B-1-1

HHF Indiana Date: June 7, 2019

SERVICE SCHEDULE B-1

Indiana

Hardest Hit Fund Unemployment Bridge Program 

Summary Guidelines

1) Program

Overview

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

administered by the Indiana Housing and Community Development 

Authority (“IHCDA”) offers qualifying homeowners who have 

experienced a financial hardship up to $30,000 in primary mortgage 

payment assistance as set forth below. Beginning July 1, 2018, the only 

assistance available to new applicants through UBP is Reinstatement-Only 

assistance as described in item (3) below.

1) For qualifying homeowners who experienced an involuntary 

employment-related financial hardship, and their monthly mortgage 

payment is unaffordable based on their current household income, 

IHCDA may provide temporary monthly assistance to cover the 

homeowner’s first mortgage payment and related expenses (“Monthly 

Assistance”).

2) For qualifying homeowners of Monthly Assistance who experienced 

an involuntary employment-related financial hardship that caused, or 

contributed to, an accumulated mortgage delinquency that they cannot 

resolve, IHCDA may provide additional funding at the outset oftheir 

Monthly Assistance to bring the homeowner’s delinquent mortgage 

current (“Monthly Assistance with Reinstatement”)

3) For qualifying homeowners who experienced a financial hardship due 

to involuntary unemployment or underemployment, divorce, death of 

a spouse, or a medical condition that caused, or contributed to, an 

accumulated mortgage delinquency that they cannot resolve (but 

whose monthly mortgage payment is otherwise affordable based on 

the homeowner’s current monthly household income, excluding 

unemployment insurance benefits), IHCDA may provide assistance 

to bring the homeowner’s delinquent mortgage current 

(“Reinstatement Only”).

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

1) Provide eligible homeowners an opportunity to secure new 

employment, access training or education to improve employment 

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

avoid foreclosure; and
B-1-2

2) Mitigate the effects of a recent financial hardship.

3) Target 

Population / 

Areas

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

any county in Indiana.

4) Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any program 

included in Schedule B.

5) Borrower

Eligibility

Criteria

With respect to all borrowers:

• Must own only one mortgaged home;

• Must submit a financial hardship affidavit documenting a reduction in 

income due to one of the following:

 o Involuntary unemployment

 o Involuntary underemployment

 o Divorce

 o Death of a spouse or

 o Medical condition

In addition, one of the following must apply:

• Monthly Assistance or Monthly Assistance with Reinstatement 

borrowers:

a) Must have a validated monthly first mortgage payment that 

exceeds 25% of the borrower’s gross monthly household income, 

excluding unemployment insurance benefits (“Minimum 

Affordability Threshold”); and

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

adjusted for borrower household size; and

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

there must be sufficient funds available within the Maximum 

Household Assistance cap to allow IHCDA to make at least 3 

monthly mortgage payments to the servicer.

or:

• Reinstatement-Only borrowers:

a) Must have a current maximum front-end housingdebt-to-income 

ratio of 38%; and

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

$150,000.
B-1-3

6) Property / Loan 

Eligibility 

Criteria

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

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

homes are eligible if on a foundation permanently affixed to real 

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

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

cannot exceed the conforming loan limit established by the Federal 

Housing Finance Agency, as modified from time to time.

7) Program

Exclusions

• Property is vacant, abandoned or condemned.

• Borrower has liquid assets, excluding retirement accounts, sufficient 

to make 9 monthly PITI payments.

• Borrowers with open home equity lines of credit.

8) Structure of 

Assistance

All assistance is structured as a forgivable, non-recourse, non-amortizing 

loan, secured by a junior lien on the property. The loan has a term of 10 

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

the loan term. If the borrower sells the property before the forgiveness 

period expires, all net sale proceeds up to the full principal balance 

outstanding will be due and payable to IHCDA. All funds returned to the 

UBP shall be recycled in accordance with the Agreement.

9) Per Household 

Assistance

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

not to exceed $30,000.

10) Duration of 

Assistance

For Monthly Assistance or Monthly Assistance with Reinstatement 

borrowers, IHCDA may provide up to the borrowers’ Maximum 

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

months after an increase in household income that results in the borrower 

exceeding the Minimum Affordability Threshold, whichever comes first.

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

the lender/servicer.

11) Estimated 

Number of 

Participating 

Households

IHCDA estimates that approximately 11,000 households could receive 

assistance, based on historical averages.

12) Program

Inception / 

Duration

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

intake will continue until program funds are exhausted, but not beyond

December 31, 2020.

13) Program

Interaction with 

Other 

Programs (e.g. 

other HFA 

programs)

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

Hardest Hit Fund assistance through IHCDA.

The total amount of assistance provided may not exceed $30,000.
B-1-4

14) Program

Interactions 

with HAMP

Prior to the conclusion of Making Home Affordable programs, borrowers 

were pre-screened for HAMP, HAFA and HAMP-UP, as applicable, and 

other programs offered by lenders. HHF funds could be utilized before 

or after assistance from HAMP-UP.

15) Program

Leverage

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

participation agreements with servicers interested in participating in the 

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

SERVICE SCHEDULE B-2

Indiana

Hardest Hit Fund Recast/Modification Program 

Summary Guidelines

1) Program

Overview

The Recast/Modification Program will close on June 30, 2018.

Under Indiana’s Hardest Hit Fund Recast/Modification Program 

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

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

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

assistance, as follows:

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

are struggling to make their mortgage payment due to an involuntary 

financial hardship, IHCDA may provide a first mortgage principal 

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

that results in an affordable monthly mortgage payment as defined in 

program guidelines (“Recast Borrowers”).

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

Schedule B-1, Indiana Hardest Hit Fund Unemployment Bridge 

Program) may be combined with the first mortgage principal balance 

payment, provided that sufficient funds remain within the Maximum 

Household Assistance amount following reinstatement to achieve an 

affordable payment through recast/re-amortization.

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

IHCDA may provide Reinstatement Assistance in conjunction with a 

permanent mortgage loan modification by the servicer (“Modification 

Borrowers”). Upon acceptance by the servicer, homeowners whose 

delinquency is above the amount of the Maximum Household 

Assistance may still qualify for such loan modification. HHF funds 

may be utilized for principal reduction, if necessary to facilitate a 

modification.

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

reducing their monthly first mortgage payment to a more manageable 

level.

3) Target 

Population / 

Areas

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

any county in Indiana.

4) Program Funds 

(Excluding

Not applicable. Program Funds may be disbursed under any program

included in Schedule B.
B-2-2

Administrative 

Expenses)

5) Borrower

Eligibility 

Criteria

With respect to all borrowers:

• Must own only one mortgaged home;

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

adjusted for borrower household size;

• Must submit an affidavit documenting involuntary financial hardship 

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

to, involuntary loss or reduction in employment income, significant 

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

member, or divorce. Involuntary employment-related financial 

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

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

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

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

In addition:

• With respect to Recast Borrowers only:

a) Must have experienced a minimum reduction in household 

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

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

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

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

age 65 or older, medical expenses must be greater than or equal to 

7.5% of gross household income.

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

ratio of between 31% and 38%.

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

result in a reduction in gross household income of greater than or 

equal to (a) 7.5% for borrowers who served on active duty and 

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

10% for borrowers who were in the National Guard or Reserves 

and were called to active duty.

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

IHCDA.

• With Respect to Modification Borrowers only, additional eligibility 

for loan modification will be determined by the mortgage servicer.
B-2-3

6) Property / Loan 

Eligibility 

Criteria

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

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

homes are eligible if on a foundation permanently affixed to real 

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

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

cannot exceed the conforming loan limit established by the Federal 

Housing Finance Agency, as modified from time to time.

7) Program

Exclusions

• Property is vacant, abandoned or condemned.

• Borrower has liquid assets sufficient to make 9 monthly PITI 

payments, excluding retirement accounts.

• Borrowers with open home equity lines of credit.

8) Structure of 

Assistance

All assistance is structured as a forgivable, non-recourse,non-amortizing 

loan, secured by a junior lien on the property. The loan has a term of 10 

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

the loan term. If the borrower sells the property before the forgiveness 

period expires, all net sale proceeds up to the full principal balance 

outstanding will be due and payable to IHCDA. All funds returned to the 

RMP shall be recycled in accordance with the Agreement.

9) Per Household 

Assistance

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

not to exceed $30,000.

10) Duration of 

Assistance

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

lender/servicer.

11) Estimated 

Number of 

Participating 

Households

IHCDA estimates that approximately 220 households will receive RMP 

assistance.

12) Program

Inception / 

Duration

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

Recast/Modification Program will close on June 30, 2018.

13) Program

Interaction with 

Other 

Programs (e.g. 

other HFA 

programs)

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

Hardest Hit Fund assistance through IHCDA.

The total amount of assistance provided to any individual household may 

not exceed $30,000.

14) Program

Interactions 

with HAMP

Prior to the conclusion of Making Home Affordable programs, borrowers 

were pre-screened for HAMP, HAFA and HAMP-UP, as applicable, and 

other programs offered by lenders. HHF funds could be utilized before

or after assistance from HAMP-UP

15) Program

Leverage

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

participation agreements with servicers interested in participating in the
B-2-4

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

acceptance of payment from IHCDA.
B-3-1

SERVICE SCHEDULE B-3

Indiana

Hardest Hit Fund Transition Assistance Program 

Summary Guidelines

1) Program

Overview

The Transition Assistance Program will close on June 30, 2018.

Under Indiana’s Hardest Hit Fund Transition Assistance Program 

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

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

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

marketable condition.

The following TAP assistance will be available:

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

expenses (“Transition Assistance”); and

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

necessary, to escrow funds with legal counsel to extinguish and 

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

foreclosure agreement.

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

neighborhoods by helping homeowners to achieve and orderly exit from 

their home.

3) Target 

Population / 

Areas

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

any county in Indiana.

4) Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any program 

included in Schedule B.

5) Borrower

Eligibility 

Criteria

With respect to all borrowers:

• Owning only one mortgaged home.

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

borrower household size.

• Submission of affidavit documenting involuntary financial hardship 

that occurred on or after January 1, 2008.

• The shortsale or deed-in-lieu transaction must not have occurred prior 

to the application for transition assistance funds.
B-3-2

• Military personnel who have received a permanent change of station 

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

eligible.

6) Property / Loan 

Eligibility 

Criteria

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

condominium (attached or detached) located in Indiana. 

Manufactured or mobile homes are eligible if on a foundation 

permanently affixed to real estate owned by the borrower. Land 

contracts are not eligible.

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

cannot exceed the conforming loan limit established by the Federal 

Housing Finance Agency, as modified from time to time.

7) Program

Exclusions

• Property is vacant, abandoned or condemned.

• Borrower has liquid assets sufficient to make 9 monthly PITI 

payments, excluding retirement accounts.

8) Structure of 

Assistance

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

9) Per Household 

Assistance

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

10) Duration of 

Assistance

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

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

11) Estimated 

Number of 

Participating 

Households

IHCDA estimates that approximately 20 participating households will 

receive TAP assistance.

12) Program

Inception / 

Duration

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

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

13) Program

Interaction with 

Other 

Programs (e.g. 

other HFA 

programs)

Homeowners who received Indiana Hardest Hit Fund Unemployment 

Bridge Program assistance through IHCDA may also receive TAP 

assistance.

14) Program

Interactions 

with HAMP

Prior to the conclusion of Making Home Affordable Programs, 

Transition Assistance funds could be used in conjunction with HAFA.

15) Program

Leverage

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

participation agreements with servicers interested in participating in the 

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

acceptance of payment from IHCDA.
B-4-1

SERVICE SCHEDULE B-4

Indiana

Hardest Hit Fund Blight Elimination Program 

Summary Guidelines

1) Program

Overview

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

the Indiana Housing and Community Development Authority 

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

nonprofit entities (“NFPs”), community development corporations 

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

residential properties for demolition and greening within the state of 

Indiana.

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

property values and increase neighborhood safety in communitiesacross 

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

blighted residential properties. IHCDA will work with applicants and 

their Program Partners to identify meaningful indicators that will enable 

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

communities.

3) Target 

Population / 

Areas

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

eligible to apply for BEP property eligibility through a competitive 

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

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

located.

4) Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any program 

included in Schedule B.

5) Property

Eligibility 

Criteria

Vacant and blighted residential properties located in Indiana.

For any requests submitted on or after January 15, 2016, propertiesmust 

not be legally occupied at the time of any review or approval by the HFA 

or eligible entity (as applicable) for blight elimination activity.

IHCDA will determine property eligibility.

Each property for which an Applicant requests blight elimination funding 

will be individually scored based on factors including, but not limited to:

• Inhabitability of Property

• Structural Damage
B-4-2

• Public Safety Impact

Properties will be evaluated using a scoring matrix created by IHCDA 

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

for receipt of blight elimination funds.

6) Ownership / 

Loan Eligibility 

Criteria

A Program Partner must hold title to the property at the time of 

demolition.

7) Program

Exclusions

Commercial structures.

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

8) Structure of 

Assistance

IHCDA will determine project sites in direct consultation with 

Applicants.

Subject to Section 6 above, Program Partners and/or Applicants will be 

responsible for property acquisition (if necessary).

Applicants are responsible for ensuring that demolition work is 

competitively bid.

Program Partners are responsible for on-going property stabilization.

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

information including, but not limited to, the following:

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

make eligible

• Acquisition information

• The Program Partner responsible for the property

• The post-demolition goal for each lot

• Demolition bids from licensed contractors that include the 

removal of

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

environmental remediation

Upon receipt of appropriate documentation confirming the completion 

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

Applicant after the Applicant’s and Program Partner’s execution of a 

secured lien mortgage and note for a maximum of $25,000 in favor of 

IHCDA.

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

property stabilization costs. Property stabilization costs will be a
B-4-3

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

Program Partner retains title to the property during that term and 

otherwise complies with program requirements.

The secured lien mortgage and notes will be structured as zero percent, 

non-amortizing loans, secured by a lien on the property. Loans will expire 

three years after their origination date (“Expiration Date”). Prior to the 

Expiration Date, loans will be forgiven at a rate of 33.3% per annum as 

long as covenants are met.

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

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

Date. The method for calculating the outstanding balance will be 

determined based upon the time and method of transfer. The outstanding 

balance may include any and all net sale proceeds and/ or the full principal 

balance of the loan. Prior to the Expiration Date, all proceeds will be due 

and payable to IHCDA. All proceeds returned to the IHCDA from the 

BEP shall be recycled in accordance with the Agreement.

Special considerations may be made by IHCDA to release orsubordinate 

its lien prior to expiration based upon the merit of the request and the 

proposed positive economic impact to the community as set forth in the 

program guidelines.

9) Per Household 

Assistance

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

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

period of 3 years.

10) Duration of 

Assistance

One-time assistance per property

11) Estimated 

Number of

Properties 

Demolished

IHCDA estimates that approximately 3000 properties could be served 

under this program.

12) Program

Inception / 

Duration

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

BEP closed to new applicants as of May 2018.

13) Program

Interaction with 

Other 

Programs (e.g. 

other HFA 

programs)

Property will only be eligible for one IHCDA Hardest Hit Fund Program.
C-1

SCHEDULE C

PERMITTED EXPENSES

Indiana

One-time / Start-Up Expenses:

Initial Personnel $0.00

Building, Equipment, Technology $89,000.00

Professional Services $120,000.00

Supplies / Miscellaneous $3,150.00

Marketing /Communications $175,000.00

Travel $10,000.00

Website development /Translation $175,000.00

Contingency $0.00

Subtotal $572,150.00

Operating / Administrative Expenses:

Salaries $6,847,639.00

Professional Services (Legal, Compliance, 

Audit, Monitoring)

$4,754,305.00

Travel $70,000.00

Buildings, Leases & Equipment $423,235.00

Information Technology & 

Communications $5,500,000.00

Office Supplies/Postage and 

Delivery/Subscriptions $260,000.00

Risk Management/ Insurance $0.00

Training $20,000.00

Marketing/PR $3,018,765.00

Miscellaneous $400,000.00

Subtotal $21,293,944.00

Transaction Related Expenses:

Recording Fees $530,000.00

Wire Transfer Fees $228,925.00

Counseling Expenses

File Intake $3,254,681.00

Decision Costs $7,729,335.00
C-2

Successful File $4,720,000.00

Key Business Partners On-Going $2,111,719.00

Subtotal $18,574,660.00

Grand Total $40,440,754.00

% of Total Award 14.24%

Award Amount $283,994,336