therewith, shall be

treated as originals for all purposes.

[SIGNATURE PAGE FOLLOWS;REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK]
[Signature Page to Thirteenth Amendment to HPA – Florida]

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

hereby execute and deliver this Thirteenth 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/ Stephen P. Auger By:

Name: Stephen P. Auger Name: Mark McArdle

Title: Executive Director Title: Deputy Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

FLORIDA HOUSING FINANCE 

CORPORATION

By: /s/ Stephen P. Auger

Name: Stephen P. Auger

Title: Executive Director
EXHIBITS AND SCHEDULES

Exhibit A Form of Second Amended and Restated Financial Instrument

Schedule A Basic Information

Schedule B Service Schedules

Schedule C Permitted Expenses

Schedule F HHF Fifth Round Funding Reallocation Model
EXHIBIT A

FORM OF SECOND AMENDED AND RESTATED FINANCIAL INSTRUMENT

This Second Amended and Restated Financial Instrument is delivered by the undersigned party 

(“Eligible Entity”) as provided in Section 1 of the Commitment to Purchase Financial Instrument 

and HFA Participation Agreement (the “Commitment”), entered into as of the Effective Date, as 

modified by those certain Amendments to Commitment to Purchase Financial Instrument and 

HFA Participation Agreement dated as of the dates set forth on Schedule A to the Commitment

(together, the “Agreement”), by and among the United States Department of the Treasury 

(“Treasury”), the party designated as HFA in the Commitment (“HFA”) and Eligible Entity. 

This Second Amended and Restated Financial Instrument is effective as of May 3, 2016. All of 

the capitalized terms that are used but not defined herein shall have the meanings ascribed to 

them in the Agreement.

Recitals

WHEREAS, Eligible Entity executed and delivered that certain Amended and Restated Financial 

Instrument dated as of September 23, 2010 to Treasury (“Original Financial Instrument”); and

WHEREAS, Treasury and Eligible Entity desire to amend certain terms of the Original Financial 

Instrument regarding repayment of the Purchase Price in connection with the extension of the 

HHF Program through 2020 and availability of additional assistance under the HHF Program

Fifth Round Funding; and

WHEREAS, Treasury and the Eligible Entity desire to restate and replace the Original Financial 

Instrument in its entirety.

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

hereby acknowledged, Eligible Entity agrees as follows:

1. Eligible Entity Obligation; Purchase Price Consideration.

(a) Eligible Entity shall perform all Services described in the Service Schedules in 

consideration for the Purchase Price described in subsection (b) below, in 

accordance with the terms and conditions of the Agreement, to the satisfaction of 

Treasury. The conditions precedent to the payment by Treasury of the Purchase 

Price with respect to the Services are set forth in Section 3(B) of the Agreement.

(b) This Second Amended and Restated Financial Instrument is being purchased by 

Treasury pursuant to Section 3 of the Agreement through the payment by 

Treasury of various payments referred to collectively in the Agreement as the 

“Purchase Price”. This Second Amended and Restated Financial Instrument is 

being purchased by Treasury in connection with Eligible Entity’s participation in 

the Housing Finance Agency Innovation Fund for the Hardest Hit Housing 

Markets program (the “HHF Program”) created under the Emergency Economic 
Stabilization Act of 2008 (12 U.S.C. 5201 et seq.) as amended, as the same may 

be amended from time to time (“EESA”).

2. Repayment of Purchase Price. 

If a recipient of HHF Program funds repays any or all of the funds received from Eligible 

Entity in connection with the Services (“Repaid Funds”), and such repayment occurs on 

or before the Final Repayment Date (hereinafter defined), Eligible Entity shall deposit 

such Repaid Funds in the Depository Account and use such Repaid Funds to provide 

Services or to fund the Permitted Expenses to the extent the full amount as indicated on 

Schedule C to the Agreement has not been drawn from Treasury pursuant to Section 3(A) 

of the Agreement. Any Repaid Funds retained by Eligible Entity to fund Permitted 

Expenses shall correspondingly reduce the amount that Eligible Entity may draw from 

Treasury pursuant to Section 3(A) of the Agreement to fund Permitted Expenses.

For the sake of clarity, if a recipient of HHF Program funds repays any or all of the funds 

received from Eligible Entity in connection with the Services, and such repayment occurs 

after the Final Repayment Date, such repaid funds shall not be considered HHF Program 

funds. 

3. Final Repayment. In the event Eligible Entity is holding any HHF Program funds, 

including, but not limited to, amounts reserved for payment of Permitted Expenses and 

Repaid Funds, as of the date that is ninety (90) days after the End of Term (the “Final 

Repayment Date”), all such funds shall be returned to Treasury or its designee prior to

1:00pm Eastern Time on the Final Repayment Date. For the sake of clarity, no Capital 

Draws will be permitted after the Final Repayment Date.

4. Security Interest. As security for the performance of the Services and the other 

obligations of Eligible Entity under the Agreement, as such obligations are evidenced in 

this Second Amended and Restated Financial Instrument, Eligible Entity has granted to 

Treasury a first lien priority security interest in the Depository Account and in any 

moneys, or investments, if any, held therein.

5. Representations, Warranties and Covenants. Eligible Entity represents and warrants that 

the representations and warranties set forth in the Agreement, on the date hereof, are, and 

on the date of each Capital Draw hereunder, shall be, true, correct, accurate and complete 

in all material respects. The truth and accuracy of such representations and warranties 

are continuing obligations of Eligible Entity. Additionally, all covenants of Eligible 

Entity set forth in Section 2 of the Agreement are incorporated herein by reference and 

Eligible Entity, on the date hereof, is not, and on the date of each Capital Draw 

hereunder, shall not be in breach of any such covenants. In the event that any of the 

representations or warranties made herein or in the Agreement cease to be true and 

correct, or the Eligible Entity breaches any of the covenants made herein or in the 

Agreement, Eligible Entity agrees to notify Treasury immediately and the same shall 

constitute an Event of Default hereunder. 
6. Limitation of Liability 

IN NO EVENT SHALL TREASURY, OR ITS OFFICERS, EMPLOYEES, AGENTS 

OR AFFILIATES BE LIABLE TO ELIGIBLE ENTITY WITH RESPECT TO THE 

SERVICES OR THE AGREEMENT, OR FOR ANY ACT OR OMISSION 

OCCURRING IN CONNECTION WITH THE FOREGOING, FOR ANY DAMAGES 

OF ANY KIND, INCLUDING, BUT NOT LIMITED TO DIRECT DAMAGES, 

INDIRECT DAMAGES, LOST PROFITS, LOSS OF BUSINESS, OR OTHER 

INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES OF ANY 

NATURE OR UNDER ANY LEGAL THEORY WHATSOEVER, EVEN IF ADVISED 

OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF WHETHER 

OR NOT THE DAMAGES WERE REASONABLY FORESEEABLE; PROVIDED, 

HOWEVER, THAT THIS PROVISION SHALL NOT LIMIT TREASURY’S 

OBLIGATION TO REMIT PURCHASE PRICE PAYMENTS TO ELIGIBLE ENTITY 

IN ACCORDANCE WITH THE AGREEMENT.

7. Indemnification 

Eligible Entity agrees as set forth on Schedule E to the Agreement, which Schedule E is 

hereby incorporated into this Second Amended and Restated Financial Instrument by 

reference.

IN WITNESS WHEREOF, Eligible Entity hereby executes this Second Amended and Restated 

Financial Instrument on the date set forth below.

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY]

By:

Name: 

Title: 

Date: ____________ __, 2016
A-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

Notice Information:

Program Participation Cap: $1,135,735,674.00

Portion of Program Participation Cap 

Representing Original HHF Funds: $418,000,000.00

 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) days 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.
A-2

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $238,864,755.00

Rounds 1-4 Funding Allocation: $1,057,839,136.00

Round 5 Funding Allocation: $77,896,538.00

Permitted Expenses: $124,891,404.00

Closing Date: June 23, 2010

First Amendment Date: September 23, 2010

Second Amendment Date: September 29, 2010

Third Amendment Date: December 16, 2010

Fourth Amendment Date: March 31, 2011

Fifth Amendment Date: May 30, 2012 

Sixth Amendment Date: September 28, 2012 

Seventh Amendment Date: April 25, 2013

Eighth Amendment Date: September 20, 2013

Ninth Amendment Date: July 11, 2014

Tenth Amendment Date: January 29, 2015

Eleventh Amendment Date: April 21, 2015

Twelfth Amendment Date: September 29, 2015

Thirteenth Amendment Date: May 3, 2016

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

Depository Account Control Agreement between 

Treasury and Eligible Entity regarding the HHF 

Program.
SCHEDULE B

SERVICE SCHEDULES

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

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

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

HPA.
B-1-1

SERVICE SCHEDULE B-1

Florida Hardest Hit Fund

Unemployment Mortgage Assistance Program

Summary Guidelines

1. Program Overview The Unemployment Mortgage Assistance Program (“UMAP” or 

the “Program”) 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. The Florida 

Housing Finance Corporation (“Florida Housing”) will use HHF 

funds to pay up to twelve (12) months of the mortgage payments 

on behalf of a qualified homeowner based on the criteria and 

requirements of each servicer. HHF funds will be used to pay, 

directly to the first mortgage loan servicer, the monthly mortgage 

payment (principal and interest plus any required escrow 

payments, such as taxes and insurance) required under the first 

mortgage loan. 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 

on the mortgage to an affordable level. Alternatively, borrowers 

who have suffered a financial hardship due to death, divorce or 

disability will have a reasonable time to mitigate their hardship 

sufficient for them to either resume making full mortgage 

payments or qualify for a mortgage modification that will lower 

the payments on the mortgage to an affordable level.

2. Program Goals • Preserving homeownership.

• Protecting home values.

3. Target Population/ 

Areas

To determine geographic targeting for employment-related HHF 

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 sixty-seven 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. The majority of the HHF 

funds will be allocated to those counties that were determined to 

be hardest hit, although there will be funds available to all sixtyseven counties.
B-1-2

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$274,509,247 

5. Borrower Eligibility 

Criteria

• Borrower must be a legal U.S. citizen or lawful permanent 

resident.

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

is unemployed or substantially underemployed and must 

provide a financial hardship affidavit. A borrower and/or coborrower who suffers a hardship that has resulted in a loss of 

income of at least 10% will be considered “substantially 

underemployed”. Alternatively, an applicant who is able to 

document a financial hardship due to a qualifying death, 

divorce or disability will be required to provide a financial 

hardship affidavit with appropriate documentation as to the 

cause of their hardship, as specified in the program guidelines.

• The maximum household income level for participation will 

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

• The total housing expense (PITIA) must exceed 31% of the 

total gross income of the household.

• Borrowers who have unencumbered liquid 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, whichever is greater, must first use those assets above 

such amount towards mortgage payments before being 

eligible for HHF funds.
B-1-3

6. Property/Loan 

Eligibility Criteria

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

unit, a townhome, a manufactured or mobile home on 

foundation permanently affixed to real estate owned by the 

borrower, or a two-four family dwelling unit of which one 

unit is occupied by the mortgagor as his or her principal 

residence.

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

located in Florida, and not be abandoned, vacant or 

condemned.

• The outstanding principal balance of the first mortgage must 

be $400,000 or less at the time of application, regardless of 

number of dwelling units.

7. Program Exclusions • Applicants who have voluntarily left work without good cause 

or have been discharged by the employing unit for 

misconduct connected with his or her work, based on a 

finding by the Department of Economic Opportunity. 

• Bankruptcies that have not been discharged or dismissed.

• The borrower may not have an ownership interest in more 

than one property other than his or her primary residence.

• The servicer is not required to accept mortgage assistance 

payments if a notice of trustee/sheriff sale has been recorded 

and the trustee/sheriff sale is scheduled less than seven days 

from date the servicer is notified of borrower approval by the 

HFA.

• Condominium units where financial reporting for the 

condominium association, pursuant to s. 718.111(13), F.S., 

for the most recent two years are not provided by the 

applicant.

8. Structure of 

Assistance

HHF funds under UMAP will be made available to homeowners 

in the form of a zero-percent interest, non-recourse, forgivable 

loan. This loan will be evidenced by a note and mortgage in favor 

of Florida Housing. The HHF loan is forgivable and will be for a 

period of five and a half (5.5) years. The first 20% of the loan will 

be forgiven eighteen (18) months after the loan closing. The 

remainder of the loan will be forgiven 20% per year annually 

thereafter.

If the homeowner sells the home during any part of the loan term, 
B-1-4

the remaining principal balance will be due to Florida Housing in 

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 in 

accordance with the Agreement. 

9. Per Household 

Assistance 

Estimated Median Amount Mortgage Payments - $12,000

Maximum Amount – $24,000

Borrowers who have previously received HHF assistance and 

were not involuntarily terminated and borrowers who are 

currently receiving HHF assistance and remain in good standing 

are eligible for the additional assistance being offered under the 

changes to the UMAP and MLRP programs, but only to the 

extent that the total of the HHF assistance received does not 

exceed the following limits:

• UMAP – 12 months or $24,000, whichever comes first

• MLRP with UMAP – maximum of $18,000 towards 

reinstatement

• MLRP only – maximum of $25,000 towards reinstatement

 

10. Duration of Assistance The homeowner can receive up to twelve (12) months’ of 

monthly mortgage payments from Florida Housing. 

11. Estimated Number of 

Participating 

Households

Florida Housing anticipates that this strategy will be able to serve 

approximately 25,000 homeowners in the aggregate between 

UMAP and MLRP and over a five-year period. 

12. Program Inception/ 

Duration

The Program commenced in June 2012. It is anticipated that 

assistance will be committed through December 31, 2020. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

This Program will interact with the Mortgage Loan Reinstatement 

Program (“MLRP”). Borrowers who qualify for UMAP will have 

arrearages on their first mortgage reinstated up front in an amount 

not to exceed $18,000. The maximum amount of combined 

UMAP and MLRP assistance is $42,000. Maximum combined 

assistance with all HHF programs is $92,000.

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 
B-1-5

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.

Servicers will not charge administrative fees (e.g., NSF, late 

charges) in any month where a full contract payment is made. If 

the loan is reinstated or modified following HFA mortgage 

assistance, servicers will waive all administrative fees accrued 

since the beginning of the delinquency. 
B-2-1

SERVICE SCHEDULE B-2

Florida Hardest Hit Fund

Mortgage Loan Reinstatement Program

Summary Guidelines

1. Program Overview The Mortgage Loan Reinstatement Program (“MLRP” or the 

“Program”) focuses on the creation of a sustainable solution to 

keep Florida homeowners in their current homes by helping those 

who have fallen behind on their mortgage payments because of 

financial hardship sustained since purchasing the home as a result 

of unemployment, substantial underemployment, death, divorce 

or disability. HHF funds will be used to pay, directly to the first 

mortgage loan servicer, payments which include items such as 

principal and interest plus any required escrow payments (such as 

taxes and insurance), late fees and insufficient fund fees. 

2. Program Goals • Preserving homeownership.

• Protecting home values.

3. Target Population/ 

Areas

To determine geographic targeting for HHF funding, the Florida 

Housing Finance Corporation (“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 sixty-seven 

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. The majority of the HHF funds will be allocated to 

those counties that were determined to be hardest hit, although 

there will be funds available to all sixty-seven counties.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$202,898,139 

5. Borrower Eligibility 

Criteria

• Borrower must be a legal U.S. citizen or lawful permanent 

resident.

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

is unemployed or substantially underemployed and must 

provide a financial hardship affidavit. A borrower and/or coborrower who suffers a hardship that has resulted in a loss of 

income of at least 10% will be considered “substantially 

underemployed”. Alternatively, an applicant who is able to 
B-2-2

document a financial hardship due to a qualifying death, 

divorce or disability will be required to provide a financial 

hardship affidavit with appropriate documentation as to the 

cause of their hardship, as specified in the program 

guidelines.

• The maximum household income level for participation will 

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

• For MLRP-only applicants, the total housing expense (PITIA) 

must be less than 31% of the total gross income of the 

household unless the applicant can show that he or she has 

recovered from the hardship and is no longer “substantially 

underemployed”.

• Borrowers who have unencumbered liquid 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, whichever is greater, must first use those assets above 

such amount towards reinstatement before being eligible for 

HHF funds.

6. Property/Loan 

Eligibility Criteria

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

unit, a townhome, a manufactured or mobile home on 

foundation permanently affixed to real estate owned by the 

borrower, or a two-four family dwelling unit of which one 

unit is occupied by the mortgagor as his or her principal 

residence.

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

located in Florida, and not be abandoned, vacant or 

condemned.

• The outstanding principal balance of the first mortgage must 

be $400,000 or less at the time of application, regardless of 

number of dwelling units.

7. Program Exclusions • Applicants who have voluntarily left work without good cause 

or has been discharged by the employing unit for misconduct 

connected with his or her work, based on a finding by the 

Department of Economic Opportunity. 

• Bankruptcies that have not been discharged or dismissed.

• The borrower may not have an ownership interest in more 
B-2-3

than one property other than his or her primary residence.

• The servicer is not required to accept mortgage assistance 

payments if a notice of trustee/sheriff sale has been recorded 

and the trustee/sheriff sale is scheduled less than seven days 

from date the servicer is notified of borrower approval by the 

HFA.

• Condominium units where financial reporting for the 

condominium association, pursuant to s. 718.111(13), F.S., 

for the most recent two years are not provided by the 

applicant.

8. Structure of 

Assistance

HHF funds under the Mortgage Loan Reinstatement Program will 

be made available to homeowners in the form of a zero-percent 

interest, non-recourse, forgivable loan. This loan will be 

evidenced by a note and mortgage in favor of Florida Housing. 

The HHF loan is forgivable and will be for a period of five and a 

half (5.5) years. The first 20% of the loan will be forgiven 

eighteen (18) months after the loan closing. The remainder of the 

loan will be forgiven 20% per year annually thereafter.

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

the remaining principal balance will be due to Florida Housing in 

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 in 

accordance with the Agreement. 
B-2-4

9. Per Household 

Assistance 

Estimated Median Amount Mortgage Payments - $9,000

Maximum Amount – $18,000 for those using both UMAP and 

MLRP; $25,000 for those needing MLRP only. 

Borrowers who have previously received HHF assistance and 

were not involuntarily terminated and borrowers who are 

currently receiving HHF assistance and remain in good standing, 

are eligible for the additional assistance being offered under the 

changes to the UMAP and MLRP programs, but only to the 

extent that the total of the HHF assistance received does not 

exceed the following limits:

• UMAP – 12 months or $24,000, whichever comes first

• MLRP with UMAP – maximum of $18,000 towards 

reinstatement

• MLRP only – maximum of $25,000 towards reinstatement

10. Duration of Assistance Assistance is provided as a one-time payment. 

11. Estimated Number of 

Participating 

Households

Florida Housing anticipates that this strategy will be able to serve 

approximately 25,000 homeowners in the aggregate between 

UMAP and MLRP over a five year period. 

12. Program Inception/ 

Duration

The Program commenced in June 2012. It is anticipated that 

assistance will be committed through December 31, 2020. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

This Program will interact with the Unemployment Mortgage 

Assistance Program (“UMAP”). Borrowers who qualify for 

UMAP will have arrearages on their first mortgage reinstated up 

front in an amount not to exceed $18,000. The maximum amount 

of combined UMAP and MLRP assistance is $42,000. Maximum 

combined assistance with all HHF programs is $92,000.

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.
B-2-5

Servicers will not charge administrative fees (e.g., NSF, late 

charges) in any month where a full contract payment is made. If 

the loan is reinstated or modified following HFA mortgage 

assistance, servicers will waive all administrative fees accrued 

since the beginning of the delinquency. 
B-3-1

SERVICE SCHEDULE B-3

Florida Hardest Hit Fund

Modification Enabling Pilot Program (MEP)

Summary Guidelines

1. Program Overview This Modification Enabling Pilot Program (“MEP”) is being 

administered by the Florida Housing Finance Corporation 

(“Florida Housing”) in partnership with National Community 

Capital LLC (“NCC”) and other eligible entities (together “MEP 

Program Managers”). Funding under this Program is designed to 

provide directed assistance to eligible borrowers with the intent to 

permanently modify and reduce the borrower’s primary loan 

amount to an affordable level to achieve a monthly total housing 

payment that does not exceed 35% of the borrower’s monthly 

income. Borrowers meeting the eligibility requirements described 

in Section 5 below may be eligible for MEP assistance. 

Eligible loan pools under MEP include loans in Florida sold by 

the Department of Housing and Urban Development (“HUD”), 

Fannie Mae, and Freddie Mac. Loans are also eligible if serviced 

by a regulated financial institution that has executed a Servicer 

Participation Agreement with Florida Housing.

The Florida Housing MEP Program Manager agreement will be 

used to enable and facilitate permanent modifications by 

advancing a forgivable loan to eligible borrowers in an amount 

not to exceed $50,000.00 to enable a loan modification to occur 

immediately. MEP funding may not be used to reduce the 

principal balance of an eligible borrower’s primary mortgage loan 

below 100% of the current market value of the property. 

However, the MEP Program may reduce the principal amount of 

an eligible borrower’s mortgage loan below 100% of the 

property’s current market value to achieve a permanently 

modified mortgage loan as long as the MEP Program Managers 

fund this reduction with private capital and not MEP funding. As 

the funding formula for the maximum amount MEP assistance 

expressly states, a floor of 100% of the property’s current market 

value assures that MEP’s assistance is limited to funding principal 

reduction for eligible borrowers only down to 100% of the 

property’s current market value. 

The MEP Program may be used to permanently modify and 

reduce the principal balance of the existing first mortgage loan to 

the lesser of: 
B-3-2

• A loan amount not greater than 115% but not less than 

100% of the current market value of the property (as long 

as the reduced loan amount results in a monthly total 

housing payment that does not exceed 35% of the 

borrower’s adjusted gross monthly income); or 

• A loan amount which results in a monthly total housing 

payment that does not exceed 35% of the borrower’s 

adjusted gross monthly income.

In order to make the mortgage payments affordable to the 

borrower, a MEP forgivable subordinate mortgage loan of up to 

$50,000.00 will be made to eligible borrowers to fund a 

modification of the primary mortgage loan. 

2. Program Goals The central goal of MEP is to help homeowners avoid foreclosure 

by permanently modifying a borrower’s primary mortgage to 

achieve a monthly total housing payment that does not exceed 

35% of the borrower’s adjusted gross monthly income. 

3. Target 

Population/Areas

The targeted populations are households with distressed loans that 

the MEP Program Manager is able to demonstrate it has the 

delegated authority to modify consistent with the terms of MEP.

4. Program Allocation 

(Excluding Administrative 

Expenses)

$50,000,000.00 

5. Borrower Eligibility 

Criteria

Eligible borrowers under MEP must meet the following criteria:

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

• Must document adjusted household income that does not 

exceed 140% Area Median Income (AMI). 

• Must demonstrate an ability to maintain a financial 

obligation for the home based upon an affordable 

mortgage with a total monthly housing payment equal to or 

less than 35% of their gross monthly income. 

• Must meet the LTV requirements described in this Section.

Borrowers with current total primary mortgage debt (which 

includes customary: corporate advances such as principal and 

interest, costs related to an initiated foreclosure, escrow advances 

such as property taxes and insurance payments, and excluding late 

fees and servicing fees, together “Total Primary Mortgage Debt” 

as further defined in the program guidelines) equal to or greater 

than 100% of the property’s current market value are eligible for 

MEP assistance if they meet one of the following financial 
B-3-3

hardships and provide a financial hardship affidavit. 

Eligible financial hardships include: 

• Reduced income due to changes in employment

• Medical condition(s)

• Divorce

• Death

Borrowers that are unable to document any of these financial 

hardships may be eligible for MEP assistance if their current UPB

is equal to or greater than 115% of the property’s current market 

value. 

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s principal residence, located 

in Florida and may not be abandoned, vacant or condemned. 

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

townhome, a manufactured or mobile home on foundation 

permanently affixed to real estate owned by the mortgagor, or 

a two-four family dwelling unit of which one unit is occupied 

by the mortgagor as their principal residence that is owneroccupied with a UPB equal to or less than $400,000.00.

• Mortgage must a distressed loan with a Total Primary 

Mortgage Debt that equals or exceeds the required 

percentages described in Section 5 above. Market value will 

be established by a FIRREA-compliant appraisal completed 

by an appraiser licensed and in good standing under Chapter 

475 of the Florida statutes at the time the appraisal is 

performed or by an interior/exterior Broker’s Price Opinion 

(BPO). 

7. Program Exclusions • Borrowers whose Total Primary Mortgage Debt is less than 

100% of the property’s current market value. 

• Borrowers who are in an active Chapter 7 bankruptcy. 

• Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years.

8. Structure of Assistance The structure of assistance will be provided as an up-front, 

forgivable loan to eligible borrowers for up to $50,000.00 

depending upon individual circumstances. The note evidencing 

the mortgage loan will carry the following terms: 
B-3-4

• Zero-percent (0%) interest, zero-payment loan 

• Five-year term in favor of Florida Housing with a pro rata 

20% forgiveness of the original second mortgage loan 

amount on each annual anniversary date. The note will be 

extinguished on the fifth (5th) anniversary date providing 

the borrower has satisfied all terms of the loan. 

If a property is sold on or before the end of the five-year term, the 

loan is “due on sale” and any net proceeds due to Florida Housing 

after reducing the sales price by: 

• usual and customary costs of sale and attorney’s fees;

• taxes and any other payments due to federal, state and 

local governmental entities; and 

• satisfaction of the first mortgage loan amount due MEP 

Program Managers and their successors and assigns.

If there are insufficient or no net proceeds available after reducing 

the sale amount by the above items, all or a portion of the note 

will be forgiven as not to create additional hardships on the 

borrower/seller at the time of closing. Any loan proceeds that are 

returned to the Program will be recycled back into the Program 

and used to provide assistance to additional homeowners for the 

duration of the Program in accordance with the Agreement.

9. Per Household 

Assistance

$50,000.00 is the maximum amount of assistance. $48,000 is the 

estimated median amount of assistance.

10. Duration of Assistance MEP assistance will be disbursed in full upon the loan closing for 

qualified applicants. 

11. Estimated Number of 

Participating Households

It is anticipated that the MEP will assist a minimum of 1,100 

households in avoiding imminent foreclosures.

12. Program 

Inception/Duration

This Program component will begin in May 2013 and it is 

projected that assistance will be committed through December 31, 

2020.

13. Program Interactions 

with Other Programs (e.g. 

other HFA programs)

MEP will interact with Florida Housing’s Mortgage Loan 

Reinstatement Program (“MLRP”) and Unemployment Mortgage 

Assistance Program (“UMAP”). Borrowers may receive 

assistance from more than one of these programs as long as the 

total combined assistance does not exceed $92,000.

14. Program Interactions 

with HAMP

MEP may also be combined or used in conjunction with the 

HAMP. MEP may be available (in addition to the reduction or 

elimination of the non-interest bearing forbearance) for a HAMP 
B-3-5

loan only when the loan has lost its good standing status.

15. Program Leverage 

with Other Financial 

Resources

Private capital mortgage debt forgiveness will be used to 

permanently modify and reduce the borrower’s loan amount to an 

affordable level. 
B-4-1

SERVICE SCHEDULE B-4

Florida Hardest Hit Fund

Principal Reduction (PR) Program

Summary Guidelines

1. Program Overview The Principal Reduction (“PR”) Program is designed to assist 

severely underwater, low-to-moderate income homeowners who 

have been consistently “current” on their mortgage payments by 

providing Hardest Hit Funds to reduce the amount of their 

outstanding principal loan balance to an amount as close to 100% 

LTV as possible and reduce their monthly mortgage payment. By 

bringing such a program online in 2013, we will be assisting the 

homeowners who have stayed in their homes, remained 

committed to their neighborhoods and honored their obligation to 

make their mortgage payments. Most strategic defaulters have 

already abandoned their homes and, as home prices have now 

mostly stabilized throughout the state, there is less of a danger 

that home values will decline further after Hardest Hit Funds are 

made available to the homeowners.

2. Program Goals The goal of PR is to assist severely underwater homeowners who 

have been honoring their promise to make their mortgage 

payments by reducing the amount of the unpaid principal balance 

on their first mortgage to an amount that is in line with the current 

value of the property, subject to program limits.

In addition, the program will also further assist these homeowners 

by recasting or refinancing their loan and thus reducing their 

monthly mortgage payment.

3. Target 

Population/Areas

Low-to-moderate income borrowers who are severely underwater 

(>115% LTV) and who have been “current” on their first 

mortgage payments for the past two years.

4. Program Allocation 

(Excluding 

Administrative Expenses)

$350,000,000.00 

5. Borrower Eligibility 

Criteria

Eligible borrowers under PR must meet the following criteria:

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

• Must document adjusted household income that does not 

exceed 140% Area Median Income (“AMI”). 

• Must have an Unpaid Principal Balance (“UPB”) on their 

first mortgage loan that does not exceed $350,000.
B-4-2

• Must have a Loan-to-Value (“LTV”) ratio on their first 

mortgage loan of 115% or greater.

• Must show that they have remained “current” on their 

payments on their first mortgage loan, meaning that they 

cannot have been 60 days or more late on their payments 

within the last two years. 

 

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s principal residence, located 

in Florida and may not be abandoned, vacant or condemned. 

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

townhome, a manufactured or mobile home on foundation 

permanently affixed to real estate owned by the mortgagor, or 

a two-four family dwelling unit of which one unit is occupied 

by the mortgagor as their principal residence.

• The homeowner must have acquired the property prior to 

January 1, 2010.

• The servicer must agree to recast the borrower’s first 

mortgage loan unless such loan is in a GNMA security (i.e. is 

an FHA, VA or USDA-RD loan). For GNMA-secured loans, 

the borrower is required to refinance the loan within 180 days 

from the date that the principal reduction payment is made on 

their behalf. 

• The borrower’s first mortgage loan must be with a regulated 

financial institution. 

7. Program Exclusions • Borrowers who have a subordinate lien that is in foreclosure. 

• Borrowers with bankruptcies that have not been discharged or 

dismissed.

• Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years. 

8. Structure of Assistance The structure of assistance will be provided as an up-front, 

forgivable loan to eligible borrowers for up to $50,000.00. The 

note evidencing this mortgage loan will carry the following terms:

 

• Zero-percent (0%) interest, zero-payment loan; 

• Five-year term with a pro rata 20% forgiveness of the 

original mortgage loan amount on each annual anniversary 

date. The note will be forgiven on the fifth (5th) 
B-4-3

anniversary date providing the borrower has satisfied all 

terms of the loan. Exception: for GNMA-secured loans, if 

the borrower fails to refinance the loan within 180 days 

from the date that the principal reduction payment is made 

on their behalf, then the loan will only be forgiven 100% at 

the end of the fifth year (no incremental forgiveness).

If a property is sold on or before the end of the five-year term, the 

loan is “due on sale” and any net proceeds are due to satisfy the 

amount of the loan that has not been forgiven.

If there are insufficient or no net proceeds available, all or a 

portion of the note will be forgiven 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 recycled back 

into the Program and used to provide assistance to additional 

homeowners for the duration of the Program in accordance with 

the Agreement.

9. Per Household 

Assistance

Up to $50,000.00 or the amount necessary to reduce the UPB on 

the first mortgage loan to 100% LTV, whichever is less. If the 

household has received HHF assistance under any other HHF 

program, the maximum amount of all assistance may not exceed 

$92,000. The minimum amount of assistance needed must equal 

or exceed $5,000.

10. Duration of 

Assistance

PR assistance will be disbursed in full to the borrower’s servicer 

upon loan closing and agreement of the servicer to accept the PR 

funds. 

11. Estimated Number of 

Participating Households

It is anticipated that the PR Program will assist approximately 

10,000 households.

12. Program 

Inception/Duration

The PR Program will begin in August 2013 and it is projected 

that assistance will be committed through December 31, 2020.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

The PR Program will most likely not interact with Florida’s other 

current HHF programs. If the household has received HHF 

assistance under any other HHF Program, the maximum amount 

of all assistance may not exceed $92,000.

14. Program Interactions 

with HAMP

None.

15. Program Leverage 

with Other Financial 

Resources

Servicers will be required to recast a borrower’s first mortgage 

loan, except if the loan is in a GNMA security (i.e. FHA, VA or 

USDA-RD loans). Borrowers with GNMA-secured loans will be 
B-4-4

required to execute a streamline (or equivalent) refinance to 

receive the benefit of incremental forgiveness of the HHF loan. 

Both the recast and the refinance will result in a lower monthly 

mortgage payment for the borrower.
B-5-1

SERVICE SCHEDULE B-5

Florida Hardest Hit Fund

Elderly Mortgage Assistance Program (Elmore)

Summary Guidelines

1. Program Overview The Elderly Mortgage Assistance Program (“Elmore”) is 

designed to assist senior homeowners in Florida who are facing 

foreclosure due to the inability to pay their property taxes, 

homeowners’ insurance and homeowners’ and/or condo 

association dues (“Property Charges”) now that the senior 

homeowners have been paid all the equity that they were due 

under the terms of their Home Equity Conversion Mortgage 

(HECM), as well as other types of “Reverse Mortgages”.

The Florida Housing Finance Corporation (“Florida Housing”) 

will use HHF funds to provide an up-front, forgivable loan to 

eligible borrowers to be used to (i) repay the amounts 

advanced on their behalf by their mortgage loan servicer for 

the payment of Property Charges and (ii) pay the anticipated 

amount of upcoming Property Charges for a set period of time 

or until they recover from the hardship.

2. Program Goals The goal of the Elmore Program is to help senior homeowners 

remain in their homes. 

3. Target 

Population/Areas

Low-to-moderate income senior Reverse Mortgage borrowers 

who have suffered a hardship that has resulted in the inability 

to repay the amounts advanced on their behalf by their 

mortgage loan servicer for the payment of Property Charges.

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses)

$25,000,000.00 

5. Borrower 

Eligibility Criteria

Eligible borrowers under Elmore must meet the following 

criteria:

• Must be a legal U.S. Citizen or lawful permanent 

resident.

• Must document adjusted household income that does 

not exceed 140% Area Median Income (“AMI”). 

• Must have suffered a hardship that has resulted in the 

inability to repay the amounts advanced on their behalf 
B-5-2

by their mortgage loan servicer for the payment of 

Property Charges. Such hardships may include:

o Medical expenses;

o Home repairs for systems or appliances or due 

to a natural disaster (fire, hurricane, etc.);

o Reduction in household income;

o Unemployment or underemployment;

o Divorce;

o Disability and the resulting expenses for 

specialized equipment, care or retrofitting for 

the home; and

o Victimization by burglary, fraud or financial 

exploitation.

• Must show a reasonable likelihood of recovering from 

the hardship so as to afford the Property Charges on an 

ongoing basis using methods of analysis specified in the 

program guidelines.

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s principal residence, 

located in Florida and may not be abandoned, vacant or 

condemned. 

• The property must be currently subject to a reverse 

mortgage.

• The borrower’s Reverse Mortgage must be serviced by a 

HUD-approved HECM servicer or a regulated financial 

institution. 

7. Program 

Exclusions

• Borrowers who have a subordinate lien that is in 

foreclosure. 

• Borrowers with bankruptcies that have not been discharged 

or dismissed.

• Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years. 

8. Structure of 

Assistance

The structure of assistance will be provided as an up-front, 

forgivable loan to eligible borrowers for up to $50,000 

depending upon individual circumstances. The note 

evidencing the subordinate mortgage loan will carry the 

following terms: 
B-5-3

• Zero-percent (0%) interest, zero-payment loan;

• Two-year term with a pro rata 50% forgiveness of the 

original mortgage loan amount on each annual 

anniversary date. The note will be forgiven on the 

second (2nd) anniversary date providing the borrower 

has satisfied all terms of the loan. 

If a property is sold on or before the end of the two-year term, 

the loan is “due on sale” and any net proceeds are due to 

satisfy the amount of the loan that has not been forgiven.

If there are insufficient or no net proceeds available, all or a 

portion of the note will 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 recycled back into the Program and used to provide 

assistance to additional homeowners for the duration of the 

Program in accordance with the Agreement. 

9. Per Household 

Assistance

The lesser of $50,000 or the amount necessary to (i) repay the 

amounts advanced on the borrower’s behalf by its mortgage 

loan servicer for the payment of Property Charges and (ii) pay 

anticipated Property Charges for up to twelve (12) months or 

until recovery from the hardship. If the household has received 

HHF assistance under any other HHF program, the maximum 

amount of all assistance may not exceed $75,000.

10. Duration of 

Assistance

Assistance will be disbursed in full to the borrower’s servicer 

upon loan closing and agreement of the servicer to accept the 

HHF funds. 

11. Estimated 

Number of 

Participating 

Households

It is anticipated that the Elmore Program will assist 

approximately 1,700 senior households in Florida who are 

delinquent under the terms of their reverse mortgage.

12. Program 

Inception/Duration

The Elmore Program will begin in October 2013 and it is 

projected that assistance will be committed through December 

31, 2020. 

13. Program 

Interactions with 

Other Programs (e.g. 

other HFA 

programs)

The Elmore Program will most likely not interact with 

Florida’s other current HHF programs. Elmore does interact

with the U.S. Department of Housing and Urban 

Development’s (HUD) Home Equity Conversion Mortgage 

(HECM) Program and will provide funding to eligible NonBorrowing Spouses as detailed in HUD Mortgagee Letter 

2014-07 and any subsequent Mortgagee Letters or
B-5-4

amendments. 

14. Program 

Interactions with 

HAMP

None.

15. Program 

Leverage with Other 

Financial Resources

FHFC is partnering with the Florida Department of Elder 

Affairs, local Area Agencies on Aging, Fannie Mae, the 

National Council on Aging, and others to coordinate the 

reinstatement that is being done through the Elmore Program 

with other available resources. Specifically, senior 

homeowners will be screened for eligibility for other 

assistance, such as assistance with the costs of food and 

medicine, to free up income that may be used towards future 

property tax and homeowners’ insurance bills. This “benefits 

check-up” will show whether there is a reasonable likelihood 

that the senior homeowners will be able to afford their 

Property Charges on an ongoing basis.
B-6-1

SERVICE SCHEDULE B-6

Florida Hardest Hit Fund

Down Payment Assistance Program

Summary Guidelines

1. Program Overview The Down Payment Assistance (“DPA”) Program will provide 

an incentive to qualified homebuyers to purchase a primary 

residence in targeted areas in Florida. Providing incentives to 

qualified homebuyers in housing markets that have been 

hardest hit by serious delinquency, negative equity, distressed 

sales, and foreclosures will strengthen demand in those areas, 

stabilize housing prices and prevent future foreclosures. This 

Program will initially be offered as a pilot that includes five 

Florida counties.

2. Program Goals The goal of the DPA Program is to help homeowners avoid 

foreclosure by assisting in the stabilization of housing prices in 

targeted areas. 

Florida will identify meaningful indicators that will enable 

them to track and quantify the DPA Program’s impact in the 

targeted areas.

3. Target 

Population/Areas

Targeted areas are those counties identified in the DPA 

Program Guide including: Duval, Hillsborough, Orange, 

Brevard, and Volusia counties (“Targeted Area”). For these 

five counties, Florida Housing evaluated five housing market 

distress indicators across all sixty-seven Florida counties—

seriously delinquent mortgage loans, negative equity, short 

sales, REO sales, and foreclosures—as well as loan origination 

volume. Targeted counties exceed the statewide rate in at least 

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

minimum threshold origination volume was achieved in these 

counties in 2014.

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses)

$108,436,884

5. Borrower 

Eligibility Criteria

Eligible borrowers must qualify for and meet all requirements 

of a Florida HFA Homebuyer Loan Program first mortgage 

loan originated through a participating lender. Allowable first 

mortgage loans are 30-year, fixed-rate loans from the Federal 
B-6-2

Housing Administration (FHA), Veterans Administration 

(VA), U.S. Department of Agriculture – Rural Development 

(RD), Fannie Mae and Freddie Mac. Eligible borrowers must 

also meet the following criteria:

• Must meet income limits that do not exceed 140% of 

the Area Median Income (“AMI”), as specified in the 

DPA Program Guide. 

• Borrowers must be First-Time Homebuyers. For 

purposes of the DPA Program, a First-Time Homebuyer 

is someone who has not had an ownership interest in 

their primary residence in the past three years, unless 

qualifying under a Veteran’s Exception or purchasing a 

home in a Federally Designated Targeted Area as 

specified in the DPA Program Guide.

• First-Time Homebuyers, unless qualifying under a 

Veteran's Exception or those who are exempt by 

purchasing a home in a Federally Designated Targeted 

Area as specified in the DPA Program Guide, must 

complete a DPA Program-approved pre-purchase 

homebuyer education course.

• Borrowers must be a legal U.S. citizen or lawful 

permanent resident or otherwise meet the applicable 

Agency (FHA, VA, USDA-RD) or GSE (Fannie Mae or 

Freddie Mac) requirements.

• Borrowers must be able to provide a Dodd-Frank 

affidavit as specified in the DPA Program Guide.

• Borrowers must be credit-worthy and meet minimum 

FICO scores, and have a maximum debt-to-income 

(DTI) ratio no greater than 45%, each as specified in the 

DPA Program Guide.

6. Property/Loan 

Eligibility Criteria

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

condominium unit, a townhome, a manufactured or mobile 

home on foundation permanently affixed to real estate 

owned by the borrower, or a two-four family dwelling unit 

of which one unit is to be occupied by the mortgagor as his 

or her principal residence.

• Must be the borrower’s primary residence.

• Property must be located in a Targeted Area.

• Property must meet Florida HFA Homebuyer Loan 

Program purchase price limits as specified in the DPA 
B-6-3

Program Guide.

• Meet all applicable Agency (FHA, VA, USDA-RD) or 

GSE (Fannie Mae & Freddie Mac) underwriting 

guidelines.

7. Program 

Exclusions

• Borrowers, properties and loans not meeting DPA Program 

eligibility requirements as specified in the DPA Program 

Guide or Agency/GSE underwriting criteria.

• Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years.

8. Structure of 

Assistance

Down payment assistance, including reasonable and customary 

closing costs, will be made available to homeowners in the 

form of a zero-percent (0%) interest, non-recourse, forgivable 

second mortgage loan with a five-year term. This loan will be 

evidenced by a note and mortgage in favor of Florida Housing. 

The second mortgage will be forgivable at the rate of 20% per 

year over the five year term of the loan. Florida Housing 

reserves the right to resubordinate the second mortgage as 

further detailed in the DPA Program Guide.

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

the remaining principal balance will be due to Florida Housing 

in 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. Any loans repaid will 

be recycled back into the Program and used to provide 

assistance to additional homeowners for the duration of the 

Program in accordance with the Agreement.

9. Per Household 

Assistance

$15,000

10. Duration of 

Assistance

DPA Program funds will be used to reimburse participating 

lenders who table fund the loan at closing once it is determined 

that all DPA Program requirements have been met.

11. Estimated 

Number of 

Participating 

Households

It is anticipated that the DPA Program will assist 

approximately 7,230 households.

12. Program 

Inception/Duration

The DPA Program will begin in 2015 and it is projected that 

assistance will be committed through 2020.
B-6-4

13. Program 

Interactions with 

Other Programs (e.g. 

other HFA 

programs)

The DPA Program will take advantage of an existing 

infrastructure of participating lenders who are already actively 

originating both first mortgage and down payment assistance 

loans as part of Florida’s current HFA Homebuyer Loan 

Programs. If the borrower has received HHF assistance under 

any other HHF program, the maximum amount of all 

assistance may not exceed $65,000.

14. Program 

Interactions with 

HAMP

None.

15. Program 

Leverage with Other 

Financial Resources

Florida HFA Homebuyer Loan Programs often use tax-exempt 

bonds as a source of funding for the accompanying first 

mortgage loans. In addition, funds may be leveraged by our 

lenders using additional subsidy programs such as State 

Housing Initiative Partnership (SHIP) Funds, Federal Home 

Loan Bank down payment assistance, Neighborhood 

Stabilization Program (NSP) Funds or HOME funds. 
C-1

SCHEDULE C

PERMITTED EXPENSES

Florida

One-time / Start-Up Expenses:

Initial Personnel $0.00

Building, Equipment, Technology $1,600.00

Professional Services $19,782.00

Supplies / Miscellaneous $212.00

Marketing /Communications $15,365.00

Travel $18,075.00

Website development /Translation $141,370.00

Contingency $0.00

Subtotal $196,404.00

Operating / Administrative Expenses:

Salaries $32,560,000.00

Professional Services (Legal, Compliance, Audit, Monitoring) $3,770,000.00

Travel $925,000.00

Buildings, Leases & Equipment $2,110,000.00

Information Technology & Communications $13,810,000.00

Office Supplies/Postage and Delivery/Subscriptions $895,000.00

Risk Management/ Insurance $450,000.00

Training $1,445,000.00

Marketing/PR $1,505,000.00

Miscellaneous $2,000,000.00

Subtotal $59,470,000.00

Transaction Related Expenses:

Recording Fees $4,375,000.00

Wire Transfer Fees $280,000.00

Counseling Expenses

File Intake $0.00

Decision Costs $36,720,000.00

Successful File $5,410,000.00

Key Business Partners On-Going $18,440,000.00

Subtotal $65,225,000.00

Grand Total $124,891,404.00

% of Total Award 11.00%

Award Amount $1,135,735,674
F-1

SCHEDULE F

HHF FIFTH ROUND FUNDING REALLOCATION MODEL

This Schedule F describes a uniform model (the “Reallocation Model”) designed to maximize 

the utilization of the $2 billion made available under the HHF Program Fifth Round Funding. In 

general, the Reallocation Model reallocates unused Fifth Round funding to states participating in 

the HHF Program that meet certain defined criteria for utilization of HHF Program funds. The 

aggregate amount obligated under the Fifth Round Funding will not increase at any time.

I. Definitions

(a) “2016 Utilization Threshold” shall mean having Drawn at least 70% of the Rounds 1-4 

Funding Allocation.

(b) “2017 Utilization Threshold” shall mean having Drawn at least 95% of the Rounds 1-4 

Funding Allocation.

(c) “2018 Utilization Threshold” shall mean having Drawn at least 80% of the Program 

Participation Cap.

(d) “Annual Reallocation Amount” shall mean the aggregate amount, if any, by which the 

Program Participation Caps set forth in all HFA Participation Agreements are reduced 

pursuant to the Reallocation Model, as applied with respect to each Utilization Threshold.

(e) “Drawn” shall mean having made Capital Draws pursuant to Section 3(A) of the 

Agreement.

(f) “HFA Participation Agreements” shall mean, collectively, the Commitments to Purchase 

Financial Instrument and HFA Participation Agreements entered into by the States, as 

amended from time to time.

(g) “Population” shall mean the most recent Annual Estimate of the Resident Population for 

a State as determined by the United States Census Bureau from time to time.

(h) “Recipient State” shall mean each State that has achieved the Utilization Threshold for 

the applicable year, provided that such State is not then in default under its HFA 

Participation Agreement. Notwithstanding the foregoing, in the event a State declines an 

increase to its Program Participation Cap and Round 5 Funding Allocation for which it is 

eligible pursuant to this Schedule F, such State shall not be considered a Recipient State. 

(i) “Rounds 1-4 Funding Allocation” is the amount set forth on Schedule A as “Rounds 1-4 

Funding Allocation.”

(j) “Round 5 Funding Allocation” is the amount set forth on Schedule A as “Round 5 

Funding Allocation”, as adjusted from time to time in accordance with this Schedule F.
F-2

(k) “Share of Annual Reallocation Amount” shall mean a Recipient State’s share of the 

applicable Annual Reallocation Amount, as determined using the methodology described 

in Section IV below. If the Annual Reallocation Amount is zero, then the Share of 

Annual Reallocation Amount will be zero for the applicable year.

(l) “State” shall mean any or each of Alabama, Arizona, California, Florida, Georgia, 

Illinois, Indiana, Kentucky, Michigan, Mississippi, New Jersey, Nevada, North Carolina, 

Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, D.C.

(m)“Utilization Threshold” means each of the 2016 Utilization Threshold, the 2017 

Utilization Threshold and the 2018 Utilization Threshold.

II. Reduction of Program Participation Cap and Round 5 Funding Allocation:

(a) If Eligible Entity does not achieve the 2016 Utilization Threshold on or before December 

31, 2016, each of the Program Participation Cap and Round 5 Funding Allocation shall 

be reduced by an amount equal to 50% of the Round 5 Funding Allocation as of such 

date.

(b) If Eligible Entity does not achieve the 2017 Utilization Threshold on or before December 

31, 2017, each of the Program Participation Cap and the Round 5 Funding Allocation 

shall be reduced by up to 100% of the Round 5 Funding Allocation as of such date.

(c) If Eligible Entity does not achieve the 2018 Utilization Threshold on or before December 

31, 2018, each of the Program Participation Cap and Round 5 Funding Allocation shall 

be reduced by an amount equal to that portion of the Round 5 Funding Allocation which 

has not yet been Drawn nor obligated with respect to a unique homeowner or property as 

of such date.

III. Increase of Program Participation Cap and Round 5 Funding Allocation:

(a) If Eligible Entity achieves the 2016 Utilization Threshold on or before December 31, 

2016, each of the Program Participation Cap and Round 5 Funding Allocation shall be 

increased by the State’s Share of the Annual Reallocation Amount with respect to such 

date.

(b) If Eligible Entity achieves the 2017 Utilization Threshold on or before December 31, 

2017, each of the Program Participation Cap and the Round 5 Funding Allocation shall 

be increased by the State’s Share of the Annual Reallocation Amount with respect to 

such date.

(c) If Eligible Entity achieves the 2018 Utilization Threshold on or before December 31, 

2018, each of the Program Participation Cap and Round 5 Funding Allocation shall be 

increased by the State’s Share of the Annual Reallocation Amount with respect to such 

date.

IV. Methodology for Determining Recipient State’s Share of Annual Reallocation Amount
F-3

If Eligible Entity has achieved the Utilization Threshold and the Annual Reallocation Amount 

is greater than zero for the applicable year, the Program Participation Cap and Round 5 

Funding Allocation will be increased by an amount calculated as follows: 

First, calculate the “Per Capita Amount” for each Recipient State. The Per Capita Amount

shall be calculated as the Annual Reallocation Amount divided by the sum of the Population 

of all Recipient States.

Second, calculate the “Utilization Percentage” for each Recipient State. 

The Utilization Percentage with respect to the 2016 Utilization Threshold and the 2017 

Utilization Threshold shall be calculated as the lesser of (I) the ratio of (x) aggregate Capital 

Draws made by the Recipient State under its HFA Participation Agreement as of December 

31, 2016 and December 31, 2017, respectively, to (y) the Recipient State’s Rounds 1-4 

Funding Allocation as of such dates, or (II) 100%. 

The Utilization Percentage with respect to the 2018 Utilization Threshold shall be calculated 

as the ratio of (x) aggregate Capital Draws made by the Recipient State under its HFA 

Participation Agreement as of December 31, 2018, to (y) such Recipient State’s Program 

Participation Cap as of such date.

Third, calculate a “Utilization Score” for each Recipient State by standardizing the Utilization 

Percentages using the z-score methodology, a standard statistical standardization procedure. 

The Utilization Score for each Recipient State is calculated as (I)(x) the Utilization Percentage 

for such Recipient State, less (y) the mean Utilization Percentage for all Recipient States 

(“Average”), divided by (II) the standard deviation of the Utilization Percentages for all 

Recipient States. If a Recipient State’s Utilization Percentage is greater than the Average, the 

Utilization Score will be positive. If a Recipient State’s Utilization Percentage is less than 

Average, the Utilization Score will be negative.

Fourth, calculate a “Need Factor” for each Recipient State. The Need Factor is a fixed dollar 

amount which will be multiplied by each Utilization Score to determine the dollar amount by 

which each Recipient State’s Per Capita Amount will be adjusted. The Need Factor is

calculated as the dollar amount that would result in the highest adjusted Per Capita Amount 

for a Recipient State being no more than three (3) times that of the lowest adjusted Per Capita 

Amount for a Recipient State (i.e., a Min/Max Factor of 3).

Fifth, calculate an “Adjusted Per Capita Amount” for each Recipient State by adding to or 

subtracting from the Recipient State’s Per Capita Amount the product of (x) the Need Factor 

and (y) the Recipient State’s Utilization Score. Recipient States with positive Utilization 

Scores will have dollars added to the Recipient State’s Per Capita Amount, and Recipient 

States with negative Utilization Scores will have dollars subtracted from the Recipient State’s 

Per Capita Amount.

Sixth, calculate the “Share of the Annual Reallocation Amount” for each Recipient State by 

first multiplying the Recipient State’s Adjusted Per Capita Amount by the Recipient State’s
F-4

Population to arrive at a “Preliminary Share”. The Preliminary Share for each Recipient 

State is then normalized to arrive at the Share of the Annual Reallocation Amount by 

multiplying (x) a ratio, the numerator of which is the Preliminary Share for such Recipient 

State and the denominator of which is the sum of the Preliminary Shares for all Recipient 

States, and (y) the Annual Reallocation Amount.

V. Notices; Modifications

(a) Treasury will notify Eligible Entity in writing of any adjustment to the Program 

Participation Cap and Round 5 Funding Allocation pursuant to this Schedule F. Related 

adjustments to program allocations and other amounts set forth in the Service Schedules, 

and Permitted Expenses set forth on Schedule C, shall be made as set forth in such 

written notice.

(b) For the avoidance of doubt, a written amendment to the Agreement shall not be required 

to effectuate an adjustment of the Program Participation Cap or Round 5 Funding 

Allocation pursuant to this Schedule F. The Program Participation Cap and Round 5 

Funding Allocation set forth on Schedule A to the Agreement shall be deemed to be 

modified upon receipt of the written notice sent pursuant to Section V(a) above. 

 

(c) Treasury reserves the right to unilaterally modify or supplement the terms and provisions 

of this Schedule F, at any time with prior written notice to the Eligible Entity.