Tenth Amendment to HPA — Alabama 

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TENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

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

attached hereto as the Tenth 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, as previously amended by that certain First Amendment to Commitment to 

Purchase Financial Instrument and HFA Participation Agreement (the “First Amendment”), as 

further amended by that certain Second Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement (the “Second Amendment”), as further amended 

by that certain Third Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the “Third Amendment”), as further amended by that certain Fourth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the “Fourth Amendment”), as further amended by that certain Fifth Amendment to 

Commitment to Purchase Financial Instrument and HFA Participation Agreement (the “Fifth 

Amendment”), as further amended by that certain Sixth Amendment to Commitment to Purchase 

Financial Instrument and HFA Participation Agreement (the “Sixth Amendment”), as further 

amended by that certain Seventh Amendment to Commitment to Purchase Financial Instrument 

and HFA Participation Agreement (the “Seventh Amendment”), as further amended by that 

certain Eighth Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the “Eighth Amendment”) and as further amended by that certain 

Ninth Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “Ninth Amendment”; and together with the Original HPA as amended thereby 

and by the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth 

Amendment, Sixth Amendment, Seventh Amendment and Eighth Amendment, the “Current 

HPA”), dated as of their respective dates as 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, HFA and Eligible Entity submitted a request to Treasury to make certain revisions 

to their Service Schedules and Permitted Expenses, as applicable, and Treasury has agreed to the 

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

document all approved modifications to the Service Schedules and Permitted Expenses, as 

applicable; 

Accordingly, in consideration of the representations, warranties, and mutual agreements set forth 

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

hereby acknowledged, Treasury, HFA and Eligible Entity agree as follows. 

Agreement 

1. Amendments 

A. Definitions. All references in the Current HPA to the “Agreement” shall mean the 

Current HPA, as further amended by this Tenth Amendment; and all references in the 

Current HPA to Schedules A, B or C shall mean the Schedules A, B or C attached to this 

Tenth Amendment. All references herein to the “HPA” shall mean the Current HPA, as 

further amended by this Tenth Amendment. 

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

and replaced with Schedule A attached to this Tenth Amendment. 

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

and replaced with Schedule B attached to this Tenth Amendment. 

D. Schedule C. Schedule C attached to the Current HPA is hereby deleted in its entirety 

and replaced with Schedule C attached to this Tenth 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 Tenth Amendment and any other closing documentation delivered to 
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Treasury in connection with this Tenth 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 

Tenth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous 

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

accurate and are incorporated herein by this reference. 

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

them in the HPA. 

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

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

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

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

jurisdiction. 

D. This Tenth 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 Tenth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Tenth Amendment to HPA — Alabama] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

ALABAMA HOUSING FINANCE 

AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Robert Strickland By: 

Name: Robert Strickland Name: Mark McArdle 

Title: Executive Director Title: Deputy Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

ALABAMA HOUSING FINANCE 

AUTHORITY 

By: /s/ Robert Strickland 

Name: Robert Strickland 

Title: Executive Director 

 
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EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
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SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: Alabama Housing Finance Authority1

Corporate or other organizational form: a public corporation and instrumentality of 

the State of Alabama, established and 

existing under the Code of Alabama 1975 

§24-1A-1 pursuant to Act No. 80-585 of the 

Alabama Legislature

Jurisdiction of organization: Alabama

Notice Information: 

With copies to: 

 

HFA Information:

Name of HFA: Alabama Housing Finance Authority 

Organizational form: a public corporation and instrumentality of 

the State of Alabama, established and 

existing under the Code of Alabama 1975 § 

24-1A-1 pursuant to Act No. 80-585 of the 

Alabama Legislature 

Date of Application: August 31, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Same as Notice Information for Eligible 

Entity. 

Program Participation Cap: $ 162,521,345.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: N/A 

Portion of Program Participation Cap 

 

1 References in the Agreement to the term "HFA" shall mean the Alabama Housing Finance Agency ("AHFA") 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 AHFA, in its capacity as Eligible Entity as such term is used in the Agreement. 
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Representing Unemployment HHF Funds: $ 60,672,471.00 

Permitted Expenses: $ 27,024,240.00

Closing Date: September 23, 2010 

First Amendment Date: September 29, 2010 

Second Amendment Date: December 16, 2010 

Third Amendment Date: January 26, 2011 

Fourth Amendment Date: March 31, 2011 

Fifth Amendment Date: May 25, 2011 

Sixth Amendment Date: June 28, 2012 

Seventh Amendment Date: March 8, 2013 

Eighth Amendment Date: September 3, 2014 

Ninth Amendment Date: January 30, 2015 

Tenth Amendment Date: October 28, 2015 

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. 
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SCHEDULE B 

SERVICE SCHEDULES

The Service Schedules attached as Schedule B to the Current HPA are hereby deleted in their entirety and 

replaced with the attached Service Schedules (numbered sequentially as Service Schedule B-1, Service 

Schedule B-2, et. seq.), which collectively comprise Schedule B to the HPA. 
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SERVICE SCHEDULE B-1 

ALABAMA HOUSING FINANCE AUTHORITY

PROGRAM TERM SHEET

SUMMARY GUIDELINES 

HARDEST HIT FOR ALABAMA'S UNEMPLOYED HOMEOWNERS

 1. Program Overview AHFA will administer the program to subsidize 100 percent of an 

eligible unemployed or underemployed homeowner’s current monthly 

mortgage payments and all other mortgage-related expenses (including 

subordinate liens, if applicable) during their time of eligibility. AHFA 

will provide a payment not to exceed $12,500to bring the homeowner 

current on his or her delinquent mortgage(s). If this maximum amount 

that AHFA will provide does not exceed the total amount needed to 

bring the homeowner current on all existing mortgages, the homeowner 

must cover any shortfall. The payment can cover principal, interest, 

fees, escrow/impound expenses, past due homeowners association 

(HOA) fees, delinquent taxes and/or escrow shortage for taxes and 

insurance. 

AHFA will also provide a payment not to exceed $30,000 to bring 

employed homeowners, who have encountered an eligible financial 

hardship and who can afford their current monthly mortgage payment, 

current on his or her delinquent mortgage(s). Funds must fully reinstate 

the homeowner’s mortgage loan(s). 

The assistance will not exceed a total of $30,000 per household. 

Interested homeowners will apply directly to AHFA via a secure website 

monitored and maintained by AHFA staff. Applications will be 

evaluated and approved by AHFA staff members. Approved 

homeowners will be expected to submit certain information 

documenting their employment status and inability to pay their 

mortgage and supporting their mortgage claims. 

Program components include: 

Mortgage Payment Assistance: payments for eligible unemployed or 

underemployed homeowners will be disbursed to servicers by AHFA on 

a monthly basis contingent upon homeowner continued eligibility and 

re-certification. Monthly assistance, when combined with any 

assistance needed to bring the homeowner current (not to exceed an 

aggregate total of $30,000 per household), will continue (i) for up to 
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twelve months or (ii) until the earlier to occur of (A) the property 

ceasing to be the homeowner’s primary residence or (B) September 30, 

2017. 

One-Time Reinstatement Assistance: payment for eligible employed 

homeowners who have encountered an eligible financial hardship will 

be disbursed to servicers by AHFA in a single disbursement up to 

$30,000. Payment must fully reinstate the homeowner’s mortgage 

loan(s). 

 2. Program Goals Provide mortgage payment assistance to unemployed or underemployed 

Alabama homeowners and reinstatement to homeowners who have 

encountered a financial hardship, both with a chance of sustaining 

homeownership. 

 3. Target Population / 

Areas 

This program will assist low- to moderate-income families in Alabama. 

AHFA does not anticipate targeting this assistance on a geographic 

basis. 

 4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$62,521,345 

 5. Borrower Eligibility 

Criteria 

Homeowners must have a total annual household income of less than 

140 percent of the state median income. AHFA may change this limit 

annually when new income data becomes available from the U.S. 

Department of Housing and Urban Development. 

Homeowners, in connection with a mortgage or real estate transaction, 

cannot have been convicted, within the last 10 years, of any one of the 

following: (A) felony larceny, theft, fraud or forgery, (B) money 

laundering or (C) tax evasion. 

Homeowners will be required to provide a financial Hardship Affidavit 

attesting to their inability to pay their mortgage (for Mortgage Payment 

Assistance) or attesting to the eligible financial hardship (for One-Time 

Reinstatement Assistance) and must meet other eligibility criteria per 

the program guidelines. HHF will be available to qualified homeowners 

on a first-come, first-served basis.

Mortgage Payment Assistance: 

• Alabama homeowners who are currently receiving or previously 

received state or federal unemployment compensation benefits or 

TRA on or after January 1, 2013, or who have encountered an 

eligible financial hardship resulting in a 25% or greater reduction 

in total household income (underemployment) may be eligible 

for Mortgage Payment Assistance. 
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One-Time Reinstatement Assistance: 

• Alabama homeowners who are past due on their mortgage 

payments and who have encountered an eligible financial 

hardship resulting in a 25% or greater reduction in total 

household income in the most recent 24 months may be eligible 

for one-time reinstatement assistance. Eligible financial 

hardships include loss or reduction in income through no fault of 

the homeowner, death, divorce, or disability. The postassistance housing ratio may not exceed 31%. 

 6. Property / Loan 

Eligibility Criteria 

Homeowners must currently occupy the property as their primary 

residence and the residence must be located within the state of Alabama. 

Eligible structures include single-family homes, attached or detached, 

and manufactured housing attached to real property. Existing mortgage 

loans on the property must have an unpaid principal balance totaling no 

more than $258,690. Mortgages must be originated by a financial 

institution in the business of regularly originating mortgage loans and 

the mortgage loans must be executed and recorded prior to the 

homeowner’s financial hardship. 

 7. Program Exclusions Mortgage loans on second homes or investment properties will not be 

eligible for HHF assistance. 

Homeowners who have ownership interest in a property other than their 

primary residence. 

Homeowners who previously received assistance under this program. 

 8. Structure of Assistance Homeowners receiving funds will execute a note and a subordinate 

mortgage lien in favor of AHFA that will be recorded in public records 

against the property. Loans will be zero percent and non-amortizing. 

Loans originated between the pilot program commencement and 

December 31, 2012, will be forgiven at the termination of a five-year 

term. Loans originated between January 1, 2013, and December 31, 

2013, will be forgiven at the termination of a four-year term. Loans 

originated between January 1, 2014, and December 31, 2014, will be 

forgiven at the termination of a three-year term. Loans originated 

between January 1, 2015 and December 31 2015 will be forgiven at the 

termination of a two year term. Loans originated between January 1, 

2016, and December 31, 2016, will be forgiven at the termination of a 

one-year term. Loans originated between January 1, 2017, and 

September 30, 2017 will be forgiven at the termination of a one-year 

term. On or before December 31, 2017, or such later date allowed by 

Treasury, any remaining or recaptured funds will be returned to 

Treasury. 

Loans will be repayable only if the homeowner sells the property before 

the forgiveness period expires and there is sufficient equity to pay all or 
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part of the unforgiven balance of the loan. Repaid HHF funds may be 

re-invested back into new homeowner loans prior to December 31, 

2017. 

Ongoing monitoring, repayments and satisfactions will be conducted 

through AHFA. 

 9. Per Household 

Assistance 

Assistance not to exceed a total of $30,000 per household. 

AHFA will cover 100 percent of the household’s monthly mortgage 

payments and all other mortgage-related expenses (including principal, 

interest, fees, escrow/impound expenses, past due HOA fees, delinquent 

taxes and/or escrow shortage for taxes and insurance) unless final 

payment amount exceeds the maximum assistance available. 

If a homeowner is qualifying for Mortgage Payment Assistance and the 

maximum amount that AHFA will provide for reinstatement under that 

component (a total of $12,500 per household) does not exceed the total 

amount needed to bring the homeowner current on all existing 

mortgages, the homeowner must cover any shortfall. 

 10. Duration of Assistance Under the Mortgage Payment Assistance component, payments 

(excluding the amount needed to bring the homeowner current) will be 

disbursed to servicers by AHFA on a monthly basis contingent upon 

homeowner continued eligibility and re-certification. Any amount 

needed to bring the homeowner current will be disbursed to servicers by 

AHFA as a single disbursement. Monthly assistance, when combined 

with any assistance needed to bring the homeowner current not to 

exceed an aggregate total of $30,000 per household, will continue (i) for 

up to twelve months or (ii) until the earlier to occur of (A) the property 

ceasing to be the borrower’s primary residence or (B) September 30, 

2017 

Under the One-Time Reinstatement component, a single disbursement 

up to $30,000 will be made to fully reinstate the homeowner. 

 11. Estimated Number of 

Participating 

Households 

5,500 

 12. Program Inception / 

Duration 

The pilot program began on December 15, 2010, and funds became 

available statewide on February 2, 2011. AHFA expects the initial 

funding allocation to be expended within three years, though funds may 

be recycled until December 31, 2017.

 13. Program Interactions 

with Other HFA 

Programs 

Homeowners may participate in other Alabama HHF programs as long 

as the homeowners meet all program requirements established for each 

program. The total combined assistance for all programs may not 

exceed $60,000. Homeowners are required to apply separately for each 

program. 
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 14. Program Interactions 

with HAMP 

This assistance can interact with any and all loan modification 

programs, including HAMP, provided that the homeowner meets the 

qualifications established by AHFA and Treasury for HHF. HHF funds 

can be utilized before or after assistance from HAMP UP. 

 15. Program Leverage with 

Other Financial 

Resources 

None. 
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SERVICE SCHEDULE B-2 

ALABAMA HOUSING FINANCE AUTHORITY

PROGRAM TERM SHEET 

SUMMARY GUIDELINES 

SHORT SALE ASSISTANCE PROGRAM

 1. Program Overview AHFA will administer HHF funds to assist financially distressed homeowners 

with the sale of their primary residence. The short sale assistance program will 

assist homeowners who can no longer sustain their monthly mortgage obligation 

due to a hardship such as unemployment, underemployment, divorce, or 

disability. The assistance will not exceed a total of $30,000 per household. 

HHF Participating Servicers may refer interested sellers for participation in the 

program. The servicer must provide evidence the seller has been approved for a 

short sale, contingent upon receipt of HHF funds. The seller will apply via a 

secure website monitored and maintained by AHFA staff. Applications will be 

evaluated and approved by AHFA staff members. Sellers will be expected to 

submit certain information documenting their income, short sale approval 

(contingent upon receipt of HHF funds), executed sales contract, the value of the 

property, and payoff statement(s) from a Participating Servicer(s). 

Participating Servicers must agree to accept a minimum loss of $1,000 on the 

first mortgage loan of each short sale assisted. 

AHFA will provide a single disbursement which can cover closing costs and any 

remaining principal amount—up to 10% of the sales price, not to exceed 

$30,000. The funds will be disbursed at closing and made payable to the 

servicer and the closing agent (with respect to closing costs). 

 2. Program Goals Provide assistance to Alabama homeowners who are unable to sustain their 

monthly mortgage obligation. 

 3. Target Population / 

Areas 

This program will assist low- to moderate-income families in Alabama. AHFA 

does not anticipate targeting this assistance on a geographic basis. 

 4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$11,487,880 
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 5. Borrower Eligibility 

Criteria 

Applicants must have a total annual household income of less than 140 percent 

of the state median income. AHFA may change this income limit annually 

when new income data becomes available from the U.S. Department of Housing 

and Urban Development. 

The homeowner, in connection with a mortgage or real estate transaction, cannot 

have been convicted, within the last 10 years, of any one of the following: 

(A) felony larceny, theft, fraud or forgery, (B) money laundering or (C) tax 

evasion. 

Homeowners will be required to provide a financial Hardship Affidavit attesting 

to their inability to pay their mortgage. HHF will be available to qualified 

homeowners on a first-come, first-served basis. 

Homeowner’s eligibility will also depend on the servicer’s evaluation of 

homeowner for a short sale program. 

 6. Property / Loan 

Eligibility Criteria 

The homeowner must occupy the property as their primary residence at the time 

of sale and the residence must be located within the state of Alabama. Eligible 

structures include single-family homes, attached or detached, and manufactured 

housing attached to real property. Existing mortgage loans on the property must 

have an unpaid principal balance totaling no more than $258,690. 

 7. Program Exclusions Mortgage loans on second homes or investment properties will not be eligible 

for HHF assistance. 

 8. Structure of Assistance A single payment made payable to the servicer and the closing agent (with 

respect to closing costs) will be disbursed at closing. Loan forgiveness will be 

immediate. No additional monitoring will be required. 

 9. Per Household 

Assistance 

HHF assistance per household not to exceed $30,000. 

 10. Duration of Assistance A single HHF payment made payable to the seller and closing agent will be 

disbursed at closing. 

 11. Estimated Number of 

Participating 

Households 

400 

 12. Program Inception / 

Duration 

The short sale program will be available to homeowners after the Seventh 

Amendment Date and will last as long as the allocated amount of funds is 

available. After successful completion of a 60-day pilot program, AHFA will 

make the funds available for a statewide release. 

 13. Program Interactions 

with Other HFA 

Programs 

Homeowners may participate in other Alabama HHF programs as long as the 

homeowners meet all program requirements established for each program. The 

total combined assistance for all programs may not exceed $60,000. 

Homeowners are required to apply separately for each program. 
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 14. Program Interactions 

with HAMP 

N/A 

 15. Program Leverage 

with Other Financial 

Resources 

None. 
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SERVICE SCHEDULE B-3 

ALABAMA HOUSING FINANCE AUTHORITY

PROGRAM TERM SHEET

SUMMARY GUIDELINES 

LOAN MODIFICATION ASSISTANCE PROGRAM

 1. Program Overview To aid in the prevention of foreclosures in Alabama, the Loan Modification 

Assistance Program will provide funds, not to exceed $30,000 per household, 

to assist financially distressed and/or underemployed borrowers in achieving 

modification of their home loans. 

Under the program, a one-time contribution of funds will be made to the 

mortgage servicer to recast the loan or be used to fill a financial gap that limits 

a homeowner's eligibility for a loan modification or to extinguish the lien. 

Funds may be used to reduce the outstanding principal balance, pay delinquent 

escrow or arrearages. 

Recast or modification must result in a mortgage payment (including 

principal, interest, taxes, and insurance) of no more than 31 percent of a 

homeowner’s income. Homeowner must have demonstrated ability to 

maintain the mortgage under the new terms. 

The program is designed to work with loan recast, HAMP and non-HAMP 

modifications. 

HHF Participating Servicers may refer interested homeowners for 

participation in the program. The homeowner will apply via a secure website 

monitored and maintained by AHFA staff. Applications will be evaluated and 

approved by AHFA staff members. Approved homeowners will be expected 

to submit certain information documenting their inability to pay their 

mortgage and supporting their mortgage claims. 

 2. Program Goals Provide assistance to underemployed Alabama homeowners who are unable to 

sustain their monthly mortgage obligation under the current loan terms. 

Providing funds will allow for a successful loan recast, loan modification or 

lien extinguishment for eligible borrowers. 

 3. Target Population / This program will assist low- to moderate-income families in Alabama. AHFA 
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Areas does not anticipate targeting this assistance on a geographic basis. 

 4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$36,487,880 

 5. Borrower Eligibility 

Criteria 

The homeowner, in connection with a mortgage or real estate transaction, 

cannot have been convicted, within the last 10 years, of any one of the 

following: (A) felony larceny, theft, fraud or forgery, (B) money laundering or 

(C) tax evasion. 

Homeowners will be required to provide a financial Hardship Affidavit 

attesting to their inability to pay their mortgage. HHF will be available to 

qualified homeowners on a first-come, first-served basis. 

Loan Modification and Loan Recast 

• Homeowners applying for a loan modification or recast must have a 

total annual household income not to exceed 140 percent of the state 

median income (SMI). AHFA may change this income limit annually 

when new income data becomes available from the U.S. Department of 

Housing and Urban Development. Homeowner’s total housing ratio 

after assistance may not exceed 31% of the homeowner’s total 

household income. 

• A homeowner’s eligibility for a loan modification or recast will also 

depend on the servicer’s evaluation of the homeowner for a loss 

mitigation option. 

Lien Extinguishment 

• Homeowners applying for a lien extinguishment must have a total 

annual household income not to exceed 100 percent of the SMI. 

AHFA may change this income limit annually when new income data 

becomes available from the U.S. Department of Housing and Urban 

Development. 

Homeowners eligible for lien extinguishment must be on a fixed income. The 

homeowner post assistance housing ratio including all mortgage related 

expenses (homeowners insurance, flood insurance, property taxes, HOA fees) 

may not exceed 31% of the total household income. 

 6. Property / Loan 

Eligibility Criteria 

The homeowner must currently occupy the property as their primary 

residence, and the residence must be located within the state of Alabama. 

Eligible structures include single-family homes, attached or detached, and 

manufactured housing attached to real property. The homeowner’s current 
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first-lien mortgage must have an unpaid principal balance totaling no more 

than $258,690. Assistance for a loan modification or recast may not be used 

to reduce the property’s combined loan-to-value below 80%. 

 7. Program Exclusions Mortgage loans on second homes or investment properties. 

Home Equity Line of Credit (HELOC). 

 8. Structure of 

Assistance 

A single payment made payable to the servicer will be disbursed. 

Homeowners receiving funds will execute a note and a subordinate mortgage 

lien in favor of AHFA that will be recorded in public records against the 

property. Loans will be zero percent and non-amortizing. 

Loans originated between the pilot program commencement and 

December 31, 2013, will be forgiven at the termination of a four-year term. 

Loans originated between January 1, 2014, and December 31, 2014, will be 

forgiven at the termination of a three-year term. Loans originated between 

January 1, 2015 and December 31, 2015 will be forgiven at the termination of 

a two-year term. Loans originated between January 1, 2016 and 

September 30, 2016 will be forgiven at the termination of a one-year term the 

day of the final disbursement. Loans originated between January 1, 2017, and 

September 30, 2017 will be forgiven at the termination of a one-year term. On 

or before December 31, 2017, or such later date allowed by Treasury, any 

remaining or recaptured funds will be returned to Treasury. 

Loans will be repayable only if the homeowner sells the property before the 

forgiveness period expires and there is sufficient equity to pay all or part of 

the unforgiven balance of the loan. Repaid HHF funds may be re-invested 

back into new homeowner loans prior to December 31, 2017. 

Ongoing monitoring, repayments and satisfactions will be conducted through 

AHFA. 

 9. Per Household 

Assistance 

Not to exceed a total of $30,000 per household. 

 10. Duration of 

Assistance 

A single payment made payable to the servicer will be disbursed. 

 11. Estimated Number 

of Participating 

Households 

1,200 

 12. Program Inception / 

Duration 

The program will be available to homeowners after Treasury approval and will 

last as long as the allocated amount of funds is available. After successful 

completion of a 60-day pilot program, AHFA will make the funds available 
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for a statewide release. 

 13. Program 

Interactions with 

Other HFA 

Programs 

Homeowners may participate in other Alabama HHF programs as long as the 

homeowners meet all program requirements established for each program. 

The total combined assistance for all programs may not exceed $60,000. 

Homeowners are required to apply separately for each program. 

 14. Program 

Interactions with 

HAMP 

This assistance can interact with any and all loan modification programs, 

including HAMP, provided that the homeowner meets the qualifications 

established by AHFA and Treasury for HHF. HHF funds can be utilized 

before or after assistance from HAMP UP. 

 15. Program Leverage 

with Other Financial 

Resources 

None. 
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SERVICE SCHEDULE B-4 

ALABAMA HOUSING FINANCE AUTHORITY

PROGRAM TERM SHEET

SUMMARY GUIDELINES 

BLIGHT ELIMINATION PROGRAM

 1. Program Overview AHFA will administer HHF to assist in the removal of blighted properties 

within the State of Alabama. AHFA will work in partnership with members 

of the Alabama Association of Habitat for Humanity Affiliates (Affiliates) to 

ensure blighted properties located in healthy neighborhoods are removed 

and the site greened. The Alabama Association of Habitat Affiliates is the 

state support organization for the Habitat for Humanity affiliates across the 

state of Alabama (AAHA). AAHA serves as a clearinghouse for 

information between Affiliates, developers of resources (personnel, funds 

and in-kind donations) for affiliates and provide technical support to help 

Affiliates grow their capacity. 

 2. Program Goals The Blight Elimination Program will reduce foreclosures, promote 

neighborhood stabilization and maintain property values through the 

removal of unsafe condemned single family structures and subsequent 

greening in areas across the State of Alabama. 

AHFA will work with Affiliates to identify meaningful indicators that will 

enable them to track and quantify the program’s impact in the designated 

communities. 

 3. Target Population / 

Areas 

This program will focus on neighborhoods with blighted properties. The 

program will target sustainable neighborhoods with the state. 

 4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$25,000,000 
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 5. Property Eligibility 

Criteria 

Property will be considered eligible if it meets the following criteria: 

• The property must be located in the State of Alabama. 

• The property must be owned by an Affiliate. 

• The property must be vacant at the time of acquisition. 

• The property is a nuisance due to age and/or condition as determined 

by local ordinance. 

• The cost to rehab/repair the structure exceeds reasonable cost as 

determined by the Affiliate. 

• AHFA will determine property eligibility per program guidelines. 

6. Ownership/Loan 

Eligibility Criteria 

Properties must be owned by the Affiliate. Properties must have a loan that 

can be modified or extinguished. 

 7. Program Exclusions Commercial properties, multifamily properties, and properties listed on a 

state or national historic register will not be eligible for inclusion in this 

program. 

 8. Structure of 

Assistance 

Eligible sites must be owned by an Affiliate. Each Affiliate will be 

responsible for securing clear title for blighted properties purchased from or 

donated by local municipalities, government agencies or individuals. The 

Affiliate will then partner with an approved financial institution to finance 

the cost of removal of the blighted property. Prior to demolition, the 

Affiliate will submit a site evaluation report to AHFA. The report must 

outline the location of the neighborhood, neighborhood conditions, 

estimated cost of property removal and greening, and a 3-year estimate of 

maintenance cost. HHF assistance will not exceed $25,000 per property. 

Any cost exceeding $25,000 must be absorbed by the Affiliate. 

The financial institution will reserve funds via the Hardest Hit Alabama 

online reservation system. Prior to disbursement, required documentation 

must be submitted by the Affiliate to AHFA for review. Required 

documentation will include a Request for Funding Form, photos, and a 

Certification of Completion. Additional documentation may be required as 

determined by AHFA. A single payment made payable to the financial 

institution will be disbursed after verification of the debris removal and 

greening (as applicable) has been provided. Eligible costs include removal 

of debris, contractor’s fees, permit fees, final inspections, environmental 

assessments, title searches, greening and maintenance (not to exceed 

$3,000.00) fees for a three-year period, and any other fees or charges 

required to complete the property removal. HHF will be used to extinguish 

the outstanding loan payable to the approved financial institution. 
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The Affiliate will execute a 0% non-amortizing loan in favor of AHFA. 

Loans will be forgiven at a rate of 33.3% per year on the anniversary of the 

final disbursement as long as covenants are met. The outstanding loan 

balance will become due and payable if the property is sold, its title 

transferred, or it is used for an unauthorized purpose prior to the loan’s 

expiration. However, special considerations may be made by AHFA to 

release or subordinate its lien prior to the expiration of the loan term based 

upon the merit of the request and the proposed positive impact to the 

community as set forth in the program guidelines. The method for 

calculating the portion of the outstanding balance to be forgiven or released 

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. 

On or before December 31, 2017 any remaining or recaptured funds will be 

returned to Treasury. 

 9. Per Property 

Assistance 

Maximum assistance may not exceed $25,000 per property. 

 10. Duration of 

Assistance 

Funds will be disbursed to the Affiliates on a first-come-first-served basis. 

All assistance will be provided in one payment. 

 11. Estimated Number 

of Properties 

Demolished 

1000 properties 

 12. Program Inception / 

Duration 

The program will begin on September 1, 2014 and will last as long as the 

allocation of funds is available or until December 31, 2017. 

 13. Program 

Interactions with 

Other HFA 

Programs 

AHFA’s Habitat for Humanity Loan Purchase Program - a partnership in 

which the Habitat Affiliates solicits the assistance of a local lender to serve 

as a conduit for the sale of the loan. The affiliate sells the mortgage to the 

local bank, which then sells the loan to AHFA. 

 14. Program 

Interactions with 

HAMP 

None 

 15. Program Leverage 

with Other Financial 

Resources 

None. 
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SCHEDULE C 

PERMITTED EXPENSES 

Alabama 

 

 

 One-time / Start-Up Expenses: 

Initial Personnel $1,146,126.00

Building, Equipment, Technology $668,463.00

Professional Services $199,914.00

Supplies / Miscellaneous $131,193.00

Marketing /Communications $346,726.00

Travel $12,494.00

Website development /Translation $50,000.00

Contingency $131,193.00

 Subtotal $2,686,109.00

 

Operating / Administrative 

Expenses: 

Salaries $6,766,750.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $1,800,000.00

Travel 100,000.00

Buildings, Leases & Equipment $600,000.

Information Technology & 

Communications $2,158,491.00

Office Supplies/Postage and 

Delivery/Subscriptions $149,935.00

Risk Management/ Insurance $120,000.00

Training $100,000.00

Marketing/PR 950,000.

Miscellaneous $134,145.00

 Subtotal $12,879,321.00

 

 Transaction Related Expenses: 

Recording Fees $3,000,000. 

Wire Transfer Fees $133,109.00 

 Counseling Expenses 

File Intake $3,639,707.00 

Decision Costs $0.00 
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Alabama 

 

 

Successful File $693,452.00 

Key Business Partners On-Going $3,992,542.00 

 Subtotal $11,458,810.00

 

 Grand Total $27,024,240.00

 

% of Total Award 16.63%

Award Amount $162,521,345.00