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

revisions to their Service Schedules, and Treasury has agreed to the same; 

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

document all approved modifications to the Service Schedules; 

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 or B shall mean the Schedules A or B attached to this Amendment. All 

references herein to the “HPA” shall mean the Current HPA, as further amended by this 

Amendment. 
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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. 

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.

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. 
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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 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 – Illinois] 

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

hereby execute and deliver this Amendment as of the Amendment Date. 

HFA: TREASURY: 

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Audra Hamernik By: 

Name: Audra Hamernik Name: Mark McArdle 

Title: Executive Director Title: Deputy Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY 

By: /s/ Audra Hamernik 

Name: Audra Hamernik 

Title: Executive Director 
 

EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 
A-1 

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 

Program Participation Cap: $715,077,617.00 

 

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, 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. 
A-2 

Portion of Program Participation Cap 

Representing Original HHF Funds: N/A 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $166,352,726.00 

Rounds 1-4 Funding Allocation: $445,603,557.00 

Round 5 Funding Allocation: $269,474,060.00 

Permitted Expenses: Amount on file with Treasury. 

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 

Tenth Amendment Date: April 11, 2014 

Eleventh Amendment Date: July 30, 2015 

Twelfth Amendment Date: June 1, 2016 

Thirteenth Amendment Date: December 19, 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 

Illinois Housing Development Authority 

Hardest Hit Fund Homeowner Emergency Loan Program (HHF HELP) 

Summary Guidelines 

1. Program Overview The Illinois Homeowner Emergency Loan Program (HHF HELP 

or the Program) will assist in preventing foreclosure for 

homeowners who have experienced a substantial reduction in 

income or other qualifying hardship. 

Borrowers are referred to the Program through the HHF HELP 

website and/or hotline, housing agencies, mortgage servicers or 

other entities. The Illinois Housing Development Authority 

(IHDA) approved intake agencies or IHDA staff will perform all 

client intake. Intake agencies will screen applications and 

provide a full application package to IHDA for final approval. 

HHF HELP Assistance will be provided in three ways: 

1. Monthly Mortgage Payment Assistance: For 

homeowners who have experienced an income reduction 

due to a qualifying hardship. Monthly Mortgage 

Payment Assistance (MMPA) will be provided for up to 

18 months to applicants approved prior to May 31, 2016 

and up to 12 months for applicants approved after that 

date. IHDA will make full mortgage payments to the 

servicer on behalf of the borrower. Applicants approved 

prior to May 31, 2016 are required to contribute a partial 

mortgage payment to IHDA on a monthly basis. If 

borrowers regain employment and earn sufficient income 

to adequately afford their mortgage during the applicable 

term, borrowers will be transitioned from the Program. 

2. Reinstatement Assistance: For homeowners who have 

experienced an income reduction due to a qualifying 

hardship. Reinstatement Assistance will pay a 

homeowner’s delinquent balance and other associated 

fees and costs. 

3. Reverse Mortgage Assistance: For homeowners with a 

Federal Housing Administration (FHA) Home Equity 
B-1-2

Conversion Mortgage (HECM), who have had property 

taxes, insurance, homeowner association dues or other 

property-related expenses as set forth in the program 

guide (“Property Expenses”) impounded by their 

mortgage servicer and have experienced a qualifying 

hardship. Reverse Mortgage Assistance will be used to 

repay the amount of Property Expenses advanced on 

behalf of a homeowner by his or her mortgage servicer 

and pay up to two years of projected Property Expenses. 

Borrowers may be eligible for both MMPA and Reinstatement 

Assistance as determined by housing debt to gross income (DTI) 

parameters. Reverse Mortgage Assistance cannot be combined 

with other assistance options. 

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

experienced a substantial reduction in income or other 

qualifying hardship by providing mortgage assistance or 

payment of eligible Property Expenses that will allow them to 

pursue sustainable 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) 

Program allocation amount on file with Treasury. 

5. Borrower Eligibility 

Criteria 

All homeowners must meet the following criteria: 

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

• Fee simple title ownership on a property not exceeding 

four units; 

• Liquid assets cannot exceed program guidelines. 

For MMPA and Reinstatement Assistance, homeowners must 

meet the following additional program criteria: 

• The borrower must complete and sign a financial 

hardship affidavit attesting to the prior loss of income 

due to one of the following qualifying hardships: 

o Unemployment 

o Underemployment 
B-1-3

o Divorce 

o Death of a spouse or 

o Medical condition 

• Assistance will be made available to eligible borrowers 

based on housing DTI parameters set forth in the 

program guide. 

For Reverse Mortgage Assistance, homeowners must meet the 

following additional program criteria: 

• Property Expenses must be delinquent or the borrower is 

currently in a repayment plan with the servicer. 

• The borrower must complete and sign a financial 

hardship affidavit attesting to the prior loss of income or 

other involuntary financial hardship as set forth in the 

program guidelines. 

• Assistance will be made available to eligible borrowers 

based on housing DTI parameters set forth in the 

program guide. 

6. Property / Loan 

Eligibility Criteria 

All properties must meet the following criteria: 

• Property must be owner-occupied; 

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

• Property must be the primary residence of the 

borrower(s); and 

• Property types can include single-family homes, 

detached or attached houses, town homes, condos and 

mobile homes on permanent foundations recorded as real 

property. 

For MMPA and Reinstatement Assistance 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. 

For Reverse Mortgage Assistance loan criteria includes: 

• Reverse mortgage must be serviced by a HUD-approved 

HECM servicer. 

• Mortgage balance of the HECM reverse mortgage is not 

greater than the FHA limit; 

• All subordinate liens must be in good standing. 
B-1-4

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

mortgages, with the exception of FHA HECMs; 

• 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, nonamortizing, zero-percent interest, 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 term of the loan is ten years for applicants 

approved prior to May 31, 2016 and five years for applicants 

approved after that date. The loan is forgiven on a monthly pro 

rata basis over the last five years of the loan term. Any 

remaining funds will be returned to Treasury in accordance with 

the Agreement. 

Assistance will be paid directly to Lender/Servicer and applied 

to a homeowner’s arrearages, mortgage payments and Property 

Expenses, as applicable. 

9. Per Household 

Assistance 

The maximum amount of assistance per homeowner is 

$35,000.00. 

10. Duration of Assistance MMPA will be provided for up to 18 months to applicants 

approved prior to May 31, 2016 and up to 12 months for 

applicants approved after that date. Assistance will terminate 

after the maximum number of monthly payments has been 

reached, upon expending the maximum amount of assistance per 

household or if the borrower is determined to be no longer 

eligible for assistance. 

Reverse Mortgage Assistance will pay off the arrearage and 

provide upfront funding for up to two years of projected 

monthly Property Expenses, subject to the $35,000 per 

household cap. 

11. Estimated Number of 

Participating 

Households 

IHDA anticipates that 18,000 - 20,000 households will be 

assisted through the HHF HELP Program. 

12. Program Inception / 

Duration 

The Program launched in 2011 and closed in early 2016. IHDA 

re-launched the Program on August 1, 2016. 
B-1-5

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. Borrowers in a HAMP trial period may not use funds 

from HHF HELP to make trial period payments. 

 

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. 
B-2-1

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; 
B-2-2

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) 

Program allocation amount on file with Treasury. 

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: 
B-2-3

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 zero-percent, ten-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 

returned to IHDA. Any remaining funds will be returned to 

Treasury in accordance with the Agreement. 

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 
B-2-4

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 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. 

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. 
B-3-1

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 or are underwater on their mortgage(s). 

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, redefault, 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 140% of area median income. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

Program allocation amount on file with Treasury. 

5. Borrower Eligibility 

Criteria 

Recast and Modification 

• Current income at or below 140% of area median income; 

• Current housing DTI of 25% or higher; 

• Loan is delinquent or in imminent default (as defined in 

program guidelines); 

• 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; 

• Liquid assets cannot exceed program guidelines; 

• Must execute a Dodd-Frank affidavit. 
B-3-2

Refinance 

Borrowers must qualify for and otherwise meet all requirements for 

a first mortgage loan product originated by an Illinois Housing 

Development Authority (IHDA) Loan Program participating 

lender. Eligible first mortgage loans are 30-year fixed-rate loans 

from, insured or guaranteed by the Federal Housing Administration 

(FHA), U.S. Department of Veterans Affairs (VA), U.S. 

Department of Agriculture Rural Development (USDA), Federal 

National Mortgage Association (Fannie Mae) or Federal Home 

Loan Mortgage Corporation (Freddie Mac). Additional borrower 

eligibility requirements include: 

• Current income at or below 140% of area median income; 

• Credit score at or above 640; 

• Mortgage current/in good standing 

• Must execute a Dodd-Frank affidavit. 

6. Property / Loan 

Eligibility Criteria 

Recast and Modification 

• 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/recast places 

them in a fully amortizing product; and 

• Unpaid principal balance at application cannot exceed 

$500,000. 

Refinance 

• Single family attached or detached 1-2 unit; 

• Property purchase price must be within IHDA county 

purchase price limits as set forth in the DPA Program 

Guide; 

• Must be owner occupied and borrower’s primary residence; 

• Meet all applicable FHA, VA, USDA, Fannie Mae or 

Freddie Mac underwriting guidelines; 

• Post-assistance debt-to-income ratio must not exceed 45 

percent; 

• Pre-assistance combined loan-to-value (CLTV) ratio must 
B-3-3

be greater than 110%; 

• Borrowers must exit with a fixed rate mortgage; 

• Borrowers must exit with an LTV of 90% or greater; 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 Recast and Modification 

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 over the five-year term. 

Refinance 

Borrower’s existing loan(s) will be refinanced into an IHDA fixed 

rate, 30-year mortgage. 

Assistance is structured as a one-time up-front installment 

evidenced by a promissory note with a three-year term. The 

assistance will be forgiven on a monthly pro-rata basis over the 

three-year term. Assistance is contingent upon eligibility for an 

IHDA-approved first mortgage. 

Any remaining funds will be returned to Treasury in accordance 

with the Agreement. 

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 

$85,000.00. 

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

servicer or title company. 

11. Estimated Number of 

Participating 

Households 

Approximately 1,500 – 2,500 households. 

12. Program Inception / The Program launched in late 2012 and closed in early 2016. 

IHDA will reopen the Program within 90 days of the Twelfth 
B-3-4

Duration Amendment Date. 

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. 

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. 
B-4-1

SERVICE SCHEDULE B-4 

Illinois Housing Development Authority 

Hardest Hit Fund Blight Reduction Program (BRP) 

Summary Guidelines 

1. Program Overview The purpose of the Hardest Hit Fund Blight Reduction Program 

(“BRP”) is to decrease preventable foreclosures and stabilize 

neighborhoods by strategically targeting those residential areas 

with vacant and abandoned blighted residential properties in 

need of demolition and greening. The Illinois Housing 

Development Authority (“IHDA”) will work with units of 

government and their not-for-profit partner(s) within the state of 

Illinois to implement the program. 

2. Program Goal The goal of BRP is to decrease preventable foreclosures through 

neighborhood stabilization achieved through the demolition and 

greening of vacant, abandoned and blighted residential 

properties throughout Illinois. Such vacant, abandoned and 

blighted residential properties will be returned to use through a 

process overseen by approved units of government and their notfor-profit partner(s). 

IHDA will work with units of government and their not-forprofit partner(s) to identify and track meaningful indicators of 

program effectiveness throughout the life of the program. 

3. Target Population / 

Areas 

BRP activity will be limited to targeted areas approved by 

IHDA that are part of a comprehensive local strategy to stabilize 

home values and prevent foreclosures. IHDA guidelines will 

ensure that demolition and greening will have a positive effect 

on preserving existing neighborhoods. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

Program allocation amount on file with Treasury 

5. Property Eligibility 

Criteria 

IHDA will determine property eligibility per program 

guidelines. 

1-4 unit residential properties, that are located in Illinois: 

• determined to be vacant and abandoned, and 

• qualify for lawful demolition. 
B-4-2

For any requests submitted on or after January 15, 2016, 

properties must not be legally occupied at the time of any 

review or approval by the HFA or Eligible Entity (as 

applicable) for blight elimination activity. 

6. Ownership/Loan 

Eligibility Criteria 

Title to the property must be held by the applicable not-forprofit partner such that: (i) the loan can be modified or 

extinguished and (ii) an enforceable lien can be placed on the 

property. 

7. Program Exclusions BRP funds cannot be used for the rehabilitation of existing 

residential structures, commercial structures, or properties listed 

on a national, state or local historic register. 

8. Structure of Assistance IHDA will determine project sites in direct consultation with 

the applicable not-for-profit partners. 

The applicable not-for-profit partners will be responsible for 

acquisition of the property (if necessary), demolition work and 

on-going property maintenance. 

Units of government and their not-for-profit partner(s) must 

submit in their application to IHDA for BRP funds, 

information including, but not limited to, the following: 

• A full and complete list of all properties the applicant 

seeks to make eligible; 

• Property ownership and/or acquisition information; 

• Pre-demolition inspection information, including, but 

not limited to any third party environmental inspection 

reports; 

• The post-demolition goal for each property; 

• Cost estimates and/or evidence of the expenditures on a 

per property basis including, but not limited to: (i) all 

eligible activities required to bring the property into 

compliance with program guidelines, (ii) removal of all 

debris, (iii) backfill of basements or cellars, and 

(iv) any necessary environmental remediation required 

by law; and 

• Any other miscellaneous information identified 

regarding the property (e.g., hazards, adverse findings, 

easements...etc.) 

Upon receipt of appropriate documentation confirming the 

completion of BRP activities, IHDA will provide Hardest Hit 
B-4-3

funding to the applicable partner after execution of a secured 

lien mortgage and note in favor of IHDA. The lien will be 

recorded in the public records and releases will be conducted 

by IHDA. 

The secured lien and notes will be structured as zero percent, 

non-amortizing loans, secured by a lien on the property. Loans 

will expire three years after their origination date (“Expiration 

Date”). Prior to the Expiration Date, loans will be forgiven at 

a rate of 33.3% per annum as long as covenants are met. 

In most cases, the outstanding loan balance will become due 

and payable if the property is sold, its title transferred, or it is 

used for an unauthorized purpose prior to the Expiration Date. 

However, in certain cases, special considerations may be made 

by IHDA to release or subordinate its lien prior to the 

Expiration Date based upon the merit of the request and the 

proposed positive impact to the community as set forth in the 

program guidelines. The method for calculating the 

outstanding balance will be determined based upon the time 

and method of transfer. The outstanding balance may include 

any and all net sale proceeds and/ or the full principal balance 

of the loan. 

Prior to the Expiration Date, all proceeds will be due and 

payable to IHDA. All proceeds returned to the IHDA from the 

BRP will be recycled in accordance with the Agreement. 

9. Per Property 

Assistance 

$35,000 (per unit maximum) which may include the following 

on a per unit basis (if applicable): 

• Acquisition (purchase price, lien extinguishment, legal 

costs) 

• Closing costs (if applicable, i.e., title, recording and 

transfer fees) 

• Demolition 

• Lot treatment/greening 

• Maintenance ($3,000 flat fee) 

• Administrative expenses ($1,750) 

10. Duration of Assistance One time assistance per property. 

11. Estimated Number of 

Properties 

Approximately 1,000 – 1,500. Program will be expanded if 

successful and funds are available. 
B-4-4

12. Program Inception / 

Duration 

The program launched in the Summer of 2015. 

13. Program Interactions 

with Other HFA 

Programs 

BRP will complement existing efforts of Illinois’ Abandoned 

Properties Residential Property Municipality Relief Fund. 

14. Program Interactions 

with HAMP 

None 

15. Program Leverage with 

Other Financial 

Resources 

None 
B-5-1

SERVICE SCHEDULE B-5 

Illinois Housing Development Authority 

Hardest Hit Fund Down Payment Assistance Program (HHF DPA 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 Illinois. 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. 

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

foreclosure by assisting in the stabilization of housing prices in 

targeted areas. 

IHDA will identify and track meaningful indicators of program 

effectiveness that will enable them to quantify the DPA 

Program’s impact in the targeted areas. 

3. Target Population / 

Areas 

Areas identified in the DPA Program Guide including: Boone, 

Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will 

and Winnebago counties. IHDA evaluated five housing market 

distress indicators across all Illinois counties: Negative Equity 

Share, 90-Day Delinquency Rates, Foreclosure Rates, REO 

Rates, and Short Sale Rates. These counties exceed the 

statewide average in four out of five housing market distress 

indicators and a minimum threshold origination volume was 

achieved in these counties in 2014. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

Program allocation amount on file with Treasury. 

5. Borrower Eligibility 

Criteria 

Borrowers must qualify for and meet all the requirements for a 

first mortgage loan product originated by an IHDA Loan 

Program participating lender. Eligible first mortgage loans are 

30-year fixed-rate loans from, insured or guaranteed by the 

Federal Housing Administration (FHA), U.S. Department of 

Veterans Affairs (VA), U.S. Department of Agriculture Rural 

Development (USDA), Federal National Mortgage Association 

(Fannie Mae) or Federal Home Loan Mortgage Corporation 
B-5-2

(Freddie Mac). Additional borrower eligibility requirements 

include: 

• Present income at or below 140% of area median. 

• Must be first-time homebuyers. For purposes of the DPA 

Program, a first-time homebuyer is defined as someone 

who has not had an ownership interest in their primary 

residence in the past three years or qualifies under either 

a Veteran’s Exception (as defined in the DPA Program 

Guide) or is purchasing a home in an Federally 

Designated Targeted Area (as defined in the DPA 

Program Guide). 

• Complete a pre-purchase homebuyer education course 

(as defined in the DPA Program Guide). 

• Credit score at or above 640. 

• Debt-to-income (back end) ratio of 45 percent or lower. 

• Execute a Dodd-Frank affidavit.

6. Property / Loan 

Eligibility Criteria 

Property criteria includes: 

• Single family 1-2 unit (including a factory-made home 

which is permanently affixed to real property permitted 

for FHA, VA or USDA only; not permitted for HFA 

preferred conventional); 

• Condominium unit (FHA, VA, Fannie Mae or Freddie 

Mac approved); must be warrantable. 

• Planned Unit Development; 

• Property purchase price must be within IHDA county 

purchase price limits as set forth in the DPA Program 

Guide; 

• Must be owner occupied and borrower’s primary 

residence; 

• Must be an existing residential dwelling (new 

construction excluded); and 

• Must be located in a DPA Program targeted area. 

Loan criteria includes: 

• Meet all applicable FHA, VA, USDA, Fannie Mae or 

Freddie Mac underwriting guidelines. 

7. Program Exclusions • Any second mortgage loans that do not meet the DPA 

Program eligibility requirements as set forth in the DPA 

Program Guide. 

• Non-purchase transactions. 
B-5-3

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 

evidenced by a note and a second mortgage in favor of IHDA. 

The loan will be recorded as a subordinate lien and will only be 

repaid in the event of a sale or refinance. The loan will be 

forgiven on a monthly pro rata basis for the five-year term. 

IHDA reserves the right to resubordinate the second mortgage as 

further detailed in the DPA program guide. 

In the event the property is refinanced or sold during any part of 

the loan term, the remaining balance of the loan will be due to 

IHDA. Remaining funds will be returned to Treasury. 

9. Per Household 

Assistance 

The fixed amount of assistance per homebuyer is $7,500. 

10. Duration of Assistance DPA Program funds will be used to reimburse the Master 

Servicer who purchases and pools all eligible loans from 

IHDA’s participating lenders. 

 

11. Estimated Number of 

Participating 

Households 

IHDA anticipates that approximately 9,733 homebuyers will 

receive assistance. 

12. Program Inception / 

Duration 

The DPA Program will begin August 3, 2015 and funds will 

likely be utilized on or before December 31, 2021. 

13. Program Interactions 

with Other HFA 

Programs 

The DPA Program will utilize existing infrastructure of 

participating lenders who are already actively originating both 

IHDA’s first mortgage and down payment assistance products. 

If the homebuyer has received HHF assistance under any other 

HHF program, the maximum amount of all HHF assistance may 

not exceed $57,500. 

14. Program Interactions 

with HAMP 

None. 

15. Program Leverage with 

Other Financial 

Resources 

IHDA has multiple secondary market executions including 

issuance of Tax-Exempt Bonds. In addition, funds may be 

leveraged by lenders using additional subsidy programs 

available.