HHF Tennessee Date: October 13, 2017

B-1-1

SCHEDULE B-1

Tennessee Housing Development Agency 

Hardest Hit Fund Program (HHFP)

Summary Guidelines

1. Program Overview The Tennessee Housing Development Agency (THDA) Hardest

Hit Fund Program (HHFP) will provide loans to unemployed or

substantially underemployed homeowners, or those homeowners

impacted by a recent divorce or death of a spouse, who, through

no fault of their own, are financially unable to make their

mortgage payments and are in danger of losing their homes to

foreclosure.

Loan proceeds will be used to pay all mortgage and mortgagerelated expenses (e.g., property taxes, homeowner insurance,

homeowner dues) (i) until, for those unemployed or substantially

underemployed homeowners, the homeowner secures

employment or completes training for a new career and (ii) for

all eligible homeowners, subject to maximum assistance criteria

described in Section 9.

For homeowners who were unemployed or substantially

underemployed and accumulated payment arrearages, but have

since found a new job, reinstatement assistance will be available.

2. Program Goals To assist unemployed or substantially underemployed

homeowners, or those homeowners impacted by a recent

divorce or death of a spouse, to remain in their homes and make

monthly payments on their mortgages and mortgage related

expenses such as property taxes, homeowner insurance,

homeowner dues, and/or past-due mortgage payments

(arrearages) so that they may avoid delinquency and foreclosure.
B-1-2

3. Target Population /

Areas

This program will be available in all Tennessee counties.

THDA previously provided additional assistance over a longer

period of time to eligible homeowners living in targeted or

“hardest hit” counties, defined as those counties showing greater

than average distress based on a combination of unemployment

rate, the percent of the state’s foreclosures in that county, and

delinquency rates. Twenty-nine counties were chosen as targeted

based on the fact that they scored high on two of three factors, as 

follows: having an unemployment rate at or above the state

average rate, having a high percentage of the state’s foreclosure
B-1-3

filings (in the 75th percentile of counties), having a high

delinquency rate (again, in the 75th percentile of counties).

4. Program Allocation

(Excluding

Administrative

Expenses)

$184,814,430.93

$81,128,260 of this program allocation is reserved to provide

assistance to borrowers whose hardship is employment-related.

5. BorrowerEligibility

Criteria

Unemployed or substantially underemployed homeowners, or

those homeowners impacted by a recent divorce or death of a

spouse, who, through no fault of their own, are unable to make

their mortgage payments and are at risk of foreclosure.

Homeowners will be required to provide a financial hardship

affidavit with appropriate documentation as to the cause of their

hardship, as specified in the program guidelines. Homeowners

will be required to provide continual documentation certifying to

their ongoing hardship.

Employed homeowners who have previously been unemployed

or substantially underemployed and who are delinquent, but who

can resume future payments without additional assistance.

Substantially underemployed homeowners are those

homeowners whose income has been reduced by 30% or more.

The event or incident which results in unemployment or

substantially underemployment, or the applicable divorce or

death of a spouse impacting a homeowner, must have occurred

after January 1, 2008.

Principal, Interest, Taxes and Insurance > 31% of household

income after job loss/reduction of income.

Asset test: Borrower must not have > 6 months reserves.

Borrower must be a low- or moderate-income homeowner

(maximum $92,680 household income).

Eligibility for program assistance will be determined primarily

by participating foreclosure prevention partners using THDA 

underwriting criteria stated above.

Funds will be allocated on a first-come/approved, first-served

basis.
B-1-4

6. Property / Loan 

Eligibility Criteria

Existing single-family homes or condominiums (attached or

detached) including manufactured homes on foundations

permanently affixed to real estate owned by the borrower.

Tennessee owner-occupied, primary residences only.

7. Program Exclusions Total unpaid principal balances > $275,000. 

Manufactured homes not considered real property.

Non-legal U.S. resident.

8. Structure of Assistance 0% interest, non-recourse, deferred-payment, forgivable,

subordinate loan. A forgiveness clause will reduce the loan

amount by 20% a year for every year the borrower stays in the

home up until five years. At the end of five years, the note will

be considered satisfied and THDA will release the lien securing

the note.

Loan funds are due and payable if property is sold, refinanced or

no longer owner occupied and there are sufficient equity

proceeds available (unless otherwise prohibited under applicable

federal law).

All deferred, subordinate mortgages will be evidenced by a

Home Equity Line of Credit promissory note and secured by a

deed of trust on the property. Borrowers will be required to sign

and acknowledge via written agreement indicating the program

guidelines.

Any funds returned according to established program guidelines

will be recaptured and used to assist additional homeowners 

in accordance with the Agreement.

9. Per Household

Assistance

Maximum amount available per homeowner:

 Assistance for up to 36 months, subject to a maximum

assistance cap of $40,000.

 There is no maximum monthly payment amount;

however, total loan amount cannot exceed applicable

benefit.

10. Duration of Assistance Homeowners may receive assistance up to a maximum of 36

months. Should a homeowner become reemployed within the

applicable period, the homeowner may continue receiving

assistance for up to an additional two months after
B-1-5

reemployment. Additionally, if a homeowner becomes

reemployed within the applicable period and the homeowner’s

mortgage payment exceeds 31% of their current income, they

are eligible for continued assistance.

Any reinstatement assistance shall be made in one payment.

11. Estimated Number of

Participating

Households

Based on the current average amount of assistance of $25,000,

we would expect to assist approximately 7,355 homeowners.

With the increase in available assistance amounts and terms, we

do expect the average amount of assistance to increase and the

number of homeowners assisted to decrease.

12. Program Inception /

Duration

The program began serving the targeted, hardest hit counties

January 1, 2011. On March 1, 2011, the program was expanded

and all counties became eligible for the program. All funds are

expected to be committed by December 31, 2014. Any 

recaptured funds will be used to fund other HHF Programs

through December 31, 2020 or until funding is fully reserved, 

whichever comes first.

13. Program Interactions

with Other HFA

Programs

None.

14. Program Interactions

with HAMP

Borrowers can receive HAMP assistance (including UP program

assistance), as applicable, prior to or after receiving Hardest Hit 

Fund assistance.

15. Program Leverage with

Other Financial

Resources

None.
B-2-1

SCHEDULE B-2

Tennessee Housing Development Agency

HHFBlightElimination Program(BEP)

SummaryGuidelines

1. Program Overview The Tennessee Housing Development Agency (THDA) will

administer the Hardest Hit Fund Blight Elimination Program

(BEP) to assist in the removal of blighted properties in targeted

areaswithin theState ofTennessee.

THDA will work in partnership with approved non-profit

agencies and land banks (collectively, Program Participants) to

strategically target blighted residential single-family properties

for demolition, site improvement,and acceptablereuse.

2. ProgramGoals The BEP will reduce foreclosures, promote neighborhood

stabilization, and maintain or improve property values through

the demolition of vacant, abandoned, blighted residential

structures, and subsequent greening/improvement of the

remaining parcels.

THDA has identified meaningful indicators that will enable

THDA to track and quantify the program’s impact in the

targetedareas.

3. TargetPopulation/

Areas

This program will focus on targeted counties in Tennessee with

high numbers of vacancies and foreclosures. The presence of a

land bank will also be considered. This program will be made

available to the following counties: Shelby, Madison,

Montgomery, Hamilton, Knox and Anderson.

THDA program guidelines will ensure that demolition and

greening/improvement is designed to increase values of

neighboring properties and will promote a positive effect on

preserving existing neighborhoods.

4. Program 

Allocation

(Excluding

Administrative

Expenses)

$10,000,000.00
B-2-2

5. Property 

Eligibility Criteria 

 Existing single-family (one to four unit) home.

 The property must be located in the State of Tennessee.

 The property must be located in a targeted area as defined

in the programguidelines.

 The property must be vacant at the time of acquisition. For

any requestssubmitted on or after January 15, 2016, the

property must not be legally occupied at the time of any

review or approval by the HFA or eligible entity (as

applicable)for blight elimination activity.

 The property is a nuisance due to abandonment and/or other

adverse conditions asidentified in the program guide.

 The cost to acquire (if necessary), demolish, green, and

maintain the property for up to three years does not exceed

$25,000.

 THDA will determine property eligibility including the

following requirements:

(1) Pass a PropertyCondition test;

(2) Meet the State of Tennessee’s definition of “Blight”

according to Title 13, Public Planning and Housing;

and

(3) Qualify forlawful demolition.

6. Ownership / Loan

Eligibility 

Criteria

Program Participant must hold title to the property (may

acquire title in conjunctionwith the programtransaction).

The property must be subject to a loan that can be modified or

extinguished.

7. ProgramExclusions  Commercialproperties,multifamilyproperties.

 Properties listed on a state, national, or local historic

register.

 Properties not meeting THDA’s eligibility requirements as

specified in the programguidelines.
B-2-3

8. Structure of Assistance THDA will determine acceptability of project sites.

Program Participant will be responsible for acquisition of the 

property (if applicable), demolition work, greening/site 

improvement and on-going property maintenance.

The Program Participant will submit an application to THDA

containing the location of the property, neighborhood conditions,

estimated cost of structure removal, estimated cost of greening (if

applicable), and the end use of the vacant lot.

Required documentation must be submitted by the Program 

Participant to THDA for review and approval in THDA’s sole 

discretion pursuant to the program guidelines.

HHF funds will be provided in the form of a loan to the Program 

Participant, upon completion of blight elimination activity on the 

property, verification by THDA and execution of loan 

documentation. Total assistance will provide for acquisition costs 

(if applicable), demolition work, greening/site improvement costs, 

on-going property maintenance, and a one-time administrative fee

of $1,000 per property for the Program Participant.

The loan will be evidenced by a promissory note in favor of 

THDA and secured by a deed of trust on the property. The loan 

will be up to a maximum of $25,000 with a deferred payment, 

forgivable over a 3 year term at 33.3% per year with a 0% interest 

rate so long as THDA’s requirements are met.

Eligible costs include removal of debris, contractor’s fees, permit 

fees, final inspections, environmental assessments, greening and 

maintenance fees in the amount of $1,800 for a three-year period, 

and any other fees or charges required to complete the property 

demolition, removal and site improvement, not to exceed

$25,000. If the cost to demolish the property exceeds the $25,000

maximum, the non-profit Participant must pay the excess amount 

upfront.
B-2-4

The outstanding loan balance will become due and payable if the

property or any interest in it is sold, or otherwise conveyed, or its

title transferred, or it is used for an unauthorized purpose prior

to the end of the loan term or if any ownership interest in the 

property owner is sold or otherwise conveyed. Special

considerations may be made by THDA to release or subordinate

its lien prior to the end of the loan term based upon the merit of

the request and the proposed positive impact to the community.

The method for calculating the portion of the outstanding balance

to be forgiven or released will be determined based upon the

closing date of the HHF funding.

Any funds returned according to established program guidelines

will be recaptured and used in the program in accordance with

theAgreement.

9. Per Property Assistance Maximum amount of assistance may not exceed $25,000 per

property. Maximum assistance amount includes acquisition costs

(if applicable); demolition and greening/improvement costs; and a

one-time project management and maintenance fee to cover

management and maintenance expenses for a period of three (3)

years.

10. Duration of Assistance Funds will be disbursed on a first-come-first-served basis.

11. Estimated Number

of Properties

Demolished

Based on the maximum amount of assistance of $25,000,

approximately 400 blighted properties are anticipated to be

demolished and greened. Program will be expanded if funds are

available.

12. Program Inception

/ Duration

The program will begin on November 1, 2015 and will last as

long as the allocation of funds is available or until December 31,

2020. Any recaptured funds will be used to fund HHF Programs

through December 31, 2020 or until funding is fully reserved, 

whichever comes first.

13. Program

Interactions with

Other HFA

Programs

None.

14. Program

Interactions with

HAMP

None.

15. ProgramLeverage with

Other Financial

Resources

If the cost to demolish and green the property are in excess of the

$25,000 programcap, the ProgramParticipant must pay the

excess amount up front.
B-3-1

SCHEDULE B-3

Tennessee Housing Development

Agency

Principal Reduction with Recast Program or Lien Extinguishment

(PRRPLE) Summary Guidelines

1. ProgramOverview The Tennessee Housing Development Agency (THDA) 

Principal Reduction with Recast Program or Lien Extinguishment

(PRRPLE) will lower monthly mortgage payments to affordable 

levels for eligible homeowners by providing (i) a reduction in the

principal balance of their first mortgage loan, combined with a 

loan recast or modification, or (ii) principal reduction which 

results in a full lien extinguishment.

In conjunction with the principal reduction described above, 

PRRPLE will also pay mortgage-related expenses (e.g., principal,

interest, property taxes, homeowner insurance, and servicerrelated fees) necessary to bring homeowners current on their

mortgage.

2. Program Goals The goal of the program is to reduce delinquencies and 

foreclosures by lowering mortgage payments to affordable levels 

for homeowners who have encountered a financial burden due to 

an eligible hardship, including but not limited to homeowners 

who are living on social security, long-term disability or other 

fixed income source.

3. Target Population

/ Areas

This program will be available statewide in all Tennessee

counties.

THDA will target homeowners who are low-to-moderate income 

and meet THDA mortgage loan income limits.

4. Program

Allocation 

(Excluding 

Administrative 

Expenses)

$5,000,000.00
B-3-2

5. BorrowerEligibility

Criteria

In order to be eligible for assistance under PRRPLE, 

homeowners must meet the following criteria:

 Asset test: homeowner must not have more than 12 months of 

principal, interest, taxes, and insurance (PITI) in reserves.

 Homeowner must be a U. S. citizen or a permanent resident 

alien.

 Homeowner has experienced an eligible financial hardship (as 

set forth in the program guidelines) which occurred after 

January 1, 2010. (Permanently disabled homeowners are 

exempt from this requirement.)

 Homeowner is required to complete a budgeting/housing 

counseling session before closing.

 For a non-fixed income homeowner, maximum household 

income not to exceed $95,900.

 For a fixed income homeowner, maximum household income 

not to exceed $68,700.

In order to receive principal reduction with a loan recast or 

modification, the following additional criteria apply:

 Homeowner suffered a loss of income equal to or greater than 

20% due to a divorce, death of a spouse, underemployment or 

other financial hardship.

 Pre-assistance monthly PITI exceeds 30% of household 

income.

 Post-assistance monthly PITI does not exceed 38% of 

household income, and is not lower than 25% of household 

income.

 Unpaid principal balance of first mortgage loan does not exceed 

$275,000.

 For a non-fixed income homeowner, post-assistance loan-tovalue (LTV) ratio is not less than 78%. 

 For a fixed income homeowner, there is no minimum LTV 

ratio.

In order to receive a full lien extinguishment, the following

additional criteria apply:

 Primary household income is from social security, long-term 

disability or other fixed income source.

 Pre-assistance monthly PITI exceeds 30% of household 

income. 

 Homeowner has a first mortgage loan with an unpaid principal 

balance that does not exceed $40,000.

Eligibility for program assistance will be determined by THDA

in its sole discretion, based on the criteria stated above and as 

otherwise set forth in the program guidelines. Funds will be

allocated on a first-come/approved, first-served basis.
B-3-3

6. Property / Loan

Eligibility Criteria

Existing single-family homes or condominiums (attached or

detached) including manufactured homes on permanent 

foundations assessed by taxing authority as real property.

Owner-occupied, primary residences only.

7. Program Exclusions  Manufactured homes not considered real property. 

 Homeowners who have previously received HHF funds 

through the HHFP program.

 Homeowners who are in an “active” bankruptcy.

 Homeowners with a subordinate lien that is delinquent or in

foreclosure status.

8. Structure of Assistance THDA will structure the PRRPLE assistance as a 0% interest,

non-recourse, deferred-payment, forgivable, subordinate loan 

with a term of 10 years. The loan will be forgiven 20% per year 

in years 6 through 10. At the end of tenth year, the note will be 

considered satisfied and THDA will, upon request, release the

lien securing the note.

Loan funds are due on sale or, refinance or if the property is no 

longer owner-occupied.

The loan will be evidenced by a promissory note and secured by

a Deed of Trust against the property.

Any funds returned according to established program guidelines 

will be recaptured and used to assist additional homeowners 

through December 31, 2020 in accordance with the Agreement.

After December 31, 2020, any unused funds will be returned to 

the U. S. Department of the Treasury in accordance with the 

Agreement.

9. Per Household

Assistance

Maximum amount available per homeowner is $40,000.

10. Duration of Assistance One-time payment to servicer.

I believe they just wanted to make it clear that they will have the 

ability to reinstate delinquent borrowers, not just reduce the 

principal balance. I think should still be considered one lump sum 

payment, even with reinstatement, so I’d be in favor of changing 

to “Assistance under PRRPLE is a one-time payment to the 

servicer.” That conforms with North Carolina and New Jersey, 

two other states that allow for reinstatement under their principal 

reduction programs.
B-3-4

11. Estimated Number of

Participating

Households

Based on the maximum of $40,000 of PRRPLE assistance

available to homeowners, we anticipate providing 125

homeowners with assistance.

Recaptured funds will be returned to the program and used to 

help additional homeowners in accordance with the 

Agreement.

12. Program Inception /

Duration

The statewide launch of the PRRPLE will occur on March 1, 

2017. The program will begin accepting applications on launch 

date.

All funds are expected to be committed by September 30, 2020. 

Any recaptured funds will be used to fund HHF Programs

through December 31, 2020 or until funding is fully reserved, 

whichever comes first.

13. Program Interactions

with Other HFA 

Programs

Homeowners who have received assistance through the HHF

funds in the HHFP program are not eligible to apply for the

PRRPLE program.

14. Program Interactions

with HAMP

No.

15. Program Leverage with

Other Financial

Resources

No.
B-4-1

SCHEDULE B-4

Tennessee Housing Development Agency

Down Payment Assistance Program (HHF-DPA)

Summary Guidelines

1. Program Overview The Tennessee Housing Development Agency (THDA) will provide 

a Down Payment Assistance Program (HHF-DPA) as an incentive 

to qualified first-time homebuyers to purchase a residence in HHF 

Targeted Zip Codes (as specified in Section 3) within Tennessee. 

Providing incentives to qualified homebuyers in housing markets 

that have been hardest hit by serious delinquency, negative equity, 

distressed sales, and foreclosures will strengthen demand in those 

distressed zip codes, stabilize housing prices and help to prevent 

future foreclosures.

2. Program Goals The HHF-DPA Program will help homeowners avoid foreclosure by 

supporting the stabilization of housing prices in targeted zip codes.

THDA will identify meaningful indicators that will track and 

quantify the HHF-DPA Program’s impact in HHF Targeted Zip 

Codes.

3. Target

Population /

Areas

This program will be available in the following approved HHF 

Targeted Zip Codes within Tennessee:

37037, 37040, 37042, 37073, 37086, 37110, 37115, 37148, 37172, 

37186, 37207, 37208, 37217, 37218, 37303, 37311, 37321, 37323, 

37404, 37406, 37411, 37412, 37416, 37660, 37716, 37721, 37813, 

37821, 37871, 37912, 37914, 37917, 37921, 37924, 38012, 38016, 

38018, 38053, 38063, 38105, 38107, 38109, 38111, 38115, 38116, 

38122, 38125, 38127, 38128, 38133, 38134, 38135, 38141, 38301, 

38305; and 37877, 37890, 37920, 37354, 37874, 38118, 37650.

For these zip codes, THDA evaluated five housing market distress 

indicators—seriously delinquent mortgage loans, negative equity, 

short sales, REO sales, and foreclosures—as well as origination 

data. Each of these zip codes exceeded the statewide rate in at least

four out of the five distressed housing market indicators, and 

achieved a minimum threshold origination volume.
B-4-2

4. Program

Allocation

(Excluding

Administrative

Expenses)

$60,000,000.00.

5. Borrower

Eligibility Criteria

Eligible borrowers must qualify for and meet all requirements to 

receive a THDA Great Choice mortgage loan. For example, the 

loan must be a first lien, 30-year, fixed-rate mortgage loan

originated through a THDA-approved lender, and either

conventional or insured or guaranteed by the Federal Housing 

Administration (FHA), Veterans Administration (VA), or U.S. 

Department of Agriculture – Rural Development (RD).

Eligible borrowers must also meet the following criteria:

 Income may not exceed THDA household income limits.

 Must be First-Time Homebuyers as defined by IRS Tax Code. 

 Must complete a THDA-approved homebuyer education course 

prior to closing.

 Must be a legal U.S. citizen or lawful permanent resident.

 Must have a minimum FICO score of 640 (middle score of three 

scores or lowest if two scores).

 Maximum debt-to-income ratio may not exceed 45%.

Eligibility for program assistance will be determined by THDA in 

its sole discretion, subject to the requirements stated above and as 

otherwise set forth in the program guidelines.

Funds will be allocated on a first-come/approved, first-served basis.

6. Property / Loan 

Eligibility

Criteria

 The property must be a single-family home, a condominium 

unit, a townhome, a manufactured home on a foundation 

permanently affixed to real estate owned by the borrower, or a 

two-to-four family dwelling unit of which one unit is to be 

occupied by the mortgagor as his or her principal residence.

 Must be the borrower’s primary residence.

 Property must be located in an HHF Targeted Zip Code.

 Property must meet Insurer or Guarantor’s guidelines.

 Property must meet the HHF-DPA purchase price limits as 

specified in the THDA Originating Agent Guide.

 
B-4-3

7. Program Exclusions  Borrowers who received assistance from other HHF Programs.

 Borrowers convicted of any mortgage-related felonies or other 

prohibited crimes in the past ten years, in accordance with 

Section 1481(d) of the Dodd-Frank Wall Street Reform and 

Consumer Protection Act.

8. Structure of Assistance Down payment assistance, including reasonable and customary 

closing costs, will be made available to homeowners in the form of a 

zero-percent (0%) interest, non-recourse, and forgivable second 

mortgage loan with a ten year term. This loan will be evidenced by a 

note and deed of trust in favor of THDA. The second mortgage loan 

will be forgivable at a rate of 20% per year, in years 6 through 10. 

THDA reserves the right to subordinate the second mortgage loan as 

further detailed in the HHF-DPA Program Guide.

The HHF-DPA loan shall be due on sale. . Any HHF-DPA loan

funds recovered before September 30, 2020 will be recycled back 

into HHF-DPA and used to provide assistance to additional 

homeowners for the duration of HHF-DPA in accordance with the

Agreement.

9. Per

Household

Assistance

$15,000 per household.

10. Duration of Assistance HHF-DPA Program funds will be used to reimburse participating 

lenders who fund the loan at closing once it is determined that all 

HHF-DPA Program requirements have been met. The loan must 

close prior to December 31, 2020.

11. Estimated Number

of Participating

Households

It is anticipated that the HHF-DPA Program will assist 

approximately 4,000 homeowners.

Funds recaptured prior to September 3, 2020, will be returned to 

the HHF-DPA and used to assist additional homeowners in 

accordance with the Agreement.

12. Program

Inception /

Duration

The HHF-DPA Program will begin in March 2017. The program 

will accept applications within 30 days from the launch date. The

program will begin accepting applications for the expansion of ZIP 

Codes on November 1, 2017.

All funds are expected to be committed by October 31, 2020. 

Funds recaptured prior to September 30, 2020, will be returned to

the HHF-DPA and used to assist additional homeowners in 

accordance with the Agreement through December 31, 2020 or 

until funding is fully reserved, whichever comes first.
B-4-4

13. Program

Interactions with

Other HFA

Programs

The HHF-DPA Program will take advantage of an existing 

infrastructure of participating lenders who are already actively 

originating both first mortgage and down payment assistance loans 

as part of THDA’s mortgage loan origination programs. 

Homeowners may have received assistance through other HFA 

Programs. 

14. Program

Interactions with

HAMP

None.

15. Program Leverage

with Other Financial

Resources

THDA uses tax-exempt bond proceeds as a source of funding for 

the accompanying first mortgage loans. In addition, funds may be 

leveraged by our lenders using additional subsidy programs such as 

state housing grants, Federal Home Loan Bank down payment 

assistance, Neighborhood Stabilization Program (NSP) Funds or 

HOME funds. HHF-DPA may not be leveraged with USDA-RD 

Grant Funding.
B-5-1

SCHEDULE B-5

Tennessee Housing Development Agency 

HHF Reinstatement Only Program (HHF-ROP)

Summary Guidelines

1. Program Overview The Tennessee Housing Development Agency (THDA) Hardest 

Hit Fund Reinstatement Only Program (ROP) will provide

assistance to homeowners who have fallen behind on their 

mortgage loans and are in imminent danger of losing their home

to foreclosure due to a qualified hardship that occurred after they 

acquired their home.

Loan proceeds will be used to pay all mortgage loan and 

mortgage- related expenses to Servicer (e.g., escrowed property 

taxes, homeowner insurance, homeowner dues) to bring the 

homeowner’s mortgage loan(s) current, subject to maximum

assistance criteria described in Section 9. Homeowners may

receive assistance to bring their mortgage loan current through 

the month the reinstatement payment is made. 

2. Program Goals To prevent foreclosures and preserve homeownership by 

providing reinstatement assistance to homeowners who have been

impacted by an involuntary loss of income that caused them to 

become delinquent on their mortgage loan(s).

3. Target Population /

Areas

This program will be available in all Tennessee counties.

4. Program Allocation

(Excluding

Administrative

Expenses)

$ 5,700,000.00
B-5-2

5. BorrowerEligibility

Criteria

In order to be eligible for assistance under ROP, homeowners 

must meet the following criteria:

 Maximum household income not to exceed $95,900.

 Asset test: homeowner must not have more than 6 months of 

principal, interest, taxes, and insurance (PITI) in reserves

(excludes retirement accounts).

 Homeowner must be a U. S. citizen or a permanent resident 

alien.

 Homeowner has experienced an eligible financial hardship of 

involuntary loss of income equal to or greater than 20% due to 

a divorce, death of a spouse, or temporary loss of wages which 

occurred after the purchase of the home and after January 1, 

2010 (permanently disabled homeowners do not need to meet

the January 1, 2010 requirement). 

 Post-Assistance: homeowner’s monthly PITI must not exceed 

38% of household income.

 Homeowner is required to c o m p l e t e a n d s i g n a

financial hardship affidavit with appropriate documentation as

to the cause of the hardship, as specified in the program

guidelines.

 Homeowner is required to complete a budgeting/housing 

counseling session before closing.

Eligibility for program assistance will be determined by THDA 

in its sole discretion, based on the criteria stated above and as 

otherwise set forth in the program guidelines. The ROP funds 

will be allocated on a first-come/approved, first-served basis.

6. Property / Loan 

Eligibility Criteria

The property must be an existing single-family home or

condominium (attached or detached) including manufactured

homes on foundations permanently affixed to real estate owned

by the borrower.

Tennessee owner-occupied, primary residences only.

7. Program Exclusions  Homeowner has a total unpaid principal balance > $275,000.

 Homeowner has received assistance through other HHF 

funded programs.

 Homeowner is in “active” bankruptcy. 
B-5-3

8. Structure of Assistance ROP assistance is structured as a 0% interest, non-recourse,

deferred-payment, forgivable, subordinate m o r t g a g e loan

with a ten (10) year term. A forgiveness clause will reduce

the loan amount by 20% per year for every year the

homeowner stays in the home in years 6 through 10. At the end

of the ten (10) years, the note will be considered satisfied and

the homeowner may request to release the lien securing the

note.

The mortgage loan will be evidenced by a promissory note and

secured by a deed of trust on the property in favor of THDA.

Borrowers will be required to sign and acknowledge the

program guidelines pursuant to a written agreement.

Loan funds are due and payable if the property is sold, 

refinanced or no longer owner occupied and there are

sufficient equity proceeds available (unless otherwise prohibited

under applicable federal law).

Any funds returned according to established program guidelines

will be recaptured and used to assist additional homeowners 

in accordance with the Agreement.

9. Per Household

Assistance

Up to $20,000.

10. Duration of Assistance ROP assistance is provided as a one-time disbursement per 

mortgage loan.

11. Estimated Number of

Participating

Households

Based on the maximum amount of ROP assistance, THDA

anticipates assisting approximately 285 homeowners.

12. Program Inception /

Duration

The program will began serving Tennesseans across the state 

November 1, 2017. 

All funds are expected to be committed by December 31,

2020. Any recaptured funds will be used to fund HHF Programs

through December 31, 2020 or until funding is fully reserved, 

whichever comes first.

13. Program Interactions

with Other HFA

Programs

None.

14. Program Interactions

with HAMP

None.
B-5-4

15. Program Leverage with

Other Financial

Resources

None.
C-1

HHF Tennessee Date: October 13, 2017

SCHEDULE C

 

 PERMITTED EXPENSES

Tennessee

One-time / Start-Up Expenses:

Initial Personnel $50,264.40

Building, Equipment, Technology $230,209.59

Professional Services $19,668.00

Supplies / Miscellaneous $3,265.33

Marketing /Communications $741.73

Travel $1,786.15

Website development /Translation $15,000.00

Contingency $0.00

Subtotal $320,935.20

Operating / Administrative Expenses:

Salaries $18,233,044.07

Professional Services (Legal, Compliance,

Audit, Monitoring) $429,776.36

Travel $134,186.56

Buildings, Leases & Equipment $0.00

Information Technology & Communications $723,697.19

Office Supplies/Postage and

Delivery/Subscriptions $348,098.82

Risk Management/ Insurance $0.00

Training $85,236.42

Marketing/PR $2,118,848.92

Miscellaneous $198,394.29

Subtotal $22,271,282.63

Transaction Related Expenses:

Recording Fees $4,185,602.93

Wire Transfer Fees $421,778.31

Counseling Expenses

File Intake $30,000.00

Decision Costs $0.00

Successful File $9,211,000.00

Key Business Partners On-Going $100,000.00

Subtotal $13,948,381.24

Grand Total $36,540,599.07
C-2

HHF Tennessee Date: October 13, 2017

% of Total Award 12.10%

Award Amount $302,055,030.00