HomeSaver Program

A Hardest Hit Housing Markets (HHF) Initiative of the

District of Columbia Housing Finance Agency

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HomeSaver Program

A Hardest Hit Housing Markets (HHF) Initiative of the

District of Columbia Housing Finance Agency

Harry D. Sewell, Executive Director

September 1, 2010
HomeSaver Program

A Hardest Hit Housing Markets (HHF) Initiative of the

District of Columbia Housing Finance Agency

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Table of Contents

1. Introduction 3

2. Guiding Principles 4

3. Overview of the HomeSaver Program 4

a. Location 4 

b. Determining Eligibility 6

c. Intake Process 8

d. Types of Assistance Available 9

e. Maximum Assistance Available 9

f. Loan Structure 10

4. Populations Served and Allocation Methodology 10

5. Timeline from Treasury Approval to Deployment of Capital 11

6. Demonstration of Capacity to Implement 11

a. Qualification as an Eligible Entity 13

b. Experience of the Executive and Senior Staff 14

7. Staffing and Business Partners 16

a. Staffing 16

b. Business Partners 17

8. Administrative Expenses 19

9. Overview of Risk Management/Fraud Prevention 19

10. Conclusion 20

11. Exhibits 21

a. Unemployment Program Term Sheets

i. Lifeline 21

ii. Mortgage Assistance 23

iii. Reinstatement 26

b. Permitted Administrative Expenses 28
HomeSaver Program

A Hardest Hit Housing Markets (HHF) Initiative of the

District of Columbia Housing Finance Agency

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Introduction

The District of Columbia Housing Finance Agency (DCHFA) appreciates the opportunity to 

participate in the U.S. Treasury Department’s Innovative Fund for the Hardest Hit Housing 

Markets (HHF). The DCHFA is an instrumentality of the District of Columbia with a legal 

existence separate from the District government. Since its inception in 1979, the DCHFA has 

invested over $2.6 billion in housing projects creating over 30,000 rental units and enabling over 

6,000 District residents to become homeowners.

Although the District was not as severely impacted by the recession as other parts of the country, 

unemployment has been a continuing problem as evidenced by D.C.’s unemployment rate being

above the national average. The District’s unemployment rate for July 2010 edged down to 

9.8% as opposed to 10% in June, against July’s national unemployment rate of 9.5%. 

The District-wide unemployment rate, however, does 

not convey the full impact of the unemployment 

situation in certain parts if the city. Across the eight 

(8) wards that comprise the District of Columbia the 

unemployment rate ranges from a low of 3.2% in 

Ward 3 to 28.3% in Ward 8 as of September 2009 (the 

latest period for which data was available) as reported 

by the D.C. Department of Employment Services

(DOES). In fact, according to this same data, five (5) 

of the city’s eight (8) wards were experiencing 

unemployment in double digits. 

In light of this, the availability of money from the

HomeSaver Program, A Hardest Hit Housing 

Markets (HHF) Initiative of the District of 

Columbia Housing Finance DCHFA, will be put to 

good use in avoiding foreclosures in D.C.

Data from the 2006-2008 American Community Survey (ACS) states that of the 250,000 

occupied dwelling units in the District, 112,000 or 45% were owner occupied. This contrasts 

with a homeownership rate of well over two thirds of Americans for the same period. As D.C. is 

lagging behind the national average, that makes it even more important that we not further erode 

the base of homeowners in the city. 

RealtyTrac reports that there are 1,448 foreclosures (1.7% of the 86,000 homeowners with 

mortgages on their homes) and 4,643 properties (5.4%) in the foreclosure “pipeline”, somewhere 

between pre-foreclosure and bank owned as of August 2010. 

Working with DOES and the Urban Institute (the Institute) which has done extensive studies on 

mortgage delinquencies and foreclosures in D.C., the DCHFA intends to cross match D.C. 

residents in the DOES database with a) owner occupied dwelling units and b) owner occupied 
HomeSaver Program

A Hardest Hit Housing Markets (HHF) Initiative of the

District of Columbia Housing Finance Agency

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units that have received delinquent or foreclosure notices. This will allow us to quickly target 

the universe of potential candidates for assistance under the program. 

We will also partner with other city agencies that have some existing programs dealing with 

foreclosures including the Department of Housing and Community Development (DHCD) and 

the Department of Insurance, Securities and Banking (DISB) further augmenting our outreach 

efforts.

Guiding Principles

DCHFA has used the following guiding principals in the development of the HomeSaver 

Program:

• Foreclosure prevention – The primary goal of the HomeSaver Program is to prevent 

foreclosures that will erode the base of homeowners in the city, which already lags 

behind the national average in the rate of homeownership. The performance measures 

will include the number of families that were able to remain in their homes and prevent 

foreclosure, thus achieving a HomeSaver status.

• Synergistic interaction - The DCHFA will partner with other organizations (i.e. DOES 

and the Urban Institute) to define the universe of potential candidates for the HomeSaver

Program, perform outreach and intake, and ultimately deliver timely assistance to 

prevent foreclosures.

• Simplicity – The DCHFA will employ a HomeSaver Program design that seeks to 

minimize administrative costs thereby maximizing the amount of dollars available for 

assistance.

• Scale – The HomeSaver Program will be city-wide although the DCHFA intends to 

“pilot test” the HomeSaver Program design in Wards 5, 7 and 8; those hardest hit by 

both unemployment and foreclosure.

Overview of HomeSaver Program

The HomeSaver Program is mortgage assistance program with three components: 

• Lifeline

• Mortgage Assistance

• Reinstatement.

 

Location

The HomeSaver Program will be city-wide although the DCHFA intends to pilot test the 

program design in Wards 5, 7 and 8. 
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A Hardest Hit Housing Markets (HHF) Initiative of the

District of Columbia Housing Finance Agency

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Unemployment Statistics

The District’s unemployment rate for July 2010 edged down to 9.8% as opposed to 10% in June, 

against July’s national unemployment rate of 9.5%. The District-wide unemployment rate, 

however, does not convey the full impact of the unemployment situation in certain parts if the 

city. Across the eight (8) wards that comprise the District of Columbia the unemployment rate 

ranges from a low of 3.2% in Ward 3 to 28.3% in Ward 8 as of September 2009 (the latest period 

for which data was available) as reported by the D.C. Department of Employment Services 

(DOES). In fact, according to this same data, five (5) of the city’s eight (8) wards were 

experiencing unemployment in double digits. See Table 1 below.

 Table 1

Unemployment 

rate (%) Ranking

Ward 1 10.1

Ward 2 5.8

Ward 3 3.2

Ward 4 9.6

Ward 5 15.5 2

Ward 6 11.5

Ward 7 19.5 3

Ward 8 28.3 1

At present there are 12,769 UI claimants in the District. If we extrapolate the percentage of 

District residents who are homeowners (45%), that defines a universe of 5,746 potential 

candidates for assistance. Further extrapolation of the percentage of homeowners who are in the 

foreclosure pipeline (5.4%), and allowing for those who are experiencing financial distress due 

to unemployment but who, through use of other resources have remained current on their 

mortgages, or dividing program operating funds by the maximum amount of assistance, we can 

expect the program to serve between 215 to 315 participants. 

Foreclosure Statistics

RealtyTrac reports that there are 1,448 foreclosures (1.7% of the 86,000 homeowners with 

mortgages on their homes) and 4,643 properties (5.4%) in the foreclosure “pipeline”, somewhere 

between pre-foreclosure and bank owned as of August 2010. 

The Wards with the highest number of properties in foreclosure are Wards 7, 5 and 4 and the 

Wards with the highest number of new foreclosure starts are Wards 5, 4 and 7. Furthermore, the 

Wards with the highest number of foreclosures avoided are Wards 7, 5 and 8. 
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A Hardest Hit Housing Markets (HHF) Initiative of the

District of Columbia Housing Finance Agency

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General Housing and Economic Demographics

Below in Table 3, please find general housing and economic demographics by Ward. The 

statistics below support the HomeSaver Program pilot testing to occur in Ward 7, 8, and 5 and 

after the 90 day pilot test period, the HomeSaver Program will be available city-wide.

Ward

Population 

(2000)

Average 

Family 

Income 

(2000)

 Median 

Borrower

Income 

(2006) 

Home 

ownership 

Rate

 Median 

Sales Price 

(2009) 

% Annual 

Change in 

Median 

Price 2008-

2009

% of 

subprime 

Loans 

(2006)

1 73,334 $ 59,140 $114,207 29 $ 500,000 -15 4

2 68,827 $ 130,891 $138,755 32 $ 930,000 -12 2.2

3 73,753 $ 187,709 $172,196 51 $ 870,000 -0.2 1.1

4 75,001 $ 81,500 $124,234 61 $ 435,000 -8.4 14

5 71,604 $ 54,479 $ 97,657 49 $ 312,000 -16 17

6 68,087 $ 67,454 $128,623 41 $ 506,000 -2.3 6.5

7 70,539 $ 45,039 $ 72,538 41 $ 240,000 -19 20

8 70,915 $ 35,228 $ 70,763 22 $ 215,000 -27 16

DC 572,060 

*Source: U.S. Census Bureau

*Red – 1st Hardest Hit, Yellow – 2nd Hardest Hit, Blue – 3rd Hardest Hit

Determining Eligibility

Candidates for assistance will be those in the DOES database. DOES is the District agency that 

administers the city’s Unemployment Insurance and job training programs. Eligible program 

participants will be 1) homeowners residing in their primary residences; 2) the heads of 

household or other persons named on the mortgage note as borrower or co-borrower; 

3) borrowers who were current on their mortgages until the date of the declared hardship; and 4) 

borrowers who are receiving Unemployment Insurance payments or have received payments 

within the last six (6) months.

The DOES intake process has already “qualified” an individual for Unemployment Insurance 

payments based on job loss. We think, therefore, this will eliminate the need for a “second” 

verification of employment status process and save both time and administrative costs in the 

delivery of program assistance. In addition, all applicants will sign a notarized Hardship 

Affidavit prior to their acceptance into the HomeSaver Program.

The DOES eligibility process for Unemployment Insurance claims is as follows:

To be eligible for unemployment compensation, you must meet the following wage 

requirements:

ß You must have wages in at least two quarters of the base period. 
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District of Columbia Housing Finance Agency

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ß You must have at least $1,300 in wages in one quarter of the base period. 

ß You must have at least $1,950 in wages for the entire base period. 

ß Your total base period wages must be at least one-and-a-half times the wages in your 

highest quarter, or be within $70 of that amount. 

The base period is a 12 month period that is determined by the date you first file your claim.

The following table determines what would be the base period of the claim:

If your claim is filed during 

the months of

Your base period is the 12 month 

period that ends the previous

January/February/March September 30

April/May/June December 31

July/August/September March 31

October/November/December June 30

Base period wages may be from D.C. employers, the D.C. Government, the Federal 

Government, and the U.S. Military, or from employers in other states.

In addition to wage requirements, you must also meet the following requirements:

ß You must be unemployed through no fault of your own. 

ß You must be available for work. This means that you must be ready and willing to 

accept work considered suitable for you because of your past training, education, or 

experience. 

ß You must be physically able to work. You cannot collect benefits while you are sick, 

injured, or disabled. 

ß You must make at least two job contacts each week. 

ß You must make a personal and continuing effort each week to attain gainful 

employment, using methods that are customary for your occupation. (You may be 

asked by your Employment Services Center to demonstrate your work search 

activities, so you should keep a record of such efforts.) 

Reasons for Disqualification:

You may be disqualified from receiving benefits for any of the following reasons:

ß Voluntarily leaving your last 30 day employer without good cause connected with the 

work.

ß Being discharged by your last 30 day employer for gross misconduct.

ß Being discharged by your last employer for other than gross misconduct.

ß Refusing to apply for, or accept, suitable work without good cause.

ß Participating in a labor dispute other than a lockout.

ß Not able to work, not available for work.

ß Failing to report as directed.
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ß Not authorized to work if a non-citizen.

ß Having a reasonable assurance of continuing employment if a school employee.

Leaving the Military:

If you are unemployed after leaving the U.S. military, you must provide the "Member 

Requests Copy 4" of your form DD-214, "Certificate of Release of Discharge from Active 

Duty."

All participants in the HomeSaver Program will have undergone the intake and eligibility 

processes to complete an Unemployment Insurance Claim and will have been approved for 

Unemployment Insurance payments.

Intake Process

Using a network of U.S. Department of Housing and Urban Development (HUD) approved 

housing counseling agencies, Counselor Direct online, or a call-in number, applicants meeting 

the eligibility criteria above will be able to complete the HomeSaver Program intake process 

ensuring they meet the remaining program eligibility criteria. 

The intake process will include a) providing proof of identity, b) current statement or the 

mortgage note, c) payment coupon and d) proof of receipt of Unemployment Insurance 

payment(s). A completed intake package along with a recommendation for the type of assistance 

to be provided will be forwarded by the selected housing counseling agencies to the DCHFA 

HomeSaver Program Coordinator for review and approval. See Exhibit 1 below.

Exhibit 1

 

HUD Approved Housing 

Counseling Agencies

Counselor Direct or 

DCHFA Website

Call In Number

Applicant

DCHFA 

HomeSaver 

Program 

Coordinator

HUD 

Approved 

Housing 

Counseling 

Agency
HomeSaver Program

A Hardest Hit Housing Markets (HHF) Initiative of the

District of Columbia Housing Finance Agency

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Types of Assistance Available

Approved applicants will receive up to fifteen (15) months of assistance from one of three 

program components:

• Lifeline – The Lifeline component of the program will offer a one-time payment of up to 

three (3) months mortgage delinquency; including principal, interest, taxes, insurance, 

late fees etc. in order to bring the mortgage current.

• Mortgage Assistance – The Mortgage Assistance component of the program will 

provide up to fifteen (15) months of payments equal to 100% of the monthly mortgage 

payment (PITI). If the program participant has used Lifeline assistance (for example, 

bringing the mortgage current after a three month delinquency payment) there will be 

twelve (12) months of Mortgage Assistance payments still available. Mortgage 

Assistance will terminate at:

- the end of fifteen months (15) or the program cap,

- the end of Unemployment Insurance payments, due to reemployment, plus two 

(2) months provided that the participant has not received more than a total of 

fifteen (15) months of assistance or the program cap amount, or

- failure to comply with the requirements of DOES for continuation of 

Unemployment Insurance payments i.e. failure to look for work.

• Reinstatement – The Reinstatement component of the program will be available for 

program participants who need a one-time payment to “catch up” (up to six months of 

delinquency) but who have sufficient resources to continue making timely mortgage 

payments. This is for recently employed program participants who have received 

Unemployment Insurance payments within the last six months but have since found 

employment. The eligibility criteria will remain the same for those recently employed, 

except that proof of previous participation in the UI program and employment will be 

required.

Maximum Assistance Available 

Because housing costs in D.C. are comparatively high and Unemployment Insurance payments 

are relatively low ($350 per week), the DCHFA has elected to pay 100% of the monthly 

mortgage payment as part of the Mortgage Assistance program. 

According to ASC data from 2006-2008, “(t)he median monthly costs for mortgaged owners was 

$2,159...” Using his figure as a benchmark, the maximum assistance that any program 

participant can receive is $32,385 ($2,159 x 15 months) although we expect that program 

experience will yield a lesser amount. The DCHFA will review and adjust assistance levels as 

we accumulate and analyze actual program results.
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District of Columbia Housing Finance Agency

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As required by the Hardest Hit Housing Markets (HHF) Initiative’s Guidelines, the HHF funds 

must be expended by December 31, 2017. The DCHFA HomeSaver Program plans to release 

100% of its HHF funds by the end of Year 3 thus making 5-year forgivable loan commitments in 

Years 1 and 2 of the HomeSaver Program. Based upon this anticipated use of funds, all 

forgivable loans made through the HomeSaver Program will be forgiven by the end of Year 7

(December 31, 2017).

Loan Structure

All loans will be recorded as non-recourse junior liens and will be non-amortizing. Loans will 

be forgiven at a rate of 20% a year such that in year six the entire loan will be forgiven and the 

lien removed. The loan will only be repayable if the program participant sells or refinances the 

property prior to expiration of the lien period and only to the extent there is sufficient equity to 

pay that portion of the loan that has not been forgiven. 

All program participants will be required to sign a notarized Hardship Affidavit attesting their 

inability to make mortgage payments through no fault of their own. Our primary proof of 

hardship will be the applicant’s current receipt of Unemployment Insurance payments or proof of 

payments within the last six (6) months.

Loan funds repaid by program participants will be recycled and additional eligible participants 

may access the funds, as long as the funds are expended prior to December 31, 2017. After 

December 31, 2017, the funds will be returned to Treasury.

Population Served and Allocation Methodology

At present there are 12,769 UI claimants in the District. If we extrapolate the percentage of 

District residents who are homeowners (45%), per the ACS, it defines a potential universe of 

5,746 potential candidates for assistance. Further extrapolation of the percentage of homeowners 

who are in the foreclosure pipeline (5.4%), and allowing for those who are experiencing financial 

distress due to unemployment but who, through use of other resources have remained current on 

their mortgages, or dividing program operating funds by the maximum amount of assistance, we 

can expect the program to serve between 215 to 315 participants. 

Eligible program participants will be 1) homeowners residing in their primary residences, 2) the 

heads of household or other persons named on the mortgage note as borrower or co-borrower, 3) 

borrowers who were current on their mortgages until the date of the declared hardship, and 4) 

borrowers who are receiving Unemployment Insurance payments or have received payments 

within the last six (6) months. 

The DCHFA will pilot test the program design in Wards 5, 7 and 8 as these areas have 

experienced both high rates of unemployment and foreclosure. After the ninety (90) day pilot 

period, we will begin to add other Wards to the HomeSaver program and the program will be 

available city-wide within 120 days of notice of HHF award. We expect that most of the 

program funds will be used for Mortgage Assistance and we will reserve at least 50% of program 

funds to be used in the city-wide roll out, including the Wards in the pilot test.
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After the first 90 days of program operations we will also evaluate our outreach, intake and 

approval processes for efficiency and effectiveness. In addition, the DCHFA will also review 

and adjust assistance levels per actual program experience. Any program participants whose 

assistance levels are above those allowed after program review and adjustments will remain at 

the levels established at the time of their determination of program eligibility. Other eligibility 

criteria, i.e. maximum loan to value ratio or maximum mortgage amount lower than the GSE 

conforming limit of $729,750 may also be imposed after the pilot test period to ensure maximum 

program effectiveness and to render assistance to as many eligible program participants as 

possible.

Timeline from Treasury Approval to Deployment of Capital

By launching some start up activities immediately after application submission, the DCHFA will 

aim to serve eligible program participants within 90 days of the approval of its HomeSaver 

Program by Treasury.

During the start up time, the DCHFA plans to:

ß Select HUD approved housing counseling agencies to participate in the program by 

developing a solicitation which will ask agencies to describe their qualifications and 

capacity, area to be served and the cost per program participant. 

ß Select and contract with one or more title companies from the DCHFA pre-approved 

slate of professional service providers to obtain the best pricing for title and recordation 

services. 

ß Develop detailed program guidelines and training syllabus for the housing counselors and 

the DCHFA HomeSaver Program Staff. Program guidelines will include the eligibility 

requirements, the terms of assistance and the forgiveness mechanism.

ß Prepare a standard note and mortgage for Lifeline, Mortgage Assistance and 

Reinstatement options.

ß Contract with Counselor Direct for client management software.

ß Develop a link between Counselor Direct and the DCHFA Website (www.dchfa.org).

ß Hire project specific staff including a HomeSaver Program Coordinator.

ß Develop a detailed plan for consumer outreach.

ß Solidify the partnerships with two critical partners discussed in this submission, DOES 

and the Urban Institute.

ß Outreach and partner with the District agencies (i.e. Department of Housing and 

Community Development and the Department of Insurance Securities and Banking) that

administer programs or initiatives to help families prevent foreclosures.

Demonstration of Capacity to Implement

The DCHFA was established in 1979 to stimulate and expand homeownership and rental 

housing opportunities in Washington, D.C. Since its inception 31 years ago the DCHFA has 

invested over $2.6 billion in District neighborhoods creating over 30,000 rental units and 

enabling over 6,000 residents to become homeowners. The DCHFA accomplishes its mission by 

issuing mortgage revenue bonds that lower the homebuyers’ costs of purchasing homes and the 
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developers’ costs of acquiring, constructing and rehabilitating rental housing. In addition, the 

DCHFA administers the U.S. Treasury’s New Issue Bond Program whose description is included 

below.

Homeownership Program

The Homeownership Program is led by the Director of the Single Family Mortgage Program. 

The Division manages the origination of single family mortgage loans, downpayment assistance 

programs and conducts community outreach. For first-time and repeat homebuyers in the 

District of Columbia, the DCHFA’s homeownership program provides low-interest mortgages 

at/or below national and local conventional rates. 

The DCHFA provides regular homeownership educational seminars and community outreach in 

an effort to empower persons seeking to become homeowners in the District. The DCHFA

informs residents about its low interest mortgage program, down payment assistance programs, 

the District government’s employer assistance program, tax credits, tax abatements, and other 

programs that assist homebuyers with closing costs. Previously, the DCHFA was a HUD 

approved housing counseling agency. If future business discussions identify the need to resume 

counseling activities, the DCHFA has the capacity to become recertified.

Moving forward, the DCHFA will continue to expand the number of lenders participating in the 

single-family program and continue to diversify the prospective products available to home 

purchasers. 

The Single Family staff involved with the development of this submission will be essential

players in the creation, implementation and evaluation of the HomeSaver Program. 

Multifamily Housing Development

The Public Finance Division manages the multifamily housing development functions for the 

DCHFA. The Public Finance Division underwrites and facilitates the processing of financing 

applications for affordable multifamily rental housing projects in the District. The DCHFA’s 

Multifamily Housing Development Programs uses tax-exempt and taxable bonds, 4% Low 

Income Housing Tax Credits and low-cost specialized loan funds (McKinney Act Savings 

Funds) as financial tools that increase the development community’s ability to provide 

affordable, safe and decent rental housing to low-income and special needs populations. 

Nonprofit and for-profit developers can take advantage of DCHFA financing programs. The 

DCHFA’s financing can be used to finance the rehabilitation or new construction of rental 

housing, cooperatives, assisted-living facilities and transitional housing.

Administration of the U.S. Treasury’s New Issue Bond Program 

Most recently, the DCHFA became a participant in the U.S. Treasury Department’s New Issue 

Bond Program (NIBP) and through its participation, the DCHFA has demonstrated both the 

financial and organizational capacity to quickly ramp up and implement a new initiative. At the 
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end of 2009, the DCHFA was allocated $193 million under the New Issue Bond Program. The 

proceeds are the result of taxable revenue bonds issued by DCHFA on December 30, 2009. 

Of the $193 million awarded to DCHFA, the DCHFA has allocated $168 million to advance its 

Multifamily Program and $25 million to replenish its Single Family Mortgage Program. Like 

many HFAs around the country, in most of 2009 the DCHFA was unable to issue new bonds at a 

competitive rate in the then-existing capital market structure.

DCHFA was the first HFA in the country to release funds from escrow for a multi-deal, 

multifamily transaction, closing three deals within three months of the NIBP funds having been 

placed in escrow. The DCHFA has recently successfully completed its second multi-deal, 

multifamily transaction and escrow release. To date, the DCHFA has issued over 50% of its 

multifamily NIBP allocation. The DCHFA plans to close its third and final multi-deal 

multifamily transaction and escrow release prior to the U.S. Treasury’s required deadline of 

December 16, 2010. 

Qualification as an Eligible Entity

The DCHFA meets the requirements stated in the HHF Guidelines to be an Eligible Entity to 

participate in the HHF program and receive funds from Treasury in respect to the HHF. The 

DCHFA is an entity that is incorporated separately from the District Government itself. 

Section 42-2702.01 of the DC Code states in pertinent part, “The District of Columbia Housing 

Finance Agency is created as a corporate body which has a legal existence separate from the 

government of the District but which is an instrumentality of the government of the District 

created to effectuate certain purposes.

Further, DC Code Section 42-2703.01(12) specifically provides that the Agency has the power to 

“contract for and to receive contributions, gifts, grants, subsidies, and loan of money, property, 

labor or other things of value from any source to be used for the purpose of this chapter and 

subject to the conditions upon which the contributions, gifts, grants subsidies, and loans are 

made”.

Moreover, DC Section 42-2703.01(21) grants the Agency the authority to do any act necessary 

or convenient to exercise the powers granted by or reasonably implied from this chapter. Given 

that Section 6A of the chapter empowers the Agency to originate and service mortgage loans or 

contract for the origination and servicing of mortgage loans, it is reasonable to imply that the 

DCHFA has the power to receive funds form the Treasury to fund forgivable loans.

Finally, there is a precedent for the Agency receiving funds from the Treasury through the New 

Issue Bond Program, previously discussed.
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Experience of the Executive and Senior Staff

The Executive Staff and Single Family staff have decades of experience in the affordable 

housing finance arena including, program design, program implementation, counseling, finance, 

housing development, compliance, and housing management. 

Harry D. Sewell, Executive Director

Mr. Sewell has over three decades of housing experience and began his career as a housing 

counselor for HUD’s 235 and 237 homeownership programs. The Section 237 program was 

specifically designed for applicants for FHA mortgage insurance with impaired credit and 

who, therefore, required credit and homeownership counseling. Mr. Sewell also has 

extensive experience in the areas of affordable housing finance, development and 

management. Mr. Sewell received his Bachelor of Arts degree in Labor Management 

Relations from the Pennsylvania State University.

Fran D. Makle, Deputy Executive Director

Ms. Makle has over 30 years of housing finance experience, including 14 years of 

management with nationally-recognized state housing finance agencies. Ms. Makle has 

extensive experience in mortgage lending for both single-family and multifamily housing and 

has been instrumental in the development and implementation of three consecutive awardwinning single family housing programs. In November 2006, Ms. Makle joined the DCHFA

and currently serves as its Deputy Executive Director. In this capacity, Ms. Makle serves as 

the Chief Operating Officer for the DCHFA and manages the day to day operations.

Previously, Ms. Makle served as the Program Director for Arundel Community Development

Services, Inc., as the Acting Director and the Deputy Director of the Community 

Development Administration at the Maryland Department of Housing and Community 

Development (DHCD), and the Deputy Director of the Division of Development Finance, 

which includes the Community Development Administration at the Maryland Department of 

Housing and Community Development.

Allison Ladd, Associate Executive Director

Ms. Ladd has over 12 years of experience in housing finance, community development, and

government affairs. Throughout her career, Ms. Ladd has served on the senior management 

teams in various housing finance entities - state, county and local. Currently, Ms. Ladd 

serves as the Associate Executive Director of the DCHFA. Ms. Ladd joined the DCHFA in 

February 2007 and her primary responsibility is to manage the business planning, 

communications, marketing, and government affairs for the DCHFA.

Previously, Ms. Ladd served as the Chief of Staff to the Maryland Department of Housing 

and Community Development. Prior to joining the Maryland state government, she served as 

the Special Assistant to the Director of the Prince George's County (MD) Department of 

Housing and Community Development. Ms. Ladd received a Masters of Community 
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Planning from the University of Maryland, College Park, Maryland and a Bachelor of Arts 

degree from the University of Rhode Island, Kingston, Rhode Island.

Maria Day-Marshall, General Counsel

Ms. Day-Marshall joined the District of Columbia Housing Finance Agency in November 

2009, and serves as General Counsel to the Issuer. Ms. Day-Marshall is responsible for the 

overall supervision, coordination and management of all legal matters for the DCHFA.

Ms. Day-Marshall has been involved in the municipal finance industry for over twenty years. 

Prior to joining Fannie Mae from 1982 to 1996, she served in financial and legally related

positions in the District government. During her tenure, she served as Treasurer of the 

District of Columbia, Deputy Treasurer and Debt Manager. As Treasurer, she was 

responsible for the issuance of over $6 billion of debt for the District and other D.C. 

government issuers. Ms. Day-Marshall has a Masters of Law in Taxation from Georgetown 

University, a J.D. from Catholic University and a Bachelor of Arts from Fisk University.

Sergei Kuzmenchuk, Chief Financial Officer

Mr. Kuzmenchuk joined the DCHFA as its Chief Financial Officer in October 2008. Mr.

Kuzmenchuk has over 10 years of housing finance agency experience. Prior to joining the 

DCHFA, he served as the Director of Finance and the Deputy Director of Finance for 

Community Development Administration (CDA), Maryland Department of Housing and 

Community Development. Mr. Kuzmenchuk led a team of financial analysts and 

accountants and managed a portfolio of more than $3 billion of mortgage revenue bonds, 

mortgage loans and investments. 

Mr. Kuzmenchuk earned his M.B.A in Accounting from the Joseph A. Sellinger, S.J., School 

of Business and Management, Loyola University in Maryland in 2002. He was granted a 

M.P.M. degree in Public Sector Financial Management from the School of Public Policy,

University of Maryland, College Park, in 1995. Mr. Kuzmenchuk received his B.A. and M.A. 

degrees in English and French Interpretation from the Minsk State Linguistic University, 

Minsk, Belarus in 1993.

Carisa D. Stanley, Director of Homeownership Programs

Ms. Stanley has over eight years of experience in finance, banking and commercial and 

residential real estate development. Prior to her joining the DCHFA as Director of Single 

Family Programs, Ms. Stanley was Vice President at Fidelity and Trust Bank and then 

EagleBank where her focus was real estate development in the Washington, D.C.

metropolitan area. During her banking career Ms. Stanley financed over $20 million in 

affordable housing projects in the District and managed a $100 million real estate portfolio. 

As the Director of Single Family Programs, Ms. Stanley manages the DCHFA’s single 

family mortgage products and services. Ms. Stanley received a Bachelor of Arts degree from 

the University of North Carolina at Greensboro. 
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Anita M. Thomas, Single Family Program Manager

Ms. Thomas joined the DCHFA in October of 1998 and has twenty years of experience in the 

Mortgage Industry. As Single Family Program Manager, Ms. Thomas is responsible for the 

oversight of all active Single Family Program allocations and Down Payment Assistance 

Programs, providing program activity reports that monitor pace at which funds are 

originated, borrower demographics and pipeline management. Ms. Thomas also monitors 

properties receiving HOME assisted loans for compliance with HOME regulations 

established by HUD.

Prior to joining the DCHFA, Ms. Thomas was employed as a Loan Servicer with National 

Loan Servicenter and as a Foreclosure Processor with Citibank.

Staffing and Business Partners - HomeSaver Program

Staffing

Upon approval of the funding for the HomeSaver Program, DCHFA staff will manage the 

administration and implementation of the program. All staff working on the HomeSaver 

Program will be housed in the Single Family Department of DCHFA under the supervision of 

the Director of Single Family Programs.

Director, Single Family Programs

• The Director of Homeownership will allocate approximately 20 percent of her time to the 

HomeSaver Program. The Director will manage the Program Coordinator and oversee 

every aspect of the HomeSaver Program. The Director of Homeownership will develop all 

administrative policies and procedures as they pertain to program administration and will 

provide final approval on borrower eligibility. The Director of Homeownership is an 

existing position and reports to the Executive Director of the DCHFA.

Program Coordinator

• The Program Coordinator will run the daily operations of the DCHFA’s HomeSaver 

Program. The Program Coordinator will function as the internal point of contact for the 

various business partners and partnership organizations and will ensure the Program is 

administered effectively. The Program Coordinator will also validate borrower eligibility 

and ensure quality control of processes. The Program Coordinator will monitor any 

changes, updates or new mandates from Treasury or HUD with regards to the Hardest Hit 

Fund and report to the Director of Single Family Programs. This position will work with the 

Service Coordinator in closing loans and obtaining proper documentation for submission to 

the servicer. The Program Coordinator position is new to the DCHFA .

Single Family Program Manager/Service Coordinator

• The Single Family Program Manager /Service Coordinator’s primary role will be to 

administer monthly payments to servicers for approved borrowers in the HomeSaver 

Program. The Service Coordinator will process payoff requests and lien releases and 

maintain all original loan documents. The Service Coordinator will also assist with 
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compliance as necessary for example, interface with counseling agencies to monitor ongoing 

program participant compliance. The position will also be responsible for preparing periodic 

reports for Management’s use. The Service Coordinator position will be filled by allocating 

a portion of the Single Family Program Manager’s time to HomeSaver Program. 

Program Accountant

• The Program Accountant’s primary role will be to manage the HomeSaver Program’s

federal account and perform regular reconciliation. The position will be responsible for 

producing and maintaining an organized and user-friendly financial record-keeping system as 

well as investigating and resolving all discrepancies. The Program Accountant will produce 

regular reports, in a form acceptable to Treasury, for Management’s review. The Program

Accountant position will report to the Chief Financial Officer. 

Administrative Support

• The Administrative Assistant will be responsible for coordinating the submission of reports 

from the participating housing counseling agencies and assembling the information in a 

format acceptable to Treasury for Management’s review. The position will also manage 

incoming calls and inquiries regarding the HomeSaver Program and assist the Program 

Coordinator with any necessary intake efforts. 

Business Partners

The DCHFA expects to have both contractual and Memoranda of Agreement relationships with 

public agencies and private businesses. The principal business partners will be The Department 

of Employment Services (DOES) and the Urban Institute. Additional partners will include the 

housing counseling agencies, title companies, the Department of Housing and Community 

Development (DHCD) and the Department of Insurance, Securities and Banking (DISB)

The Department of Employment Services (DOES) -- The mission of the Department of 

Employment Services is to plan, develop and administer employment-related services to all 

segments of the Washington, DC metropolitan population. It achieves its mission through 

empowering and sustaining a diverse workforce, which enables all sectors of the community to 

achieve economic and social stability.

DOES will serve as the main point of entry for program participants, since one of the primary 

criteria for program eligibility is being a current, or recent, claimant for Unemployment 

Insurance payments. The DOES database will be the first source for potential candidates for 

program assistance. Partnering with DOES also fulfills one of the guiding principles of the 

program’s development: Synergistic Interaction. The DCHFA will reinforce the DOES 

requirement that UI claimants be ready, able and willing to work by making a major element of 

continued program assistance contingent on DOES compliance. The DCHFA will receive 

weekly certification from DOES that a program participant has continued to satisfactorily 

perform his/her responsibilities as part of our ongoing compliance monitoring.
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The Urban Institute -- The Urban Institute (the Institute) has conducted extensive research into 

housing issues in the District of Columbia including mortgage delinquencies and foreclosures. 

The Urban Institute gathers data, conducts research, evaluates programs, offers technical 

assistance overseas, and educates Americans on social and economic issues — to foster sound 

public policy and effective government.

The Institute will assist in our efforts to design the broadest outreach methodology possible to 

ensure that any eligible candidate for program assistance is aware of the HomeSaver Program. 

One of the outreach methodologies that the DCHFA will employ is the cross match of addresses

of Unemployment Insurance claimants with addresses for properties receiving delinquency or 

foreclosure notices. This will allow us to reach out to these candidates for program assistance 

possibly even before they seek to make an application for assistance. 

The Institute will also assist with the evaluation of program results to ensure that the DCHFA is 

reaching the target audience and achieving optimum results including length of the assistance 

period, level of maximum assistance, effectiveness in preventing foreclosures etc.

CounselorDirectTM -- CounselorDirectTM is an intake, underwriting, reporting and compliance 

software program that is being considered by other states who received HHF funds. 

CounselorDirectTM is a custom branded portal with automated intake program that can assist the 

DCHFA with the approval process for the participants in the HomeSaver Program. In addition, 

CounselorDirectTM will also assist with the loan underwriting, the generation of loan documents, 

servicing functions and reports. Finally, CounselorDirectTM can assist with reporting 

requirements to the Treasury and other reports necessary to manage and implement the 

HomeSaver Program efficiently and effectively.

Housing Counseling Agencies -- The DCHFA will issue a Request for Proposals for Housing 

Counseling Agencies to assist the DCHFA with the completion of the intake process, submission 

of application packages for approval by DCHFA and monitoring for continued program 

participant compliance, including meeting DOES requirements for Unemployment Insurance 

payments. Currently, there are 17 HUD approved housing counseling agencies in the District. 

Through a competitive process, the DCHFA will select one or more HUD approved housing 

counseling agencies to assist with the HomeSaver Program.

The HUD approved housing counseling agencies will input the eligibility information and data 

into the Counselor Direct software and the Counseling Direct software will electronically submit 

the application for HomeSaver mortgage assistance to the DCHFA.

Department of Housing and Community Development and the Department of Insurance, 

Securities and Banking -- The DCHFA will explore partnerships with other District agencies 

that have programs assisting District residents with foreclosure issues including the Department 

of Housing and Community Development (DHCD) and the Department of Insurance Securities 

and Banking (DISB) if there are opportunities for Synergistic Interaction with their program 

efforts. 
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Title Companies -- The DCHFA will select and contract with one or more title companies on 

our pre-approved slate of professional service providers to get the best pricing for title and 

recordation services. The title companies will assist with the underwriting and settlement 

process for HomeSaver Program.

Administrative Expenses

One of the DCHFA’s guiding principles is Simplicity. As previously discussed, the principle of 

Simplicity means that the DCHFA will employ a HomeSaver Program design that seeks to 

minimize administrative costs thereby maximizing the amount of dollars available for assistance.

The DCHFA HHF Award Amount is $7,723,678. The DCHFA HHF charged administrative 

costs will be $1,133,237 (14.67% of the HHF Award Amount). However, the total DCHFA 

HomeSaver Program administrative expenses exceed $2.2 million. The DHCFA will provide 

over $1.08 million in in-kind services, including but not limited to salaries, building overhead, 

marketing and translation services over the life of the program.

For additional information regarding the HHF charged administrative costs, please see Permitted 

Administrative Expenses found on page 28.

Overview of Risk Management/Fraud Prevention

The DCHFA will comply with all requirements under the HHF program and the DCHFA will 

accomplish compliance, oversight, internal control and fraud prevention through several means. 

Policies, procedures and internal controls required to implement the HomeSaver Program will 

be developed.

By targeting assistance to claimants for Unemployment Insurance we will greatly reduce the 

potential for fraudulent payments to program participants. Each participant in the HomeSaver 

Program will have undergone the DOES eligibility process and will have had their status as an

unemployed worker verified. To complete the intake process, they will bring proof of identity, 

current statement or the mortgage note, payment coupon and proof of receipt of unemployment 

payment(s) to one of the selected housing counseling agencies. A case file will be established at 

the counseling agency and the above documentation, along with an application for assistance and 

recommendation for the type of assistance to be provided e.g. Lifeline, Mortgage Assistance or 

Reinstatement, will be sent to the DCHFA Program Coordinator for file review and approval of 

assistance.

In order to continue to receive assistance, program participants will be required to provide 

ongoing evidence of receipt of unemployment payments until either a) the end of program 

participation b) the end of the term of unemployment assistance c) reemployment. This 

documentation will be maintained in the case file for each program participant. For those 

program participants whose unemployment payments are terminated because of failure to fulfill 

the DOES job search or job training requirements, HomeSaver Program payments will also be 

terminated.
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At the end of program assistance, program participants will be required to certify annually, until 

the end of loan program period, that they still remain in the residence for which assistance was 

provided and that there has been neither a transfer of ownership or refinancing. A random check 

of a selected sample of program participants will be conducted by searching the Recorder of 

Deeds records to ensure that the property for which the program participant received assistance is 

still recorded in the participant’s name.

We will work with the Urban Institute to devise our program goals and metrics and to develop 

the methodology for independent third party review of program effectiveness. 

With regards to the financial management of the HomeSaver Program, the DCHFA will 

contract with an independent auditor to perform an OMB Circular 133 audit for each of the years 

the DCHFA is operating under the HHF. The audit will occur annually and simultaneously with 

the DCHFA fiscal year annual audit. The DCHFA’s fiscal year runs October 1 – September 30, 

with the independent audit released the following January.

Counselor Direct will assist the DCHFA manage the tracking and reporting requirements 

necessary to participate in the HHF. In addition, the Single Family staff will be the primary 

source of tracking and reporting data. 

Conclusion

DCHFA is appreciative of the opportunity to participate in the Treasury Department’s Innovative 

Fund for the Hardest Hit Housing Markets. We have designed a program that will assist between 

215 and 315 District of Columbia residents avoid foreclosure. Major features of the program 

design are:

o Targeting of Unemployment Insurance claimants for program assistance.

o Decentralized intake through a network of HUD approved housing counseling 

agencies.

o Centralized approval process by DCHFA.

o Provide 15 months of assistance.

o Pilot test in three of the District’s Wards hardest hit by both unemployment and 

foreclosure before going city-wide.

o Ongoing monitoring of program assistance to ensure eligibility of program 

participants and effectiveness of program design. 

Through both the New Issue Bond Program and now the Hardest Hit Fund we have forged a 

partnership that will ultimately benefit hundreds of District of Columbia residents enabling them 

to move into newly constructed or renovated affordable rental housing or stay in their homes.