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SEVENTEENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Seventeenth Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (this “Amendment”) is entered into as of the date set forth on 

Schedule A attached hereto as the Seventeenth 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, as previously amended by those 

certain Amendments to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement dated as of their respective dates as set forth on Schedule A attached hereto (each, 

an “Amendment” and together with the Original HPA as amended thereby, the “Current 

HPA”), 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 (12 U.S.C. 

5201 et seq.), as amended, and as the same may be amended from time to time (“EESA”);

WHEREAS, on February 19, 2016 Treasury announced that it would (i) extend the HHF 

Program through 2020, and (ii) make $2 billion of additional assistance available under the HHF 

Program (the “Fifth Round Funding”) to help prevent foreclosure and stabilize housing markets 

in certain states that had previously received HHF Program funding for such purposes; and 

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

memorialize the extension of the HHF Program, increase the amount of HHF Program funds 

available to Eligible Entity hereunder, and make certain other changes to the terms of the Current 

HPA and the Exhibits and Schedules attached thereto. 

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. End of Term. The definition of End of Term in Section 2(A)(14) of the Current 

HPA is hereby deleted and replaced with the following: 
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“End of Term” shall mean the last day of the calendar month in which the Eligible Entity 

makes the last disbursement of HHF Program funds in furtherance of the Services, which 

shall occur no later than December 31, 2021 (or such later date as Treasury may 

determine in its sole discretion with written notice to Eligible Entity and HFA). For the 

sake of clarity, Capital Draws shall not be permitted after the End of Term other than for 

payment of Permitted Expenses. 

B. Bring Down Certificate. Section 2(A)(15) of the Current HPA is hereby amended 

by (i) striking “on each anniversary of the Effective Date during the Term (as defined 

below)” and replacing it with “on each anniversary of the Effective Date through 

September 30, 2016, and from and after October 1, 2016, no later than one hundred 

twenty (120) days after the end of each of their respective fiscal years”, and (ii) by adding 

to the end “A final certification shall be delivered by each of HFA and Eligible Entity on 

the Final Repayment Date (as defined in the Financial Instrument).” 

C. Program Participation Cap. Section 3(D) of the Current HPA is hereby deleted in 

its entirety and replaced with the following: 

D. The value of this Agreement is limited to the amount set forth in Schedule A as the 

Program Participation Cap, as may be adjusted from time to time as set forth on Schedule 

F attached hereto (the “Program Participation Cap”). Notwithstanding anything to the 

contrary contained herein, the aggregate Purchase Price payable to Eligible Entity under 

this Agreement with respect to all Services described on the Service Schedules may not 

exceed the amount of the Program Participation Cap. 

D. Performance Reports. Section 4(A) is hereby amended by (i) striking the third 

sentence and replacing it with “HFA shall submit the Performance Report to Treasury or 

its designee no later than forty-five (45) days after the end of each calendar quarter and 

otherwise as requested by Treasury. After Treasury has communicated in writing that the 

Performance Report is in a form acceptable to Treasury, HFA shall promptly post the 

Performance Report to its website”; and (ii) adding to the end “A final Performance 

Report shall be delivered no later than forty-five (45) days after the end of the calendar 

quarter in which the End of Term occurs.” 

E. Financial Reporting. Section 4(G) of the Current HPA is hereby deleted in its 

entirety and replaced with the following: 

G. Each of HFA and Eligible Entity shall provide annual audited financial 

statements to Treasury no later than one hundred twenty (120) days after the end of 

its respective fiscal year, commencing with the first fiscal year ending after the 

Effective Date, and concluding with the fiscal year in which the End of Term occurs. 

Eligible Entity shall provide quarterly unaudited financial statements to Treasury no 

later than forty-five (45) days after the end of each quarter, commencing with the 

first full quarter ending after the Effective Date and concluding with the quarter in 

which the End of Term occurs. 
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F. Term. Section 5(A) of the Current HPA is hereby deleted in its entirety and 

replaced with the following: 

(A) The term of this Agreement (“Term”) shall begin on the Effective Date and 

extend to the End of Term, or earlier termination of this Agreement by Treasury 

pursuant to the provisions hereof, or earlier suspension or termination of the Services 

by Treasury. Subject to the foregoing, new Services may be undertaken (e.g., 

approval of assistance actions with respect to unique homeowners or properties, 

including, where applicable, final underwriting decisions and payment schedules), 

through and including December 31, 2020 (or such later date as may be determined 

by Treasury in its sole discretion upon prior written notice to Eligible Entity). It is 

understood and agreed that certain administrative, monitoring, reporting, compliance 

and oversight obligations and requirements set forth in this Agreement and the 

Financial Instrument survive the expiration or termination of this Agreement or the 

End of Term, and that funds are to be reserved as set forth in Schedule C to pay for 

the cost of the same, through and including the Final Repayment Date. 

G. Modifications. 

(a) Section 9(A) of the Current HPA is hereby amended by inserting “and except as 

expressly set forth herein,” after “Subject to Section 9.B.,” 

(b) Section 9(B) of the Current HPA is hereby amended by adding the following at the 

end: 

Notwithstanding anything to the contrary contained herein, Treasury may approve 

revisions proposed by Eligible Entity and HFA to any Schedule or Exhibit attached 

hereto, by written notice to Eligible Entity and HFA, pursuant to a procedure 

established by Treasury in its sole discretion and provided to Eligible Entity and 

HFA. The applicable Schedule or Exhibit shall be deemed modified for all 

purposes hereunder as of the date such written notice is received pursuant to 

Section 8 hereof. 

(c) Section 9(C) of the Current HPA is hereby amended by deleting the last sentence 

in its entirety. 

H. Exhibit A. Exhibit A attached to the Current HPA is hereby deleted in its entirety 

and replaced with Exhibit A attached to this Amendment. 

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

entirety and replaced with Schedule A attached to this Amendment. 

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

entirety and replaced with Schedule B attached to this Amendment. 

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

entirety and replaced with Schedule C attached to this Amendment. 
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L. Schedule F. A new Schedule F is added to the Current HPA in the form attached 

to this Amendment as Schedule F. 

M. Definitions. All references in the Current HPA to the "Agreement" shall mean the 

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

to the “Financial Instrument” shall mean the Second Amended and Restated Financial 

Instrument in the form attached to this Amendment as Exhibit A; and all references in the 

Current HPA to Exhibit A or Schedules A, B, C or F shall mean the Exhibit A or 

Schedules A, B, C or F attached to this Amendment. All references herein to the "HPA" 

shall mean the Current HPA, as further amended by this Amendment. 

2. Substitution of Financial Instrument. 

Eligible Entity shall deliver to Treasury on the date hereof a Second Amended and 

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

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

New York Mellon to cancel the Financial Instrument previously delivered under the 

Current HPA against delivery of such Second Amended and Restated Financial 

Instrument and direct The Bank of New York Mellon to return the cancelled 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 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 Amendment, the Second Amended and Restated Financial 

Instrument, and any other closing documentation delivered to Treasury in connection 

therewith, and to perform its obligations hereunder and thereunder.

(3) HFA has the full legal power and authority to enter into, execute, and deliver 

this Amendment and any other closing documentation delivered to Treasury in 

connection therewith, and to perform its obligations hereunder and thereunder. 
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4. Miscellaneous

A. The recitals set forth at the beginning of this 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 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 Amendment, the Second Amended and Restated Financial 

Instrument, and any other closing documentation delivered in connection therewith, shall be 

treated as originals for all purposes.

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Seventeenth Amendment to HPA – Nevada] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

NEVADA HOUSING DIVISION UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ CJ Manthe By: 

Name: CJ Manthe Name: Mark McArdle 

Title: Administrator Title: Deputy Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

NEVADA AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Sharath Chandra 

Name: Sharath Chandra 

Title: President & Chairperson of the 

Board 
 

EXHIBITS AND SCHEDULES 

Exhibit A Form of Second Amended and Restated Financial Instrument 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 

Schedule F HHF Fifth Round Funding Reallocation Model 
 

EXHIBIT A 

FORM OF SECOND AMENDED AND RESTATED FINANCIAL INSTRUMENT 

This Second 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 (the “Commitment”), entered into as of the Effective Date, as 

modified by those certain Amendments to Commitment to Purchase Financial Instrument and 

HFA Participation Agreement dated as of the dates set forth on Schedule A to the Commitment 

(together, the “Agreement”), by and among the United States Department of the Treasury 

(“Treasury”), the party designated as HFA in the Commitment (“HFA”) and Eligible Entity. 

This Second Amended and Restated Financial Instrument is effective as of June 28, 2016. 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 Amended and Restated Financial 

Instrument dated as of September 23, 2010 to Treasury (“Original Financial Instrument”); and 

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

Instrument regarding repayment of the Purchase Price in connection with the extension of the 

HHF Program through 2020 and availability of additional assistance under the HHF Program 

Fifth Round Funding; and 

WHEREAS, Treasury and the Eligible Entity desire to restate and replace the Original Financial 

Instrument in its entirety. 

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 Second 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”. This Second 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 (12 U.S.C. 5201 et seq.) as amended, as the same may 

be amended from time to time (“EESA”). 

2. Repayment of Purchase Price. 

If a recipient of HHF Program funds repays any or all of the funds received from Eligible 

Entity in connection with the Services (“Repaid Funds”), and such repayment occurs on 

or before the Final Repayment Date (hereinafter defined), Eligible Entity shall deposit 

such Repaid Funds in the Depository Account and use such Repaid Funds to provide 

Services or 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. 

For the sake of clarity, if a recipient of HHF Program funds repays any or all of the funds 

received from Eligible Entity in connection with the Services, and such repayment occurs 

after the Final Repayment Date, such repaid funds shall not be considered HHF Program 

funds. 

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

including, but not limited to, amounts reserved for payment of Permitted Expenses and 

Repaid Funds, as of the date that is ninety (90) days after the End of Term (the “Final 

Repayment Date”), all such funds shall be returned to Treasury or its designee prior to 

1:00pm Eastern Time on the Final Repayment Date. For the sake of clarity, no Capital 

Draws will be permitted after the Final Repayment Date. 

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 Second 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 

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 Second Amended and Restated Financial Instrument by 

reference. 

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

Financial Instrument on the date set forth below. 

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY] 

By: 

Name: 

Title: 

Date: ____________ __, 2016 
A-1 

SCHEDULE A

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: Nevada Affordable Housing Assistance 

Corporation 

Corporate or other organizational form: Non-profit corporation 

Jurisdiction of organization: Nevada 

Notice Information: 

HFA Information: 

Name of HFA: Nevada Housing Division1

Organizational form: A Division of the Nevada Department of 

Business and Industry of the State of 

Nevada 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

Program Participation Cap: $202,911,881.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $102,800,000.00

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $ 34,056,581.00 

Rounds 1-4 Funding Allocation: $194,026,240.00

Round 5 Funding Allocation: $ 8,885,641.00 

Permitted Expenses: $ 25,247,676.00 

 

1 Each Schedule A-1 attached to the First Amendment, the Second Amendment and the Sixteenth Amendment shall 

remain a part of the HPA. 
A-2 

Closing Date: June 23, 2010 

First Amendment Date: September 23, 2010

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010

Fourth Amendment Date: April 5, 2011 

Fifth Amendment Date: May 25, 2011

Sixth Amendment Date: October 28, 2011 

Seventh Amendment Date: December 8, 2011

Eighth Amendment Date: February 28, 2012 

Ninth Amendment Date: June 28, 2012

Tenth Amendment Date: September 28, 2012 

Eleventh Amendment Date: August 28, 2013 

Twelfth Amendment Date: June 12, 2014 

Thirteenth Amendment Date: February 19, 2015 

Fourteenth Amendment Date: June 25, 2015 

Fifteenth Amendment Date: October 28, 2015 

Sixteenth Amendment Date: 

Seventeenth Amendment Date: 

May 6, 2016 

June 28, 2016 

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. 
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.
B-1-1 

SERVICE SCHEDULE B-1

The Nevada Affordable Housing Assistance Corporation 

PRINCIPAL REDUCTION PROGRAM

Summary Guidelines

1. Program Overview The Principal Reduction Program (“PRP”) will provide assistance to 

reduce the principal balance of primary (first priority) mortgages for 

borrowers with an eligible financial hardship and negative equity 

by: (a) principal reduction and a permanent modification or 

reamortization (recast) to achieve a lower monthly payment 

(“Modification or Reamortization”); or (b) principal reduction of a 

“non-delinquent” borrowers primary mortgage in a significant 

negative equity position to an amount as close to and not less than 

100% loan-to-value (“LTV”) ratio as the amount of per-household 

assistance will permit to reduce the risk of potential default by such 

borrowers (“Negative Equity Reduction”). 

The assistance will be provided as a one-time payment to 

lenders/servicers up to a maximum of $50,000 per household. 

A borrower’s primary mortgage lender may agree to make a 

matching reduction to the principal balance of the primary 

mortgage. 

2. Program Goals The goal of the PRP is to help homeowners avoid foreclosure by 

reducing the principal balance of their primary mortgage to either 

(a) facilitate a permanent loan modification or reamortization that 

achieves an affordable monthly mortgage payment of their primary 

mortgage or (b) reduce a borrower’s negative equity position on 

their primary mortgage to an amount as close to and not less than 

100% LTV ratio as the amount of per-household assistance will 

permit. 

3. Target Population / 

Areas

All qualified Nevada residents with negative equity who could 

achieve an affordable primary mortgage payment and appropriate 

level of debt with a principal reduction. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$105,762,843 

5. Borrower Eligibility 

Criteria

General Eligibility: 

• Legal U.S. resident or lawful permanent U.S. resident and 
B-1-2 

Nevada resident. 

• Borrower must have an eligible financial hardship as 

determined by program criteria and underwriting guidelines. 

• Borrower cannot have liquid assets, other than exempt 

retirement assets, in excess of the amount of assistance being 

provided. 

• Borrower’s post-assistance housing expenses must meet the 

definition of an “Affordable Payment.” For the purposes of 

PRP, “Affordable Payment” means the borrower’s postassistance, total monthly primary mortgage payment PITI 

(principal, interest, taxes and insurance, as applicable) 

including any escrowed homeowner’s association dues or 

assessments, plus any taxes, insurance and homeowners 

association dues and assessments which are not escrowed 

must be no greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or shortterm disability benefits). 

• Borrower agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established 

by NAHAC, including a financial hardship affidavit. 

Additional Eligibility Criteria Applicable to Each Structure of 

Principal Reduction: 

(a) Modification or Reamortization Structure (i.e. principal 

reduction of a borrower’s primary mortgage accomplished 

exclusively through either an interest rate reduction and/or 

term extension to achieve a permanent modification, or a 

reamortization of the remaining unpaid principal balance to 

achieve a lower monthly payment): 

• Eligible financial hardship: reduced income due to 

underemployment, medical condition, divorce or death, 

as set forth in the program guidelines. 

• Borrower’s pre-assistance, total monthly primary 

mortgage payment PITI including any escrowed or nonescrowed homeowner’s association dues or assessments, 

is greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or 

short-term disability benefits). 

• Borrower’s post-assistance total monthly primary 

mortgage payment PITI including any escrowed or nonescrowed homeowner’s association dues or assessments 

must be greater than 25% of the gross household income 

excluding temporary income (e.g., unemployment or 

short-term disability benefits). 

• Primary mortgage must be delinquent or the borrower 
B-1-3 

does not have liquid assets greater than three (3) months 

of PITI and homeowner’s dues and assessments (if 

applicable). 

• Funds may be applied to cure: delinquent property 

taxes; Homeowners Association dues, fees and 

assessments; and property related insurance as set forth 

in program guidelines (collectively “Property Related 

Expenses”). 

• Pre-assistance principal balance of primary mortgage 

must be greater than 80% LTV based upon valuation 

obtained by NAHAC or the servicer. (Assistance 

provided to Borrowers with post assistance LTVs less 

than 100% will have a 10 year term and different 

payment requirements as set forth in this term sheet and 

the program guidelines.) 

(b) Negative Equity Reduction (i.e. principal reduction of a 

“non-delinquent” borrower’s primary mortgage that is in a 

severe negative equity position to an amount as close to and 

not less than 100% LTV ratio as the amount of perhousehold assistance will permit to reduce the risk of 

potential default by such borrower): 

• Eligible financial hardship: (1) a negative equity 

position in which the primary mortgage LTV is 115% or 

more. Borrower must be current on the primary 

mortgage at the time of PRP application. 

• Pre-assistance primary mortgage payment meets 

NAHAC’s definition of an Affordable Payment. 

6. Property / Loan 

Eligibility Criteria 

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. Mobile 

homes are eligible if they are permanently affixed to the real 

property that is secured by the primary mortgage. 

• For a Modification or Reamortization, the servicer must utilize 

the PRP monies to bring the primary mortgage current before 

applying PRP monies to the homeowner’s principal balance. 

• For a Modification or Reamortization PRP monies may be used 

to bring delinquent Property Related Expenses current at 

closing. 

• Mortgage balance cannot exceed the current GSE loan limit. 

7. Program Exclusions • Borrowers with liquid assets, other than exempt retirement 

assets, in excess of the total amount of assistance provided. 
B-1-4 

• Borrowers with an active bankruptcy. 

• Borrowers in an active Home Affordable Modification Program 

(HAMP) trial period plan. 

• Borrowers with a bankruptcy discharge who did not reaffirm 

their current mortgages in the bankruptcy. 

• Borrowers who fail to satisfy underwriting guidelines of the 

lender/servicer or NAHAC. 

• Borrowers with a post-assistance LTV ratio greater than 140% 

or less than 80% based upon valuation obtained by NAHAC or 

the servicer. 

• Borrowers with a post-assistance total monthly first-lien 

mortgage payment PITI including any escrowed or nonescrowed homeowner’s association dues or assessments less 

than 25% of the homeowner’s gross monthly household income, 

excluding temporary income (e.g., unemployment and shortterm disability benefits), or greater than NAHAC’s definition of 

an Affordable Payment. 

• Property is subject to a current foreclosure proceeding (judicial 

or non-judicial) under any lien encumbering the property, 

including the lien of a Homeowners Association, unless the 

lender/servicer or Homeowners Association agrees in writing to 

suspend their foreclosure proceeding and to record a rescission 

of their notice of default and/or notice of sale at closing. 

• Property is abandoned, vacant or condemned. 

• Property has more than two mortgages. 

• Property is listed for sale. 

8. Structure of 

Assistance

The assistance will be administered as a one-time direct payment to 

the servicer. 

For Borrowers with a post-assistance LTV greater than or equal to 

100%: 

The assistance will be structured as a 0% interest forgivable loan 

with no monthly payment evidenced by a promissory note with a 

sixty (60) month term. The loan will be secured by a junior lien on 

the property. If the borrower complies with the terms of the loan, 

the loan will be considered satisfied at the end of the sixty (60) 
B-1-5 

month period following funding and the lien released. 

For Borrowers with a post-assistance LTV less than 100%: 

The assistance will be structured as a 0% interest forgivable loan 

with no monthly payment evidenced by a promissory note with a 

one hundred and twenty (120) month term. The loan will be secured 

by a junior lien on the property. If the borrower complies with the 

terms of the loan, the loan will be considered satisfied at the end of 

the one hundred and twenty (120) month period following funding 

and the lien released. 

If the borrower defaults under the terms of the loan prior to the 

maturity date of the note evidencing the assistance loan, the loan 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all net equity proceeds after payment of borrower’s closing 

costs (with the commission to real estate brokers, if applicable, by 

the borrower limited to 6 percent) and the payment to the primary 

mortgage lienholder will be due and payable to NAHAC to satisfy 

payment of all or a portion of the loan funds. 

Borrowers will not always receive the maximum assistance amount 

of $50,000. 

All funds returned to NAHAC will be used to assist additional 

homeowners in accordance with the Agreement. 

9. Per Household 

Assistance 

The maximum amount of mortgage principal reduction receivable 

by a qualified borrower is $50,000. 

10.Duration of 

Assistance 

Program funds will be distributed as a one-time payment to the 

servicer. 

11.Estimated Number of 

Participating 

Households 

Approximately 2,783 households could be assisted under this 

program assuming an average assistance amount of $38,000. 

12.Program Inception / 

Duration 

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2020, whichever occurs first. 

13.Program 

Interactions with 

Other HFA Programs 

It is possible that a homeowner may also receive assistance through 

the Second Mortgage Reduction Plan and/or other HHF Programs. 

Borrowers may receive assistance from more than one HHF 

Program as long as the total combined assistance does not exceed 
B-1-6 

$100,000. 

14.Program 

Interactions with 

HAMP 

PRP may work in conjunction with aspects of the Making Home 

Affordable Program to help eligible borrowers achieve desired 

housing debt-to-income ratios, permanent affordability and establish 

an appropriate level of mortgage debt. 

15.Program Leverage 

with Other Financial 

Resources 

While NAHAC does not require a contribution from the servicer, it 

will be encouraged and in addition, servicers will be requested to 

waive fees. 
B-2-1 

SERVICE SCHEDULE B-2

The Nevada Affordable Housing Assistance Corporation

SECOND MORTGAGE REDUCTION PLAN

Summary Guidelines

1. Program Overview The Second Mortgage Reduction Plan (SMRP) will provide 

assistance to borrowers with an eligible financial hardship who have 

a second mortgage lien and who: (i) could achieve affordable 

monthly mortgage payments and an appropriate level of debt if their 

second mortgage (second lien) were eliminated; or (ii) could achieve 

affordable monthly mortgage payments and an appropriate level of 

debt with a principal reduction and reamortization (recast) or 

modification of their second mortgage. 

The assistance will be provided as a one-time payment to 

lenders/servicers up to a maximum of $50,000 per household. 

2. Program Goals The goals of the SMRP are to help homeowners avoid foreclosure 

by reducing or eliminating the principal balance of their second 

mortgage or to facilitate a permanent loan modification or recast 

that achieves an affordable monthly mortgage payment and reduces 

the likelihood that a borrower will default. 

3. Target Population / 

Areas 

All qualified Nevada residents who could achieve affordable 

mortgage payments and an appropriate level of debt if their second 

mortgage were eliminated or reduced. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$35,942,324 

5. Borrower Eligibility 

Criteria 

• Legal U.S. resident or lawful permanent U.S. resident and 

Nevada resident. 

• Borrower must have an eligible financial hardship as determined 

by program criteria and underwriting guidelines. Eligible 

financial hardships include (a) borrowers with a reduced income 

due to underemployment, medical condition, divorce or death, as 

set forth in the program guidelines, with a negative equity 

position in which the borrower’s combined total loan to value 

ratio (“CTLV”) is 110% or more; or (b) a negative equity 

position in which the borrower’s CLTV is 120% or more. 

• Borrowers qualifying with a hardship as described in (a), in the 

previous bullet, must also have pre-assistance, total monthly 
B-2-2 

mortgage payments for their primary and second mortgages PITI 

(principal, interest, taxes and insurance, as applicable) including 

any escrowed or non-escrowed homeowner’s association dues or 

assessments, is greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or short-term 

disability benefits). 

• Borrower cannot have liquid assets, other than exempt 

retirement assets, in excess of the amount of assistance being 

provided. 

• Borrower’s post-assistance housing expenses must meet the 

definition of an “Affordable Payment.” For the purposes of 

SMRP, “Affordable Payment” means the borrower’s postassistance, total monthly mortgage payments for the primary and 

second mortgages PITI including any escrowed homeowner’s 

association dues or assessments, plus any taxes, insurance and 

homeowner’s association dues or assessments which are not 

escrowed must be no greater than 38% of the gross household 

income excluding temporary income (e.g., unemployment or 

short-term disability benefits). 

• Borrower agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established by 

NAHAC, including a financial hardship affidavit. 

• Second mortgage must be delinquent or the borrower must have 

a negative equity position in which the CLTV is 120% or more. 

6. Property / Loan 

Eligibility Criteria

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. 

Mobile homes are eligible if they are permanently affixed to the 

real property that is secured by the first and second mortgages. 

• The servicer must utilize the SMRP monies to bring the second 

mortgage current before applying SMRP monies to the 

homeowner’s principal balance. 

• SMRP monies may be used to bring delinquent property taxes; 

Homeowners Association dues, fees and assessments; and 

property related insurance as set forth in program guidelines 

(collectively “Property Related Expenses”) current at closing. 

• If the amount of SMRP monies is not sufficient to extinguish the 

second mortgage, the servicer/lender must agree to reamortize or 

modify the second mortgage. 

• Combined mortgage balances cannot exceed the current GSE 

loan limit. 

• Post-assistance combined principal balance of the primary and 

second mortgages must not be less than 100% CLTV based 

upon valuation obtained by NAHAC or the servicer. 
B-2-3 

7. Program Exclusions • Borrowers with an active bankruptcy. 

• Borrowers in an active Home Affordable Modification Program 

(HAMP) or a Second Lien Modification Program (“2MP”) trial 

period plan. 

• Borrowers with a bankruptcy discharge who did not reaffirm 

their current mortgages in the bankruptcy. 

• Property is listed for sale. 

• Property is currently subject to a current foreclosure proceeding 

(judicial or non-judicial) under any lien encumbering the 

property, including the lien of a Homeowners Association, 

unless the lender/servicer or Homeowners Association agrees in 

writing to suspend their foreclosure proceeding and to record a 

rescission of their notice of default and/or notice of sale at 

closing. 

• Borrowers with liquid assets, other than exempt retirement 

assets, in excess of the total amount of assistance provided. 

• Property is abandoned, vacant or condemned. 

• Property has more than two mortgages. 

• Property is subject to a first priority lien securing a Home Equity 

Line of Credit. 

8. Structure of 

Assistance 

The assistance will be administered as a one-time direct payment to 

the servicer. The assistance will be structured as a 0% interest 

forgivable loan with no monthly payment evidenced by a 

promissory note with a sixty (60) month term. The loan will be 

secured by a junior lien on the property. If the borrower complies 

with the terms of the loan, the loan will be considered satisfied at 

the end of the sixty (60) month period following funding and the 

lien released. 

Borrowers will not always receive the maximum assistance amount 

of $50,000. 

If the borrower defaults under the terms of the loan prior to the 

maturity date of the note evidencing the assistance loan, the loan 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all net equity proceeds after payment of borrower’s closing 
B-2-4 

costs (with the commission to real estate brokers, if applicable, by 

the borrower limited to 6 percent) and the payment to the holders of 

the senior deeds of trust, will be due and payable to NAHAC to 

satisfy payment of all or a portion of the loan funds. 

All funds returned to NAHAC will be used to assist additional 

homeowners in accordance with the Agreement. 

9. Per Household 

Assistance 

The maximum amount of second mortgage principal reduction 

receivable by a qualified borrower is $50,000. 

10.Duration of 

Assistance 

Program funds will be disbursed as a onetime payment to the 

servicer. 

11.Estimated Number of 

Participating 

Households 

Approximately 1,300 households could be assisted under this 

program assuming an average assistance amount of $27,500. 

12.Program Inception / 

Duration 

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2020, whichever occurs first. 

13.Program 

Interactions with 

Other HFA Programs 

This program could interact with the Principal Reduction Program 

and other HHF Programs pre- and post-assistance. Borrowers may 

receive assistance from more than one HHF Program as long as the 

total combined assistance does not exceed $100,000. 

14.Program 

Interactions with 

HAMP 

Borrowers not eligible for 2MP may be considered for the SMRP. 

15.Program Leverage 

with Other Financial 

Resources 

While NAHAC does not require a contribution from the servicer, it 

will be encouraged and in addition, servicers will be requested to 

waive fees. 
B-3-1 

SERVICE SCHEDULE B-3

The Nevada Affordable Housing Assistance Corporation

SHORT-SALE ACCELERATION PROGRAM

Summary Guidelines

1. Program Overview The Short-Sale Acceleration Program is aimed at assisting 

borrowers who are beginning or need to initiate the short-sale 

process, deed in lieu of foreclosure or a similar foreclosure 

mitigation measure to relieve themselves of the mortgage burdens 

that they cannot sustain—even with a material loan principal 

reduction. 

2. Program Goals It is expected that at a $5,000 level of average funding per family 

approximately 100 families facing imminent foreclosure threat will 

have the burden of their home mortgage eliminated. 

3. Target Population / 

Areas 

Those Nevadans that are facing imminent threat of foreclosure. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$289,179 

5. Borrower Eligibility 

Criteria 

• Legal U.S. resident or lawful permanent U.S. resident. 

• Borrower must have short-sale approval in place with lender if 

pursuing a short-sale. 

• Borrower must provide verification of short-sale approval or 

deed in lieu of foreclosure agreement. 

• Borrower will be required to sign a financial hardship affidavit 

attesting to their inability to make mortgage payments. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due to 

circumstances beyond the homeowner’s control (no contrived 

defaults allowed). 

• Borrowers who chose to leave the state of Nevada will not 

receive the rental assistance component of benefits under this 

program, but will be entitled to all others. 

6. Property / Loan 

Eligibility Criteria 

Home is currently owner-occupied and serves as the borrower’s 

primary residence. If vacant, homeowner must be able to prove that 

they moved due to extenuating circumstances and that the home was 

most recently used as a primary residence – not an investment 
B-3-2 

property. 

Borrowers with a second lien will also be considered for the Second 

Mortgage Reduction Plan program. 

7. Program Exclusions None. 

8. Structure of 

Assistance 

This program is direct assistance through direct payment to vendors 

at closing of the escrow, or immediately post-short-sale closing. 

The payments will not be structured as a loan. 

9. Per Household 

Assistance 

The maximum program benefit per household is $8,025. Assistance 

can be used to cover the cost of up to three (3) months of rent (not to 

exceed $4,500), fees incurred by a storage facility (not to exceed 

$1,000) and/or certain fees which are interfering with the short-sale 

closing – specifically HOA liens and utility liens. 

10.Duration of 

Assistance 

Assistance will be a one-time set of payments. 

11.Estimated Number of 

Participating 

Households 

The Business Plan calls for this program element to assist up to 100 

families complete their home abandonment/ownership through a 

short-sale and matriculate to a rental property somewhere else in 

Nevada. 

12.Program Inception / 

Duration 

The Short-Sale Acceleration Program began on March 1, 2010 and 

terminated on December 31, 2012. 

13.Program 

Interactions with 

Other HFA Programs 

This program cannot be used when HAFA is also being utilized. 

14.Program 

Interactions with 

HAMP 

None 

15.Program Leverage 

with Other Financial 

Resources 

In the event the short-sale program recipient has incurred a lien as a 

result of earlier participation in NAHAC’s Principal Reduction, 

Second Mortgage Reduction Plan or Mortgage Assistance Program, 

then the lien may be extinguished for the purpose of helping to 

facilitate the short-sale request. 
B-4-1 

SERVICE SCHEDULE B-4 

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM (MAP) 

Summary Guidelines 

1. Program Overview The Mortgage Assistance Program (MAP) will provide 

reinstatement assistance to borrowers in default who either: 

(a) Were unemployed and are now employed or underemployed. 

(The current employment may or may not be at the same 

income level as the borrower’s prior employment) 

or 

(b) Are underemployed and their underemployment was caused 

by a substantial reduction of hours or salary reduction. 

The assistance will be provided to eligible borrowers to bring their 

primary (first-lien) mortgage current by curing all past due 

principal, interest, taxes, homeowner’s association dues and 

assessments and property related insurance, as applicable (together 

“Property Related Expenses”) as set forth in the program guidelines. 

The assistance will be provided as a one-time payment to 

lender/servicer up to a maximum of $35,000 per household. 

2. Program Goals The goal of MAP is to help re-employed and underemployed 

homeowners avoid foreclosure and keep their homes by reinstating 

their primary mortgages and by curing their delinquent Property 

Related Expenses. 

3. Target Population / 

Areas 

All qualified Nevada residents with an employment-related financial 

hardship who can demonstrate that they now have the ability to 

afford their monthly mortgage payments. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$34,056,581 

5. Borrower Eligibility 

Criteria 

General Requirements: 

• Legal U.S. resident or lawful permanent U.S. resident and 

Nevada resident. 

• Borrower cannot have liquid assets, other than exempt 

retirement assets, in excess of the amount of assistance being 

provided. 
B-4-2 

• Borrower agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established 

by NAHAC, including a financial hardship affidavit. 

• Eligible Financial Hardships: (i) past unemployment with 

current employment; (ii) past unemployment with current 

underemployment; or (iii) current underemployment due to a 

substantial hour or salary reduction. The unemployment or 

underemployment must have been caused by circumstances 

outside the control of the borrower. 

• If the eligible borrower is underemployed, the borrower must 

provide documentation of an income reduction of at least 

15%, based on a highest income tax year comparison of the 

past five (5) tax years prior to the date of application. 

• Borrower must demonstrate satisfactory mortgage payment 

history prior eligible financial hardship. 

• Borrower’s mortgage payment must meet the definition of 

an “Affordable Payment.” For the purposes of MAP, 

“Affordable Payment” means the borrower’s total monthly 

primary mortgage payment PITI (principal, interest, taxes 

and insurance, as applicable) including any escrowed or nonescrowed homeowner’s association dues or assessments, 

must be no greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or shortterm disability benefits). 

6. Property / Loan 

Eligibility Criteria

• Primary mortgage must be delinquent or must have been 

delinquent within the 60 days prior to the date of application and 

the Borrower has delinquent Property Related Expenses. 

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. Mobile 

homes are eligible if they are permanently affixed to the real 

property that is secured by the primary mortgage. 

• Mortgage balance does not exceed the current GSE loan limit. 

• Properties with second mortgages are only eligible if the 

borrower qualifies for and receives assistance under the Second 

Mortgage Reduction Plan. 

7. Program Exclusions • Property is subject to a current foreclosure proceeding (judicial 

or non-judicial) under any lien encumbering the property, 

including the lien of a Homeowners Association, unless the 

lender/servicer or Homeowners Association agrees in writing to 

suspend their foreclosure proceeding and to record a rescission 

of their notice of default and/or notice of sale at closing. 

• Borrowers in an active Home Affordable Modification Program 

(“HAMP”) trial period plan. 
B-4-3 

• Borrowers under review for a short sale or a deed in lieu. 

• Property has more than two mortgages. 

• Borrowers with an active bankruptcy. 

• Borrowers with a bankruptcy discharge who did not reaffirm 

their current mortgages in the bankruptcy. 

• Property listed for sale. 

• Property is abandoned, vacant or condemned. 

• Borrowers who are not currently working and collecting a fixed 

income such as that associated with one of the following: 

o Retirement 

o Disability 

o Social Security 

• Borrowers with liquid assets, other than exempt retirement 

assets, in excess of the amount of assistance being provided.. 

8. Structure of 

Assistance

The assistance will be administered as a one-time direct payment to 

the servicer. The assistance will be structured as a 0% interest 

forgivable loan with no monthly payment evidenced by a 

promissory note with a sixty (60) month term. The loan will be 

secured by a junior lien on the property. If the borrower complies 

with the terms of the loan, the loan will be considered satisfied at 

the end of the sixty (60) month period following funding and the 

lien released. 

Borrowers will not always receive the maximum assistance amount 

of $35,000. 

If the borrower defaults under the terms of the loan prior to the 

maturity date of the note evidencing the assistance loan, the loan 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all proceeds after payment of borrower’s closing costs (with 

the commission to real estate brokers, if applicable, by the borrower 

limited to 6 percent) and the payment to the holders of the senior 

deeds of trust, will be due and payable to NAHAC to satisfy 

payment of all or a portion of the loan funds. 

All funds returned to NAHAC will be used to assist additional 

homeowners in accordance with the Agreement. 

9. Per Household 

Assistance 

The maximum amount of assistance receivable by a qualified 

borrower is $35,000. 
B-4-4 

10. Duration of 

Assistance 

Program funds will be distributed as a one-time payment to the 

servicer, Homeowner’s Association or County Treasurer as 

applicable. 

11. Estimated Number 

of Participating 

Households 

Approximately 3,900 households could be assisted under this 

program assuming an average assistance amount of $8,700 

12. Program Inception / 

Duration 

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2020, whichever occurs first. 

13. Program 

Interactions with 

Other HFA 

Programs 

The MAP program could have some form of interactions with other 

HHF programs both pre- and post-assistance. 

Borrowers may receive assistance from more than one HHF 

program as long as the total combined assistance does not exceed 

$100,000. 

14. Program 

Interactions with 

HAMP 

MAP funds may be applied prior to HAMP on a case-by-case basis. 

15. Program Leverage 

with Other Financial 

Resources

NAHAC will request that the loan servicer waive fees (e.g., NSF 

and late charges). 
B-5-1 

SERVICE SCHEDULE B-5 

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM 

ALTERNATIVE (MAPA) 

Summary Guidelines 

1. Program Overview The Nevada Mortgage Assistance Program Alternative (MAPA) is 

designed to help keep first mortgages current for approximately 415 

individuals who are not currently working and collecting a fixed 

income such as that associated with one of the following: 

• Retirement 

• Disability 

• Social Security 

The program will assist those qualified families by paying the lesser 

of: 

(a) $1,000 of the principal, interest, property taxes and property 

insurance (PITI) (when impounded) toward the monthly first 

mortgage payment or 

(b) Total first mortgage payment due for the aforementioned 

components. 

Further, the borrower will be responsible for contributing a 

minimum of $75 per month toward completing the full payment 

due. MAPA payments may be extended for qualified families for 

up to nine (9) months (MAPA Participation Period). 

MAPA payments are aimed at providing a financial bridge to 

income restricted, unemployed homeowners that are in pursuit of a 

homeownership sustainment program. 

For the purpose of this program, the target population will include 

individuals which cannot return to the workforce through no fault of 

their own and are in default or in a situation of imminent threat of 

going into default due to limited income – subject to satisfaction of 

all other borrower eligibility criteria. 

Borrowers will submit their partial payment to NAHAC where it 

will be combined with the HHF funds and a full remittance made to 
B-5-2 

the loan servicer. Borrowers can apply directly through the 

NAHAC offices after first completing an appropriate screening tool 

and being given an appointment with the NAHAC loan underwriter. 

MAPA payments will invoke a non-recourse lien which will have an 

earned forgiveness embedded in the Note. Borrowers who are able 

to sustain their homeownership for thirty-six (36) successive months 

following closing will have their lien extinguished. 

If, during or after the MAPA Participation Period, the borrower can 

demonstrate that he/she can sustain mortgage payments with a debtto-income ratio (DTI) below 43%, the borrower may become 

eligible for additional reinstatement assistance (Reinstatement). In 

order to achieve a DTI below 43%, the borrower may, but is not 

required to enroll in a homeownership sustainment program. 

Reinstatement assists qualified borrowers by providing up to 

$12,500 to eliminate arrearages and bring the loan current. 

Reinstatement is only applicable when the entire amount of 

arrearages can be eliminated. 

2. Program Goals The MAPA goal is to assist fixed-income borrowers in keeping their 

homes during a period of temporary financial hardship and, thereby, 

prevent avoidable defaults and foreclosures. MAPA in conjunction 

with subsequent homeownership sustainment programs and 

Reinstatement aims to decrease both the number and probability of 

future foreclosures in Nevada. 

3. Target Population / 

Areas 

Funding will be distributed on a first-come, first-served basis with 

target populations spanning (a) the Clark County/Las Vegas valley 

area, (b) the Reno-Sparks SMSA area and (c) all of rural Nevada. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$1,613,278 

5. Borrower Eligibility 

Criteria 

To ensure both consistencies with previously approved Participation 

Agreement programs and to lessen the burdens of administering the 

MAPA program, adherence to the same underwriting qualification 

standards will be generally utilized. 

Thus, borrower eligibility criteria will consist of: 

• Legal U.S. resident or lawful permanent U.S. resident. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due to 
B-5-3 

circumstances beyond the homeowner’s control (no contrived 

defaults allowed). 

• Borrower will be required to sign a financial hardship 

affidavit attesting to their inability to make mortgage payments. 

Reinstatement candidates must demonstrate sustainability of 

current payments. By definition that would mean that their 

mortgage payment is less than 43% of their household income. 

The borrower must also demonstrate they still have little or no 

ability to extinguish past missed payments, penalties or fees. 

Reinstatement will only be allocated in those instances where 

the entire past due balance and/or accrued penalties can be 

eliminated such that the borrower is in good standing post 

assistance. 

Basic eligibility criteria will be analyzed either on-line (through the 

borrower’s visit to the website and use of the ‘screening tool’), 

directly at the NAHAC offices or by the designated call center. If 

borrowers meet screening criteria, application packages will be 

assembled by the NAHAC underwriters who will do the full 

verifications/confirmation, enter the borrower’s data into the 

NAHAC database and accounts payable systems and begin the 

relationship with the borrower’s participating banks/lenders/ 

servicers to ensure aid is acceptable to them. 

6. Property / Loan 

Eligibility Criteria 

• Home is currently owner occupied and serves as the 

borrower’s primary residence. 

• Mortgage balance is less than the current GSE loan limit. 

7. Program Exclusions Borrowers that have received nine (9) months of assistance through 

MAP will be ineligible for assistance through MAPA. In the event a 

borrower has received less than nine (9) months of assistance 

through MAP or MAPA, the borrower can reapply to receive 

assistance through either program on a pro-rata basis where any 

borrower will receive a maximum of nine (9) months of combined 

assistance. 

8. Structure of 

Assistance 

Borrower must proactively pursue homeownership sustainment 

program which must be verified with forty-five (45) days of closing 

on MAPA or borrower will be disenrolled from program. 

This program is administered through direct payments to the 

servicer. All MAPA assistance will be structured as a 0% interest, 

forgivable loan secured by a lien recorded against the subject 

property. The lien has a term of three (3) years and is forgiven 

following final funding at a rate of thirty-three percent (33%) per 
B-5-4 

year with full forgiveness at the end of year three (3) provided the 

borrower complies with the terms of the loan. The loan will be 

repayable if the borrower defaults under the terms of the loan or if 

the borrower sells the property before the three (3) year time period 

expires and there is equity in the property after payment of the 1st

priority lien holder. All funds returned to NAHAC will be recycled 

until December 31, 2017; thereafter any remaining funds must be 

returned to Treasury. 

MAPA recipients who qualify for reinstatement will have up to 

$12,500 in reinstatement funds made on a ‘one-time basis’ directly 

to the mortgage servicer. 

9. Per Household 

Assistance 

The maximum MAPA assistance should not exceed $1,000/month 

per recipient for up to nine (9) months for a total aggregate 

mortgage payment assistance of $9,000. 

Reinstatement candidates will be eligible to receive a limited, onetime payment of up to $12,500. 

The combined maximum amount of MAPA assistance available to a 

qualified borrower is $21,500. 

10. Duration of 

Assistance 

MAPA will last up to nine (9) months. 

11. Estimated Number of 

Participating 

Households 

Based upon average assistance of $9,000 per household, it is 

anticipated that 75% of the program funds be exhausted by monthly 

mortgage payment expenditures – for a total of approximately 176 

households. 

The average Reinstatement payout is expected to be $12,500 per 

eligible borrower with a portion of MAPA eligible borrowers also 

qualifying and receiving Reinstatement benefits. The remaining 

25% of program funds are anticipated to be used for Reinstatement 

candidates, a total of approximately forty-two (42) households. 

12. Program Inception / 

Duration 

This program began February 2012 and terminated on October 1, 

2012. 

13. Program 

Interactions with 

Other HFA 

Programs 

The MAPA program could have some form of interactions with the 

other HHF programs both pre- and post-assistance. Borrowers may 

receive assistance from more than one HHF program as long as the 

total combined assistance does not exceed $100,000. 

14. Program 

Interactions with 

MAPA recipients that become employed or have an improvement in 

their economic situation during the period of assistance may also 
B-5-5 

HAMP benefit from HAMP. 

MAPA funds may be applied prior to HAMP since it is most 

beneficial to both the homeowner and mortgage servicer as 

payments would be made instead of capitalized and no additional 

late charges accrued. 

15. Program Leverage 

with Other Financial 

Resources 

NAHAC will work directly with a loan servicer in conjunction with 

each MAPA borrower to ensure that MAPA funds are strictly used 

for MAPA-eligible purposes. NAHAC accounting staff will 

communicate with the servicer to ensure that the MAPA payments 

are credited only toward current amounts of PITI due on the 

borrower’s first mortgage. Funds will not be applied toward past 

due penalties except in those instances where the borrower qualifies 

for Reinstatement. 
B-6-1 

SERVICE SCHEDULE B-6

The Nevada Affordable Housing Assistance Corporation

HOME RETENTION PROGRAM

PROGRAM DEFUNDED ON JUNE 25, 2015 
B-7-1 

SERVICE SCHEDULE B-7 

The Nevada Affordable Housing Assistance Corporation 

NEVADA RECAST REFINANCE AND MODIFICATION PROGRAM (NRRM) 

PROGRAM DEFUNDED ON JUNE 25, 2015 
C-1 

SCHEDULE C 

PERMITTED EXPENSES 

Nevada

 

One-Time / Start-Up Expenses: 

Initial Personnel $361,409

Building, Equipment, Technology $114,868

Professional Services $302,034

Supplies / Miscellaneous $11,836

Marketing / Communications $23,333

Travel $7,404

Website Development /Translation $14,400

Contingency $0

 Subtotal $835,284

 

Operating / Administrative Expenses: 

Salaries $13,067,190

Professional Services (Legal, Compliance, Audit, Monitoring) $2,114,657

Travel $251,148

Buildings, Leases & Equipment $1,330,119

Information Technology & Communications $2,788,718

Office Supplies / Postage and Delivery / Subscriptions $345,380

Risk Management/ Insurance $339,358

Training $40,150

Marketing/PR $531,805

Miscellaneous $20,000

 Subtotal $20,828,525

 

 Transaction Related Expenses: 

Recording Fees $453,806

Wire Transfer Fees $267,275

 Counseling Expenses 

File Intake $2,230,804

Decision Costs $67,661

Successful File $50,500

Key Business Partners On-Going $513,821

 Subtotal $2,862,786

 

 Grand Total $25,247,676

% of Total Award 12.44%

Award Amount $202,911,881
F-1 

SCHEDULE F 

HHF FIFTH ROUND FUNDING REALLOCATION MODEL 

This Schedule F describes a uniform model (the “Reallocation Model”) designed to maximize 

the utilization of the $2 billion made available under the HHF Program Fifth Round Funding. In 

general, the Reallocation Model reallocates unused Fifth Round funding to states participating in 

the HHF Program that meet certain defined criteria for utilization of HHF Program funds. The 

aggregate amount obligated under the Fifth Round Funding will not increase at any time. 

I. Definitions 

(a) “2016 Utilization Threshold” shall mean having Drawn at least 70% of the Rounds 1-4 

Funding Allocation. 

(b) “2017 Utilization Threshold” shall mean having Drawn at least 95% of the Rounds 1-4 

Funding Allocation. 

(c) “2018 Utilization Threshold” shall mean having Drawn at least 80% of the Program 

Participation Cap. 

(d) “Annual Reallocation Amount” shall mean the aggregate amount, if any, by which the 

Program Participation Caps set forth in all HFA Participation Agreements are reduced 

pursuant to the Reallocation Model, as applied with respect to each Utilization Threshold. 

(e) “Drawn” shall mean having made Capital Draws pursuant to Section 3(A) of the 

Agreement. 

(f) “HFA Participation Agreements” shall mean, collectively, the Commitments to Purchase 

Financial Instrument and HFA Participation Agreements entered into by the States, as 

amended from time to time. 

(g) “Population” shall mean the most recent Annual Estimate of the Resident Population for 

a State as determined by the United States Census Bureau from time to time. 

(h) “Recipient State” shall mean each State that has achieved the Utilization Threshold for 

the applicable year, provided that such State is not then in default under its HFA 

Participation Agreement. Notwithstanding the foregoing, in the event a State declines an 

increase to its Program Participation Cap and Round 5 Funding Allocation for which it is 

eligible pursuant to this Schedule F, such State shall not be considered a Recipient State. 

(i) “Rounds 1-4 Funding Allocation” is the amount set forth on Schedule A as “Rounds 1-4 

Funding Allocation.” 

(j) “Round 5 Funding Allocation” is the amount set forth on Schedule A as “Round 5 

Funding Allocation”, as adjusted from time to time in accordance with this Schedule F. 
F-2 

(k) “Share of Annual Reallocation Amount” shall mean a Recipient State’s share of the 

applicable Annual Reallocation Amount, as determined using the methodology described 

in Section IV below. If the Annual Reallocation Amount is zero, then the Share of 

Annual Reallocation Amount will be zero for the applicable year. 

(l) “State” shall mean any or each of Alabama, Arizona, California, Florida, Georgia, 

Illinois, Indiana, Kentucky, Michigan, Mississippi, New Jersey, Nevada, North Carolina, 

Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, D.C. 

(m)“Utilization Threshold” means each of the 2016 Utilization Threshold, the 2017 

Utilization Threshold and the 2018 Utilization Threshold. 

II. Reduction of Program Participation Cap and Round 5 Funding Allocation: 

(a) If Eligible Entity does not achieve the 2016 Utilization Threshold on or before December 

31, 2016, each of the Program Participation Cap and Round 5 Funding Allocation shall 

be reduced by an amount equal to 50% of the Round 5 Funding Allocation as of such 

date. 

(b) If Eligible Entity does not achieve the 2017 Utilization Threshold on or before December 

31, 2017, each of the Program Participation Cap and the Round 5 Funding Allocation 

shall be reduced by up to 100% of the Round 5 Funding Allocation as of such date. 

(c) If Eligible Entity does not achieve the 2018 Utilization Threshold on or before December 

31, 2018, each of the Program Participation Cap and Round 5 Funding Allocation shall 

be reduced by an amount equal to that portion of the Round 5 Funding Allocation which 

has not yet been Drawn nor obligated with respect to a unique homeowner or property as 

of such date. 

III. Increase of Program Participation Cap and Round 5 Funding Allocation: 

(a) If Eligible Entity achieves the 2016 Utilization Threshold on or before December 31, 

2016, each of the Program Participation Cap and Round 5 Funding Allocation shall be 

increased by the State’s Share of the Annual Reallocation Amount with respect to such 

date. 

(b) If Eligible Entity achieves the 2017 Utilization Threshold on or before December 31, 

2017, each of the Program Participation Cap and the Round 5 Funding Allocation shall 

be increased by the State’s Share of the Annual Reallocation Amount with respect to 

such date. 

(c) If Eligible Entity achieves the 2018 Utilization Threshold on or before December 31, 

2018, each of the Program Participation Cap and Round 5 Funding Allocation shall be 

increased by the State’s Share of the Annual Reallocation Amount with respect to such 

date. 

IV. Methodology for Determining Recipient State’s Share of Annual Reallocation Amount 
F-3 

If Eligible Entity has achieved the Utilization Threshold and the Annual Reallocation Amount 

is greater than zero for the applicable year, the Program Participation Cap and Round 5 

Funding Allocation will be increased by an amount calculated as follows: 

First, calculate the “Per Capita Amount” for each Recipient State. The Per Capita Amount 

shall be calculated as the Annual Reallocation Amount divided by the sum of the Population 

of all Recipient States. 

Second, calculate the “Utilization Percentage” for each Recipient State. 

The Utilization Percentage with respect to the 2016 Utilization Threshold and the 2017 

Utilization Threshold shall be calculated as the lesser of (I) the ratio of (x) aggregate Capital 

Draws made by the Recipient State under its HFA Participation Agreement as of December 

31, 2016 and December 31, 2017, respectively, to (y) the Recipient State’s Rounds 1-4 

Funding Allocation as of such dates, or (II) 100%. 

The Utilization Percentage with respect to the 2018 Utilization Threshold shall be calculated 

as the ratio of (x) aggregate Capital Draws made by the Recipient State under its HFA 

Participation Agreement as of December 31, 2018, to (y) such Recipient State’s Program 

Participation Cap as of such date. 

Third, calculate a “Utilization Score” for each Recipient State by standardizing the Utilization 

Percentages using the z-score methodology, a standard statistical standardization procedure. 

The Utilization Score for each Recipient State is calculated as (I)(x) the Utilization Percentage 

for such Recipient State, less (y) the mean Utilization Percentage for all Recipient States 

(“Average”), divided by (II) the standard deviation of the Utilization Percentages for all 

Recipient States. If a Recipient State’s Utilization Percentage is greater than the Average, the 

Utilization Score will be positive. If a Recipient State’s Utilization Percentage is less than 

Average, the Utilization Score will be negative. 

Fourth, calculate a “Need Factor” for each Recipient State. The Need Factor is a fixed dollar 

amount which will be multiplied by each Utilization Score to determine the dollar amount by 

which each Recipient State’s Per Capita Amount will be adjusted. The Need Factor is 

calculated as the dollar amount that would result in the highest adjusted Per Capita Amount 

for a Recipient State being no more than three (3) times that of the lowest adjusted Per Capita 

Amount for a Recipient State (i.e., a Min/Max Factor of 3). 

Fifth, calculate an “Adjusted Per Capita Amount” for each Recipient State by adding to or 

subtracting from the Recipient State’s Per Capita Amount the product of (x) the Need Factor 

and (y) the Recipient State’s Utilization Score. Recipient States with positive Utilization 

Scores will have dollars added to the Recipient State’s Per Capita Amount, and Recipient 

States with negative Utilization Scores will have dollars subtracted from the Recipient State’s 

Per Capita Amount. 

Sixth, calculate the “Share of the Annual Reallocation Amount” for each Recipient State by 

first multiplying the Recipient State’s Adjusted Per Capita Amount by the Recipient State’s 
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Population to arrive at a “Preliminary Share”. The Preliminary Share for each Recipient 

State is then normalized to arrive at the Share of the Annual Reallocation Amount by 

multiplying (x) a ratio, the numerator of which is the Preliminary Share for such Recipient 

State and the denominator of which is the sum of the Preliminary Shares for all Recipient 

States, and (y) the Annual Reallocation Amount. 

V. Notices; Modifications 

(a) Treasury will notify Eligible Entity in writing of any adjustment to the Program 

Participation Cap and Round 5 Funding Allocation pursuant to this Schedule F. Related 

adjustments to program allocations and other amounts set forth in the Service Schedules, 

and Permitted Expenses set forth on Schedule C, shall be made as set forth in such 

written notice. 

(b) For the avoidance of doubt, a written amendment to the Agreement shall not be required 

to effectuate an adjustment of the Program Participation Cap or Round 5 Funding 

Allocation pursuant to this Schedule F. The Program Participation Cap and Round 5 

Funding Allocation set forth on Schedule A to the Agreement shall be deemed to be 

modified upon receipt of the written notice sent pursuant to Section V(a) above. 

 

(c) Treasury reserves the right to unilaterally modify or supplement the terms and provisions 

of this Schedule F, at any time with prior written notice to the Eligible Entity.