Ninth Amendment to HPA — Illinois 

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NINTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

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

attached hereto as the Ninth Amendment Date (the “Amendment Date”), by and among the United 

States Department of the Treasury (“Treasury”), the undersigned party designated as HFA whose 

description is set forth in Schedule A attached hereto (for convenience, a “state housing finance 

agency” or “HFA”) and the undersigned institution designated by HFA to participate in the 

program described below (“Eligible Entity”). 

Recitals 

WHEREAS, Treasury, HFA and Eligible Entity entered into that certain Commitment to Purchase 

Financial Instrument and HFA Participation Agreement (the “Original HPA”) dated as of the 

Closing Date, as previously amended by that certain First Amendment to Commitment to Purchase 

Financial Instrument and HFA Participation Agreement (the “First Amendment”), as further 

amended by that certain Second Amendment to Commitment to Purchase Financial Instrument 

and HFA Participation Agreement (the “Second Amendment”), as further amended by that certain 

Third Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “Third Amendment”), as further amended by that certain Fourth Amendment to 

Commitment to Purchase Financial Instrument and HFA Participation Agreement (the “Fourth 

Amendment”), as further amended by that certain Fifth Amendment to Commitment to Purchase 

Financial Instrument and HFA Participation Agreement (the “Fifth Amendment”), as further 

amended by that certain Sixth Amendment to Commitment to Purchase Financial Instrument and 

HFA Participation Agreement (the “Sixth Amendment”), as further amended by that certain 

Seventh Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “Seventh Amendment”) and as further amended by that certain Eighth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the “Eighth Amendment”; and together with the Original HPA as amended thereby and by the 

First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth 

Amendment, Sixth Amendment and Seventh Amendment, the “Current HPA”), dated as of their 

respective dates as set forth on Schedule A attached hereto, in connection with Treasury’s federal 

housing program entitled the Housing Finance Agency Innovation Fund for the Hardest Hit 

Housing Markets (the “HHF Program”), which was established pursuant to the Emergency 

Economic Stabilization Act of 2008 (P.L. 110-343), as amended, as the same may be amended 

from time to time (“EESA”); 

WHEREAS, HFA and Eligible Entity submitted a request to Treasury to make certain revisions to 

their Service Schedules and Permitted Expenses, as applicable, and Treasury has agreed to the 

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

document all approved modifications to the Service Schedules and Permitted Expenses, as 

applicable; 

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 Ninth 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 Ninth 

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

amended by this Ninth 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 Ninth 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 Ninth 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 Ninth 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. 
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2) Eligible Entity has the full corporate power and authority to enter into, execute, and 

deliver this Ninth Amendment and any other closing documentation delivered to Treasury 

in connection with this Ninth 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 

Ninth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous 

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

Ninth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Ninth Amendment to HPA — Illinois] 

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

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

HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Mary R. Kenney By: 

Name: Mary R. Kenney Name: Timothy G. Massad 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY 

By: /s/ Mary R. Kenney 

Name: Mary R. Kenney 

Title: Executive Director 

 
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EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: Illinois Housing Development Authority1

Corporate or other organizational form: a body politic and corporate under the laws of 

the State of Illinois, pursuant to the Illinois 

Housing Development Act, 20 ILCS 3805/1 

et seq., as amended.

Jurisdiction of organization: Illinois 

Notice Information: 

 

HFA Information: 

Name of HFA: Illinois Housing Development Authority1

Organizational form: a body politic and corporate under the laws of 

the State of Illinois, pursuant to the Illinois 

Housing Development Act, 20 ILCS 3805/1 

et seq., as amended. 

Date of Application: September 1, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Same as notice information for Eligible 

Entity 

 

1

 References in the Agreement to the term “HFA” shall mean the Illinois Housing Development Authority (“IHDA”) 

in its capacity as an HFA as such term is used in the Agreement; references in the Agreement to the term “Eligible 

Entity” shall mean IHDA, 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, (i) annual 

audited financial statements shall be due no later than one hundred eighty (180) days after the end of IHDA’s fiscal 

year, and (ii) quarterly financial statements shall be due no later than forty-five (45) days after the end of each quarter 

commencing with the first full quarter ending after the Effective Date; provided that for any quarter IHDA does not 

prepare unaudited financial statements for its internal use, or to be sent to a third party, such quarterly unaudited 

financial statement shall not be required and instead IHDA shall provide 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, summary expenses 

by category [e.g., in-take partners, IHDA specific expenses (e.g. salaries)], and last business day of the quarter’s 

Depository Account bank statement, which information will allow Treasury to review and confirm the funds used for 

the Services and Permitted Expenses; (B) for purposes of Section 7 thereof, the powers and authority of IHDA shall be 

governed by and construed in accordance with the laws of the State of Illinois. 
Program Participation Cap: $445,603,557.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: N/A 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $166,352,726.00 

Permitted Expenses: $64,207,357.00

Closing Date: September 23, 2010 

First Amendment Date: September 29, 2010 

Second Amendment Date: December 16, 2010 

Third Amendment Date: May 11, 2011 

Fourth Amendment Date: August 3, 2011 

Fifth Amendment Date: January 25, 2012 

Sixth Amendment Date: August 24, 2012 

Seventh Amendment Date: September 28, 2012 

Eighth Amendment Date: March 8, 2013 

Ninth Amendment Date: August 9, 2013 

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.
SERVICE SCHEDULE B-1 

Illinois Housing Development Authority 

 Hardest Hit Fund Homeowner Emergency Loan Program (HHF HELP) 

Summary Guidelines 

1. Program Overview Illinois’ Homeowner Emergency Loan Program (HHF HELP or the 

Program) will assist homeowners who have experienced an income 

reduction due to unemployment or underemployment in two ways: 

Monthly Mortgage Payment Assistance and Reinstatement Assistance. 

Monthly Mortgage Payment Assistance will be provided for up to 18 

months. Reinstatement Assistance will pay a homeowner’s delinquent 

balance and other associated fees and costs. Borrowers may be eligible 

for Reinstatement Assistance combined with Monthly Mortgage 

Payment Assistance or Reinstatement Assistance as determined by first 

mortgage DTI program parameters. 

For Monthly Mortgage Payment Assistance, IHDA will make full 

mortgage payments to the servicer on behalf of the borrower while the 

household remains eligible for assistance. While full mortgage 

payments are made on their behalf, the borrower must contribute partial 

mortgage payments to IHDA on a monthly basis. Timely partial 

payments to IHDA are required for continued program assistance. 

After a maximum of 18 months of full mortgage payments, borrowers 

will resume making their mortgage payments independently. If 

borrowers regain employment and earn sufficient income to adequately 

afford their mortgage during the 18 months, borrowers will be 

transitioned from the Program. If the household maximum assistance 

level available is reached, IHDA will end assistance. 

Borrowers will be referred to the Program through the HHF HELP 

website and/or hotline, a housing counselor, or other entities. All client 

intakes of borrowers will be performed by IHDA approved intake 

agencies or IHDA staff. Intake agencies will screen applications and 

provide a full application package to IHDA for final approval. 

2. Program Goal The goal of the Program is to assist homeowners who have experienced 

an income reduction due to unemployment or underemployment with 

Monthly Mortgage Payment Assistance and Reinstatement Assistance 

that will allow them to pursue sustainable income and homeownership 

without the immediate threat of default or foreclosure. 

 
3. Target Population / Areas The Program aims to serve all areas of the State and all employment 

sectors as the foreclosure crisis and unemployment crisis in Illinois is 

diverse. Funds will only be available to households at or below the 

moderate income level for the State (120% of area median, as defined 

by HUD). 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

$317,896,200.00 

5. Borrower Eligibility 

Criteria 

Homeowners must meet the following program criteria: 

 Present income at or below 120% of area median; 

 Experienced a substantial reduction in income due to 

unemployment or underemployment event; 

 Certification that the loss of income was involuntary (hardship 

affidavit required); 

 Fee simple title ownership on a property not exceeding four 

units; 

 Liquid assets cannot exceed program guidelines; and 

 Reinstatement Assistance and Monthly Mortgage Payment 

Assistance will be made available to eligible borrowers based 

on first mortgage DTI program parameters. 

6. Property / Loan 

Eligibility Criteria 

Property criteria includes: 

 Property must be owner-occupied; 

 Property can be one, two, three, and four units; 

 Property must be the primary residence of the borrowers; and 

 Property types can include single-family homes, detached or 

attached houses, town homes, condos, mobile homes on 

permanent foundations recorded as real property. 

Loan criteria includes: 

 Loan must be secured by a first position lien; 

 Homeowners can have a maximum present mortgage amount 

of $500,000; and 

 Homeowners must carry a fixed rate mortgage or an adjustable 

rate mortgage. 

7. Program Exclusions  Homeowners with interest-only or negative amortization 

mortgages; 

 Assistance for subordinate mortgages; 

 Homeowners that own and/or are a party to mortgages on 

multiple residential properties; and 

 Applicants unable to substantiate past and current income or 

failing to provide required program documentation as 

requested. 

8. Structure of Assistance Assistance will be in the form of a non-recourse, non-amortizing, 

zero-percent interest, ten-year forgivable loan. The forgivable loan will 

be recorded as a subordinate lien and will only be repaid if net equity 

proceeds exist in the event of sale or refinance. Following the first five 

years, the forgivable loan will be forgiven on a monthly basis for the 

remaining five-year term. Any forgivable loan repayments will be 
funneled back into the Program and used to provide additional 

assistance to eligible homeowners until the conclusion of the Program 

on December 31, 2017. After December 31, 2017, any remaining or 

returned funds will be returned to Treasury. 

9. Per Household Assistance The maximum amount of assistance per homeowner is $35,000.00. 

10. Duration of Assistance Homeowners can receive assistance for a maximum of 18 months. 

Upon expending the maximum amount per household, assistance will 

terminate. If borrowers regain employment and earn sufficient income 

to adequately afford their mortgage during the 18 months, borrowers 

will be transitioned from the Program. Failure to make the partial 

monthly mortgage payment or any violation of program terms may 

terminate the homeowner’s assistance. 

11. Estimated Number of 

Participating Households 

IHDA anticipates that 10,000 - 12,000 households will be assisted 

through the HHF HELP Program. 

12. Program Inception / 

Duration 

The statewide Program launch is currently operational. 

Implementation of $35,000.00 per borrower allocation will begin 

approximately 30 - 90 days after the Eighth Amendment Date. 

Funds will likely be utilized on or before December 31, 2017. 

13. Program Interactions 

with Other HFA 

Programs 

Households served under the National Foreclosure Mitigation 

Counseling (NFMC) Program may also be reviewed for HHF HELP 

eligibility. 

14. Program Interactions 

with HAMP 

Clients denied for a HAMP modification may be eligible for assistance 

through this Program. Intake agencies evaluating eligibility for clients 

may also review for possible HAMP eligibility. Clients eligible for 

forbearance under the HAMP Unemployment Program may be eligible 

for assistance through HHF HELP. HHF HELP may precede, follow, 

or run concurrently with the HAMP UP forbearance. 

15. Program Leverage with 

Other Financial 

Resources 

The Program requires no financial contribution from servicers or 

lenders, but they will be encouraged to waive fees as the HHF HELP 

Program provides direct benefit to their loan portfolio. IHDA will work 

to collaborate with servicers and lenders to effectively manage 

payments and information of the borrowers. 

16. Qualify as an 

Unemployment Program 

 Yes  No 

 
SERVICE SCHEDULE B-2 

Illinois Housing Development Authority 

Mercy Housing, Inc. 

Mortgage Resolution Fund Program (MRF) 

Summary Guidelines 

1. Program Overview The Illinois Housing Development Authority (IHDA) will partner with 

MRF, LLC, a non-profit partnership formed by Mercy Portfolio 

Services; Mercy Housing, Inc.; Enterprise Community Partners, Inc.; 

the Housing Partnership Network; and the National Community 

Stabilization Trust, to use HHF funds to purchase delinquent loans in 

hardest-hit markets from lending institutions and capital markets 

trading desks at deeply discounted prices, modify such loans to an 

affordable level for the homeowner and then, assuming a successful 

trial modification period, rewrite the loan and if the market is amenable, 

sell the loan. Alternatively, MRF (or the Program) will provide 

households not eligible for modification with support through property 

disposition and transition to new housing and in certain limited 

circumstances the loan will have to be foreclosed. 

More specifically, the Mortgage Resolution Fund Program is designed 

to: 

1) identify, source and perform loan level due diligence in order to 

purchase delinquent residential first mortgage loans from 

servicers/owners at a price consistent with the underlying property 

value and the mortgage’s net present value; 

2) upon purchase of the loan, offer qualifying homeowners an 

opportunity to enter a trial modification period where the loan will be 

restructured to achieve a front end debt ratio of not greater than 31 

percent of the gross household income; 

3) work with the qualifying household during the trial period to reduce 

their debt to achieve a total debt ratio no greater than 50% of the gross 

household income to strengthen the loan asset; 

4) upon successful completion of the trial period, permanently modify 

the first mortgage by writing down the principal to an amount no less 75 

percent and no greater than 95 percent of the current appraised value, 

with a monthly payment no greater than 31 percent of gross monthly 

income and a 30-year term and amortization; 

5) structure a portion of the first mortgage amount equal to the 

difference between the market value of the property and the 

permanently modified loan amount, on a 0 percent, 10-year forgivable 

basis; 
6) offer an alternative disposition to households with loans unable to be 

permanently modified; 

7) secure title when owners, who are otherwise qualified to participate 

in the Program, walk away from the property or are uninterested in an 

alternative disposition; 

8) secure title when owners/loans are not qualified to participate in the 

Program, in which event MRF, LLC will reimburse IHDA for any HHF 

monies expended with respect to that loan; 

9) provide asset management of all homes owned until a final 

disposition is reached; and 

10) provide compliance and reporting functions from both a loan and 

fund level. 

2. Program Goal The Program aims to keep families in their homes or provide families 

with support for an orderly property disposition and transition to new 

housing, which will help to stabilize neighborhoods and housing 

markets. 

3. Target Population / Areas The Program will be available in the six County Chicago-Metro areas, 

which includes Cook, DuPage, Kane, Kendall, Lake, and Will 

Counties, to low-to-moderate income households. 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

$38,500,000.00 (All fees and costs, excluding IHDA HHF 

administrative expenses, are included within this allocation.) 

5. Borrower Eligibility 

Criteria 

Borrower circumstances will determine whether they are placed into 

one of three options: trial modification leading to permanent 

modification, alternative disposition or foreclosure. Specific eligibility 

criteria for each of the foregoing options are set forth in the MRF 

Program Guidelines. All borrowers will be required to sign a financial 

hardship affidavit. 

6. Property / Loan 

Eligibility Criteria 

The following waterfall process will be used to determine those loans 

eligible for purchase: 

Filter One: Geography 

 The census tracts within each eligible county will be analyzed and 

those that score between 12 and 19, as defined by HUD NSP2-CIS, 

will be eligible. 

 The selected census tracks will be evaluated and those with a USPS 

vacancy rate of 10 percent or less will be eligible. 

 The selected census tracks will be evaluated to determine market 

viability by analyzing sales data to determine (1) if the market has 

stabilized; (2) velocity and absorption rates; and, (3) purchase price 

ranges for the area. 
Filter Two: Loan Terms and Status 

 Owner-occupied, single family loans 

 Secured with an FHA/VA/USDA/Conventional/Sub-prime product 

(no exclusions will be made because of interest rate, amortization 

period, credit, documentation, mortgage insurance, origination 

date, LTV) 

 First lien position 

 Payment delinquency of 30 days or greater but prior to judgment 

 Property value equal to or less than $500,000 

 Principal balance at or below what a borrower earning 120 percent 

of area median income can afford (assuming 30 year term, 5 

percent rate) 

7. Program Exclusions Any loans to homeowners that do not meet above criteria. 

8. Structure of Assistance Structure a portion of the first mortgage amount equal to the difference 

between the market value of the property and the permanently modified 

loan amount, on a 0 percent, 10-year forgivable basis. 

Borrower payments made through the trial and permanent modification 

periods as well as any funds generated through the sale of the 

permanently modified loans, or sale or rental of properties, will be used 

to pay program costs, program fees and repay HHF. HHF monies 

returned to IHDA will undergo a close out review and, subject to 

IHDA’s approval, will be re-distributed to MRF, LLC for the purchase 

of additional delinquent loans. After December 31, 2017 all 

repayments and profits, if any, will be returned to Treasury. 

9. Per Household Assistance The maximum refinance amount will be equal to or less than $500,000. 

The median refinance amount is expected to be approximately 

$130,000. 

10. Duration of Assistance Duration of assistance will vary from borrower to borrower based on 

circumstances surrounding each and market conditions. However, all 

borrowers will be refinanced or transitioned to another managed option 

prior to the expiration of the Program in 2017 with exceptions 

permitted upon approval by MRF, LLC. 

11. Estimated Number of 

Participating Households 

Estimated number of households – 250 to 1,000 

12. Program Inception / 

Duration 

It is expected that the Program will begin approximately 120 days from 

the date of Treasury approval and the first loans will be purchased 

within approximately 60 days thereafter. The Program will terminate 

in 2017. 

13. Program Interactions 

with Other HFA 

Programs 

It is expected that certain MRF Trial Modification Program (TMP) 

ineligible loans (those with inadequate income to support the required 

minimum mortgage loan amount) will be eligible for IHDA’s standard 

HHF program and will be referred to IHDA to submit an application 

and have eligibility determined. 
14. Program Interactions 

with HAMP 

It is expected that some of the delinquent mortgages purchased under 

this Program may have been unsuccessful under HAMP. No currently 

performing loans under the HAMP program will be eligible. 

15. Program Leverage with 

Other Financial 

Resources 

Loans will be purchased at a discount. 

16. Qualify as an 

Unemployment Program 

 Yes  No 

 
SERVICE SCHEDULE B-3 

Illinois Housing Development Authority 

Hardest Hit Fund Home Preservation Program (HPP) 

Summary Guidelines 

1. Program Overview Illinois’ Home Preservation Program (HPP or the Program) will leverage 

HHF dollars to facilitate a refinance, recast (for recast initial LTV must be 

95% or higher), or permanent modification of the first mortgage through 

an escrow arrearage (including related fees and costs), principal reduction, 

and/or reinstatement payment to bring the household monthly payment to 

an affordable level (maximum housing DTI of 38%). A second lien 

payoff payment may also be provided to facilitate a first mortgage 

modification/recast/refinance. HPP will assist homeowners who are 

financially unable to make their mortgage payments due to a 

program-eligible hardship causing a decrease in income or an increase in 

expenses. 

2. Program Goal The goal of this Program is to facilitate long-term mortgage sustainability 

by leveraging HPP funds with a servicer-specific loan reinstatement, 

modification, recast, and/or refinance. This will reduce the likelihood of 

continued mortgage delinquency, re-default, or long-term unaffordability 

due to negative equity. 

3. Target Population / Areas The Program aims to serve all areas of Illinois. Funds will only be 

available to households at or below the moderate income level for the State 

(120% of area median, as defined by HUD). 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

$25,000,000.00 

5. Borrower Eligibility 

Criteria 

Homeowners must meet the following program criteria: 

 Present income at or below 120% of area median; 

 Current housing debt-to-income ratio of 25% or higher; 

 Loan is delinquent or in imminent default; 

 At least one person in the household must have consistent 

employment and/or income sources; 

 Hardship reason must be affirmed through a signed affidavit and 

conform to program guidelines; and 

 Liquid assets cannot exceed program guidelines. 

6. Property / Loan 

Eligibility Criteria 

 Owner-occupied and primary residence; 

 Properties can be up to four units; 

 Property types can include single-family homes, detached or 

attached houses, town homes, condos, mobile homes on 

permanent foundations recorded as real property; 

 Homeowners must carry a fixed rate mortgage or an adjustable 

rate mortgage; 
 Homeowners with interest-only or negative amortization 

mortgages can qualify if the modification/refinance places them in 

a fully amortizing product; and 

 Unpaid principal balance at application cannot exceed $500,000. 

7. Program Exclusions Applicants unable to substantiate current income or failing to provide 

required program documentation as requested. 

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

five-year forgivable loan. The forgivable loan will be recorded as a 

subordinate lien and will only be repaid if net equity proceeds exist in the 

event of sale or refinance. The loan will be forgiven on a monthly pro-rata 

basis for the five-year term. Any program repayments will be funneled 

back into the program and used to provide additional assistance to eligible 

homeowners until the conclusion of the Program. 

9. Per Household Assistance Eligible borrowers may receive up to $50,000.00, not including leveraged 

servicer dollars. If an applicant also receives or received assistance 

through Illinois’ Hardest Hit Fund Program Homeowner Emergency Loan 

Program (HHF HELP), their maximum total assistance amount from HHF 

HELP and HPP cannot exceed $50,000.00. 

10. Duration of Assistance Assistance under HPP is intended to be a one-time payment to the servicer. 

11. Estimated Number of 

Participating Households 

Approximately 500 households. Program will be piloted with IHDA and 

expanded to other lenders if successful and funds are available. 

12. Program Inception / 

Duration 

It is estimated that HPP will begin approximately 120 days after approval. 

13. Program Interactions 

with Other HFA 

Programs 

Households served under the National Foreclosure Mitigation Counseling 

(NFMC) program may also be reviewed for HPP. Notes purchased 

through the Mortgage Resolution Fund Program (MRF) program are 

ineligible for HPP assistance. 

14. Program Interactions 

with HAMP 

Clients denied for HHF HELP or Making Home Affordable (MHA) 

programs may be eligible for assistance through this Program. Clients 

approved for any HAMP or HARP with or without investor match may be 

eligible. Intake agencies evaluating eligibility for clients may also review 

for possible eligibility in other programs. 

15. Program Leverage with 

Other Financial 

Resources 

The Program will disburse funds up to $50,000.00 if the lien holder agrees 

to a loan modification, refinance, recast, or principal reduction that shows 

direct benefit to the borrower. 

16. Qualify as an 

Unemployment Program 

 Yes  No 

 
SCHEDULE C 

Permitted Administrative Expenses 

Illinois 

 

 One-time / Start-Up Expenses: 

Initial Personnel $636,033 

Professional Services $10,600 

Building, Equipment, Technology $761,479 

Supplies / Miscellaneous $2,175 

Marketing /Communications $330 

Travel $41 

Website development /Translation $0 

Contingency $10,096 

 Subtotal $1,420,754 

 

Operating / Administrative Expenses: 

Salaries $20,116,195 

Professional Services $1,745,561 

Travel $297,027 

Buildings, Leases & Equipment $7,094,343 

Information Technology & Communications $2,790,721 

Office Supplies/Postage and 

Delivery/Subscriptions/Storage $234,225 

Risk Management $0 

Training $179,200 

Marketing/PR $1,999,670 

Miscellaneous $8,808,659 

 Subtotal $43,265,601 

 

 Transaction Related Expenses: 

Recording / Closing Fees $7,100,000 

Wire Transfer Fees $445,000 

 Counseling Expenses 

File Intake $0 

Decision Costs $0 

Successful File $11,976,000 

Key Business Partners On-Going $0 

 Subtotal $19,521,002 

 

 Grand Total $64,207,357 

 

% of Total Award 14.41% 

Award Amount $445,603,557