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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, 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 Twelfth Amendment to HPA – Illinois]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY

UNITED STATES DEPARTMENT OF THE 

TREASURY

By: /s/ Mary R. Kenney By:

Name: Mary R. Kenney Name: Mark McArdle

Title: Executive Director Title: Deputy Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY

By: /s/ Mary R. Kenney

Name: Mary R. Kenney

Title: Executive 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
A-1

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information:

Name of the Eligible Entity: Illinois Housing Development Authority1

Corporate or other organizational form: a body politic and corporate under the laws of 

the State of Illinois, pursuant to the Illinois 

Housing Development Act, 20 ILCS 3805/1 et 

seq., as amended

Jurisdiction of organization: Illinois

Notice Information:

HFA Information:

Name of HFA: Illinois Housing Development Authority1

Organizational form: a body politic and corporate under the laws of 

the State of Illinois, pursuant to the Illinois 

Housing Development Act, 20 ILCS 3805/1 et 

seq., as amended

Date of Application: September 1, 2010

Date of Action Plan: September 1, 2010

Notice Information:

Program Participation Cap: $715,077,617.00

 

1 References in the Agreement to the term “HFA” shall mean the Illinois Housing Development Authority (“IHDA”) 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 IHDA, in its capacity as Eligible Entity as such term is used in the Agreement. Notwithstanding anything to 

the contrary in the Agreement, (A) for purposes of Section 4(G) thereof, quarterly financial statements shall be due no 

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

Effective Date; provided that for any quarter IHDA does not prepare unaudited financial statements for its internal use, or 

to be sent to a third party, such quarterly unaudited financial statement shall not be required and instead IHDA shall 

provide 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, summary expenses by category [e.g., in-take partners, IHDA specific expenses (e.g. 

salaries), and last business day of the quarter’s Depository Account bank statement, which information will allow 

Treasury to review and confirm the funds used for the Services and Permitted Expenses; (B) for purposes of Section 7 

thereof, the powers and authority of IHDA shall be governed by and construed in accordance with the laws of the State of 

Illinois.
A-2

Portion of Program Participation Cap 

Representing Original HHF Funds: N/A

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $166,352,726.00

Rounds 1-4 Funding Allocation: $445,603,557.00

Round 5 Funding Allocation: $269,474,060.00

Permitted Expenses: Amount on file with Treasury.

Closing Date: September 23, 2010

First Amendment Date: September 29, 2010

Second Amendment Date: December 16, 2010

Third Amendment Date: May 11, 2011

Fourth Amendment Date: August 3, 2011

Fifth Amendment Date: January 25, 2012

Sixth Amendment Date: August 24, 2012

Seventh Amendment Date: September 28, 2012

Eighth Amendment Date: March 8, 2013

Ninth Amendment Date: August 9, 2013

Tenth Amendment Date: April 11, 2014

Eleventh Amendment Date: July 30, 2015

Twelfth 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.
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

Illinois Housing Development Authority

Hardest Hit Fund Homeowner Emergency Loan Program (HHF HELP)

Summary Guidelines 

1. Program Overview Illinois’ Homeowner Emergency Loan Program (HHF HELP or 

the Program) will assist homeowners who have experienced an 

income reduction due to a qualifying hardship in two ways: 

Monthly Mortgage Payment Assistance (MMPA) and 

Reinstatement Assistance. MMPA will be provided for up to 18 

months to applicants approved prior to May 31, 2016 and up to 

12 months for applicants approved after that date. 

Reinstatement Assistance will pay a homeowner’s delinquent 

balance and other associated fees and costs. Borrowers may be 

eligible for Reinstatement Assistance combined with MMPA or 

Reinstatement Assistance as determined by housing debt-toincome (DTI) parameters.

For MMPA, the Illinois Housing Development Authority 

(IHDA) will make full mortgage payments to the servicer on 

behalf of the borrower. Applicants approved prior to May 31, 

2016 are required to contribute a partial mortgage payment to 

IHDA on a monthly basis. 

If borrowers regain employment and earn sufficient income to 

adequately afford their mortgage during the applicable term, 

borrowers will be transitioned from the Program.

Borrowers will be referred to the Program through the HHF 

HELP website and/or hotline, a housing counselor, or other 

entities. All client intakes of borrowers will be performed by 

IHDA approved intake agencies or IHDA staff. Intake agencies 

will screen applications and provide a full application package 

to IHDA for final approval. 

2. Program Goal The goal of the Program is to assist homeowners who have 

experienced an income reduction due to a qualifying hardship 

with MMPA and Reinstatement Assistance that will allow them 

to pursue sustainable income and homeownership without the 

immediate threat of default or foreclosure. 
B-1-2

3. Target Population / 

Areas

The Program aims to serve all areas of the State and all 

employment sectors as the foreclosure crisis and unemployment 

crisis in Illinois is diverse. Funds will only be available to 

households at or below the moderate income level for the State 

(120% of area median, as defined by HUD). 

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury.

5. Borrower Eligibility 

Criteria

Homeowners must meet the following program criteria:

• Present income at or below 120% of area median;

• Experienced a substantial reduction in income due to one 

of the following qualifying hardships: unemployment,

underemployment, divorce, death of a spouse or a 

medical condition; 

• Certification that the loss of income was involuntary 

(hardship affidavit required); 

• Fee simple title ownership on a property not exceeding 

four units; 

• Liquid assets cannot exceed program guidelines; and

• Reinstatement Assistance and MMPA will be made 

available to eligible borrowers based on housing DTI

parameters.

6. Property / Loan 

Eligibility Criteria

Property criteria includes:

• Property must be owner-occupied; 

• Property can be one, two, three, and four units; 

• Property must be the primary residence of the borrowers; 

and

• Property types can include single-family homes, 

detached or attached houses, town homes, condos, 

mobile homes on permanent foundations recorded as real 

property. 

Loan criteria includes: 

• Loan must be secured by a first position lien; 

• Homeowners can have a maximum present mortgage 

amount of $500,000; and

• Homeowners must carry a fixed rate mortgage or an 
B-1-3

adjustable rate mortgage. 

7. Program Exclusions • Homeowners with interest-only or negative amortization 

mortgages; 

• Assistance for subordinate mortgages; 

• Homeowners that own and/or are a party to mortgages 

on multiple residential properties; and

• Applicants unable to substantiate past and current 

income or failing to provide required program 

documentation as requested.

8. Structure of Assistance Assistance will be in the form of a non-recourse, nonamortizing, zero-percent interest, forgivable loan. The 

forgivable loan will be recorded as a subordinate lien and will 

only be repaid if net equity proceeds exist in the event of sale or 

refinance. The term of the loan is ten years for applicants 

approved prior to May 31, 2016 and five years for applicants 

approved after that date. The loan is forgiven on a monthly pro 

rata basis over the last five years of the loan term. Any 

remaining funds will be returned to Treasury in accordance with 

the Agreement.

9. Per Household 

Assistance

The maximum amount of assistance per homeowner is 

$35,000.00.

10. Duration of Assistance MMPA will be provided for up to 18 months for applicants 

approved prior to May 31, 2016 and up to 12 months for 

applicants approved after that date. Assistance will terminate 

after the maximum number of monthly payments has been 

reached, upon expending the maximum amount of assistance per 

household or if the borrower is determined to be no longer 
B-1-4

eligible for assistance. 

11. Estimated Number of 

Participating 

Households

IHDA anticipates that 18,000 - 20,000 households will be 

assisted through the HHF HELP Program. 

12. Program Inception / 

Duration

The Program launched in 2011 and closed in early 2016. IHDA 

will reopen the Program on or about August 1, 2016. 

13. Program Interactions 

with Other HFA 

Programs

Households served under the National Foreclosure Mitigation 

Counseling (NFMC) Program may also be reviewed for HHF 

HELP eligibility.

14. Program Interactions 

with HAMP

Clients denied for a HAMP modification may be eligible for 

assistance through this Program. Intake agencies evaluating 

eligibility for clients may also review for possible HAMP 

eligibility. Clients eligible for forbearance under the HAMP 

Unemployment Program may be eligible for assistance through 

HHF HELP. HHF HELP may precede, follow, or run 

concurrently with the HAMP UP forbearance. 

15. Program Leverage with 

Other Financial 

Resources

The Program requires no financial contribution from servicers or 

lenders, but they will be encouraged to waive fees as the HHF 

HELP Program provides direct benefit to their loan portfolio. 

IHDA will work to collaborate with servicers and lenders to 

effectively manage payments and information of the borrowers. 
B-2-1

SERVICE SCHEDULE B-2

Illinois Housing Development Authority

Mercy Housing, Inc. Mortgage Resolution Fund Program (MRF)

Summary Guidelines 

1. Program Overview The Illinois Housing Development Authority (IHDA) will 

partner with MRF, LLC, a non-profit partnership formed by 

Mercy Portfolio Services; Mercy Housing, Inc.; Enterprise 

Community Partners, Inc.; the Housing Partnership Network; 

and the National Community Stabilization Trust, to use HHF 

funds to purchase delinquent loans in hardest-hit markets from 

lending institutions and capital markets trading desks at deeply

discounted prices, modify such loans to an affordable level for 

the homeowner and then, assuming a successful trial 

modification period, rewrite the loan and if the market is 

amenable, sell the loan. Alternatively, MRF (or the Program) 

will provide households not eligible for modification with 

support through property disposition and transition to new 

housing and in certain limited circumstances the loan will have 

to be foreclosed. 

More specifically, the Mortgage Resolution Fund Program is 

designed to: 

1) identify, source and perform loan level due diligence in order 

to purchase delinquent residential first mortgage loans from 

servicers/owners at a price consistent with the underlying 

property value and the mortgage’s net present value; 

2) upon purchase of the loan, offer qualifying homeowners an 

opportunity to enter a trial modification period where the loan 

will be restructured to achieve a front end debt ratio of not 

greater than 31 percent of the gross household income; 

3) work with the qualifying household during the trial period to 

reduce their debt to achieve a total debt ratio no greater than 

50% of the gross household income to strengthen the loan asset; 

4) upon successful completion of the trial period, permanently 

modify the first mortgage by writing down the principal to an 

amount no less 75 percent and no greater than 95 percent of the 

current appraised value, with a monthly payment no greater than 

31 percent of gross monthly income and a 30-year term and 

amortization;
B-2-2

5) structure a portion of the first mortgage amount equal to the 

difference between the market value of the property and the 

permanently modified loan amount, on a 0 percent, 10-year 

forgivable basis;

6) offer an alternative disposition to households with loans 

unable to be permanently modified; 

7) secure title when owners, who are otherwise qualified to 

participate in the Program, walk away from the property or are 

uninterested in an alternative disposition;

8) secure title when owners/loans are not qualified to participate 

in the Program, in which event MRF, LLC will reimburse IHDA 

for any HHF monies expended with respect to that loan;

9) provide asset management of all homes owned until a final 

disposition is reached; and

10) provide compliance and reporting functions from both a loan 

and fund level. 

2. Program Goal The Program aims to keep families in their homes or provide 

families with support for an orderly property disposition and 

transition to new housing, which will help to stabilize 

neighborhoods and housing markets. 

3. Target Population / 

Areas

The Program will be available in the six County Chicago-Metro 

areas, which includes Cook, DuPage, Kane, Kendall, Lake, and 

Will Counties, to low-to-moderate income households. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury.

5. Borrower Eligibility 

Criteria

Borrower circumstances will determine whether they are placed 

into one of three options: trial modification leading to 

permanent modification, alternative disposition or foreclosure. 

Specific eligibility criteria for each of the foregoing options are 

set forth in the MRF Program Guidelines. All borrowers will be 

required to sign a financial hardship affidavit.

6. Property / Loan 

Eligibility Criteria

The following waterfall process will be used to determine those 

loans eligible for purchase:
B-2-3

Filter One: Geography 

• The census tracts within each eligible county will be 

analyzed and those that score between 12 and 19, as defined 

by HUD NSP2-CIS, will be eligible. 

• The selected census tracks will be evaluated and those with 

a USPS vacancy rate of 10 percent or less will be eligible. 

• The selected census tracks will be evaluated to determine 

market viability by analyzing sales data to determine (1) if 

the market has stabilized; (2) velocity and absorption rates; 

and, (3) purchase price ranges for the area. 

Filter Two: Loan Terms and Status

• Owner-occupied, single family loans

• Secured with an FHA/VA/USDA/Conventional/Sub-prime 

product (no exclusions will be made because of interest rate, 

amortization period, credit, documentation, mortgage 

insurance, origination date, LTV)

• First lien position

• Payment delinquency of 30 days or greater but prior to 

judgment 

• Property value equal to or less than $500,000

• Principal balance at or below what a borrower earning 

120 percent of area median income can afford (assuming 30 

year term, 5 percent rate) 

7. Program Exclusions Any loans to homeowners that do not meet above criteria.

8. Structure of Assistance Structure a portion of the first mortgage amount equal to the 

difference between the market value of the property and the 

permanently modified loan amount, on a zero-percent, ten-year 

forgivable basis. 

Borrower payments made through the trial and permanent 

modification periods as well as any funds generated through the 

sale of the permanently modified loans, or sale or rental of 

properties, will be used to pay program costs, program fees and 

repay HHF. HHF monies returned to IHDA will undergo a 

close out review and, subject to IHDA’s approval, will be 

returned to IHDA. Any remaining funds will be returned to 

Treasury in accordance with the Agreement.

9. Per Household 

Assistance

The maximum refinance amount will be equal to or less than 

$500,000. The median refinance amount is expected to be 
B-2-4

approximately $130,000.

10. Duration of Assistance Duration of assistance will vary from borrower to borrower 

based on circumstances surrounding each and market 

conditions. However, all borrowers will be refinanced or 

transitioned to another managed option prior to the expiration of 

the Program with exceptions permitted upon approval by MRF, 

LLC. 

11. Estimated Number of 

Participating 

Households

Estimated number of households – 250 to 1,000

12. Program Inception / 

Duration

It is expected that the Program will begin approximately 120 

days from the date of Treasury approval and the first loans will 

be purchased within approximately 60 days thereafter. 

13. Program Interactions 

with Other HFA 

Programs

It is expected that certain MRF Trial Modification Program 

(TMP) ineligible loans (those with inadequate income to support 

the required minimum mortgage loan amount) will be eligible 

for IHDA’s standard HHF program and will be referred to 

IHDA to submit an application and have eligibility determined.

14. Program Interactions 

with HAMP

It is expected that some of the delinquent mortgages purchased 

under this Program may have been unsuccessful under HAMP. 

No currently performing loans under the HAMP program will be 

eligible.

15. Program Leverage with 

Other Financial 

Resources

Loans will be purchased at a discount.
B-3-1

SERVICE SCHEDULE B-3

Illinois Housing Development Authority

Hardest Hit Fund Home Preservation Program (HPP)

Summary Guidelines 

1. Program Overview Illinois’ Home Preservation Program (HPP or the Program) will 

leverage HHF dollars to facilitate a refinance, recast (for recast 

initial LTV must be 95% or higher), or permanent modification of 

the first mortgage through an escrow arrearage (including related 

fees and costs), principal reduction, and/or reinstatement payment 

to bring the household monthly payment to an affordable level 

(maximum housing DTI of 38%). A second lien payoff payment

may also be provided to facilitate a first mortgage 

modification/recast/refinance. HPP will assist homeowners who 

are financially unable to make their mortgage payments due to a 

program eligible hardship or are underwater on their mortgage(s).

2. Program Goal The goal of this Program is to facilitate long-term mortgage 

sustainability by leveraging HPP funds with a servicer-specific 

loan reinstatement, modification, recast, and/or refinance. This 

will reduce the likelihood of continued mortgage delinquency, redefault, or long-term unaffordability due to negative equity. 

3. Target Population / 

Areas

The Program aims to serve all areas of Illinois. Funds will only be 

available to households at or below 140% of area median income.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury.

5. Borrower Eligibility 

Criteria

Recast and Modification

• Current income at or below 140% of area median income;

• Current housing DTI of 25% or higher; 

• Loan is delinquent or in imminent default (as defined in 

program guideliens); 

• At least one person in the household must have consistent 

employment and/or income sources; 

• Hardship reason must be affirmed through a signed 

affidavit and conform to program guidelines; 

• Liquid assets cannot exceed program guidelines;

• Must execute a Dodd-Frank affidavit.
B-3-2

Refinance

Borrowers must qualify for and otherwise meet all requirements for 

a first mortgage loan product originated by an Illinois Housing 

Development Authority (IHDA) Loan Program participating 

lender. Eligible first mortgage loans are 30-year fixed-rate loans 

from, insured or guaranteed by the Federal Housing Administration 

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

Department of Agriculture Rural Development (USDA), Federal 

National Mortgage Association (Fannie Mae) or Federal Home 

Loan Mortgage Corporation (Freddie Mac). Additional borrower 

eligibility requirements include:

• Current income at or below 140% of area median income;

• Credit score at or above 640;

• Mortgage current/in good standing

• Must execute a Dodd-Frank affidavit.

6. Property / Loan 

Eligibility Criteria

Recast and Modification

• Owner-occupied and primary residence; 

• Properties can be up to four units; 

• Property types can include single-family homes, detached 

or attached houses, town homes, condos, mobile homes on 

permanent foundations recorded as real property; 

• Homeowners must carry a fixed rate mortgage or an 

adjustable rate mortgage; 

• Homeowners with interest-only or negative amortization 

mortgages can qualify if the modification/recast places 

them in a fully amortizing product; and

• Unpaid principal balance at application cannot exceed 

$500,000. 

Refinance

• Single family attached or detached 1-2 unit;

• Property purchase price must be within IHDA county 

purchase price limits as set forth in the DPA Program 

Guide;

• Must be owner occupied and borrower’s primary residence;

• Meet all applicable FHA, VA, USDA, Fannie Mae or 

Freddie Mac underwriting guidelines;

• Post-assistance debt-to-income ratio must not exceed 45 

percent;

• Pre-assistance combined loan-to-value (CLTV) ratio must 
B-3-3

be greater than 110%;

• Borrowers must exit with a fixed rate mortgage;

• Borrowers must exit with an LTV of 90% or greater; and 

• Unpaid principal balance at application cannot exceed 

$500,000.

7. Program Exclusions Applicants unable to substantiate current income or failing to 

provide required program documentation as requested.

8. Structure of Assistance Recast and Modification

Assistance will be in the form of a non-amortizing, zero-percent 

interest, five-year forgivable loan. The forgivable loan will be 

recorded as a subordinate lien and will only be repaid if net equity 

proceeds exist in the event of sale or refinance. The loan will be 

forgiven on a monthly pro rata basis over the five-year term. 

Refinance

Borrower’s existing loan(s) will be refinanced into an IHDA fixed 

rate, 30-year mortgage.

Assistance is structured as a one-time up-front installment 

evidenced by a promissory note with a three-year term. The 

assistance will be forgiven on a monthly pro-rata basis over the 

three-year term. Assistance is contingent upon eligibility for an 

IHDA-approved first mortgage.

Any remaining funds will be returned to Treasury in accordance 

with the Agreement.

9. Per Household 

Assistance

Eligible borrowers may receive up to $50,000.00, not including 

leveraged servicer dollars. If an applicant also receives or received 

assistance through Illinois’ Hardest Hit Fund Program Homeowner 

Emergency Loan Program (HHF HELP), their maximum total 

assistance amount from HHF HELP and HPP cannot exceed 

$85,000.00.

10. Duration of Assistance Assistance under HPP is intended to be a one-time payment to the 

servicer or title company. 

11. Estimated Number of 

Participating 

Households

Approximately 1,500 – 2,500 households. 

12. Program Inception / The Program launched in late 2012 and closed in early 2016. 

IHDA will reopen the Program within 90 days of the Twelfth 
B-3-4

Duration Amendment Date.

13. Program Interactions

with Other HFA 

Programs

Households served under the National Foreclosure Mitigation 

Counseling (NFMC) program may also be reviewed for HPP. 

Notes purchased through the Mortgage Resolution Fund Program 

(MRF) program are ineligible for HPP assistance.

14. Program Interactions 

with HAMP

Clients denied for HHF HELP or Making Home Affordable 

(MHA) programs may be eligible for assistance through this 

Program. Clients approved for any HAMP or HARP with or 

without investor match may be eligible. 

15. Program Leverage with 

Other Financial 

Resources

The Program will disburse funds up to $50,000.00 if the lien holder 

agrees to a loan modification, refinance, recast, or principal 

reduction that shows direct benefit to the borrower. 
B-4-1

SERVICE SCHEDULE B-4

Illinois Housing Development Authority

Hardest Hit Fund Blight Reduction Program (BRP)

Summary Guidelines 

1. Program Overview The purpose of the Hardest Hit Fund Blight Reduction Program 

(“BRP”) is to decrease preventable foreclosures and stabilize 

neighborhoods by strategically targeting those residential areas 

with vacant and abandoned blighted residential properties in 

need of demolition and greening. The Illinois Housing 

Development Authority (“IHDA”) will work with units of 

government and their not-for-profit partner(s) within the state of 

Illinois to implement the program.

2. Program Goal The goal of BRP is to decrease preventable foreclosures through 

neighborhood stabilization achieved through the demolition and 

greening of vacant, abandoned and blighted residential 

properties throughout Illinois. Such vacant, abandoned and 

blighted residential properties will be returned to use through a 

process overseen by approved units of government and their notfor-profit partner(s). 

IHDA will work with units of government and their not-forprofit partner(s) to identify and track meaningful indicators of 

program effectiveness throughout the life of the program.

3. Target Population / 

Areas

BRP activity will be limited to targeted areas approved by 

IHDA that are part of a comprehensive local strategy to stabilize 

home values and prevent foreclosures. IHDA guidelines will 

ensure that demolition and greening will have a positive effect 

on preserving existing neighborhoods.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury 

5. Property Eligibility 

Criteria

IHDA will determine property eligibility per program 

guidelines.

1-4 unit residential properties, that are located in Illinois:

• determined to be vacant and abandoned, and

• qualify for lawful demolition. 
B-4-2

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

properties must not be legally occupied at the time of any 

review or approval by the HFA or Eligible Entity (as 

applicable) for blight elimination activity.

6. Ownership/Loan 

Eligibility Criteria

Title to the property must be held by the applicable not-forprofit partner such that: (i) the loan can be modified or 

extinguished and (ii) an enforceable lien can be placed on the 

property. 

7. Program Exclusions BRP funds cannot be used for the rehabilitation of existing 

residential structures, commercial structures, or properties listed 

on a national, state or local historic register.

8. Structure of Assistance IHDA will determine project sites in direct consultation with 

the applicable not-for-profit partners.

The applicable not-for-profit partners will be responsible for 

acquisition of the property (if necessary), demolition work and 

on-going property maintenance. 

Units of government and their not-for-profit partner(s) must 

submit in their application to IHDA for BRP funds, 

information including, but not limited to, the following:

• A full and complete list of all properties the applicant 

seeks to make eligible; 

• Property ownership and/or acquisition information; 

• Pre-demolition inspection information, including, but 

not limited to any third party environmental inspection 

reports;

• The post-demolition goal for each property; 

• Cost estimates and/or evidence of the expenditures on a 

per property basis including, but not limited to: (i) all 

eligible activities required to bring the property into 

compliance with program guidelines, (ii) removal of all 

debris, (iii) backfill of basements or cellars, and 

(iv) any necessary environmental remediation required 

by law; and

• Any other miscellaneous information identified 

regarding the property (e.g., hazards, adverse findings, 

easements...etc.)

Upon receipt of appropriate documentation confirming the 

completion of BRP activities, IHDA will provide Hardest Hit 
B-4-3

funding to the applicable partner after execution of a secured 

lien mortgage and note in favor of IHDA. The lien will be 

recorded in the public records and releases will be conducted 

by IHDA. 

The secured lien 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. 

In most cases, the outstanding loan balance will become due 

and payable if the property is sold, its title transferred, or it is 

used for an unauthorized purpose prior to the Expiration Date. 

However, in certain cases, special considerations may be made 

by IHDA to release or subordinate its lien prior to the 

Expiration Date based upon the merit of the request and the 

proposed positive impact to the community as set forth in the 

program guidelines. 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 IHDA. All proceeds returned to the IHDA from the 

BRP will be recycled in accordance with the Agreement. 

9. Per Property 

Assistance

$35,000 (per unit maximum) which may include the following 

on a per unit basis (if applicable): 

• Acquisition (purchase price, lien extinguishment, legal 

costs)

• Closing costs (if applicable, i.e., title, recording and 

transfer fees)

• Demolition

• Lot treatment/greening

• Maintenance ($3,000 flat fee)

• Administrative expenses ($1,750)

10. Duration of Assistance One time assistance per property.

11. Estimated Number of 

Properties

Approximately 1,000 – 1,500. Program will be expanded if 

successful and funds are available.
B-4-4

12. Program Inception / 

Duration

The program launched in the Summer of 2015. 

13. Program Interactions 

with Other HFA 

Programs

BRP will complement existing efforts of Illinois’ Abandoned 

Properties Residential Property Municipality Relief Fund. 

14. Program Interactions 

with HAMP

None

15. Program Leverage with 

Other Financial 

Resources

None
B-5-1

SERVICE SCHEDULE B-5

Illinois Housing Development Authority

Hardest Hit Fund Down Payment Assistance Program (HHF DPA Program)

Summary Guidelines

1. Program Overview The Down Payment Assistance (DPA) Program will provide an

incentive to qualified homebuyers to purchase a primary 

residence in targeted areas in Illinois. Providing incentives to 

qualified homebuyers in housing markets that have been hardest 

hit by serious delinquency, negative equity, distressed sales, and 

foreclosures will strengthen demand in those areas, stabilize 

housing prices and prevent future foreclosures. 

2. Program Goal The goal of the DPA Program is to help homeowners avoid 

foreclosure by assisting in the stabilization of housing prices in 

targeted areas. 

IHDA will identify and track meaningful indicators of program 

effectiveness that will enable them to quantify the DPA 

Program’s impact in the targeted areas.

3. Target Population / 

Areas

Areas identified in the DPA Program Guide including: Boone, 

Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will 

and Winnebago counties. IHDA evaluated five housing market 

distress indicators across all Illinois counties: Negative Equity 

Share, 90-Day Delinquency Rates, Foreclosure Rates, REO 

Rates, and Short Sale Rates. These counties exceed the 

statewide average in four out of five housing market distress 

indicators and a minimum threshold origination volume was 

achieved in these counties in 2014. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

Program allocation amount on file with Treasury.

5. Borrower Eligibility 

Criteria

Borrowers must qualify for and meet all the requirements for a

first mortgage loan product originated by an IHDA Loan 

Program participating lender. Eligible first mortgage loans are 

30-year fixed-rate loans from, insured or guaranteed by the 

Federal Housing Administration (FHA), U.S. Department of 

Veterans Affairs (VA), U.S. Department of Agriculture Rural 

Development (USDA), Federal National Mortgage Association 

(Fannie Mae) or Federal Home Loan Mortgage Corporation 
B-5-2

(Freddie Mac). Additional borrower eligibility requirements 

include:

• Present income at or below 140% of area median.

• Must be first-time homebuyers. For purposes of the DPA 

Program, a first-time homebuyer is defined as someone 

who has not had an ownership interest in their primary 

residence in the past three years or qualifies under either 

a Veteran’s Exception (as defined in the DPA Program 

Guide) or is purchasing a home in an Federally 

Designated Targeted Area (as defined in the DPA 

Program Guide).

• Complete a pre-purchase homebuyer education course

(as defined in the DPA Program Guide).

• Credit score at or above 640.

• Debt-to-income (back end) ratio of 45 percent or lower.

• Execute a Dodd-Frank affidavit.

6. Property / Loan 

Eligibility Criteria

Property criteria includes:

• Single family 1-2 unit (including a factory-made home 

which is permanently affixed to real property permitted 

for FHA, VA or USDA only; not permitted for HFA 

preferred conventional);

• Condominium unit (FHA, VA, Fannie Mae or Freddie 

Mac approved); must be warrantable.

• Planned Unit Development;

• Property purchase price must be within IHDA county 

purchase price limits as set forth in the DPA Program 

Guide;

• Must be owner occupied and borrower’s primary 

residence;

• Must be an existing residential dwelling (new 

construction excluded); and 

• Must be located in a DPA Program targeted area.

Loan criteria includes: 

• Meet all applicable FHA, VA, USDA, Fannie Mae or 

Freddie Mac underwriting guidelines.

7. Program Exclusions • Any second mortgage loans that do not meet the DPA 

Program eligibility requirements as set forth in the DPA 

Program Guide.

• Non-purchase transactions.
B-5-3

8. Structure of Assistance Assistance will be in the form of a non-amortizing, zero-percent 

interest, five-year forgivable loan. The forgivable loan will be 

evidenced by a note and a second mortgage in favor of IHDA. 

The loan will be recorded as a subordinate lien and will only be 

repaid in the event of a sale or refinance. The loan will be 

forgiven on a monthly pro rata basis for the five-year term. 

IHDA reserves the right to resubordinate the second mortgage as 

further detailed in the DPA program guide.

In the event the property is refinanced or sold during any part of 

the loan term, the remaining balance of the loan will be due to 

IHDA. Remaining funds will be returned to Treasury.

9. Per Household 

Assistance

The fixed amount of assistance per homebuyer is $7,500.

10. Duration of Assistance DPA Program funds will be used to reimburse the Master 

Servicer who purchases and pools all eligible loans from 

IHDA’s participating lenders.

11. Estimated Number of 

Participating 

Households

IHDA anticipates that approximately 9,733 homebuyers will 

receive assistance.

12. Program Inception / 

Duration

The DPA Program will begin August 3, 2015 and funds will 

likely be utilized on or before December 31, 2021.

13. Program Interactions 

with Other HFA 

Programs

The DPA Program will utilize existing infrastructure of 

participating lenders who are already actively originating both 

IHDA’s first mortgage and down payment assistance products. 

If the homebuyer has received HHF assistance under any other 

HHF program, the maximum amount of all HHF assistance may 

not exceed $57,500.

14. Program Interactions 

with HAMP

None.

15. Program Leverage with 

Other Financial 

Resources

IHDA has multiple secondary market executions including 

issuance of Tax-Exempt Bonds. In addition, funds may be 

leveraged by lenders using additional subsidy programs 

available.
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.