HHF Mississippi Date: January 31, 2018

B-1-1

SERVICE SCHEDULE B-1

Mississippi Home Corporation

Home Saver Program

Summary Guidelines

1. Program Overview Mortgage Assistance Option. Mississippi Home Corporation 

(MHC) will offer its Home Saver Program (HSP) to borrowers 

that are unemployed or substantially underemployed, or that 

have experienced a death or divorce of a spouse that resulted in 

at least a 15% reduction in income. MHC will pay 100% of the 

monthly mortgage payment for up to twenty-four (24) months.

Borrowers that choose Mortgage Assistance Option are eligible 

for up to a total of $50,000 of arrearage assistance which must 

cover a minimum of twelve (12) months of mortgage payments 

or as specified in the HSP guidelines. A cap of $50,000 is the 

maximum amount permitted for the Mortgage Assistance 

Option. 

Reinstatement Option. Homeowners who have fallen behind on 

their mortgage and need help catching up, but who have 

recovered and can now sustain the mortgage can receive up to 

$50,000, which can be applied toward delinquent first mortgage 

payments, delinquent property taxes and any accrued escrow 

shortages. 

Unemployed, Underemployed and Self-employed borrowers 

will enter the HSP through the intake process of the housing 

counseling agencies. MHC will not limit the monthly mortgage 

payment amount per month, but will limit the total HSP 

assistance to $50,000. 

Borrowers experiencing a death or divorce of a spouse that 

resulted in at least a 15% reduction in income will enter the HSP 

through the intake process of the housing counseling agencies. 

MHC will not limit the monthly mortgage payment amount per 

month, but will limit the total HSP assistance to $50,000. The 

borrowers will not make any payments.

2. Program Goals The goal of the HSP is to provide borrowers the time necessary 

to improve their chances of finding a job that pays them enough 

to cover their monthly mortgage payments.
B-1-2

3. Target Population / 

Areas

The HSP will allow borrowers in distressed counties, those with 

unemployment rates above 11.4% (Mississippi’s June 2010 

average unemployment rate) to receive up to 6 additional 

months of monthly mortgage payment assistance. Distressed 

counties account for 79%, or 65 of Mississippi’s 82 counties.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$102,890,658.00

5. Borrower Eligibility 

Criteria

• The borrower must have a monthly mortgage payment that 

they cannot afford due to unemployment or a reduction in 

income due to underemployment that can be documented, as 

specified in the HSP guidelines. All borrowers are required 

to submit a hardship affidavit documenting inability to pay 

their mortgage.

• Job loss, death, or divorce of a spouse that resulted in at least 

a 15% reduction in income had to occur on or after January 

1, 2008.

• Mortgage must have been made prior to hardship for 

borrowers applying for HSP funds except if borrower is 

seeking to use HAMP UP program, where mortgage must 

have been closed prior to January 1, 2009.

• The unemployed borrower must be eligible to receive or 

have exhausted unemployment compensation from the 

Mississippi Department of Employment Security (MDES) or 

the unemployment insurance fund in another state. 

• Self-employed borrowers must be eligible to receive or have 

exhausted unemployment compensation from MDES, or be 

able to document loss of income, as specified in the HSP 

guidelines. 

• Borrowers experiencing a death or divorce of a spouse that 

resulted in at least a 15% reduction in income must provide a 

legally recognized death certificate or divorce decree.

• The borrower must be a resident of the State of Mississippi.

• File underwriting will be performed by a third party firm 

under contract with MHC. The firm will review applications 

and make a recommendation to MHC about eligibility.

6. Property / Loan 

Eligibility Criteria

• The property must be located in the State of Mississippi.
B-1-3

• The property must be occupied as the borrower’s primary 

residence.

• The property must be a single-family, one- to five-unit 

dwelling, condominium or townhome, must be classified as 

real estate and affixed on a permanent foundation if a 

manufactured or mobile home.

• Mortgage must have been made prior to hardship for 

borrowers applying for HSP funds except if borrower is 

seeking to use HAMP UP program, where mortgage must 

have been closed prior to January 1, 2009. 

• The unpaid principal balance of first mortgage must not be 

greater than $271,000. 

• Members of the U.S. Armed Forces who have experienced 

any drop in income due to deployment. 

7. Program Exclusions • Although a borrower with a second mortgage may be 

eligible for HSP, HSP payments will only be made towards 

the first mortgage.

• Borrowers in active bankruptcy.

• Seasonal workers.

• Servicers that are not a state- or federally-regulated financial 

institution. (effective with applications after 8/09/2011). 

8. Structure of Assistance The HSP will be made available as assistance in the form of a 

five-year, 0% interest, non-recourse, non-amortizing, 

subordinate loan, secured by a junior lien recorded against the 

property, where 20% of the principal will be forgiven each year 

so long as the eligible borrowers continue to occupy the house 

as their primary residence and meet all terms and conditions of 

the loan. This loan will only be repayable if the borrower sells 

the property before the period expires and there is sufficient 

equity to pay the loan. All funds returned to the HSP will be 

returned to the program in accordance with the Agreement. 

9. Per Household 

Assistance

The estimated median amount that the typical borrower will 

receive is $33,989.64. The maximum amount of assistance that a 

borrower can receive from the HSP is $50,000.

10. Duration of Assistance In non-distressed counties, borrowers can receive: 1) a one-time 

payment for arrearage accumulated during the period of 
B-1-4

unemployment or substantial underemployment, not to exceed 

the maximum assistance the borrower is eligible for; and 2) up 

to twenty-four (24) months of monthly mortgage payment 

assistance. In distressed counties, borrowers can receive: 1) a 

one-time payment of arrearage accumulated during the period of 

unemployment or substantial underemployment, not to exceed 

the maximum assistance the borrower is eligible for; 2) up to 

twenty-four (24) months of monthly mortgage payment 

assistance; and; 3) up to six (6) additional months for extended 

job search.

Assistance will end when: 1) the HSP term ends; 2) the eligible 

borrower becomes able to resume payments; 3) the eligible 

borrower sells or abandons the property; 4) the eligible borrower 

exhausts the $50,000 maximum assistance amount before the 

term ends, or; 5) an unanticipated event occurs deeming the 

eligible borrower or the property ineligible to receive assistance, 

i.e., death or fire. 

11. Estimated Number of 

Participating 

Households

The HSP will assist approximately 4,670 borrowers.

12. Program Inception / 

Duration

MHC will launch a pilot program within thirty (30) days after 

approval from the Treasury, and the full program within one 

hundred twenty (120) days after approval. The HSP will be 

available to offer assistance through December 31, 2020 or until 

funds are exhausted.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

MHC expects that some borrowers will come out of the National 

Foreclosure Mitigation Counseling program, which program is 

not funded with HHF funds. 

14. Program Interactions 

with HAMP

Borrowers will still be eligible for HSP funds if eligible under 

HAMP UP. HSP assistance will be available to borrowers 

preceding or following UP assistance.

15. Program Leverage with 

Other Financial 

Resources

MHC will not solicit matching funds for the HSP due to the 

short time frame required to submit the HHF application.
B-2-1

SERVICE SCHEDULE B-2

Mississippi Home Corporation

Blight Elimination Program

Summary Guidelines

1. Program Overview Under Mississippi’s Hardest Hit Fund Blight Elimination 

Program (“BEP”), the Mississippi Home Corporation (“MHC”) 

will work with municipalities and county governments

(together, “Applicants”) and non-profit organizations, 

community development corporations, economic development 

entities, including Planning and Development Districts, land 

banks and for-profit entities (collectively, “Program Partners”) 

to strategically target residential properties for demolition and 

greening within the state to remove blighted properties. 

Applicants must have the capacity, knowledge, and 

demonstrated experience in managing blight elimination to be 

able to apply. Applicants must have a contract with a Program 

Partner that is owner of record of the property in order to be 

eligible for BEP funds.

2. Program Goals The goal of BEP is to reduce foreclosures among neighboring 

properties, and strengthen neighborhood property values. MHC

will work with Applicants and Program Partners to identify 

meaningful indicators to track and quantify the BEP’s impact in 

the designated communities.

3. Target Population / 

Areas

BEP activity will be limited to targeted areas approved by MHC 

that are part of a comprehensive local strategy to stabilize home 

values and prevent foreclosures. MHC program guidelines will 

ensure that demolition and greening/improvement is designed to

increase values of neighboring properties and have a positive 

effect on preserving existing neighborhoods.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$ 20,000,000.00
B-2-2

5. Property Eligibility 

Criteria

• Property must be owned by the Program Partner. Property 

owned by the State of Mississippi (i.e., held by the 

Mississippi Secretary of State) must be transferred to the 

Program Partner prior to demolition taking place and 

otherwise meet all requirements of the BEP.

• Applicant must obtain a declaration from a unit of local

government that the property is condemned, substandard, 

uninhabitable, and/or a nuisance to public health and safety 

based on state law and existing local codes and ordinances.

• Property must be residential in nature.

• Property must contain four units or less.

• Property must not be legally occupied at the time of any 

review or approval by MHC for blight elimination activity.

• A minimum 36-month maintenance plan must exist for each 

property after demolition.

6. Ownership / Loan 

Eligibility Criteria

• Title to the property must be held by the Program Partner

such that an enforceable lien can be granted on the property.

• Property must be subject to a loan that can be modified or 

extinguished.

7. Program Exclusions • Property is listed on a local, state or national historic 

register. 

• Property is a residential structure with more than four units. 

• Property is a commercial or industrial building or contains 

mixed use structures, i.e. structures combining commercial 

and residential space.

8. Structure of Assistance MHC will determine the acceptability of eligible properties as 

described herein and otherwise set forth in the program 

guidelines.

Applicant will be responsible for acquisition of the property (if

applicable), demolition work, greening/site improvement and ongoing propertymaintenance. 

The Applicant will submit an application to MHC containing the 

location of the property, neighborhood conditions, estimated 
B-2-3

cost of structure removal, estimated cost of greening (if 

applicable), and the end use of the subject property. 

Required documentation must be submitted by the Applicant to 

MHC for review and approval in MHC’s sole discretion 

pursuant to the program guidelines.

Upon completion of blight elimination activity on the property 

and approval by MHC, MHC will provide HHF funds to the 

owner of the property, after the execution of a promissory note in 

favor of MHC. Total assistance will be provided for documented 

expenses associated with acquiring, demolishing, greening the 

property and ongoing maintenance for 36 months.

Funds will be provided as a non-amortizing loan secured by a 

mortgage in favor of MHC for an amount not to exceed $15,000, 

with a 0 % interest rate, as long as MHC’s requirements are met.

Loans will mature three years after their origination date (the 

“Expiration Date”).

Prior to the Expiration Date, loans will be forgiven at a rate of

33.33% per annum as long as terms of the BEP are met. The 

unforgiven balance of the loan will be due and payable if the 

property is sold, its title transferred or it is used for an 

unauthorized purpose prior to the Expiration Date, provided there 

are net proceeds. The payoff amount, if any, will be provided at 

the time of sale, transfer or unauthorized use. Demand notes, 

loan modification agreements, mortgages and any other 

documentation required by the terms of the BEP must be 

executed by the Applicant and/or Program Partner, as 

applicable.

Any funds returned according to established program guidelines

will be recaptured and used in the program in accordance with

the Agreement.

9. Per Property

Assistance

Maximum amount of $15,000 per property. Any amount over 

the maximum must be paid by the Applicant. MHC expects 

many demolitions to cost less than this maximum amount. 

10. Duration of Assistance One-time payment for reimbursement of eligible costs. 

11. Estimated Number of 

Participating 

Households

MHC anticipates that approximately 2,000 homes can be 

demolished statewide at an average cost of $10,000.

12. Program Inception / MHC will launch the program within ninety (90) days after 
B-2-4

Duration approval from the Treasury. The BEP will be available to offer 

assistance through December 31, 2020 or until funds are 

exhausted.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

None.

14. Program Interactions 

with HAMP None.

15. Program Leverage with 

Other Financial 

Resources None.
HHF Mississippi Date: January 31, 2018

C-1

SCHEDULE C

Permitted Administrative Expenses

Mississippi

One-time / Start-Up Expenses:

Initial Personnel $15,000.00

Building, Equipment, Technology $0.00

Professional Services $20,500.00

Supplies / Miscellaneous $0.00

Marketing /Communications $9,973.00

Travel $0.00

Website development /Translation $50,000.00

Contingency $50,017.00

Subtotal $145,490.00

Operating / Administrative 

Expenses:

Salaries

$7,948,000.00

Professional Services (Legal, 

Compliance, Audit, Monitoring)

$2,238,837.00

Travel

$48,000.00

Buildings, Leases & Equipment

$62,000.00

Information Technology & 

Communications

$1,367,000.00

Office Supplies/Postage and 

Delivery/Subscriptions

$57,000.00

Risk Management/ Insurance $0.00

Training

$13,000.00

Marketing/PR 

$684,000.00

Miscellaneous

$512,000.00

Subtotal 

$12,929,837.00
HHF Mississippi Date: January 31, 2018

C-2

Transaction Related Expenses:

Recording Fees

$354,000.00

Wire Transfer Fees

Counseling Expenses

File Intake 

$1,131,000.00

Decision Costs

$1,923,000.00

Successful File 

$1,367,000.00

Key Business Partners On-Going

$3,676,000.00

Subtotal $8,451,000.00

Grand Total $21,526,327.00

% of Total Award 14.91%

Award Amount $144,416,985.00