First Amendment to HPA — Washington, D.C. 

TAMPA/134447.2

FIRST AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

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

attached hereto as the First 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 in connection with Treasury’s 

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

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

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

from time to time (“EESA”); 

WHEREAS, on September 24, 2010 Treasury indicated that it would make $3.5 billion of 

additional assistance available under the HHF Program for foreclosure prevention programs for 

homeowners struggling to make their mortgage payments in certain states that had previously 

received HHF Program funding for such purposes; 

WHEREAS, Treasury desires to increase the available HHF Program funds available to Eligible 

Entity and as such, Treasury, HFA and Eligible Entity wish to enter into this First Amendment to 

document all modifications and additional provisions necessary to address the additional HHF 

Program funds; 

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 Original HPA to the “Agreement” shall mean the 

Original HPA, as amended by this First Amendment; and all references in the Original HPA 

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

references herein to the “HPA” shall mean the Original HPA, as amended by this First 

Amendment. 
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B. Schedule A. Schedule A attached to the Original HPA is hereby deleted in its entirety 

and replaced with Schedule A attached to this First Amendment. 

C. Schedule B. Schedule B attached to the Original HPA is hereby deleted in its entirety 

and replaced with Schedule B attached to this First 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 First Amendment and any other closing documentation delivered to 

Treasury in connection with this First 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 

First Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Administrative Expenses

Notwithstanding anything to the contrary contained in the Original HPA as amended by this First 

Amendment, HFA and Eligible Entity may from time to time submit adjusted budgets to 

Treasury requesting approval to re-allocate HHF Funds to pay actual program expenses as set 

forth on a proposed Schedule C. In the event that Treasury shall approve an adjusted budget, in 

Treasury’s sole discretion, the parties shall enter into an amendment to the HPA to modify 

Schedules A, B and C as necessary. 

4. Miscellaneous

A. The recitals set forth at the beginning of this First Amendment are true and accurate 

and are incorporated herein by this reference. 
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TAMPA/134447.2

B. Capitalized terms used but not defined herein shall have the meanings ascribed to 

them in the HPA. 

C. Any provision of the HPA that is determined to be prohibited or unenforceable in any 

jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or 

unenforceability without invalidating the remaining provisions of the HPA, and no such 

prohibition or unenforceability in any jurisdiction shall invalidate such provision in any other 

jurisdiction. 

D. This First 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 

First Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to First Amendment to HPA — Washington, D.C.] 

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

hereby execute and deliver this First Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

DISTRICT OF COLUMBIA HOUSING 

FINANCE AGENCY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Harry D. Sewell By: 

Name: Harry D. Sewell Name: Herbert M. Allison, Jr. 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

DISTRICT OF COLUMBIA HOUSING 

FINANCE AGENCY 

By: /s/ Harry D. Sewell 

Name: Harry D. Sewell 

Title: Executive Director 

 

TAMPA/134447.2

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/134447.2

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: District of Columbia Housing Finance Agency1

Corporate or other organizational form: body corporate and instrumentality of the 

 District of Columbia, organized and existing 

 under and pursuant to the District of 

 Columbia Housing Finance Agency Act, 

 D.C. Law 2-135, as amended (D.C. Code, § 

 42-2701.01 et. seq.)

Jurisdiction of organization: District of Columbia 

Notice Information: 

 

 

 

 

 

 

HFA Information: 

Name of HFA: District of Columbia Housing Finance Agency 

Organizational form: body corporate and instrumentality of the 

 District of Columbia, organized and existing 

 under and pursuant to the District of 

 Columbia Housing Finance Agency Act, 

 D.C. Law 2-135, as amended (D.C. Code, § 

 42-2701.01 et. seq.) 

Date of Application: September 1, 2010 

Notice Information: Same as notice information for Eligible Entity. 

 

1 References in the Agreement to the term “HFA” shall mean the District of Columbia Housing Finance Agency 

(“DCHFA”) 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 DCHFA, in its capacity as Eligible Entity as such term is used in the Agreement. 
TAMPA/134447.2

Program Participation Cap: $20,697,198.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $7,726,678.00 

Permitted Expenses: $1,133,237.00 

Closing Date: September 23, 2010 

First Amendment Date: September 29, 2010 

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. 
TAMPA/134447.2

SCHEDULE B

SERVICE SCHEDULES

The Service Schedules attached as Schedule B to the Original 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. 
TAMPA/134447.2

SERVICE SCHEDULE B-1

District of Columbia Housing Finance Agency 

HOMESAVER PROGRAM 

Summary Guidelines 

1. Program Overview The HomeSaver Program will offer lump sum or ongoing monthly 

payments to Unemployment Insurance (UI) claimants or those who 

have received UI payments in the past six (6) months. Approved 

applicants may receive up to fifteen (15) months of assistance from the 

HomeSaver Program. 

The HomeSaver Program is made up of three components: 

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

three (3) months mortgage delinquency; including 100% of 

principal, interest, taxes, insurance (PITI), late fees, coop fees, 

condo fees, etc., in order to bring the mortgage current. 

• The Mortgage Assistance component will provide up to fifteen 

(15) months of payments equal to 100% of the mortgage payment 

(PITI). Mortgage Assistance may include principal, interest, taxes, 

insurance (PITI), late fees, coop fees, condo fees, etc., in order to 

bring the mortgage current. Mortgage Assistance will terminate: (i) 

at the end of the fifteen (15) months or once the program cap is 

reached; (ii) the end of UI 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 (iii) failure to comply with the requirements of DOES 

for continuation of UI Payments. 

• The Reinstatement component will be available for program 

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

(6) months of delinquency) but who have sufficient resources to 

continue making timely mortgage payments. The Reinstatement 

component is for recently employed participants who have received 

UI payments within the past six (6) months but have since found 

employment. The Reinstatement component may only cover 

arrearages accumulated during the period of unemployment or 

substantial underemployment. Reinstatement may include 

principal, interest, taxes, insurance (PITI), late fees, coop fees, 

condo fees, etc., in order to bring the mortgage current. 

Applicants will be referred to the HomeSaver Program after completion 

of an intake package to include: (1) proof of identity; (2) current 

statement or mortgage note; (3) payment coupon; and (4) proof of 
TAMPA/134447.2

receipt of UI payment(s). Intake packages will be forwarded from a 

housing counseling agency to the HomeSaver Program Coordinator for 

review and approval after initiating assistance from either: (a) a U.S. 

Department of Housing and Urban Development (HUD) approved 

housing counseling agency; (b) Counselor Direct 

(www.counselordirect.com) or DCHFA website; or (c) a call-in 

number. 

2. Program Goals 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. 

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 

foreclosure. DOES is the District agency that administers the city’s UI 

and job training programs. The Urban Institute (the Institute) has 

conducted extensive research into housing issues in DC 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. 

Simplicity – The DCHFA will employ a HomeSaver Program design 

that seeks to minimize administrative costs thereby maximizing the 

amount of dollars available for assistance. 

3. Target Population / 

Areas 

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. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$19,563,961.00 

5. Borrower Eligibility 

Criteria 

Candidates for HomeSaver Program assistance will be those in the 

DOES database receiving UI payments or those who have received UI 

payments in the past six months. Eligible program participants will be: 

• homeowners residing in their primary residences; 

• the heads of household or other persons named on the mortgage 

note as borrower or co-borrower; 

• borrowers who were current on their mortgages until the date of 
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unemployment or substantial underemployment; and 

• borrowers who are receiving or have received UI payments in the 

past six (6) months. 

All program participants will be required to sign a notarized Hardship 

Affidavit attesting to their inability to make mortgage payments due to 

unemployment or substantial underemployment that occurred through 

no fault of their own. 

6. Property / Loan 

Eligibility Criteria 

Single family home, condominium or cooperative. 

7. Program Exclusions • Homeowners with an outstanding mortgage balance greater than 

$729,750. 

• Homeowners not receiving, or who have not received UI payments 

in the past six months. 

8. Structure of 

Assistance 

All loans will be recorded as non-recourse junior liens against the 

property and will be non-amortizing. Loans will be forgiven at a rate of 

20% per year such that in year six the 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 then 

only to the extent there is sufficient equity to pay that portion of the 

loan that has not been forgiven. 

Loan funds repaid by program participants will be recycled until 

December 31, 2017. After December 31, 2017, any remaining, returned 

or recaptured funds will be returned to Treasury. 

9. Per Household 

Assistance 

Maximum program assistance is $32,385 per household. 

10. Duration of 

Assistance 

The maximum duration of assistance will be fifteen (15) months. The 

duration of assistance with respect to each program will be as follows: 

• Lifeline - One time payment equal to up to three (3) months of 

monthly payments. 

• Mortgage Assistance - Payments of PITI for up to fifteen (15) 

months. 

• Reinstatement - One time payment equal to up to six (6) months of 

monthly payments. 

If eligible, participants may participate in one or more programs. If, for 

example a program participant receives Lifeline assistance to bring 
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his/her mortgage current after a three (3) month delinquency payment, 

the participant may still be eligible for twelve (12) months of Mortgage 

Assistance payments. 

11. Estimated Number of 

Participating 

Households 

215-315 

12. Program Inception / 

Duration 

The HomeSaver Program is expected to begin on January 3, 2011 and 

continue for approximately three (3) years or until all funds are 

exhausted but not later than December 31, 2017. 

13. Program Interactions 

with Other HFA 

Programs 

Homeowners may access other District programs. 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). DISB 

provides foreclosure mitigation assistance and DHCD funds foreclosure 

prevention counseling and other Federal programs including the 

Neighborhood Stabilization Program (NSP). 

14. Program Interactions 

with HAMP 

Eligible homeowners may also access Federal programs including 

HAMP and HAMP UP. Homeowners may utilize HAMP UP before or 

after the HomeSaver Program. 

15. Program Leverage 

with Other Financial 

Resources 

The DCHFA will provide $1,084,463 of in-kind administrative 

expenses to the HomeSaver Program. The HomeSaver Program 

requires no financial contribution from servicers or lenders, however 

loan modifications or contributions/fee waivers are allowed but not 

required. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No