TAMPA/134158.1 

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 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, pursuant to the Original HPA, Treasury purchased a Financial Instrument from 

Eligible Entity (the “Original Financial Instrument”) on the Closing Date; 

WHEREAS, on August 11, 2010 the Obama Administration announced that Treasury would 

make $2 billion of additional assistance available under the HHF Program for foreclosure 

prevention programs for homeowners struggling to make their mortgage payments due to 

unemployment (the “Unemployment HHF Funds”) in certain states that had previously received 

HHF Program funding, as well as certain new states and Washington, D.C.; 

WHEREAS, Treasury requested an action plan from state housing finance agencies in states that 

have previously received HHF Program funds for the use of the Unemployment HHF Funds to 

develop and implement a program or programs that specifically target homeowners struggling 

with unemployment; 

WHEREAS, HFA and Eligible Entity are part of, or are acting on behalf of, a state that was 

targeted to receive Unemployment HHF Funds 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 Unemployment HHF Funds; 

WHEREAS, Treasury and Eligible Entity also desire to amend certain terms of the Original 

Financial Instrument; 
- 2 - 

TAMPA/134158.1 

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; all references in the Original HPA to 

the “Financial Instrument” shall mean the Amended and Restated Financial Instrument in the 

form attached to this First Amendment as Exhibit A; all references in the Original HPA to the 

“Capital Draw Request” shall mean the Capital Draw Request in the form attached to this 

First Amendment as Exhibit C; and all references in the Original HPA to Schedules A, B or 

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

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

B. Unemployment Programs. The following additional language shall be added to 

Section 3.A. of the Original HPA: 

“No Capital Draw for funds in excess of the amount indicated on Schedule A

attached hereto as Portion of Program Participation Cap Representing Original 

HHF Funds shall be permissible for (i) Services that do not Qualify as an 

Unemployment Program, as indicated in the applicable Service Schedule, 

without the approval of Treasury, or (ii) Permitted Expenses.” 

C. 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. 

D. 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. 

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

and replaced with Schedule C attached to this First Amendment. 

F. Exhibit A. Exhibit A attached to the Original HPA is hereby deleted in its entirety 

and replaced with Exhibit A attached to this First Amendment. 

G. Exhibit C. Exhibit C attached to the Original HPA is hereby deleted in its entirety 

and replaced with Exhibit C attached to this First Amendment. 

2. Substitution of Financial Instrument

Eligible Entity shall deliver to Treasury on the date hereof an Amended and Restated 

Financial Instrument in the form attached to this First Amendment as Exhibit A. By 

executing this First Amendment, Treasury, HFA and Eligible Entity authorize The Bank 

of New York Mellon to cancel the Original Financial Instrument against delivery of such 

Amended and Restated Financial Instrument and direct The Bank of New York Mellon to 
- 3 - 

TAMPA/134158.1 

return the cancelled Original Financial Instrument to (or at the direction of) the Eligible 

Entity. 

3. 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 covenants and agrees that no funds in excess 

of the amount indicated on Schedule A attached hereto as Portion of Program 

Participation Cap Representing Original HHF Funds shall be used (i) to fund Services 

performed by Eligible Entity that do not Qualify as an Unemployment Program, as 

indicated in the applicable Service Schedule, or (ii) for Permitted Expenses. 

(2) 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. 

(3) Eligible Entity has the full corporate power and authority to enter into, execute, 

and deliver this First Amendment, the Amended and Restated Financial Instrument and 

any other closing documentation delivered to Treasury in connection with this First 

Amendment or the Amended and Restated Financial Instrument, and to perform its 

obligations hereunder and thereunder. 

(4) 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. 

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. 

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 
- 4 - 

TAMPA/134158.1 

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 and the Amended and Restated Financial Instrument shall be treated as 

originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to First Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement – Florida]

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: 

FLORIDA HOUSING FINANCE 

CORPORATION 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Steve Auger By: 

Name: Steve Auger Name: Herbert M. Allison, Jr. 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

FLORIDA HOUSING FINANCE 

CORPORATION 

By: /s/ Steve Auger 

Name: Steve Auger 

Title: Executive Director 

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

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

Instrument and HFA Participation Agreement as ofthe Amendment Date.

HFA:

FLORIDA HOUSING FINANCE

CORPORATION

By:

Name:

Title:

ELIGIBLE ENTITY:

FLORIDA HOUSING FINANCE

CORPORATION

By:

Name:

Title:

TREASURY:

UNITED STATES DEPARTMENT OF THE

TREASURY

By:

Name: Herbert M. Allison, Jr.

Title: Assistant Secretary for

Financial Stability

o

[Signature Page to First Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement - Florida]
TAMPA/134158.1 

EXHIBITS AND SCHEDULES

Exhibit A Form of Amended and Restated Financial Instrument 

Exhibit C Form of Capital Draw Request 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/134158.1 

EXHIBIT A

FORM OF AMENDED AND RESTATED FINANCIAL INSTRUMENT

This Amended and Restated Financial Instrument is delivered by the undersigned party 

(“Eligible Entity”) as provided in Section 1 of the Commitment to Purchase Financial Instrument 

and HFA Participation Agreement dated as of the Effective Date, as modified by that certain 

First Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement, dated as of the Amendment Date (together, the “Agreement”), by and among the 

United States Department of the Treasury (“Treasury”), the party designated as HFA in the 

Agreement (“HFA”) and Eligible Entity. This Amended and Restated Financial Instrument is 

effective as of the Amendment Date. All of the capitalized terms that are used but not defined 

herein shall have the meanings ascribed to them in the Agreement. 

Recitals

WHEREAS, Eligible Entity executed and delivered that certain Financial Instrument dated as of 

the Effective Date to Treasury (“Original Financial Instrument”); 

WHEREAS, Treasury and Eligible Entity desire to amend certain terms of the Original Financial 

Instrument regarding repayment of the Purchase Price, which were clarified after the Closing 

Date and to provide consistent terms for all states receiving HHF Program funds; 

Accordingly, for good and valuable consideration, the receipt and sufficiency of which are 

hereby acknowledged, Eligible Entity agrees as follows: 

1. Eligible Entity Obligation; Purchase Price Consideration. 

(a) Eligible Entity shall perform all Services described in the Service Schedules in 

consideration for the Purchase Price described in subsection (b) below, in 

accordance with the terms and conditions of the Agreement, to the satisfaction of 

Treasury. The conditions precedent to the payment by Treasury of the Purchase 

Price with respect to the Services are set forth in Section 3(B) of the Agreement. 

(b) This Amended and Restated Financial Instrument is being purchased by Treasury 

pursuant to Section 3 of the Agreement through the payment by Treasury of 

various payments referred to collectively in the Agreement as the “Purchase 

Price” (which Purchase Price includes payments made by Treasury under the 

Original Financial Instrument). This Amended and Restated Financial Instrument 

is being purchased by Treasury in connection with Eligible Entity’s participation 

in the Housing Finance Agency Innovation Fund for the Hardest Hit Housing 

Markets program (the “HHF Program”) created under the Emergency Economic 

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

amended from time to time (“EESA”). 

2. Repayment of Purchase Price. In the event a recipient of HHF Program funds repays any 

or all of the funds received from Eligible Entity in connection with the Services, Eligible 

Entity shall use such funds as follows: 
TAMPA/134158.1 

(a) First, if such funds are repaid on or prior to December 31, 2017, Eligible Entity 

may use such repaid funds to continue to provide Services to other eligible 

homeowners up to and including December 31, 2017 or retain such repaid funds 

to fund the Permitted Expenses to the extent the full amount as indicated on 

Schedule C to the Agreement has not been drawn from Treasury pursuant to 

Section 3(A) of the Agreement. Any repaid funds retained by Eligible Entity to 

fund Permitted Expenses shall correspondingly reduce the amount that Eligible 

Entity may draw from Treasury pursuant to Section 3(A) of the Agreement to 

fund Permitted Expenses. 

(b) Second, if such funds are repaid on or prior to December 31, 2017 and Eligible 

Entity is no longer providing the Services to new homeowners and the Permitted 

Expenses have been fully funded, then Eligible Entity shall remit such funds to 

Treasury, monthly on the 15th day of each month or first business day thereafter. 

(c) Third, if such funds are repaid after December 31, 2017, Eligible Entity shall 

remit such funds to Treasury, monthly on the 15th day of each month or first 

business day thereafter. 

3. Final Repayment. In the event Eligible Entity is holding any HHF Programs funds, 

including, but not limited to, excess cash and amounts on deposit in the administrative 

reserve, as of December 31, 2017, such funds shall be returned to Treasury or its designee 

prior to 1:00 p.m. Eastern Standard Time on December 31, 2017. 

4. Security Interest. As security for the performance of the Services and the other 

obligations of Eligible Entity under the Agreement, as such obligations are evidenced in 

this Amended and Restated Financial Instrument, Eligible Entity has granted to Treasury 

a first lien priority security interest in the Depository Account and in any moneys, or 

investments, if any, held therein. 

5. Representations, Warranties and Covenants. Eligible Entity represents and warrants that 

the representations and warranties set forth in the Agreement, on the date hereof, are, and 

on the date of each Capital Draw hereunder, shall be, true, correct, accurate and complete 

in all material respects. The truth and accuracy of such representations and warranties 

are continuing obligations of Eligible Entity. Additionally, all covenants of Eligible 

Entity set forth in Section 2 of the Agreement are incorporated herein by reference and 

Eligible Entity, on the date hereof, is not, and on the date of each Capital Draw 

hereunder, shall not be in breach of any such covenants. In the event that any of the 

representations or warranties made herein or in the Agreement cease to be true and 

correct, or the Eligible Entity breaches any of the covenants made herein or in the 

Agreement, Eligible Entity agrees to notify Treasury immediately and the same shall 

constitute an Event of Default hereunder. 

6. Limitation of Liability 

IN NO EVENT SHALL TREASURY, OR ITS OFFICERS, EMPLOYEES, AGENTS 

OR AFFILIATES BE LIABLE TO ELIGIBLE ENTITY WITH RESPECT TO THE 

SERVICES OR THE AGREEMENT, OR FOR ANY ACT OR OMISSION 

OCCURRING IN CONNECTION WITH THE FOREGOING, FOR ANY DAMAGES 
TAMPA/134158.1 

OF ANY KIND, INCLUDING, BUT NOT LIMITED TO DIRECT DAMAGES, 

INDIRECT DAMAGES, LOST PROFITS, LOSS OF BUSINESS, OR OTHER 

INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES OF ANY 

NATURE OR UNDER ANY LEGAL THEORY WHATSOEVER, EVEN IF ADVISED 

OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF WHETHER 

OR NOT THE DAMAGES WERE REASONABLY FORESEEABLE; PROVIDED, 

HOWEVER, THAT THIS PROVISION SHALL NOT LIMIT TREASURY’S 

OBLIGATION TO REMIT PURCHASE PRICE PAYMENTS TO ELIGIBLE ENTITY 

IN ACCORDANCE WITH THE AGREEMENT. 

7. Indemnification 

Eligible Entity agrees as set forth on Schedule E to the Agreement, which Schedule E is 

hereby incorporated into this Amended and Restated Financial Instrument by reference. 

IN WITNESS WHEREOF, Eligible Entity hereby executes this Amended and Restated Financial 

Instrument on the date set forth below. 

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY] 

By: 

Name: 

Title: 

Date: ____________ __, 2010 
TAMPA/134158.1 

EXHIBIT C

FORM OF CAPITAL DRAW REQUEST

[insert date] 

The Bank of New York Mellon 

tarpcppclosing@bnymellon.com 

Attn: Matthew Sabino 

The United States Department of the Treasury 

OFSChiefCounselNotices@do.treas.gov 

HFAInnovation@do.treas.gov 

tarp.compliance@do.treas.gov 

Attention: HFA Hardest Hit Fund 

Ladies/Gentlemen: 

 Reference is made to the Commitment to Purchase Financial Instrument and HFA 

Participation Agreement dated as of the date set forth on Schedule A thereto (as amended, 

supplemented or otherwise modified and in effect from time to time, the “HPA”) by and among 

[insert HFA name] (“HFA”), [insert Eligible Entity name] (“Eligible Entity”) and the United 

States Department of the Treasury (“Treasury”). Reference is also made to the Financial 

Instrument dated the date set forth on Schedule A to the HPA delivered by Eligible Entity to 

Treasury (as amended, restated, supplemented or otherwise modified and in effect from time to 

time, the “Financial Instrument”). Capitalized terms used but not otherwise defined herein shall 

have the meaning given them in the HPA. 

 In accordance with Section 3.A. of the HPA, the undersigned Eligible Entity hereby 

requests that The Bank of New York Mellon (“BNYM”), on behalf of Treasury, disburse the 

amounts set forth on the attached Capital Draw Schedule as a Capital Draw against the Purchase 

Price as described in the HPA to Eligible Entity on [insert date] (the “Funding Date”). 

 HFA and Eligible Entity, as applicable, hereby certify to Treasury and BNYM, as of the 

date hereof and on the Funding Date, that: 

(a) no default or Event of Default has occurred and is continuing as of the date hereof 

and on the Funding Date [other than ______________]; 

(b) each of the representations and warranties made by HFA and Eligible Entity in the 

HPA and Financial Instrument are true and correct on and as of such date, as if made 

on and as of the date hereof and on the Funding Date [other than ______________]; 
TAMPA/134158.1 

(c) HFA and Eligible Entity are in compliance with the covenants and other agreements 

set forth in the HPA and Financial Instrument, which shall remain in full force and 

effect [other than ______________]; 

(d) No portion of any prior Capital Draw and/or this Capital Draw in excess of the 

amount set forth on Schedule A to the HPA as Portion of Program Participation Cap 

Representing Original HHF Funds, have been or will be used to fund Services that do 

not Qualify as an Unemployment Program, as indicated in the applicable Service 

Schedule, or Permitted Expenses. 

(e) all data and information set forth in this Capital Draw Request, including the Capital 

Draw Schedule, is true and correct in all respects; and 

(f) to our knowledge, there have been no Acts of Bad Faith by any HHF Recipient [other 

than ______________]. 

 In the event that any part of the certification made herein is discovered not to be true and 

correct after the date hereof, HFA or Eligible Entity, as applicable, shall notify Treasury 

immediately. 

[INSERT FULL LEGAL NAME OF HFA] 

 

[Name of Authorized Official] 

[Title of Authorized Official] 

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY] 

 

[Name of Authorized Official] 

[Title of Authorized Official] 
TAMPA/134158.1 

CAPITAL DRAW SCHEDULE

Capital Draw Request for: 

[______] Program $____________

[______] Program $____________

[______] Program $____________

Permitted Administrative Expenses $____________

Total Capital Draw Request $____________

Amount of Capital Draw Request for Non-Unemployment Programs and 

Permitted Expenses 

$____________

Amount of Capital Draw Request for Unemployment Programs $____________

Total Capital Draw Request as a Percentage of Program Participation Cap1: _____% 

Total Purchase Price funded to date, including current Capital Draw: $____________

Total funding to date, including current Capital Draw for Non-Unemployment 

Programs and Permitted Expenses2

$____________

Total funding to date, including current Capital Draw for Unemployment 

Programs 

$____________

Program Participation Cap: $____________

Program Funds Remaining: $____________

Amount of HHF Program funds on hand prior to this Capital Draw: $____________

HHF Program funds on hand prior to this Capital Draw as a Percentage of 

Program Participation Cap3: 

_____% 

________________________ 

1 May not be less than 2.5% nor exceed 20%. 

2 May not exceed Portion of Program Participation Cap Representing Original HHF Funds. 3

 May not exceed 5.0% on the date of submission of the Draw Request. 

Depository Account Information/Wire 

Instructions for payment of Capital Draw: 
TAMPA/134158.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Florida Housing Finance Corporation1

Corporate or other organizational form: a public corporation and a public body 

 corporate and politic, established and 

 existing under the Florida Housing Finance 

 Corporation Act, as amended, Chapter 420, 

 Part V, Florida Statutes.

Jurisdiction of organization: Florida

Notice Information: Florida Housing Finance Corporation 

Attn: Corporation Clerk 

227 North Bronough Street, Suite 5000 

Tallahassee, FL 32327 

Phone: (850) 488-4197 

Fax: (850) 488-9809 

E-mail: Della.Harrell@Floridahousing.org 

 

HFA Information: 

Name of HFA: Florida Housing Finance Corporation1

Organizational form: a public corporation and a public body 

 corporate and politic, established and 

 existing under the Florida Housing Finance 

 Corporation Act, as amended, Chapter 

 420m, Part V, Florida Statutes. 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Same as notice information for Eligible 

 Entity. 

 

1

 References in the First Amendment to the term “HFA” shall mean the Florida Housing Finance Corporation, in its 

capacity as HFA as such term is used in the First Amendment; and references in the First Amendment to the term 

“Eligible Entity” shall mean the Florida Housing Finance Corporation, in its capacity as Eligible Entity as such term 

is used in the First Amendment. 
TAMPA/134158.1 

Program Participation Cap: $656,864,755.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $418,000,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $238,864,755.00 

Permitted Expenses: $65,550,750.00

Closing Date: June 23, 2010 

Amendment Date: September 23, 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/134158.1 

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/134158.1 

SERVICE SCHEDULE B-1

Florida Hardest Hit Fund 

Mortgage Intervention Strategy 

Summary Guidelines 

1. Program Overview The Mortgage Intervention Strategy focuses on the creation of a 

sustainable solution to keep Florida unemployed or substantially 

underemployed homeowners in their current homes by helping 

those who are struggling to make their current mortgage 

payments because of hardships sustained since purchasing the 

home. Florida Housing will use HHF Program funds to pay up to 

eighteen months of all or a portion of the mortgage payments on 

behalf of a qualified homeowner based on the criteria and 

requirements of each servicer. This will provide a reasonable 

period of time for homeowners to become re-employed at a salary 

that is sufficient for them to either resume making full mortgage 

payments or qualify for a mortgage modification that will lower 

the payments and terms of the mortgage to an affordable level. 

2. Program Goals • Preserving homeownership. 

• Protecting home values. 

3. Target Population/ 

Areas 

To determine geographic targeting for HHF Program funding, 

Florida Housing carried out an analysis of data, relying on data 

similar to that used by Treasury to allocate funding, to determine 

the hardest hit areas of the state. Florida Housing evaluated three 

measures across all 67 Florida counties – housing price decline 

from peak prices, unemployment rate and seriously delinquent 

mortgage loans – and then combined ratios for each to create an 

allocation methodology that will guide how funding is 

geographically targeted. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$591,314,005.00.

5. Borrower Eligibility 

Criteria 

• At least one co-borrower must be able to document that he or 

she is unemployed or substantially underemployed through no 

fault of his/her own and must provide a financial hardship 

affidavit. 

• The maximum household income level for participation will 

be 140% of the Area Median Income (AMI). 

• Borrowers who have unencumbered assets or cash reserves 

(not including retirement or qualified education plans) equal 

to or exceeding three times the total monthly mortgage 

payment (including tax and insurance payments) or $5,000, 
TAMPA/134158.1 

whichever is greater, must first use those assets towards 

mortgage payments before being eligible for HHF Program 

funds. 

6. Property/Loan 

Eligibility Criteria 

• The property must be the borrower’s principal residence, be 

located in Florida, and not be abandoned, vacant or 

condemned. 

• The borrower’s mortgage must be under the maximum 

mortgage amount of $400,000. 

• The maximum loan to value ratio cannot exceed 200%. 

• Borrowers may not be more than six months in arrears on 

their first mortgage. 

• HHF Program funds will only be used to pay, directly to the 

first mortgage loan servicer, principal and interest plus any 

required escrow payments (such as taxes and insurance) 

required under the first mortgage loan. 

7. Program Exclusions • Termination of employment by the homeowner without a 

necessitous cause or termination of the homeowner’s 

employment by an employer for willful misconduct. 

• The homeowner has sufficient income to pay the mortgage 

but has failed to do so – in this regard, if the homeowner’s 

total housing expense is less than or equal to 31% of 

calculated income, and no reasonable cause for financial 

hardship is demonstrated by the homeowner, then the 

nonpayment of the mortgage debt will not be considered to be 

a circumstance beyond the homeowner’s control. 

8. Structure of 

Assistance 

HHF Program funds under the Mortgage Intervention Strategy 

will be made available to homeowners in the form of a zeropercent interest, non-recourse, forgivable loan. This loan will be 

evidenced by a Note and Mortgage in favor of Florida Housing. 

Once the homeowner resumes making mortgage payments on 

his/her own, the forgivable provisions of the loan will begin. The 

loan will be forgiven over a 5 year period, at a rate of 20% per 

year as long as the borrower remains current on their first 

mortgage and continues to live in the house as their principal 

residence. 

During the five year forgiveness period, Florida Housing, or its 

designated loan servicer, will be making annual residency 

verifications to ensure continued principal residence status and 

will verify payment history on the first mortgage loan during the 

previous 12 month period. 

If the homeowner sells the home during any part of the loan term, 

the remaining principal balance will be due to Florida Housing in 

the event there are sufficient equity proceeds from the sale. If 
TAMPA/134158.1 

there is not enough equity in the home to repay the entire amount 

due, Florida Housing will forgive the excess portion or all of the 

remaining principal balance so as to not create additional 

hardships on the seller at closing. Any loans repaid will be 

recycled back into the program and used to provide assistance to 

additional homeowners for the duration of the program up to 

December 31, 2017. After December 31, 2017, all funds 

remaining or received shall be returned to Treasury. 

9. Per Household 

Assistance 

Estimated Median Amount Mortgage Payments - $25,000 

Maximum Amount – $40,000 

10. Duration of Assistance The homeowner can receive up to 18 months of monthly 

mortgage payments from Florida Housing. This assistance may 

be in the form of up to six months worth of accrued arrearage 

payments (provided the arrearage time corresponds to a period of 

unemployment or substantial underemployment) and/or ongoing 

monthly payments for up to 18 months worth of total assistance. 

11. Estimated Number of 

Participating 

Households 

Florida Housing anticipates that this strategy will be able to serve 

approximately 20,000 homeowners over a five year period. 

12. Program Inception/ 

Duration 

Florida Housing anticipates launching its pilot program in Lee 

County, Florida in early fall, followed by statewide 

implementation in early 2011. It is anticipated that this strategy 

will last for up to 5 years. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

None.

14. Program Interactions 

with HAMP 

HHF funds would be utilized prior to the HAMP forbearance 

described in Supplemental Directive 10-04. Implementing the 

program in this order is the most beneficial to the customer and 

investor since payments would continue to be made instead of 

capitalized and no late charges or adverse credit reporting would 

occur. If the borrower has already been through an UP 

forbearance before applying for this program, then this program 

may follow UP. 

15. Program Leverage 

with Other Financial 

Resources 

Many servicers have in-house mortgage modification products 

that can be used in conjunction with this Program. Florida 

Housing will work with servicers to determine how these 

programs may best be combined. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No 
TAMPA/134158.1 

SCHEDULE C

PERMITTED EXPENSES

Florida 

 

 One-time / Start-Up Expenses: 

Initial Personnel $0.00 

Building, Equipment, Technology $20,750.00 

Professional Services $50,000.00 

Supplies / Miscellaneous $1,000.00 

Marketing /Communications $10,000.00 

Travel $20,000.00 

Website development /Translation $52,500.00 

Contingency $0.00 

 Subtotal $154,250.00 

 

Operating / Administrative Expenses: 

Salaries $9,180,000.00 

Professional Services (Legal, Compliance, 

Audit, Monitoring) 

$1,920,000.00 

Travel $500,000.00 

Buildings, Leases & Equipment $850,000.00 

Information Technology & Communications $4,192,500.00 

Office Supplies/Postage and 

Delivery/Subscriptions 

$90,000.00 

Risk Management/ Insurance $110,000.00 

Training $1,244,000.00 

Marketing/PR $75,000.00 

Miscellaneous $760,000.00 

 Subtotal $18,921,500.00 

 

 Transaction Related Expenses: 

Recording Fees $1,575,000.00 

Wire Transfer Fees $100,000.00 

 Counseling Expenses 

File Intake $0.00 

Decision Costs $4,800,000.00 

Successful File $0.00 

Key Business Partners On-Going $40,000,000.00 

 Subtotal $46,475,000.00 

 

Grand Total $65,550,750.00 

 

% of Total Award 9.98% 

Award Amount $656,864,755.00