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TENTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Tenth 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 Tenth 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. Schedule C. Schedule C attached to the Current HPA is hereby deleted in its

entirety and replaced with Schedule C attached to this Amendment.
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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, C or F shall mean the Exhibit A or Schedules A, B, 

C 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 Tenth Amendment to HPA – South Carolina]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

SOUTH CAROLINA STATE HOUSING 

FINANCE AND DEVELOPMENT 

AUTHORITY

UNITED STATES DEPARTMENT OF THE 

TREASURY

By: /s/ Valarie M. Williams By:

Name: Valarie M. Williams Name: Mark McArdle

Title: Executive Director Title: Deputy Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

SC HOUSING CORP.

By: /s/ Valarie M. Williams

Name: Valarie M. Williams

Title: Executive Director
EXHIBITS AND SCHEDULES

Exhibit A Form of Amended and Restated Financial Instrument

Schedule A Basic Information

Schedule B Service Schedules

Schedule C Permitted Expenses

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 May 3, 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: SC Housing Corp. (“SCHC”)

Corporate or other organizational form: Nonprofit corporation

Jurisdiction of organization: South Carolina

Notice Information:

HFA Information:

Name of HFA: South Carolina State Housing Finance and

Development Authority

Organizational form: a public body, corporate and politic under

the laws of the State of South Carolina

Date of Application: June 1, 2010

Date of Action Plan: September 1, 2010

Notice Information:

Program Participation Cap: $317,461,821.00

Portion of Program Participation Cap 

Representing Original HHF Funds: $138,000,000.00

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $58,772,347.00

Rounds 1-4 Funding Allocation: $295,431,547.00

Round 5 Funding Allocation: $22,030,274.00

Permitted Expenses: $57,310,525.00

Closing Date: August 3, 2010

First Amendment Date: September 23, 2010

Second Amendment Date: September 29, 2010
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Third Amendment Date: December 16, 2010

Fourth Amendment Date: August 31, 2011

Fifth Amendment Date: November 15, 2012

Sixth Amendment Date: October 30, 2013 

Seventh Amendment Date: July 31, 2014

Eighth Amendment Date: September 29, 2015

Ninth Amendment Date: November 24, 2015

Tenth Amendment Date: May 3, 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.
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SERVICE SCHEDULE B-1

SC State Housing Finance and Development Authority

Monthly Payment Assistance Program

Summary Guidelines

1. Program Overview The Monthly Payment Assistance Program will assist eligible 

households that are experiencing a temporary reduction in income 

or financial hardship by making the full monthly first mortgage 

payment for a specified period of time or until the Assistance cap 

is reached. This Program will give eligible households the time 

and opportunity to replace lost income and/or make other 

household financial adjustments and decisions while remaining 

current on first mortgage payments. Eligibility will be reevaluated 

periodically during the assistance period. 

2. Program Goals To bridge eligible borrowers across a gap in employment, other

temporary reduction in income, or catastrophic financial 

expenses, allowing them to stay current on their mortgage and 

avoid foreclosure. 

3. Target Population/ 

Areas

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a short-term 

affordability problem.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$109,788,443

5. Borrower Eligibility 

Criteria

• Payment to Income ratio must exceed an affordable level 

as outlined in program and underwriting guidelines. 

• Borrower must provide documentation to evidence 

qualifying hardship per program guidelines.

• All final eligibility determinations will be made by SCHC.

• Funds will be available on a first-come first served basis.

• Borrowers must not exceed the following liquid asset 

requirement for each eligible hardship: 

o For employment-related, death of a spouse or coborrower or divorce related hardships, assets cannot 

exceed 12 times the monthly payment. 

o For catastrophic financial expenses, assets cannot 

exceed 6 times the monthly payment.

An eligible borrower must have at least one of the following 

qualifying financial hardships:

• Unemployment

• Underemployment
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• Significant reduction in self-employment income

• Death of a Spouse or co-borrower

• Divorce

• Catastrophic financial expenses

Additional eligibility criteria:

• To qualify as unemployed, a borrower must be 

unemployed and receiving unemployment insurance 

(“UI”) payments as administered by the State of South 

Carolina, or unemployed with available UI benefits 

exhausted within the previous 12 months. 

• To qualify as underemployed, a borrower must show a 

minimum 20% reduction in available household income.

• To qualify as self-employed with a significant reduction 

in income, a borrower must show that gross receipts for a 

primary borrower’s business have been reduced a 

minimum of 20%.

• To qualify for death of a spouse or co-borrower, a 

borrower must show a minimum 20% reduction in the 

available household income.

• To qualify for divorce, a borrower must demonstrate a 

minimum 20% reduction in the available household 

income.

• To qualify for catastrophic financial expense, a borrower 

must show that the catastrophic financial expense 

occurred through no fault of their own. Borrowers with an 

affordable payment to income ratio may be evaluated on a 

case by case basis as set forth in the program guidelines.

o Catastrophic financial expense must be at least 3 

times the monthly mortgage payment. 

o No portion of the assistance received as a result of 

a catastrophic financial expense hardship shall be 

reimbursed from other funding sources, including 

any subsidy or insurance reimbursement.

6. Property/Loan 

Eligibility Criteria

• Eligible loans must be fixed term, amortizing loans, and the 

original loan amount cannot exceed $729,750.

• Eligible properties must be owner-occupied 1-4 family 

primary residences located in South Carolina.

7. Program Exclusions Borrowers without a documented eligible hardship as described 

above in Section 5.
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8. Structure of Assistance Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction.

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

in accordance with the Agreement. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $36,000 per 

household. The sum of assistance provided through all Programs 

when a household is participating in multiple Programs is capped 

at $36,000 per household.

Expected Median: $17,000.

10. Duration of Assistance Assistance under this Program for employment related, death of a 

spouse or co-borrower and divorce hardships will be capped at 24 

months.

Assistance received for catastrophic related financial expenses 

will be capped at 6 months. 

11. Estimated Number of 

Participating 

Households

It is expected that that 6,000 – 7,000 families will be assisted 

under this Program.

12. Program Inception/ 

Duration

This Program was originally rolled out statewide on January 20, 

2011 and is expected to be available for 96 to 108 months.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

This Program will interact with:

• Direct Loan Assistance Program - Households that are 

delinquent at the time monthly assistance begins may be 

eligible for Direct Loan Assistance to help with any 

arrearage that exists. 

• Property Disposition Assistance Program - Households 

that are not self-supporting after exhausting allowable 

funding under this Program may be eligible for the 

Property Disposition Assistance Program.

• Total Assistance for households participating in multiple 

Programs is capped at $36,000 per household.
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14. Program Interactions

with HAMP

The Program could effectively “hand off” the borrower to HAMP 

once the borrower is reemployed, if required. Households 

successfully coming out of the Program may be eligible for 

HAMP to obtain a permanent modification.

The funds from this Program would be utilized prior to UP. 

Implementing the Program in this order is most beneficial to the 

borrower and the investor since payments would continue to be 

made instead of capitalized and no late charges or adverse credit 

report would occur. Should the borrower still be unemployed 

after the assistance from this Program ends, they may be eligible 

to roll into UP. 

Beneficiaries who participated in UP prior to making application 

to SC HELP would be eligible to participate in this Program.

It is also expected that this Program may act as a front-end 

extension of existing forbearance with deed-in-lieu wrap 

programs.

15. Program Leverage with 

Other Financial 

Resources

None. 
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SERVICE SCHEDULE B-2

SC State Housing Finance and Development Authority

Direct Loan Assistance Program

Summary Guidelines

1. Program Overview In some cases borrowers may have fallen behind on their 

mortgage payments, and have since regained the ability to make 

the full payment, or are eligible for funding under the Monthly 

Payment Assistance (“MPA”) program and have an accrued 

arrearage owed to the lender. Under the Direct Loan Assistance 

Program, funding in the form of a one-time payment will be 

provided to bring such loans current. Funds may also be made 

available for principal reductions ancillary to a reinstatement and 

to reduce or eliminate any forbearance in order ensure long-term 

affordability.

2. Program Goals To help borrowers become current on their mortgage during or 

following a brief interruption or reduction in income and to 

ensure long-term affordability.

3. Target Population/ 

Areas

This Program will be available in all 46 counties in South 

Carolina.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$101,612,853

5. Borrower Eligibility 

Criteria

An eligible borrower must have at least one of the following 

qualifying hardships:

• Unemployment

• Underemployment

• Significant reduction in self-employment income

• Death of a spouse or co-borrower

• Divorce

• Catastrophic health-related expenses or income 

interruption

Additional Eligibility criteria:

• Payment to Income ratio must not exceed an affordable 

level as outlined in program and underwriting guidelines 

unless borrower is approved for funding under the MPA 

program.

• Borrower must provide documentation to evidence 

qualifying hardship per program guidelines.

• Borrower must demonstrate that circumstances that led to 
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the delinquency have been resolved unless borrower is 

approved for funding under the MPA program.

• All final eligibility determinations will be made by SCHC.

• Funds will be available on a first-come first served basis.

6. Property/Loan

Eligibility Criteria

• Eligible loans must be fixed term, amortizing loans and the 

original loan amount cannot exceed $729,750.

• Eligible properties must be owner-occupied 1-4 family 

primary residences located in South Carolina.

7. Program Exclusions Borrowers without a documented eligible hardship as described 

above in Section 5.

8. Structure of Assistance Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction.

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

in accordance with the Agreement.

9. Per Household 

Assistance 

Assistance under this Program will be capped at $36,000 per 

household for eligible borrowers deemed INELIGIBLE for the 

MPA program.

Assistance under this Program will be capped at $25,000 per 

household for eligible borrowers also deemed ELIGIBLE for the 

MPA program.

The sum of assistance provided through all Programs when a 

household is participating in multiple Programs is capped at 

$36,000 per household.

Expected Median: $8,000.

10. Duration of Assistance Program is a one-time payment per household.

11. Estimated Number of 

Participating 

Households

It is expected that that 11,500 – 12,500 families will be assisted 

under this Program.
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12. Program Inception/ 

Duration

This Program was originally rolled out statewide on January 20, 

2011 and is expected to be available for 96 to 108 months.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• Monthly Payment Assistance Program – Households with 

an arrearage and a temporarily reduced level of income 

may be eligible for the Program and the MPA program to 

cure the immediate delinquency and to insure that further 

delinquencies are not incurred.

• Property Disposition Assistance Program - Households 

that are not self-supporting after exhausting allowable 

funding under this Program may be eligible for the 

Property Disposition Assistance Program.

• Total Assistance for households participating in multiple 

Programs is capped at $36,000 per household.

14. Program Interactions 

with HAMP

Households successfully coming out of the Program may be 

eligible for HAMP to obtain a permanent modification.

15. Program Leverage with 

Other Financial 

Resources

Servicer/Investor will be required to waive all non-expense fees 

(i.e. late fees). 
B-3-1

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SERVICE SCHEDULE B-3

SC State Housing Finance and Development Authority

Modification Assistance Program

Summary Guidelines

1. Program Overview The majority of lenders in South Carolina are offering troubled 

borrowers the opportunity to modify their loans under certain 

circumstances, with the most notable of these programs being the 

Home Affordable Modification Program (“HAMP”). Under the 

Modification Assistance Program, funding in the form of a onetime payment will be provided to help borrowers qualify for a 

modification, a recast (re-amortization) of their outstanding first 

mortgage principal balance, or a full lien extinguishment to 

improve a borrower’s likelihood of long term mortgage 

sustainability. 

Funds provided under this Program can be used to reinstate 

delinquent amounts, reduce or eliminate any forbearance 

amounts, provide limited reductions in outstanding first 

mortgage principal or fully extinguish liens.

2. Program Goals To improve a borrower’s likelihood of receiving a modification 

or lower payment, and to help ensure long term affordability for 

eligible borrowers.

3. Target Population/ 

Areas

This Program will be available in all 46 counties in South 

Carolina.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$12,000,000.00

5. Borrower Eligibility 

Criteria

Eligible borrowers must have a program eligible financial 

hardship due to unemployment, loss of income, reduction of 

income, or other demonstrated financial hardships through no 

fault of their own. Borrowers will be required to provide 

documentation to support the hardship. 

Additional eligibility criteria:

• Borrower must be employed or receiving income from a 

fixed income source.

• Current housing debt-to-income ratio must be greater 

than 25%.

• Post-assistance housing debt-to-income ratio must be less 

than or equal to 45%. 

• Borrower must meet all additional requirements 
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established by the servicer.

Borrowers primary source of income - fixed - may be eligible for 

a full lien extinguishment, recast or modification: 

• Gross household income is equal to or less than 125% of 

the state median income limit for South Carolina. 

Borrowers primary source of income – all other sources - may be 

eligible for a recast or modification:

• Pre-assistance LTV must be greater than 80%.

• Post-assistance LTV must be equal to or greater than 

80%.

• Post-assistance LTV may go below 80% if no more than 

$20,000 in assistance is provided for principal reduction 

in order to achieve a post assistance housing debt-toincome ratio between 25% and 45%.

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

basis. Borrowers must meet program underwriting criteria. 

6. Property/Loan 

Eligibility Criteria

• Eligible loans must be fixed term, fully amortizing, and the 

original loan amount cannot exceed $729,750.

• Eligible properties must be owner-occupied 1– 4 family 

primary residences located in South Carolina.

7. Program Exclusions • Borrowers without a documented eligible hardship as 

described above in Section 5.

• Borrowers have previously received funding through the 

Direct Loan Assistance and/or the Monthly Payment 

Assistance programs in an amount that exceeds limits as 

defined in underwriting guidelines for each program.

8. Structure of Assistance Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a ten (10) year period at a rate of 20% 

per year starting after the end of the sixth (6th) year. If property 

is sold or refinanced prior to the loan termination date, funds will 

be recovered should sufficient equity be available from the 

transaction.

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional 

homeowners in accordance with the Agreement. 
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9. Per Household 

Assistance 

Assistance under this Program will be capped at $36,000 per 

household.

Expected Median: $25,000.

10. Duration of Assistance Program is a one-time payment per household.

11. Estimated Number of 

Participating 

Households

It is expected that 450 – 550 families will be assisted under this 

Program. 

12. Program Inception/ 

Duration

This Program was rolled out in January 2014, and is expected to 

run for 72 months.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs:

• Monthly Payment Assistance Program - Households that 

are not self-supporting after exhausting allowable 

funding under the Monthly Payment Assistance Program 

may be eligible for this Program, subject to any previous 

assistance caps defined in underwriting guidelines.

• Direct Loan Assistance Households that are not selfsupporting after exhausting allowable funding under the 

Direct Loan Assistance Program may be eligible for this 

Program, subject to any previous assistance caps defined 

in underwriting guidelines.

14. Program Interactions 

with HAMP

This Program can be used in conjunction with HAMP to improve 

a borrower’s likelihood of success and to help ensure long term 

affordability for borrowers.

15. Program Leverage with 

Other Financial 

Resources

Servicer/Investor will be required to waive all non-expense fees 

(i.e., late fees). 
B-4-1

Doc#: US1:10590321v5

SERVICE SCHEDULE B-4

SC State Housing Finance and Development Authority

Property Disposition Assistance Program

Summary Guidelines

1. Program Overview There may be a segment of borrowers whose position is 

unrecoverable, and who need assistance in gracefully exiting 

homeownership. The Property Disposition Assistance Program 

will be used to assist households who are able to complete a short 

sale or deed-in-lieu of foreclosure. The funds are provided as a 

one-time payment and are intended to provide deposits and other 

funds needed to transition from homeownership to renting. 

2. Program Goals To assist households who are able to complete a short sale or 

deed-in-lieu of foreclosure by providing deposits and other funds 

needed to transition from homeownership to renting. 

3. Target Population/ 

Areas

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a long-term or 

permanent affordability problem with little expectation for 

financial recovery.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$1,750,000.00

5. Borrower Eligibility 

Criteria

• Borrower must provide documentation to evidence qualifying 

hardship per program guidelines.

• Delinquency event must be ongoing with little or no 

expectation for financial recovery (i.e. prolonged underemployment, divorce, death of a spouse, etc.). 

• Application for assistance must be completed prior to 

completion of short sale or deed-in-lieu of foreclosure.

• Short sale or deed-in-lieu of foreclosure must be complete 

prior to final approval and funding.

• All final eligibility determinations will be made by SCHC.

• Funds will be available on a first-come first served basis.

6. Property/Loan 

Eligibility Criteria

Eligible properties must be owner-occupied 1– 4 family primary 

residences located in South Carolina.

7. Program Exclusions Borrower receiving assistance under the Home Affordable 

Foreclosure Alternative (HAFA) Program.
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8. Structure of Assistance Assistance under this Program will be provided directly to the 

homeowner, and will not be structured as a loan, nor will it be 

secured by the subject property. No payments may be made 

directly to homeowners until a short sale or deed-in-lieu is 

completed.

9. Per Household 

Assistance 

Assistance under this Program will be capped at $5,000 per 

household.

Expected Median: $5,000.

10. Duration of Assistance Program is a one-time payment.

11. Estimated Number of 

Participating 

Households

It is expected that that 250 – 300 families will be assisted under 

this Program. 

12. Program Inception/ 

Duration

This Program will be available statewide during the third quarter 

of 2011. It is expected that it will run for 96 to 108 months.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

This Program will interact with the following South Carolina 

HFA Hardest Hit Fund Programs:

• Monthly Payment Assistance Program - Households that 

are not self-supporting after exhausting allowable funding 

under the Monthly Payment Assistance Program may be 

eligible for this Program.

• Direct Loan Assistance - Households that are not selfsupporting after exhausting allowable funding under the 

Direct Loan Assistance Program may be eligible for this 

Program.

14. Program Interactions 

with HAMP

None. 

15. Program Leverage with 

Other Financial 

Resources

None. 
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SERVICE SCHEDULE B-5

SC State Housing Finance and Development Authority

Neighborhood Initiative Program (NIP)

Summary Guidelines

1. Program Overview Under the Neighborhood Initiative Program (“NIP”), the South 

Carolina State Housing Finance and Development Authority 

(“SCSHFDA”) will work with units of local government and 

qualified non-profit organizations (together, “Partners”) to 

strategically target residential (single and multifamily) properties 

for demolition, site improvement, and acceptable reuse within the 

state of South Carolina. 

2. Program Goals The primary purpose and goal of NIP is to decrease foreclosures 

and stabilize homeowner property values in communities across 

South Carolina through the demolition of vacant, abandoned, and 

blighted residential structures, and subsequent 

greening/improvement. SCSHFDA will work with program 

Partners to identify meaningful indicators that will enable them to 

track and quantify the NIP’s impact in the designated 

communities.

3. Target Population/ 

Areas

NIP will be available in all 46 counties in South Carolina, but will 

only be authorized in areas with a demonstrated need and 

comprehensive implementation plan in place. SCSHFDA 

program guidelines will ensure that demolition and 

greening/improvement will promote increased values of 

neighboring properties and will have a positive effect on 

preserving existing neighborhoods.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$35,000,000.00
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5. Property Eligibility 

Criteria

• Vacant, abandoned, and blighted standard residential (1-4 

units) and multifamily residential (4+ units) properties located 

in South Carolina. 

• Properties that qualify for demolition under state and federal 

law.

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.

Subject to the foregoing, SCSHFDA will determine property 

eligibility using information provided by the participating 

Partners. SCSHFDA’s determination will be based on factors 

including, but not limited to:

• Habitability

• Structural condition

• Impact on community preservation and public safety

6. Ownership/Loan 

Eligibility Criteria

• Participating Partner must hold title to the property (may 

acquire title as part of the NIP transaction). 

• Property must be subject to a loan that can be modified or 

extinguished.

7. Program Exclusions • Commercial (non-residential) structures.

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

8. Structure of 

Assistance

SCSHFDA will determine acceptability of project sites (targeted 

neighborhoods, communities, etc.) in direct consultation with 

participating Partners.

Participating Partners will be responsible for property acquisition 

(if applicable), demolition work, final site improvements/site 

greening, and on-going property maintenance.

Partners will submit to SCSHFDA the following for each 

proposed demolition site:

• Property ownership and/or acquisition information including 

full address and deed.

• Pre-demolition inspection with photos. 

• Cost estimates and/or evidence of the expenditures necessary 

to carry out any environmental remediation required by law.

• Any other miscellaneous information identified regarding the 

property (e.g., hazards, adverse findings, easements...etc.).

• Invoice for demolition costs.
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• Proof of any acquisition cost (if applicable).

• Post-demolition inspection with photos. 

• Summary post-demolition plan/goal for the property.

Upon receipt of the above documentation, SCSHFDA will 

provide Hardest Hit funding to the participating Partner after said 

Partner’s execution of a mortgage and note in favor of SC 

Housing Corp., which note shall be in an amount equal to the 

total assistance requested. 

Total assistance will provide for acquisition costs (if applicable), 

demolition, final site improvements/site greening costs, a $3,000 

one-time property maintenance fee to cover maintenance 

expenses for a period of three (3) years, and $1,750 for 

administrative expenses. The participating Partner may request up 

to two disbursements per property after meeting project 

milestones as described in NIP guidelines. The mortgage in favor 

of SC Housing Corp. must be executed prior to any disbursement.

The note will be 0%, non-amortizing loan, forgivable over a three 

(3) year term at 33.33% per year as long as covenants are met; 

outstanding balance of loan will be due on sale, transfer, or 

unauthorized use of the property. The mortgage will be recorded 

through public records and ongoing loan servicing (i.e., 

repayments and lien releases) and monitoring will be handled by 

SCSHFDA. Any repayment of NIP funds will be re-invested 

back into the NIP allocation in accordance with the Agreement. 

Special considerations may be made by SCSHFDA to release or 

subordinate its lien prior to the end of the term based on the merit 

of the request and to promote positive economic impact on the 

local community, as set forth in the NIP guidelines.

9. Per Property 

Assistance 

Maximum of $35,000 per residential property. Maximum 

assistance amount includes acquisition costs (if applicable); 

demolition and greening/improvement costs; $1,750 for

administrative expenses; and a one-time $3,000 maintenance fee 

to cover maintenance expenses for a period of three (3) years.

10. Duration of 

Assistance

One-time assistance per property payable in multiple 

disbursements.

11. Estimated Number 

of Properties Assisted

It is expected that 1,000 – 1,300 properties will be served. 

12. Program Inception/ 

Duration

NIP will be available statewide during the third quarter of 2014. 

It is expected that it will run for 72 months.
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13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

NIP will not interact with other SCSHFDA Hardest-Hit Fund 

Programs. SCSHFA-owned or mortgaged properties may be 

eligible under NIP.

14. Program Interactions 

with HAMP

NIP will not interact with HAMP.

15. Program Leverage 

with Other Financial 

Resources

None
C-1

SCHEDULE C

Permitted Administrative Expenses

South Carolina

Total

One-time / Start-Up Expenses:

Initial Personnel $126,004

Building, Equipment, Technology $280,977

Professional Services $148,912

Supplies / Miscellaneous $9,524

Marketing /Communications $1,935

Travel $2,723

Website development /Translation $0

Contingency $0

Subtotal $570,075

Operating / Administrative 

Expenses:

Salaries $11,022,645

Professional Services (Legal, 

Compliance, Audit, Monitoring) $895,296

Travel $173,208

Buildings, Leases & Equipment $641,505

Information Technology & 

Communications $4,886,093

Office Supplies/Postage and 

Delivery/Subscriptions $487,964

Risk Management/ Insurance $200,000

Training $100,000

Marketing/PR $3,544,580

Miscellaneous $573,810

Subtotal $22,525,101

7.10%

Transaction Related Expenses:

Recording Fees $20,000

Wire Transfer Fees $750,000

Counseling Expenses

File Intake $0

Decision Costs $0

Successful File $0

Key Business Partners On-Going $33,445,349

Subtotal $34,215,349

Grand Total $57,310,525

% of Total Award 18.05%

Award Amount $317,461,821
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.