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TWELFTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Twelfth 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 Twelfth 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, HFA and Eligible Entity submitted a request to Treasury to make certain revisions 

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

same; 

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

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

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

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

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

Agreement 

1. Amendments 

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

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

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

references herein to the “HPA” shall mean the Current HPA, as further amended by this 

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

and replaced with Schedule A attached to this Amendment. 

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

and replaced with Schedule B attached to this Amendment. 

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

and replaced with Schedule C attached to this Amendment. 

2. Representations, Warranties and Covenants 

A. HFA and Eligible Entity. HFA and Eligible Entity, each for itself, make the 

following representations, warranties and covenants to Treasury and the truth and accuracy 

of such representations and warranties and compliance with and performance of such 

covenants are continuing obligations of HFA and Eligible Entity, each as to itself. In the 

event that any of the representations or warranties made herein cease to be true and correct or 

HFA or Eligible Entity breaches any of its covenants made herein, HFA or Eligible Entity, as 

the case may be, agrees to notify Treasury immediately and the same shall constitute an 

Event of Default under the HPA. 

(1) HFA and Eligible Entity each hereby certifies, represents and warrants as of the 

date hereof that each of the representations and warranties of HFA or Eligible Entity, as 

applicable, contained in the HPA are true, correct, accurate and complete in all material 

respects as of the date hereof. All covenants of HFA or Eligible Entity, as applicable, 

contained in the HPA shall remain in full force and effect and neither HFA, nor Eligible 

Entity is in breach of any such covenant. 

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

and deliver this Amendment and any other closing documentation delivered to Treasury 

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

thereunder. 

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

Amendment and any other closing documentation delivered to Treasury in connection 

with this Amendment, and to perform its obligations hereunder and thereunder. 

3. 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 
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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 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 Twelfth Amendment to HPA – Washington, D.C.] 

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

execute and deliver this Amendment as of the Amendment Date. 

HFA: TREASURY: 

DISTRICT OF COLUMBIA HOUSING 

FINANCE AGENCY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Todd A. Lee By: 

Name: Todd A. Lee Name: Mark McArdle 

Title: Executive Director Title: Deputy Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

DISTRICT OF COLUMBIA HOUSING 

FINANCE AGENCY 

By: /s/ Todd A. Lee 

Name: Todd A. Lee 

Title: Executive Director 
 

EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
A-1 

SCHEDULE A

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: District of Columbia Housing Finance Agency1

Corporate or other organizational form: body corporate and instrumentality of the District of 

Columbia, organized and existing under and pursuant to 

the District of Columbia Housing Finance Agency Act, 

D.C. Law 2-135, as amended (D.C. Code, § 42-2701.01 

et. Seq.) 

Jurisdiction of organization: District of Columbia 

Notice Information: 

 

HFA Information: 

Name of HFA: District of Columbia Housing Finance Agency 

Organizational form: body corporate and instrumentality of the District of 

Columbia, organized and existing under and pursuant to 

the District of Columbia Housing Finance Agency Act, 

D.C. Law 2-135, as amended (D.C. Code, § 42-2701.01 

et. Seq.) 

Date of Application: September 1, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Same as Notice Information for Eligible Entity 

Program Participation Cap: $28,745,131.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: N/A 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $ 7,726,678.00 

Rounds 1-4 Funding Allocation: $ 20,697,198.00 

 

1 References in the Agreement to the term "HFA" shall mean the District of Columbia Housing Finance Agency 

("DCHFA") in its capacity as an HFA as such term is used in the Agreement; references in the Agreement to the term 

"Eligible Entity" shall mean DCHFA, in its capacity as Eligible Entity as such term is used in the Agreement. 
A-2 

Round 5 Funding Allocation: $ 8,047,933.00 

Permitted Expenses: $ 5,768,108.00

Closing Date: September 23, 2010 

First Amendment Date: September 29, 2010 

Second Amendment Date: December 16, 2010 

Third Amendment Date: March 31, 2011 

Fourth Amendment Date: May 25, 2011 

Fifth Amendment Date: October 28, 2011 

Sixth Amendment Date: March 29, 2012 

Seventh Amendment Date: December 14, 2012 

Eighth Amendment Date: September 20, 2013 

Ninth Amendment Date: July 11, 2014 

Tenth Amendment Date: May 21, 2015 

Eleventh Amendment Date: June 1, 2016 

Twelfth Amendment Date: November 1, 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 

District of Columbia Housing Finance Agency 

HOMESAVER PROGRAM 

Summary Guidelines 

1. Program Overview The HomeSaver Program will offer lump sum assistance and/or 

ongoing monthly mortgage payments to eligible District of 

Columbia (“District”) homeowners at risk of foreclosure. 

The HomeSaver Program is made up of two components: 

• The Unemployment and Underemployment Assistance

component will provide assistance to unemployed and 

underemployed homeowners through a one-time payment of 

up to nine (9) months of mortgage and/or condo fee 

delinquency in order to bring the mortgage current. This 

component will provide up to twenty four (24) months of 

mortgage and/or condo fee payments going forward in order 

to keep the homeowner current. 

• The Restore Assistance component will be available for 

homeowners who have suffered a financial hardship and 

who need a lump-sum payment to catch up on arrears, but 

who have sufficient resources to continue making their 

regular payments going forward. Restore assistance may 

cover any property-related payments necessary to cure a 

default and prevent a foreclosure, including but not limited 

to mortgage payments, property taxes, hazard insurance, late 

fees, condo fees, homeowners association fees, and legal 

fees. For applicants whose delinquency involved an 

inability to pay property tax charges, non-escrowed property 

taxes, such as in the case of a reverse mortgage, may be prepaid through the remainder of the fiscal year at settlement. 

Applicants will be referred to the HomeSaver Program after 

completion of an intake package. Intake packages will be 

reviewed by a U.S. Department of Housing and Urban 

Development (“HUD”) approved housing counseling agency 

and then forwarded to the HomeSaver Program for approval. 

2. Program Goals Foreclosure prevention – The primary goal of the HomeSaver 

Program is to prevent foreclosures that will erode the base of 

homeowners in the District, which already lags behind the 

national average in the rate of homeownership. Additionally, 

each applicant will work with a HUD approved housing 

counseling agency. 
 B-1-2 

Synergistic interaction – The DCHFA will partner with other 

organizations (i.e. DOES and the Urban Institute) to define the 

universe of potential candidates for the HomeSaver Program, 

perform outreach and intake and ultimately deliver timely 

assistance to prevent foreclosure. DOES is the District agency 

that administers the District’s Unemployment Insurance and job 

training programs. The Urban Institute (the “Institute”) has 

conducted extensive research into housing issues in the District, 

including mortgage delinquencies and foreclosures. The Institute 

gathers data, conducts research, evaluates programs, offers 

technical assistance overseas, and educates Americans on social 

and economic issues to foster sound public policy and effective 

government. 

Simplicity – The DCHFA will employ a HomeSaver Program 

design that seeks to minimize administrative costs, thereby 

maximizing the amount of dollars available for assistance. 

3. Target Population / 

Areas 

The HomeSaver Program will be available to eligible 

homeowners throughout the District. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$22,977,023 

5. Borrower Eligibility 

Criteria 

Eligible program participants will be District homeowners 

identified on the most recent deed of trust, or deed, who 

currently occupy their home as a primary residence. 

In addition, candidates must also meet the following criteria: 

• Unemployment and Underemployment Assistance – 

unemployed homeowners who have received UI benefits 

within six (6) months of application; or underemployed

homeowners who (i) have had an involuntary reduction 

in gross income such that the homeowner’s income is 

90% or less of the homeowner’s pre-hardship income 

(which reduction occurred after the origination of the 

current mortgage), (ii) have a current gross income less 

than or equal to 120% of Area Median Income (“AMI”), 

and (iii) have a monthly PITI payment that is greater 

than 38% of the homeowner’s gross monthly income. 

• Restore –homeowners who 
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o have suffered an eligible financial hardship, and, 

through no fault of their own, are at risk of a 

foreclosure due to unpaid mortgage payments, 

property taxes, hazard insurance, late fees, condo 

fees, homeowners association fees, legal fees or other 

property-related payments; and 

o if the default is cured, can afford to resume future 

payments without additional assistance by 

demonstrating a housing payment ratio of 38% or 

less of the homeowner’s gross monthly income. 

All program participants will be required to sign a Hardship 

Affidavit attesting to their inability to make mortgage payments 

or reinstate their delinquency due to unemployment, substantial 

underemployment, or other eligible financial hardship that 

occurred through no fault of their own. 

6. Property / Loan 

Eligibility Criteria 

Single-family home or condominium. 

7. Program Exclusions • Homeowners with an outstanding mortgage balance greater 

than $729,750; 

• Homeowners whose income is over 120% of AMI; 

• Homeowners who are in active bankruptcy; 

• Residential cooperative units; 

• Homeowners unable to substantiate past and present income 

or who fail to provide required program documentation as 

requested. 

8. Structure of Assistance All loans will be recorded as non-recourse junior liens against 

the property and will be non-amortizing. Loans will be forgiven 

at a rate of 20% per year such that in year six (6) the loan will be 

forgiven and the lien released. 

If assistance is paid directly (or through a settlement agent) to 

the District of Columbia Office of Tax and Revenue and/or to a 

condominium or homeowners association, the homeowner will 

execute an additional, simultaneous Demand Note in the amount 

required to redeem a property (if applicable). 

The loan will only be repayable if the program participant sells 

or refinances the property prior to expiration of the lien period, 

and then only to the extent there is sufficient equity to pay that 

portion of the loan that has not been forgiven. Notwithstanding 

the foregoing, if a program participant refinances prior to full 

forgiveness, and the participant is not receiving any cash from 
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the refinance, the HomeSaver loan will subordinate to the new 

loan and will continue to be forgiven.

Loan funds repaid by program participants will be returned to 

the program or recaptured in accordance with the Agreement. 

9. Per Household 

Assistance 

Maximum program assistance is $60,000 per household. 

10. Duration of Assistance Unemployment and Underemployment Assistance. The 

maximum duration of assistance is twenty-four (24) months. 

Eligible homeowners may combine lump-sum catch-up 

assistance and forward-paying assistance so long as the total 

duration of assistance does not exceed the cap. For example, if 

an unemployed homeowner receives catch-up assistance to bring 

his/her mortgage current after a six (6) month delinquency, the 

homeowner may still be eligible for up to eighteen (18) months 

of forward-paying assistance, as long as the total duration does 

not exceed twenty-four (24) months. 

Restore Assistance. One-time lump-sum payment capped at 

$60,000. 

11. Estimated Number of 

Participating 

Households 

900-1,200 

12. Program Inception / 

Duration 

The HomeSaver Program began January 18, 2011 and is 

expected to continue until all funds are exhausted, but not later 

than December 31, 2020. 

13. Program Interactions 

with Other HFA 

Programs 

Homeowners may access other District programs. The DCHFA 

will explore partnerships with other District agencies that have 

programs assisting District residents at risk of foreclosure, 

including the Department of Housing and Community 

Development (“DHCD”) and the Department of Insurance 

Securities and Banking (“DISB”). DISB provides foreclosure 

mitigation assistance and DHCD funds foreclosure prevention 

counseling and other federal programs including the 

Neighborhood Stabilization Program. 

14. Program Interactions 

with HAMP 

Eligible homeowners may also access Federal programs 

including HAMP and HAMP UP. Homeowners may utilize 

HAMP UP before or after the HomeSaver Program. 
 B-1-5 

15. Program Leverage with 

Other Financial 

Resources 

The HomeSaver Program requires no financial contribution 

from servicers or lenders, however, loan modifications or 

contributions/fee waivers are permitted (but not required). 
C-1 

SCHEDULE C 

PERMITTED EXPENSES 

Washington D.C.

 

 One-time / Start-Up Expenses: 

Initial Personnel $76,829.00

Building, Equipment, Technology $166,968.00

Professional Services $12,000.00

Supplies / Miscellaneous $0.00

Marketing /Communications $7,500.00

Travel $5,000.00

Website development /Translation $1,412.00

Contingency $0.00

 Subtotal $269,709.00

 

Operating / Administrative 

Expenses: 

Salaries $1,683,615.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $236,300.00

Travel $9,000.00

Buildings, Leases & Equipment $209,650.00

Information Technology & 

Communications $804,834.00

Office Supplies/Postage and 

Delivery/Subscriptions $22,123.00

Risk Management/ Insurance $0.00

Training $0.00

Marketing/PR $37,426.00

Miscellaneous $10,000.00

 Subtotal $3,012,948.00

 

 Transaction Related Expenses: 

Recording Fees $938,705.00 

Wire Transfer Fees $152,762.00 

 Counseling Expenses 

File Intake $0.00 

Decision Costs $0.00 

Successful File $1,286,769.00

Key Business Partners On-Going $107,215.00 

 Subtotal $2,485,451.00
C-2 

 

 Grand Total $5,768,108.00

 

% of Total Award 20.07%

Award Amount $28,745,131.00