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TENTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Tenth 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 Tenth 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 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 increase the 

amount of HHF Program funds available to Eligible Entity hereunder, and make certain other 

changes to the Schedules attached to the Current HPA.

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 Amendment; and all references in the Current HPA to

Schedules A, B or C shall mean the Schedules A, B or C attached to this Amendment. 
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All references herein to the "HPA" shall mean the Current HPA, as further amended by this

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 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 Amendment.

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

and replaced with Schedule C attached to this 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 Amendment and any other closing documentation delivered to Treasury in

connection with this 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 

Amendment and any other closing documentation delivered to Treasury in connection

with this Amendment, and to perform its obligations hereunder and thereunder.

3. 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.
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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 shall be treated as originals for all purposes.

[SIGNATURE PAGE FOLLOWS;REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK]
[Signature Page to Tenth Amendment to HPA – Kentucky]

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

execute and deliver this Tenth Amendment to Commitment to Purchase Financial Instrument and 

HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

KENTUCKY HOUSING CORPORATION UNITED STATES DEPARTMENT OF THE 

TREASURY

By: /s/ Brenda Walker By:

Name: Brenda Walker Name: Mark McArdle

Title: Managing Director Title: Deputy Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

KENTUCKY HOUSING CORPORATION

By: /s/ Brenda Walker

Name: Brenda Walker

Title: Managing Director
EXHIBITS AND SCHEDULES

Schedule A Basic Information

Schedule B Service Schedules

Schedule C Permitted Expenses
A-1

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information:

Name of the Eligible Entity: Kentucky Housing Corporation1

Corporate or other organizational form: independent, de jure Municipal Corporation

Jurisdiction of organization: Kentucky

Notice Information:

HFA Information:

Name of HFA: Kentucky Housing Corporation1

Organizational form: independent, de jure Municipal Corporation

Date of Application: September 1, 2010

Date of Action Plan: September 1, 2010

Notice Information:

Program Participation Cap: $207,005,833.00

Portion of Program Participation Cap

Representing Original HHF Funds: N/A

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $55,588,050.00

Rounds 1-4 Funding Allocation: $148,901,875.00

Round 5 Funding Allocation: $58,103,958.00

Permitted Expenses: $19,975,385.00

Closing Date: September 23, 2010

First Amendment Date: September 29, 2010

 1 References in the Agreement to the term "HFA" shall mean the Kentucky Housing Corporation (“KHC”) 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 KHC, in its capacity as Eligible Entity as such term is used in the Agreement.
A-2

Second Amendment Date: December 16, 2010

Third Amendment Date: March 31, 2011

Fourth Amendment Date: September 28, 2011

Fifth Amendment Date: May 3, 2012

Sixth Amendment Date: December 14, 2012

Seventh Amendment Date: October 10, 2014

Eighth Amendment Date: October 28, 2015

Ninth Amendment Date: April 1, 2016

Tenth Amendment Date: June 1, 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

KENTUCKY HOUSING CORPORATION

KENTUCKY UNEMPLOYMENT BRIDGE PROGRAM

Summary Guidelines

1. Program Overview The Kentucky Housing Corporation’s (KHC) Kentucky 

Unemployment Bridge Program (UBP) will provide funds to 

lenders and servicers on behalf of qualified homeowners who 

are delinquent on their mortgage payments or anticipate default 

due to a loss of income due to unemployment or a reduction in 

income due to substantial underemployment or a qualifying 

disability. Maximum assistance per household is set at $15,000.

There is a time limit of twelve (12) months for households to 

utilize the assistance – assistance ends at the earlier to occur of 

twelve (12) months from the loan closing or receipt of $15,000

in assistance, so long as other conditions of eligibility are met 

and continue. Funds will be available on a first-come firstserved basis.

Borrowers will enter the UBP through the statewide 

Homeownership Protection Center operated by KHC. 

Applications will be processed by housing counseling agencies 

who will return the application to KHC for final underwriting, 

loan closing, disbursements and loan servicing. Borrowers will 

not be required to make any portion of the monthly payment. If 

a household qualifies for the UBP, program funds will be used 

for 100 percent of the monthly payment and reinstatement fees 

to include homeowner’s delinquent balance late fees, penalty 

interest, taxes, insurance, and protective advances.

2. Program Goals To prevent avoidable foreclosure for homeowners who have 

experienced loss of income due to unemployment or a reduction 

in income due to substantial underemployment or a qualifying 

disability by providing funds to reinstate, pay the household’s 

mortgage payments during the period of 

unemployment/underemployment/disability and for two (2) 

months after re-employment or substantially increased income, 

if needed, up to the maximum dollar threshold for assistance of 

$15,000.

3. Target Population / 

Areas

The UBP will be available statewide. No specific population is 

targeted. During the first twelve (12) months of the UBP, 
B-1-2

$10,000,000 will be set aside to serve rural counties.

4. Total Allocation 

(Excluding 

Administrative 

Expenses)

$162,780,448

5. Borrower Eligibility 

Criteria

All borrowers must submit a hardship affidavit 

documenting inability to pay their mortgage.

Housing counselors and KHC will determine eligibility for the 

UBP. Eligible households must meet ALL of the following 

requirements:

• The homeowners must be legal U.S. residents.

• The financial hardship must be loss of employment 

income due to unemployment or a 15% reduction in 

income for the underemployed or qualified disabled 

homeowners.

• The homeowner’s cash reserves cannot exceed six (6) 

months, excluding retirement reserves. For purposes of 

the UBP, “cash reserves” is defined as non-retirement 

liquid assets sufficient to pay the household’s monthly 

payment of principal, interest, taxes and insurance (PITI) 

including both first and second lien home mortgage(s). 

• The homeowner must be experiencing a financial 

hardship due to involuntary loss or reduction in 

homeowner’s income documented by an executed 

hardship affidavit. 

• The homeowner must contact KHC or their counselor if 

there is a change in income or employment during the 

twelve (12) months of UBP participation. 

6. Property / Loan 

Eligibility Criteria

Property/Loan Eligibility Requirements:

• Owner-occupied primary residence located in Kentucky.

• Existing single-family homes or condominiums (attached 

or detached) and manufactured or mobile homes on 

foundations permanently affixed to real estate owned by 

the borrower.

7. Program Exclusions A household is not eligible for the UBP if:

• Borrower’s total unpaid principal balances exceed 
B-1-3

$275,000, including first and second mortgages 

combined.

• Borrower owns other residential or rental property

• Borrower’s hardship is a result of voluntary resignation 

of employment or voluntary reduction in hours or 

income. 

• Borrower’s application is for a second home or 

investment properties. 

• Borrower does not occupy the property as his/her 

primary residence.

The UBP will not fund job training costs.

8. Structure of Assistance All assistance will be structured as a 0% interest, nonamortizing, forgivable, nonrecourse loan, secured by a 

junior lien on the property, which will be forgiven 20 

percent each year over five (5) years.

The loan will only be repayable if the borrower sells the 

property before the period expires and there is sufficient equity 

to pay the loan.

9. Per Household 

Assistance

Estimated Average - $15,000

Maximum Assistance - $15,000

10. Duration of Assistance Payment of assistance will end on the first to occur of: (1) 

twelve (12) months from assistance loan closing date, (2) two 

(2) months after re-employment or substantially increased 

employment, (3) the expenditure of the maximum amount of 

assistance ($15,000) or (4) the household no longer complies 

with other required program provisions.

In the case of a new qualifying event of unemployment or 

underemployment or qualifying disability, the household may 

re-apply for assistance. Provided, however that new assistance 

will be made available only to the extent assistance is available, 

up to the maximum total assistance for the household and the 

maximum time period for assistance has not been exhausted.

11. Estimated Number of 

Participating 

Households

KHC is estimating that approximately 10,912 households will be 

served over the term of the UBP.
B-1-4

12. Program Inception / 

Duration

KHC implemented the UBP in two stages. This first phase of 

the UBP began January 3, 2011 to serve as a pilot period. Full 

implementation to all qualified borrowers statewide began April 

1, 2011. The program will expire December 31, 2020.

13. Program Interaction 

with Other Programs 

(e.g. other HFA 

programs)

The UBP will be leveraged with existing programs including the 

Homeownership Protection Center (HPC), the Homeownership 

Education and Counseling Program funded through HUD and 

KHC and the NeighborWorks Foreclosure Mitigation 

Counseling Program (NFMC). Homeowners who participate in 

the UBP will work with a KHC-approved counselor and utilize 

the Homeownership Protection Center website for their initial 

information.

14. Program Interactions 

with HAMP

KHC and housing counselors will analyze borrowers for their 

eligibility for the Hardest Hit Unemployment Bridge Program as 

well as any other loss mitigation options that may be available to 

them. Where possible, HHF assistance will precede HAMP UP. 

15. Program Leverage with 

Other Financial 

Resources

No investor match is required for this program.

This program will not be combined with other financial 

resources.
B-2-1

SERVICE SCHEDULE B-2

KENTUCKY HOUSING CORPORATION 

HARDEST HIT FUND DOWN PAYMENT ASSISTANCE PROGRAM 

Summary Guidelines

1. Program 

Overview

The Down Payment Assistance (“DAP”) Program will provide an 

incentive to qualified homebuyers to purchase a primary residence in 

targeted areas in Kentucky. 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 four Kentucky counties.

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

by assisting in the stabilization of housing prices in targeted areas. 

Kentucky will identify meaningful indicators that will enable them to 

track and quantify the DAP Program’s impact in the targeted areas.

3. Target 

Population/Areas

Targeted areas are those counties identified in Secondary Market 

Program Guide including: Jefferson, Kenton, Christian and Hardin 

(“Targeted Area”). For these four counties, Kentucky Housing 

evaluated five housing market distress indicators across all one-hundred 

and twenty Kentucky 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)

$ 24,250,000 

5. Borrower 

Eligibility Criteria

Eligible borrowers must qualify for and meet all requirements of a 

Kentucky Housing Corporation’s homebuyer loan program first 

mortgage loan originated through a participating lender. Allowable first 

mortgage loans are 30-year, fixed-rate loans from the Federal Housing 

Administration (FHA), Veterans Administration (VA), U.S. Department 

of Agriculture – Rural Development (RD) and Fannie Mae. Eligible 

borrowers must also meet the following criteria:
B-2-2

• Must meet income limits that do not exceed 175% of the Area 

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

Program Guide. 

• Borrowers must be First-Time Homebuyers. For purposes of this 

program, a First-Time Homebuyer is someone who has not had an 

ownership interest in their primary residence in the past three years.

• All borrowers must complete pre-purchase home buyer education 

and counseling in the form of an online, telephone, or face-to-face 

workshop.

• 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) requirements.

• Borrowers must be able to provide a Dodd-Frank affidavit as 

specified in the Secondary Market 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 Secondary Market Program Guide.

6. Property/Loan 

Eligibility Criteria

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

townhome, a manufactured on foundation permanently affixed to 

real estate owned by the borrower.

• Must be the borrower’s primary residence.

• Property must be located in a Targeted Area.

• Property must meet Kentucky Housing Corporation’s Secondary 

Market Program guide. Maximum purchase price limit is $294,000.

• 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 eligibility requirements 

as specified in the Secondary Program Guide or Agency/GSE 

underwriting criteria.

• Dodd-Frank exclusion for having been convicted of a mortgagerelated 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 zeropercent (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 Kentucky Housing Corporation. The second 

mortgage will be forgivable at the rate of 20% per year over the five 
B-2-3

year term of the loan. Kentucky Housing Corporation reserves the right 

to resubordinate the second mortgage as further detailed in the Closing 

and Quality Review- Secondary Market Program Guide.

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

remaining principal balance will be due to Kentucky Housing 

Corporation 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, Kentucky Housing Corporation 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 borrowers for the duration of the Program.

9. Per Household 

Assistance

$10,000

10. Duration of 

Assistance

DAP Program funds will be used to reimburse participating lenders who 

table fund the loan at closing, once it is determined that all DAP 

Program requirements have been met.

11. Estimated 

Number of 

Participating 

Households

It is anticipated that the DAP Program will assist approximately 2166 

households.

12. Program 

Inception/Duration

The DAP Program will begin in 2016 and it is projected that assistance 

will be expended through 2020.

13. Program 

Interactions with 

Other Programs 

(e.g. other HFA 

programs)

The DAP 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 Kentucky’s 

current homebuyer loan programs. If the borrower has received HHF 

assistance under any other HHF program, the maximum amount of all 

assistance may not exceed $45,000.

14. Program 

Interactions with 

HAMP

None.

15. Program 

Leverage with 

Other Financial 

Resources

Kentucky Housing Corporation programs often use Secondary Market 

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 Federal Home Loan Bank down payment 

assistance, Neighborhood Stabilization Program (NSP) Funds or 

HOME funds. 
C-1

SCHEDULE C

PERMITTED EXPENSES

Kentucky

One-time / Start-Up Expenses:

Initial Personnel $0

Building, Equipment, Technology $115,100

Professional Services $1,900

Supplies / Miscellaneous $1,500

Marketing /Communications $100,000

Travel $0

Website development /Translation $0

Contingency $0

Subtotal $218,500

Operating / Administrative Expenses:

Salaries $7,653,102

Professional Services (Legal, Compliance, Audit, 

Monitoring) $5,300,398

Travel $44,705

Buildings, Leases & Equipment $0.00 

Information Technology & Communications $306,066

Office Supplies/Postage and Delivery/Subscriptions $112,067

Risk Management/ Insurance $0.00 

Training $2,072

Marketing/PR $751,076

Miscellaneous $0.00 

Subtotal $14,169,486

Transaction Related Expenses:

Recording Fees $168,481

Wire Transfer Fees $117,228

Counseling Expenses

File Intake $0.00 

Decision Costs $0.00 

Successful File $5,301,690

Key Business Partners On-Going $0.00 
C-2

Kentucky

Subtotal $5,587,399

Grand Total $19,975,385

% of Total Award 9.65%

Award Amount $207,005,833