HHF Indiana Date: January 31, 2018

B-1-1

SERVICE SCHEDULE B-1

Indiana

Hardest Hit Fund Unemployment Bridge Program

Summary Guidelines

1) Program 

Overview

Indiana’s Hardest Hit Fund Unemployment Bridge Program (“UBP”) 

administered by the Indiana Housing and Community Development 

Authority (“IHCDA”) offers qualifying homeowners who have 

experienced an involuntary employment-related financial hardship up to 

$30,000 in primary mortgage payment assistance as follows:

1) For qualifying homeowners who experienced an involuntary 

employment-related financial hardship, and their monthly mortgage 

payment is unaffordable based on their current household income, 

IHCDA may provide temporary monthly assistance to cover the 

homeowner’s first mortgage payment and related expenses 

(“Monthly Assistance”).

2) For qualifying homeowners of Monthly Assistance who experienced 

an involuntary employment-related financial hardship that caused, or 

contributed to, an accumulated mortgage delinquency that they 

cannot resolve, IHCDA may provide additional funding at the outset 

of their Monthly Assistance to bring the homeowner’s delinquent 

mortgage current (“Monthly Assistance with Reinstatement”)

3) For qualifying homeowners who experienced an involuntary 

employment-related financial hardship that caused, or contributed 

to, an accumulated mortgage delinquency that they cannot resolve 

(but whose monthly mortgage payment is otherwise affordable 

based on the homeowner’s current monthly household income, 

excluding unemployment insurance benefits), IHCDA may provide 

assistance to bring the homeowner’s delinquent mortgage current 

(“Reinstatement Only”).

2) Program Goals The goal of the UBP is to:

1) Provide eligible homeowners an opportunity to secure new 

employment, access training or education to improve employment 

options, or pursue other long-term, income-generating options to 

avoid foreclosure; and 

2) Mitigate the effects of a recent involuntary employment-related 

financial hardship.

3) Target IHCDA’s target population is low-to-moderate income homeowners in 
B-1-2

Population / 

Areas

any county in Indiana. 

4) Program 

Allocation 

(Excluding 

Administrative 

Expenses)

$162,942,887

5) Borrower 

Eligibility 

Criteria

With respect to all borrowers:

• Must own only one mortgaged home;

• Must submit an affidavit documenting an involuntary employmentrelated financial hardship that occurred on or after January 1, 2008. 

Involuntary employment-related financial hardships may also 

include loss of income for borrowers who (a) served on active duty 

and were released due to a service-connected illness or injury or (b) 

were in the National Guard or Reserves and were called to active 

duty, provided that, in either case (a) or (b), the borrower meet the 

requisite household income guidelines for the respective type of 

assistance.

In addition, one of the following must apply: 

• Monthly Assistance or Monthly Assistance with Reinstatement 

borrowers:

a) Must have a validated monthly first mortgage payment that 

exceeds 25% of the borrower’s gross monthly household 

income, excluding unemployment insurance benefits 

(“Minimum Affordability Threshold”); and

b) Current household income must be at or below 140% of AMI, 

adjusted for borrower household size; and

c) Following the reinstatement portion of assistance, if applicable, 

there must be sufficient funds available within the Maximum 

Household Assistance cap to allow IHCDA to make at least 3 

monthly mortgage payments to the servicer.

or:

• Reinstatement-Only borrowers:

a) Must have a current maximum front-end housing debt-to-income 

ratio of 38%; and

b) Must have an annual gross household income equal to or less 

than $150,000.

6) Property / Loan 

Eligibility 

Criteria

• 1-to-4 unit, owner-occupied primary residence or condominium 

(attached or detached) located in Indiana. Manufactured or mobile 

homes are eligible if on a foundation permanently affixed to real 
B-1-3

estate owned by the borrower. Land contracts are not eligible.

• The unpaid principal balance of the borrower’s first-lien mortgage 

cannot exceed the conforming loan limit established by the Federal 

Housing Finance Agency, as modified from time to time.

7) Program 

Exclusions

• Property is vacant, abandoned or condemned.

• Borrower has liquid assets, excluding retirement accounts, 

sufficient to make 9 monthly PITI payments.

• Borrowers with open home equity lines of credit.

8) Structure of 

Assistance

All assistance is structured as a forgivable, non-recourse, nonamortizing loan, secured by a junior lien on the property. The loan has a 

term of 10 years and is forgiven at a rate of 20% per year in years 6 

through 10 of the loan term. If the borrower sells the property before 

the forgiveness period expires, all net sale proceeds up to the full 

principal balance outstanding will be due and payable to IHCDA. All 

funds returned to the UBP shall be recycled in accordance with the 

Agreement. 

9) Per Household 

Assistance

Total assistance per household (“Maximum Household Assistance”) is 

not to exceed $30,000.

10) Duration of 

Assistance

For Monthly Assistance or Monthly Assistance with Reinstatement 

borrowers, IHCDA may provide up to the borrowers’ Maximum 

Household Assistance for a period of either: (i) 24 months or (ii) 3 

months after an increase in household income that results in the 

borrower exceeding the Minimum Affordability Threshold, whichever 

comes first.

For Reinstatement-Only borrowers, assistance is a one-time payment to 

the lender/servicer.

11) Estimated 

Number of 

Participating 

Households

IHCDA estimates that approximately 11,000 households will receive 

assistance, inclusive of payments to clear delinquencies and assistance 

after re-employment.

12) Program 

Inception / 

Duration

IHCDA initially launched the HHF program on May 5, 2011. IHCDA 

anticipates that program intake will continue until March 31, 2017. 

13) Program 

Interaction with 

Other 

Programs (e.g. 

other HFA 

programs)

Borrowers may be considered for and receive more than one type of 

Hardest Hit Fund assistance through IHCDA.

The total amount of assistance provided may not exceed $30,000.

14) Program Borrowers will be pre-screened for HAMP, HAFA and HAMP-UP, as 
B-1-4

Interactions 

with HAMP

applicable, and other programs offered by lenders. HHF funds can be 

utilized before or after assistance from HAMP-UP.

15) Program 

Leverage

No leveraging from banks and servicers is required. IHCDA enters into 

participation agreements with servicers interested in participating in the 

UBP that sets forth IHCDA’s expectations for servicers.
B-2-1

SERVICE SCHEDULE B-2

Indiana

Hardest Hit Fund Recast/Modification Program

Summary Guidelines

1) Program 

Overview

Under Indiana’s Hardest Hit Fund Recast/Modification Program 

(“RMP”) the Indiana Housing and Community Development Authority 

(“IHCDA”) offers qualifying individuals who are experiencing certain 

financial hardships up to $30,000 in primary mortgage payment 

assistance, as follows:

1) For homeowners whose lender/servicer elects to participate and who 

are struggling to make their mortgage payment due to an involuntary 

financial hardship, IHCDA may provide a first mortgage principal 

balance payment to facilitate a recast/re-amortization by the servicer 

that results in an affordable monthly mortgage payment as defined in 

program guidelines (“Recast Borrowers”). 

 If necessary, Reinstatement-Only assistance (as defined in Service 

Schedule B-1, Indiana Hardest Hit Fund Unemployment Bridge 

Program) may be combined with the first mortgage principal balance 

payment, provided that sufficient funds remain within the Maximum 

Household Assistance amount following reinstatement to achieve an 

affordable payment through recast/re-amortization.

 

2) For certain homeowners whose lender/servicer elects to participate, 

IHCDA may provide Reinstatement Assistance in conjunction with 

a permanent mortgage loan modification by the servicer 

(“Modification Borrowers”). Upon acceptance by the servicer, 

homeowners whose delinquency is above the amount of the 

Maximum Household Assistance may still qualify for such loan 

modification. HHF funds may be utilized for principal reduction, if 

necessary to facilitate a modification.

2) Program Goals The goal of the RMP is to help homeowners avoid foreclosure by 

reducing their monthly first mortgage payment to a more manageable 

level.

3) Target 

Population / 

Areas

IHCDA’s target population is low-to-moderate income homeowners in 

any county in Indiana. 

4) Program 

Allocation 

(Excluding 

Administrative 

$7,500,000
B-2-2

Expenses)

5) Borrower 

Eligibility 

Criteria

With respect to all borrowers:

• Must own only one mortgaged home;

• Current household income must be at or below 140% of AMI, 

adjusted for borrower household size;

• Must submit an affidavit documenting involuntary financial hardship 

that occurred on or after January 1, 2008, including, but not limited 

to, involuntary loss or reduction in employment income, significant 

out-of-pocket medical expenses, death of a contributing household 

member, or divorce. Involuntary employment-related financial 

hardships may also include loss of income for borrowers who (a) 

served on active duty and were released due to a service-connected 

illness or injury or (b) were in the National Guard or Reserves and 

were called to active duty (“Military Duty Hardship”).

In addition: 

• With respect to Recast Borrowers only:

a) Must have experienced a minimum reduction in household 

income of 15% (20% reduction in gross receipts if selfemployed).

b) To qualify with a medical expense hardship, the borrower’s outof-pocket expenses must be related to non-cosmetic medical 

procedures or emergencies, and must be greater than or equal to 

10% of gross household income (15% of gross receipts if selfemployed) for homeowners under the age of 65. For 

homeowners age 65 or older, medical expenses must be greater 

than or equal to 7.5% of gross household income.

c) Must have a post-assistance front-end housing debt-to-income 

ratio of between 31% and 38%.

d) To qualify with a Military Duty Hardship, the loss of income 

must result in a reduction in gross household income of greater 

than or equal to (a) 7.5% for borrowers who served on active 

duty and were released due to a service-connected illness or 

injury or (b) 10% for borrowers who were in the National Guard 

or Reserves and were called to active duty. 

e) Eligibility for recast/re-amortization will be determined by 

IHCDA.

• With Respect to Modification Borrowers only, additional eligibility 

for loan modification will be determined by the mortgage servicer.

6) Property / Loan 

Eligibility 

Criteria

• 1-to-4-unit, owner-occupied primary residence or condominium 

(attached or detached) located in Indiana. Manufactured or mobile 

homes are eligible if on a foundation permanently affixed to real 
B-2-3

estate owned by the borrower. Land contracts are not eligible.

• The unpaid principal balance of the borrower’s first-lien mortgage 

cannot exceed the conforming loan limit established by the Federal 

Housing Finance Agency, as modified from time to time.

7) Program 

Exclusions

• Property is vacant, abandoned or condemned.

• Borrower has liquid assets sufficient to make 9 monthly PITI 

payments, excluding retirement accounts.

• Borrowers with open home equity lines of credit.

8) Structure of 

Assistance

All assistance is structured as a forgivable, non-recourse, nonamortizing loan, secured by a junior lien on the property. The loan has a 

term of 10 years and is forgiven at a rate of 20% per year in years 6 

through 10 of the loan term. If the borrower sells the property before 

the forgiveness period expires, all net sale proceeds up to the full 

principal balance outstanding will be due and payable to IHCDA. All 

funds returned to the RMP shall be recycled in accordance with the 

Agreement. 

9) Per Household 

Assistance

Total assistance per household (“Maximum Household Assistance”) is 

not to exceed $30,000.

10) Duration of 

Assistance

Assistance under RMP is a one-time payment to the mortgage 

lender/servicer.

11) Estimated 

Number of 

Participating 

Households

IHCDA estimates that approximately 265 households will receive RMP 

assistance.

12) Program 

Inception / 

Duration

IHCDA initially launched the HHF program on May 5, 2011. IHCDA 

anticipates that program intake will continue until March 31, 2017.

13) Program 

Interaction with 

Other 

Programs (e.g. 

other HFA 

programs)

Borrowers may be considered for and receive more than one type of 

Hardest Hit Fund assistance through IHCDA.

The total amount of assistance provided to any individual household 

may not exceed $30,000. 

14) Program 

Interactions 

with HAMP

Borrowers will be pre-screened for HAMP, HAFA and HAMP-UP, as 

applicable, and other programs offered by lenders. HHF funds can be 

utilized before or after assistance from HAMP-UP.

15) Program 

Leverage

No leveraging from banks or servicers is required. IHCDA enters into 

participation agreements with servicers interested in participating in the 

RMP that sets forth IHCDA’s expectations for servicers, including 

acceptance of payment from IHCDA.
B-2-4
B-3-1

SERVICE SCHEDULE B-3

Indiana

Hardest Hit Fund Transition Assistance Program

Summary Guidelines

1) Program 

Overview

Under Indiana’s Hardest Hit Fund Transition Assistance Program 

(“TAP”) the Indiana Housing and Community Development Authority 

(“IHCDA”) will provide transition assistance to eligible homeowners 

with unaffordable mortgage payments who obtain a short sale or deedin-lieu of foreclosure from their lender/servicer and leave their home in 

a marketable condition.

The following TAP assistance will be available:

a) $2,500 to the homeowner to assist with moving and relocation 

expenses (“Transition Assistance”); and

b) Up to $5,000 to the primary mortgage lender/servicer or, if 

necessary, to escrow funds with legal counsel to extinguish and 

release subordinate liens as part of a short sale or deed-in-lieu of 

foreclosure agreement. 

2) Program Goals The goal of the TAP is to prevent avoidable foreclosure and help 

stabilize neighborhoods by helping homeowners to achieve and orderly 

exit from their home.

3) Target 

Population / 

Areas

IHCDA’s target population is low-to-moderate income homeowners in 

any county in Indiana. 

4) Program 

Allocation 

(Excluding 

Administrative 

Expenses)

$250,000

5) Borrower 

Eligibility 

Criteria

With respect to all borrowers:

• Owning only one mortgaged home.

• Current household income at or below 140% of AMI, adjusted for 

borrower household size.

• Submission of affidavit documenting involuntary financial hardship 

that occurred on or after January 1, 2008.

• The short sale or deed-in-lieu transaction must not have occurred 

prior to the application for transition assistance funds.

• Military personnel who have received a permanent change of station 

order necessitating a short sale or deed in lieu of foreclosure are also 

eligible.
B-3-2

6) Property / Loan 

Eligibility 

Criteria

• One-to-four-unit, owner-occupied primary residence or 

condominium (attached or detached) located in Indiana. 

Manufactured or mobile homes are eligible if on a foundation 

permanently affixed to real estate owned by the borrower. Land 

contracts are not eligible.

• The unpaid principal balance of the borrower’s first-lien mortgage 

cannot exceed the conforming loan limit established by the Federal 

Housing Finance Agency, as modified from time to time.

7) Program 

Exclusions

• Property is vacant, abandoned or condemned.

• Borrower has liquid assets sufficient to make 9 monthly PITI 

payments, excluding retirement accounts.

8) Structure of 

Assistance

TAP funds will be provided to eligible homeowners as a nonrecoverable grant.

9) Per Household 

Assistance

Maximum assistance per household available under TAP is $7,500.

10) Duration of 

Assistance

Assistance is a one-time payment to the homeowner and a one-time 

payment to the lender/servicer (or legal counsel, if applicable).

11) Estimated 

Number of 

Participating 

Households

IHCDA estimates that approximately 70 participating households will 

receive TAP assistance.

12) Program 

Inception / 

Duration

IHCDA initially launched the HHF program on May 5, 2011. IHCDA 

anticipates that program intake will last through March 31, 2017.

13) Program 

Interaction with 

Other 

Programs (e.g. 

other HFA 

programs)

Homeowners who received Indiana Hardest Hit Fund Unemployment 

Bridge Program assistance through IHCDA may also receive TAP 

assistance.

14) Program 

Interactions 

with HAMP

Transition Assistance funds may be used in conjunction with HAFA.

15) Program 

Leverage

No leveraging from banks and servicers is required. IHCDA enters into 

participation agreements with servicers interested in participating in the 

TAP that sets forth IHCDA’s expectations for servicers, including 

acceptance of payment from IHCDA.
B-4-1

SERVICE SCHEDULE B-4

Indiana

Hardest Hit Fund Blight Elimination Program

Summary Guidelines

1) Program 

Overview

Under Indiana’s Hardest Hit Fund Blight Elimination Program (“BEP”) 

the Indiana Housing and Community Development Authority 

(“IHCDA”) will work with applicants and their Program Partners (i.e., 

nonprofit entities (“NFPs”), community development corporations 

(“CDCs”), land banks and/or for-profit entities) to strategically target 

residential properties for demolition and greening within the state of 

Indiana. 

2) Program Goals The goal of the BEP is to decrease foreclosures, stabilize homeowner 

property values and increase neighborhood safety in communities across 

the state of Indiana through the demolition and greening of vacant and 

blighted residential properties. IHCDA will work with applicants and 

their Program Partners to identify meaningful indicators that will enable 

them to track and quantify the BEP’s impact in the designated 

communities.

3) Target 

Population / 

Areas

Municipalities located within the state of Indiana (“Applicants”) will be 

eligible to apply for BEP property eligibility through a competitive 

application process. Each Applicant will apply in one of six population 

divisions based on the population of the county in which the Applicant 

is located. 

4) Program 

Allocation 

(Excluding 

Administrative 

Expenses)

$75,000,000

5) Property 

Eligibility 

Criteria

Vacant and blighted residential properties located in Indiana. 

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.

IHCDA will determine property eligibility.

Each property for which an Applicant requests blight elimination 

funding will be individually scored based on factors including, but not 

limited to: 

• Inhabitability of Property
B-4-2

• Structural Damage

• Public Safety Impact

Properties will be evaluated using a scoring matrix created by IHCDA 

and will be required to meet a minimum threshold score to be targeted 

for receipt of blight elimination funds.

6) Ownership / 

Loan Eligibility 

Criteria

A Program Partner must hold title to the property.

7) Program 

Exclusions

Commercial structures.

Properties listed on a national, state, or local historic register.

8) Structure of 

Assistance

IHCDA will determine project sites in direct consultation with 

Applicants.

Program Partners will be responsible for property acquisition (if 

necessary), demolition work and on-going property stabilization.

Applicants must submit in their application to IHCDA for BEP funds, 

information including, but not limited to, the following:

• A full and complete list of all properties the applicant seeks to 

make eligible 

• Acquisition information

• The Program Partner responsible for the property

• The post-demolition goal for each lot

• Demolition bids from licensed contractors that include the 

removal of 

• all debris, the backfill of basements or cellars, and any necessary 

environmental remediation 

Upon receipt of appropriate documentation confirming the completion 

of BEP activities, IHCDA will provide Hardest Hit funding to Partner 

after Partner’s execution of a secured lien mortgage and note for a 

maximum of $25,000 in favor of IHCDA.

Total assistance will include acquisition (if necessary), demolition, and 

property stabilization costs. Property stabilization costs will be a 

maximum of $1,000 per year for a term of three years.

The secured lien mortgage 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 
B-4-3

annum as long as covenants are met. 

The outstanding loan balance will become due and payable if a property 

is sold or title transferred, or unauthorized use prior to the Expiration 

Date. 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 IHCDA. All proceeds returned to 

the IHCDA from the BEP shall be recycled in accordance with the 

Agreement. 

Special considerations may be made by IHCDA to release or 

subordinate its lien prior to expiration based upon the merit of the 

request and the proposed positive economic impact to the community as 

set forth in the program guidelines. 

9) Per Household 

Assistance

Maximum of $25,000 per property, which includes the costs of 

acquisition (if necessary), demolition and property stabilization for a 

period of 3 years.

10) Duration of 

Assistance

One-time assistance per property

11) Estimated 

Number of 

Participating 

Households

IHCDA estimates that between 3000 and 5000 properties could be 

served under this program.

12) Program 

Inception / 

Duration

IHCDA anticipates program roll-out during the first quarter of 2014. 

Based on anticipated demand, funds allocated to BEP will likely be 

exhausted by the end of 2020.

13) Program 

Interaction with 

Other 

Programs (e.g. 

other HFA 

programs)

Property will only be eligible for one IHCDA Hardest Hit Fund 

Program. 
HHF Indiana Date: January 31, 2018

C-1

SCHEDULE C

PERMITTED EXPENSES 

Indiana

One-time / Start-Up Expenses:

Initial Personnel $0.00

Building, Equipment, Technology $89,000.00

Professional Services $120,000.00

Supplies / Miscellaneous $3,150.00

Marketing /Communications $175,000.00

Travel $10,000.00

Website development /Translation $175,000.00

Contingency $5,000.00

Subtotal $577,150.00

Operating / Administrative 

Expenses:

Salaries $5,500,000.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $4,000,000.00

Travel $77,000.00

Buildings, Leases & Equipment $350,000.00

Information Technology & 

Communications $5,500,000.00

Office Supplies/Postage and 

Delivery/Subscriptions $312,639.00

Risk Management/ Insurance $0.00

Training $35,000.00

Marketing/PR $3,175,000.00

Miscellaneous $500,000.00

Subtotal $19,449,639.00

Transaction Related Expenses:

Recording Fees $800,000.00

Wire Transfer Fees $258,260.00

Counseling Expenses

File Intake $2,700,000.00

Decision Costs $7,700,000.00
HHF Indiana Date: January 31, 2018

C-2

Successful File $3,950,000.00

Key Business Partners On-Going $2,866,400.00

Subtotal $18,274,660.00

Grand Total $38,301,449.00

% of Total Award 13.49%

Award Amount $283,994,336