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ELEVENTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Eleventh 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 Eleventh 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. Reserved.
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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 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 or F shall mean the Exhibit A or Schedules A, B 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 an 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 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 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 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 Eleventh Amendment to HPA – Rhode Island]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION

UNITED STATES DEPARTMENT OF THE 

TREASURY

By: /s/ Peter Walsh By:

Name: Peter Walsh Name: Mark McArdle

Title: Deputy Director Title: Deputy Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION

By: /s/ Peter Walsh

Name: Peter Walsh

Title: Deputy Director
EXHIBITS AND SCHEDULES

Exhibit A Form of Amended and Restated Financial Instrument

Schedule A Basic Information

Schedule B Service Schedules

Schedule F HHF Fifth Round Funding Reallocation Model
EXHIBIT A

FORM OF AMENDED AND RESTATED FINANCIAL INSTRUMENT

This 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 Amended and Restated Financial Instrument is effective as of June 1, 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 Financial Instrument dated as of 

the Effective Date 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 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 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 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 Amended and Restated Financial Instrument by reference.

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

Instrument on the date set forth below.

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY]

By:

Name: 

Title: 

Date: ____________ __, 2016
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SCHEDULE A

BASIC INFORMATION

Eligible Entity Information:

Name of the Eligible Entity: Rhode Island Housing and Mortgage Finance 

Corporation1

Corporate or other organizational form: a public corporation of the state of Rhode 

Island, established and existing under the 

Rhode Island Housing and Mortgage Finance 

Corporation Act, as amended Chapter 42-55, 

State of Rhode Island General Laws.

Jurisdiction of organization: Rhode Island

Notice Information:

HFA Information:

Name of HFA: Rhode Island Housing and Mortgage Finance 

Corporation1

Organizational form: a public corporation of the state of Rhode 

Island, established and existing under the 

Rhode Island Housing and Mortgage Finance 

Corporation Act, as amended Chapter 42-55, 

State of Rhode Island General Laws.

Date of Application: May 27, 2010

Date of Action Plan: September 1, 2010

Notice Information: 

Program Participation Cap: $115,975,303.00

Portion of Program Participation Cap 

Representing Original HHF Funds: $43,000,000.00

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $13,570,770.00

 1 References in the Agreement to the term “HFA” shall mean the Rhode Island Housing and Mortgage Finance 

Corporation (“Rhode Island Housing”) in its capacity as HFA as such term is used in the Agreement; and references 

in the Agreement to the term “Eligible Entity” shall mean Rhode Island Housing, in its capacity as Eligible Entity as 

such term is used in the Agreement. 
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Rounds 1-4 Funding Allocation: $79,351,573.00

Round 5 Funding Allocation: $36,623,730.00

Permitted Expenses: Amount on file with Treasury

Closing Date: August 3, 2010

First Amendment Date: September 23, 2010

Second Amendment Date: September 29, 2010

Third Amendment Date: December 16, 2010

Fourth Amendment Date: May 25, 2011

Fifth Amendment Date: January 25, 2012

Sixth Amendment Date: March 29, 2012

Seventh Amendment Date: December 14, 2012

Eighth Amendment Date: July 17, 2013

Ninth Amendment Date: January 31, 2014

Tenth Amendment Date: November 24, 2015

Eleventh Amendment Date: June 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.
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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

Rhode Island Housing’s

Loan Modification Assistance (LMA)

Summary Guidelines

1. Program Overview Loan Modification Assistance (LMA) will provide up to $50,000 to 

help facilitate an affordable mortgage modification, recast or

curtailment. This assistance must bring the total housing debt to 

income ratio to 38% or below. 

Rhode Island Housing will consider, on a case-by-case basis, 

investor program guidelines that utilize affordable mortgage 

definitions that result in a modification with a total housing debt to

income ratio greater than 38%.

Lender/Servicer must present modification plan for HHFRI approval 

and a final modification agreement prior to release of funds. 

Lender/Servicer is required to provide a fully executed modification 

agreement to affirm the approved use of funds.

LMA is designed to address items that may be negatively impacting 

the homeowners ability to obtain a modification. Funding can be 

used to address: 

• insufficient income: unemployment or underemployment

• insufficient equity

• delinquent mortgage payments including escrows

• escrow shortage payments

• payment of non-escrowed taxes or insurances

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments

• satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property 

2. Program Goals To help Rhode Island homeowners at risk of foreclosure obtain a 

modification. 

3. Target 

Population/Areas

Low- to moderate-income homeowners suffering a program eligible 

financial hardship, as defined in the program guidelines, related to 

reduction of income or other demonstrated financial hardship. 

Hardest Hit Funds, designed to prevent foreclosure, are offered 

statewide. 
B-1-2

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury

5. Borrower 

Eligibility Criteria

In order to be eligible for assistance under LMA, the borrower must 

have a monthly mortgage payment that is greater than 31% of their 

gross monthly household income. 

In the event the servicer is subject to investor or insurer income 

hardship calculation requirements, HHFRI will consider use of 

alternate models to calculate gross monthly household income. The 

servicer must provide documentation evidencing the alternate model 

used.

All homeowners will be required to complete a Hardship Affidavit.

Homeowner must be able to document hardship circumstances that 

place the borrower at risk of foreclosure. A hardship is defined as an 

uncontrollable increase in expense (excluding consumer debt) or an 

uncontrollable decrease in income that places the homeowner at risk 

of foreclosure. Examples of a hardship include: underemployment, 

reduction of income, unemployment, death or disability in family, 

unforeseen medical expense, costly home repairs necessary for 

habitability or an extended loss of rental income due to an inability 

to secure a tenant. A loss of home value does not, in itself, 

constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for assistance. 

Household income may not exceed 140% of area median income.

Borrower is able to satisfy program guidelines.

6. Property/Loan 

Eligibility Criteria

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums, provided the original 

mortgage was not greater than $729,750.

7. Program 

Exclusions

Homeowner has cash reserves and/or non-retirement liquid assets 

exceeding $15,000. 

Homeowners who previously received Hardest Hit Funds and failed 

to satisfy the terms of the assistance and or defaulted on their HHF 

obligation.

8. Structure of Funds will be provided in the form of a zero-percent interest, non-
B-1-3

Assistance recourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over five (5) years, if the homeowner 

fulfills his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. If assistance is paid directly to tax authority, 

condominium association or other agency on behalf of the Borrower 

at closing or in installments said disbursements will be referenced in 

the Promissory Note. Funds will be returned to the HHF Program 

for additional use in accordance with the Agreement. 

9. Per Household 

Assistance

LMA will provide up to $50,000 to achieve a loan modification.

When combined with other HHF programs, up to $50,000 in total 

HHF assistance per household may be available for homeowners 

who are at risk of foreclosure.

10. Duration of 

Assistance

Assistance will be paid directly to the existing servicer in a one-time 

lump sum.

11. Estimated Number 

of Participating 

Households

We estimate that we will serve 711 homeowners based on the 

maximum program limit and program allocation at this time. 

12. Program 

Inception/Duration

The program began November 1, 2010 and will last until program 

funds have been exhausted, but no later than December 31, 2020.

13. Program 

Interactions with 

Other HFA

Programs

Additional aid may be available to eligible homeowners through 

other HHFRI programs up to program limits 

14. Program 

Interactions with 

HAMP

Funds will be paid to the servicer through this program to help the 

homeowner qualify for a modification. 

15. Program Leverage 

with Other 

Financial 

Resources

This program is designed to complement and supplement HAMP, 

Non-HAMP or other lender/servicer workout solutions. 

Lender/servicers must be willing to participate.
B-2-1

SERVICE SCHEDULE B-2

Rhode Island Housing’s

Temporary and Immediate Homeowner Assistance (TIHA)

Summary Guidelines

1. Program Overview The Temporary and Immediate Homeowner Assistance (TIHA) can 

provide up to $30,000 for partial or full reinstatement or other 

mortgage related default assistance. Mortgage related default 

assistance may help pay delinquent taxes, insurances and association 

dues. 

TIHA funds can be used to address:

• delinquent mortgage payments including escrows

• escrow shortage payments

• payment of non-escrowed taxes or insurances

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments

• satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property 

2. Program Goals To help a homeowner avoid foreclosure when faced with temporary 

or immediate crisis. 

3. Target 

Population/Areas

Low- to moderate-income homeowners suffering a program eligible 

financial hardship, as defined in the program guidelines, related to 

reduction of income or other demonstrated financial hardship. 

Hardest Hit Funds, designed to prevent foreclosure, are offered 

statewide.

4. Program Allocation

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury

5. Borrower 

Eligibility Criteria

TIHA provides one-time lump sum mortgage reinstatement 

assistance for eligible homeowners.

Borrower must demonstrate that the hardship resulted in a housing 

debt-to-income ratio greater than 31% and caused the delinquency. 

Borrower’s post-assistance housing payment must be affordable 

(based on criteria set forth in program guidelines).
B-2-2

All homeowners will be required to complete a Hardship Affidavit.

Homeowner must be able to document the reason for the hardship. 

A hardship is defined as an uncontrollable increase in expenses 

(excluding consumer debt) or an uncontrollable decrease in income 

that has placed the homeowner at risk of foreclosure. 

Examples of a hardship include: underemployment, reduction of 

income, unemployment, death or disability in family, unforeseen 

medical expense, costly home repairs necessary for habitability or 

an extended loss of rental income due to an inability to secure a 

tenant. A loss of home value does not, unto itself, constitute a 

financial hardship, but may be considered to be a contributing factor 

in the evaluation of the request for assistance. 

Household income may not exceed 140% of area median income.

Borrower is able to satisfy program guidelines.

6. Property/Loan 

Eligibility Criteria

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums, provided the original 

mortgage was not greater than $729,750.

7. Program 

Exclusions

Homeowner has cash reserves and/or non-retirement liquid assets 

exceeding $15,000.

Homeowners who previously received Hardest Hit Funds and failed 

to satisfy the terms of the assistance and or defaulted on their HHF 

obligation.

8. Structure of 

Assistance

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner fulfills 

his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. If assistance is paid directly to tax authority, 

condominium association or other agency on behalf of the Borrower 

at closing or in installments said disbursements will be referenced in 

the Promissory Note. Funds will be returned to the HHF Program 

for additional use in accordance with the Agreement. 

9. Per Household 

Assistance

The amount of assistance available under TIHA is up to $30,000 per 

household.
B-2-3

When combined with other HHF programs, up to $30,000 in total 

HHF assistance per household may be available for homeowners 

who are at risk of foreclosure.

10. Duration of 

Assistance

Assistance will be paid directly to the existing servicer, taxing 

authority or lien holder in a one-time lump sum.

11. Estimated Number 

of Participating 

Households

We estimate that we will serve 879 homeowners based on the 

maximum program limit and program allocation at this time.

12. Program 

Inception/Duration

November 1, 2010 until program funds are exhausted.

13. Program 

Interactions with 

Other HFA 

Programs

Additional aid may be available to eligible homeowners through 

other HHFRI programs up to program limits.

14. Program 

Interactions with 

HAMP

This program does not interact with HAMP.

15. Program Leverage 

with Other 

Financial 

Resources

None. Lender/servicers must be willing to participate.
B-3-1

SERVICE SCHEDULE B-3

Rhode Island Housing’s

Moving Forward Assistance

Summary Guidelines

1. Program Overview The Moving Forward Assistance Program (MFA) will provide 

eligible homeowners who can no longer afford to stay in their 

home with up to $10,500 to assist in the transition. 

The MFA assistance can be used to facilitate a short sale or 

deed in lieu of foreclosure and/or assist with moving and 

relocation expenses. Eligible homeowners can receive up to a 

$2,000 allowance to pay for moving and relocation expenses 

and up to $8,500 towards satisfaction of a subordinate lien to 

facilitate a short sale/deed-in-lieu. Moving and relocation 

expenses may be disbursed directly to eligible homeowners. 

Moving and relocation expenses above this amount will be paid 

when documented. The total amount available for facilitation of 

short sale/deed in lieu plus moving expenses cannot exceed 

$10,500. When MFA funds are used to encourage a short sale 

or satisfy other real estate liens the amount cannot exceed the 

amount of the lender charge-off.

MFA assistance is available to homeowners who resided in the 

property within one of the following time frames: (i) within six 

(6) months of application for HHF assistance, or (ii) within 

ninety (90) days prior to the property having been listed as a 

short sale. In no case shall MFA assistance be provided where 

the short sale or deed-in-lieu transaction has occurred prior to 

the disbursement of assistance.

In some circumstances, the best outcome for borrower, lender 

and community may be for the borrower to relinquish the 

property in an orderly process. MFA assistance can take the 

form of a contribution to the primary or secondary lender to 

help facilitate a short sale or deed in lieu of foreclosure. It could 

also be used to provide the borrower relocation assistance 

including a security deposit/first and last month’s rent, moving 

expenses, or utility deposit MFA assistance could be used to 

satisfy subordinate or superior real estate tax liens against the 

real estate that prevent the homeowner from transferring clear 

title. These liens may include mechanics liens, defects, 
B-3-2

inheritance taxes, water fees, fire district or sewer fees, condo 

fees, PUD lien sale or other legal encumbrances on the property 

or to satisfy judgments or loan deficiency balances resulting 

from a short sale. 

2. Program Goals Rhode Island Housing envisions that these monies would be 

used to complement other federal or lender programs designed 

specifically to stabilize communities by providing assistance to 

borrowers who have suffered a financial hardship and as a result 

are no longer financially able to stay in their home.

3. Target 

Population/Areas

Low- to moderate-income homeowners suffering a program 

eligible financial hardship, as defined in the program guidelines, 

who can no longer afford to stay in their home and require 

transition assistance. 

Hardest Hit Funds, designed to prevent foreclosure, are offered 

statewide.

4. Program Allocation

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury

5. Borrower Eligibility 

Criteria

Borrower must be able to document the reason for the hardship 

and will be required to complete a Hardship Affidavit. 

A hardship is defined as an uncontrollable increase in housing 

expense or an uncontrollable decrease in income that has placed 

the homeowner at risk of foreclosure. Examples of a hardship 

include: underemployment, reduction of income, 

unemployment, death or disability in family, unforeseen 

medical expense, and costly home repairs necessary for 

habitability. A loss of home value does not, unto itself, 

constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for 

assistance. 

Household income may not exceed 140% of area median 

income.

Borrower is able to satisfy program guidelines.

6. Property/Loan 

Eligibility Criteria

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums, provided 

the original mortgage was not greater than $729,750.
B-3-3

7. Program Exclusions Homeowner has cash reserves and/or non-retirement liquid 

assets exceeding $15,000.

Homeowners who previously received Hardest Hit Funds and 

failed to satisfy the terms of the assistance and or defaulted on 

their HHF obligation.

8. Structure of 

Assistance

Funds are provided to eligible homeowners as a nonrecoverable grant.

9. Per Household 

Assistance

Up to $10,500 per family is available under this program to 

facilitate a short sale or deed in lieu of foreclosure and/or to 

assist the homeowner with relocation. 

When combined with other HHF programs, up to $30,000 in 

total HHF assistance may be available for homeowners who are 

at risk of foreclosure.

10. Duration of 

Assistance

Participation in this program is a one-time payment. 

11. Estimated Number of 

Participating 

Households

We estimate that we will serve 88 homeowners based on the 

maximum program limit and program allocation at this time.

12. Program Inception/

Duration

November 1, 2010 until program funds have been exhausted, 

but no later than December 31, 2020.

13. Program Leverage 

/Interactions with 

Other HFA 

Programs

MFA can provide assistance, up to the household cap, if a 

homeowner has used other HHF programs and subsequently can 

no longer afford to stay in the home.

14. Program Interactions 

with HAMP

MFA can provide assistance, up to the household cap, if a 

homeowner has obtained a HAMP or a lender/servicer workout 

or other HHF program assistance and subsequently can no 

longer afford to stay in the home.

15. Program Leverage 

with Other Financial 

Resources

Rhode Island Housing intends to leverage its current emergency 

and rental assistance programs which include 

www.homelocatorri.net and other relocation services which 

include Homeless Protection and Rapid Placement (HPRP) and 

Road Home Emergency Housing Assistance.
B-4-1

SERVICE SCHEDULE B-4

Rhode Island Housing

Mortgage Payment Assistance - Unemployment Program (MPA-UP) 

for Unemployed and/or Underemployed Homeowners

Summary Guidelines

1. Program Overview The Mortgage Payment Assistance - Unemployment Program 

(MPA-UP) will provide up to $30,000 in assistance to help 

stabilize unemployed and/or underemployed homeowners.

MPA-UP assistance may be used to pay partial mortgage and 

mortgage-related expenses until the maximum household 

assistance amount is reached or the homeowner returns to work. 

Monthly mortgage payment assistance term cannot be less than 

twelve (12) months or exceed twenty four (24) months or 

$30,000, whichever is reached first.

Homeowners’ monthly payment contribution will be 31% of 

household income but not less than $250. 

The homeowner may continue receiving assistance for up to two 

(2) months after reemployment or substantially increased 

employment, as long as the program household assistance limit 

has not been reached. Assistance funds will be paid directly to 

the lender/servicers. Rhode Island Housing or its designee will 

collect the homeowner’s portion of the payment. 

MPA-UP assistance may be used to make ongoing partial 

mortgage payments and related expenses such as:

• Escrows

• Taxes and insurance

• Condo association fees

This Program will work as both a stand alone program or to 

complement other HHFRI programs. Homeowners may receive 

assistance from one or more HHFRI Programs, up to the

maximum program and household limit. 

2. Program Goals To assist unemployed and/or underemployed homeowners to 

remain in their homes and make on-time, monthly payments on 

their mortgages during their hardship so that they may avoid 

delinquency and foreclosure; and to help stabilize homeowners 

so that they can obtain a sustainable loan modification, if 
B-4-2

necessary, after they have regained full employment.

3. Target Population / 

Areas

Low- to moderate-income, unemployed and/or underemployed 

homeowners suffering a program eligible financial hardship. 

Hardest Hit Funds, designed to prevent foreclosure, are offered 

statewide.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury

5. Borrower Eligibility 

Criteria

Eligible borrowers are unemployed or underemployed 

homeowners, who through no fault of their own, are unable to 

make their mortgage payments and are at risk of imminent 

default or foreclosure, as specified in the program guidelines. 

Borrowers will be required to provide a financial hardship 

affidavit with appropriate documentation on the cause of their 

unemployment or underemployment. Unemployment will be 

verified by obtaining a copy of the homeowner’s unemployment 

benefit rate decision letter and copies of two (2) months bank 

statements to verify the unemployment direct deposit, or by 

automated verification through the Rhode Island Department of 

Labor and Training (DLT).

If information from DLT is unavailable, a letter or other written 

verification from the former employer indicating job loss was 

not the fault of the borrower will serve as a substitute.

Eligible borrowers must have monthly mortgage payments that 

are greater than 31% of their gross monthly household income.

All eligible borrowers must be able to document the 

unemployment hardship that has placed them at risk of 

imminent default or foreclosure.

Household income must be fully documented and verifiable, 

income limits apply based on borrowers household gross annual 

income and family size. 

Household income may not exceed 140% of area median 

income.

Self-employed borrowers will be required to document loss of 

business and income and submit appropriate documentation.
B-4-3

Homeowner will be required to contribute to their contractual 

monthly mortgage obligation. They must make their portion of 

the mortgage payment as directed by Rhode Island Housing or 

its designee, on time; and must actively seek reemployment 

during the assistance period.

Borrower is able to satisfy program guidelines.

6. Property / Loan 

Eligibility Criteria

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums, provided the 

original mortgage was not greater than $729,750.

7. Program Exclusions Homeowner has cash reserves and/or non-retirement liquid 

assets exceeding $15,000. 

Homeowners who previously received Hardest Hit Funds and 

failed to satisfy the terms of the assistance and or defaulted on 

their HHF obligation.

8. Structure of Assistance Funds will be provided in the form of a zero-percent interest, 

non-recourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over five (5) years, if the homeowner 

fulfills his or her obligations on a timely basis under the 

assistance agreement. Borrowers who refinance, transfer title or 

sell the property within the five-year period must repay the loan 

on a pro-rata basis provided there is sufficient equity from such 

refinance, title transfer or sale. If assistance is paid directly to 

tax authority, condominium association or other agency on 

behalf of the Borrower at closing or in installments said 

disbursements will be referenced in the Promissory Note. Funds 

will be returned to the HHFRI Program for additional use in 

accordance with the Agreement. 

9. Per Household 

Assistance

The amount of assistance under MPA-UP is up to $30,000 per 

household (including borrowers who are currently receiving 

assistance and who demonstrate a continued hardship per 

program guidelines). 

When combined with other HHF programs, $30,000 in total 

HHF household assistance may be available for homeowners 

who are at risk of foreclosure.

10. Duration of Assistance The duration of the assistance is determined by the individual 

need of each eligible borrower, but is up to two (2) years of 

payment assistance or the maximum household limit, whichever 

is reached first. The homeowner may continue receiving 
B-4-4

assistance for up to two (2) months after reemployment or 

substantially increased employment, as long as the program 

household limit has not been reached.

Assistance will be paid directly to the existing servicer, 

municipality, association, insurer or lien holder and may be 

distributed in a lump sum or on a monthly basis until the 

maximum program amount is reached.

Assistance will be terminated if an approved HHF homeowner 

becomes more than two (2) months delinquent in his/her portion 

of the monthly mortgage obligation.

11. Estimated Number of 

Participating 

Households

We estimate that we will serve 2,454 homeowners based on the 

maximum program limit and program allocation at this time. 

12. Program Inception / 

Duration

December 1, 2010 until program funds have been exhausted, but 

no later than December 31, 2020.

13. Program Interactions 

with Other HFA 

Programs

MPA-UP program provides up to $30,000 in assistance and acts 

as a gateway to other HHFRI programs.

Program funds may be used in combination with other HHFRI 

programs up to program and household limits.

14. Program Interactions 

with HAMP

MPA-UP complements other lender/servicer workout plans, 

including any offered under MHA. 

15. Program Leverage with 

Other Financial 

Resources

There is no investor match required for this program. However, 

lender/servicers must be willing to participate.
B-5-1

SERVICE SCHEDULE B-5

Principal Reduction Program

Hardest Hit Fund

Summary Guidelines

1. Program 

Overview

In the current housing crisis, many borrowers have found themselves 

owing more than their homes are worth (i.e. are “underwater”); there 

is also growing evidence that these loans are more likely to default, 

and that principal reduction may further the long-term sustainability 

of a loan. This program, designed by Bank of America, provides 

financial assistance, matched by the investor, to reduce the principal 

balance of underwater mortgages. The assistance (up to $25,000) will 

be matched on a dollar-for-dollar basis. Borrowers may access the 

program through the HFA either directly or by referral from servicer 

(with HFA approval).

2. Program Goals Leverage HHF dollars by reducing the principal balances of 

“underwater mortgages” (specifically mortgages for which the markto-market LTV is greater than 115%) and provide financial assistance 

to qualifying homeowners to remain in their homes during this period 

of steep declines in value.

A reduction in principal can achieve desired income and loan-to-value 

ratios that result in an affordable payment for a customer on the 

existing mortgage loan or can be used in conjunction with a loan 

modification.

3. Target 

Population / 

Areas

The target population includes customers whose loans are at least 

sixty (60) days or more delinquent, where hardship is documented. 

The goal of the program is to target and address the needs of a 

customer’s specific situation in lieu of targeting certain regions or 

counties.

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury
B-5-2

5. Borrower 

Eligibility 

Criteria

Generally consistent with HAMP Criteria

• At least sixty (60) days delinquent or in imminent default

 

 

 

6. Property/Loan 

Eligibility 

Criteria

The property must be the customer’s principal residence; other 

criteria include: 

• Owner-Occupied, Single-Family 1-4 unit property

• First Lien, Purchase or Rate & Term Refinance

• Unpaid principal balance below $729,750

• Property not vacant or condemned

7. Program 

Exclusions

Exclusions include: 

• Mortgage is a Cash-out-Refinance

• Loan Originated after 1/1/2009

• LTV < 115%

• Notice of trustee sale has been recorded and the trustee sale is 

scheduled within seven (7) days of date application received 

by servicer.

Homeowners who previously received Hardest Hit Funds and failed 

to satisfy the terms of the assistance and or defaulted on their HHF 

obligation.

8. Structure of 

Assistance 

Assistance will not be structured as a loan, since there is a dollar-fordollar match on assistance. HHFRI assistance will be provided in 

accordance with the Servicers Principal Reduction schedule.

9. Per Household 

Assistance

Up to $25,000 HHF dollars (not including investor match).

10. Duration of 

Assistance

HHFRI assistance will be provided in accordance with the Servicers 

Principal Reduction schedule.

11. Estimated 

Number of 

Participating 

Households

32 

12. Program Approximately one to three years or until HHF funds are fully 
B-5-3

Inception / 

Duration

utilized.

13. Program 

Interactions 

with Other HFA 

Program

Additional aid may be available to eligible homeowners under 

Temporary and Immediate Homeowner Assistance (TIHA) and 

Moving Forward Assistance (MFA) up to program limits.

14. Program 

Interactions 

with HAMP and 

other Programs

HHF / Investor principal reduction will be the first step in the 

principal reduction assistance waterfall, prior to the HAMP 

alternative waterfall (per the guidance contained within the MHA 

Handbook) and any proprietary servicer programs. Borrower may 

access this program after unemployment assistance, but must be able 

to demonstrate their ability to sustain the modified mortgage.

15. Program 

Leverage with 

Other Financial 

Resources

The applicable investor matches state contributed HHF principal 

reduction funds on a dollar-for-dollar basis. Servicer waives certain 

NSF and late charges.

16. Servicer 

reporting to 

HFA

The servicer will be able to identify all loans which received 

assistance through a HHF program and provide the HFA updates on 

the status of the loan (e.g. current/delinquent, foreclosure, short sale, 

etc.) on a quarterly basis for a period of twelve (12) months after 

assistance ends.
B-6-1

SERVICE SCHEDULE B-6

Rhode Island Hardest Hit Fund

Down Payment Assistance (DPA) Program

Summary Guidelines

1. Program 

Overview

The Down Payment Assistance (DPA) Program will provide an 

incentive to qualified homebuyers who purchase and occupy an 

eligible property in targeted hardest hit areas in Rhode Island. 

The DPA loans are only available to eligible homebuyers who 

obtain first mortgage financing through Rhode Island Housing’s 

single-family mortgage program.

2. Program Goals The goal of the DPA Program is to provide an incentive to 

encourage homebuyers, who are already planning to buy a home, 

to choose an eligible property within a hardest hit neighborhood. 

Eligible Properties are defined in section 6 below. 

Encouraging homeownership in housing markets that have been 

hardest hit by unemployment and foreclosures will strengthen 

demand in those areas, stabilize the housing market and prevent 

future foreclosures.

Rhode Island will identify meaningful indicators that will enable 

them to track and quantify the DPA Program’s impact in targeted 

areas.

3. Target 

Population / 

Areas

The DPA program will target those communities in the state that 

where most impacted by the state’s foreclosure crisis. RIH 

evaluated all communities in the state at a zip code level and 

identified targeted areas based on higher than average indicators 

of seriously delinquent mortgage loans, negative equity, short 

sales, REO sales, and foreclosure rates.

The following are targeted hardest hit areas: 

Warwick, Providence, Pawtucket, Johnston, West Warwick, 

Woonsocket, Central Falls, Cranston, North Providence, and East 

Providence.

4. Program 

Allocation 

Program allocation amount on file with Treasury.
B-6-2

(Excluding 

Administrative 

Expenses)

5. Borrower 

Eligibility 

Criteria

Eligible borrowers must qualify for and meet all applicable 

income and purchase price limitations and requirements of Rhode 

Island Housing’s single-family first-time buyer loan programs. 

Allowable first mortgage loans are 30-year, fixed-rate loans 

insured or guaranteed by the Federal Housing Administration 

(FHA), Veterans Administration (VA), U.S. Department of 

Agriculture – Rural Development (RD) or GSE. 

Eligible borrowers must also meet the following criteria:

• Borrowers must be First-time Homebuyers. For the 

purpose of the DPA Program, a First-time Homebuyer is 

someone who has not had an ownership interest in their 

primary residence in the past three years, unless purchasing 

a home in a Federally Designated Targeted Area as 

specified in the Rhode Island Housing Program Guide.

• Borrowers must be credit-worthy and meet Rhode Island 

Housing’s underwriting guidelines and applicable Agency

(FHA, VA, USDA-RD) or GSE or requirements.

• Borrowers must meet income limits that do not exceed 

140% of the Area Median Income (“AMI”).

• Borrowers must complete a pre-purchase homebuyer 

education course and receive a certificate of completion.

• Homebuyers must occupy the home as their primary 

residence and satisfy all mortgage occupancy requirements 

as applicable.

• Borrowers must be legal U.S. citizens or lawful permanent

residents or otherwise meet the applicable Agency (FHA,

VA, USDA-RD) or GSE requirements.

• Borrowers must be able to provide a Dodd-Frank affidavit.

6. Property/Loan 

Eligibility 

• The property must be a single-family home, a condominium 
B-6-3

Criteria unit, a townhouse, a two-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.

• An “Eligible Property” is a single-family residential property 

that has been the subject of any of the following Qualifying 

Events: a mortgage foreclosure, receivership or other state or 

municipal property disposition program, transfer by deed in 

lieu of foreclosure, or approval for short sale by a mortgage 

lender. The homebuyer(s) must occupy the property as their 

primary residence, and be the first owner(s) to have occupied 

the property since the Qualifying Event. 

• Property must be located in a HHF Targeted Area.

• Property must meet Rhode Island Housing HFA Homebuyer 

Loan Program guidelines.

• Meet all applicable Agency (FHA, VA, USDA-RD) or GSE 

underwriting guidelines.

7. Program 

Exclusions

• Borrowers, properties and/or loans do not meet DPA Program 

eligibility requirements or Agency/Fannie Mae underwriting 

criteria.

• Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years.

• Homeowners who previously received Hardest Hit Funds and 

failed to satisfy the terms of the assistance and or defaulted on 

their HHF obligation.

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 five-year term. This loan will be 

evidenced by a note and mortgage. The second mortgage will be 

forgivable at the rate of 20% per year over the five year term of 

the loan. 

If the borrower sells the home during any part of the loan term, 
B-6-4

the remaining principal balance will be due to Rhode Island

Housing in the event there are sufficient equity proceeds from the 

sale. If there is not enough equity in the home to repay the entire 

amount due, Rhode Island Housing may forgive the excess 

portion or all of the remaining principal balance.

9. Per Household 

Assistance

$20,000

10. Duration of 

Assistance

DPA Program funds will be released in one lump sum at closing 

to eligible homebuyers.

11. Estimated 

Number of 

Participating 

Households

We estimate that we will serve 235 homeowners based on the 

maximum program limit and program allocation at this time. 

12. Program 

Inception / 

Duration

The DPA Program will begin in 2015 and it is projected that the 

allocation will be expended by December 31, 2020.

13. Program 

Interactions 

with Other HFA 

Programs

The DPA Program will take advantage of an existing 

infrastructure of participating lenders who are already actively 

originating both first mortgages and down payment assistance 

loans as part of Rhode Island Housing’s current single-family 

mortgage program. A borrower who obtains the $20,000 DPA 

may be evaluated for other assistance programs, but may not 

receive additional down payment assistance from Rhode Island 

Housing. This does not restrict or exclude a homebuyer from 

being evaluated for a RIH tax credit, closing cost or other nondownpayment assistance subsidy programs. While first-time 

borrowers must participate in Rhode Island Housing approved 

pre-purchase homebuyer counseling, post-purchase counseling is 

also available. If the borrower has received HHF assistance under 

any other HHF program, the maximum amount of all assistance 

may not exceed $70,000. 

14. Program 

Interactions 

with HAMP and 

other Programs

None.
B-6-5

15. Program 

Leverage with 

Other Financial

Resources

Funds may be leveraged by Rhode Island Housing, lenders or 

municipal partners using additional subsidy programs.

\
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
F-4

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.