First Amendment to HPA — Indiana 

TAMPA/134448.1

FIRST AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This First Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “First Amendment”) is entered into as of the date set forth on Schedule A

attached hereto as the First 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 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 (P.L. 110-343), as amended, as the same may be amended 

from time to time (“EESA”); 

WHEREAS, on September 24, 2010 Treasury indicated that it would make $3.5 billion of 

additional assistance available under the HHF Program for foreclosure prevention programs for 

homeowners struggling to make their mortgage payments in certain states that had previously 

received HHF Program funding for such purposes; 

WHEREAS, Treasury desires to increase the available HHF Program funds available to Eligible 

Entity and as such, Treasury, HFA and Eligible Entity wish to enter into this First Amendment to 

document all modifications and additional provisions necessary to address the additional HHF 

Program funds; 

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

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

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

Agreement 

1. Amendments

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

Original HPA, as amended by this First Amendment; and all references in the Original HPA 

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

references herein to the “HPA” shall mean the Original HPA, as amended by this First 

Amendment. 
- 2 - 

TAMPA/134448.1 

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

and replaced with Schedule A attached to this First Amendment. 

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

and replaced with Schedule B attached to this First Amendment. 

2. Representations, Warranties and Covenants

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

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

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

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

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

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

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

Event of Default under the HPA. 

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

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

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

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

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

Entity is in breach of any such covenant. 

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

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

Treasury in connection with this First Amendment, and to perform its obligations 

hereunder and thereunder. 

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

First Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Administrative Expenses

Notwithstanding anything to the contrary contained in the Original HPA as amended by this First 

Amendment, HFA and Eligible Entity may from time to time submit adjusted budgets to 

Treasury requesting approval to re-allocate HHF Funds to pay actual program expenses as set 

forth on a proposed Schedule C. In the event that Treasury shall approve an adjusted budget, in 

Treasury’s sole discretion, the parties shall enter into an amendment to the HPA to modify 

Schedules A, B and C as necessary. 

4. Miscellaneous

A. The recitals set forth at the beginning of this First Amendment are true and accurate 

and are incorporated herein by this reference. 
- 3 - 

TAMPA/134448.1 

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 First 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 

First Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 

[Signature Page to First Amendment to HPA — Indiana] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

INDIANA HOUSING AND COMMUNITY 

DEVELOPMENT AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Sherry Seiwert By: 

Name: Sherry Seiwert Name: Herbert M. Allison, Jr. 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

INDIANA HOUSING AND COMMUNITY 

DEVELOPMENT AUTHORITY 

By: /s/ Sherry Seiwert 

Name: Sherry Seiwert 

Title: Executive Director 

 
TAMPA/134448.1 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/134448.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Indiana Housing and Community 

 Development Authority1

Corporate or other organizational form: body corporate and politic, established and 

 existing under Indiana Code 5-20-1 et. seq.

Jurisdiction of organization: Indiana

Notice Information: 

 

 

 

 

 

HFA Information: 

Name of HFA: Indiana Housing and Community 

 Development Authority 1

Organizational form: body corporate and politic, established and 

 existing under Indiana Code 5-20-1 et. seq. 

Date of Application: September 1, 2010 

 

1 References in the Agreement to the term “HFA” shall mean the Indiana Housing and Community Development 

Authority (“IHCDA”) in its capacity as HFA as such term is used in the Agreement; and references in the 

Agreement to the term “Eligible Entity” shall mean IHCDA, 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, (i) annual 

audited financial statements shall be due no later than one hundred eighty (180) days after the end of IHCDA’s fiscal 

year, and (ii) 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 IHCDA 

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 IHCDA shall provide to Treasury, no later than fortyfive (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, IHCDA 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 IHCDA shall be governed by and construed in accordance with the laws of the State of Indiana; and 

(C) for the purposes of Sections 2(C)(1) and 6(A)(2) thereof, references to the term “instrumentality” shall mean 

“body corporate and politic”. 
TAMPA/134448.1 

Notice Information: Same as notice information for Eligible 

 Entity. 

Program Participation Cap: $221,694,139.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $82,762,859.00

Permitted Expenses: $16,534,000.00 

Closing Date: September 23, 2010 

First Amendment Date: September 29, 2010 

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. 
TAMPA/134448.1 

SCHEDULE B

SERVICE SCHEDULES

The Service Schedules attached as Schedule B to the Original 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. 
TAMPA/134448.1 

SERVICE SCHEDULE B-1

Indiana 

Hardest Hit Fund Unemployment Bridge Program 

Summary Guidelines 

1. Program 

Overview

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

the Indiana Housing and Community Development Authority (IHCDA) 

will offer individuals who are unemployed through no fault or neglect of 

their own a monthly benefit to cover a portion of their first mortgage and 

related expenses while the individual seeks new employment. When 

necessary, IHCDA will also provide a limited amount of funding at the 

outset of assistance to bring a mortgage current so that IHCDA may 

provide future monthly payments. IHCDA will also provide assistance (up 

to three months principal, interest, taxes and insurance (PITI) plus fees) in 

cases to currently substantially underemployed homeowners who 

accumulated a delinquency during a period of unemployment but cannot 

bring their mortgage current with their current income. This last category 

of assistance will only apply if borrowers: (a) qualify in all other respects 

for assistance; (b) have demonstrated that they can afford mortgage 

payments with their post-unemployment income; and (c) cannot qualify for 

mortgage reinstatement BUT FOR HHF Assistance. 

2. Program Goals The goal of the UBP is to cover a portion of PITI for eligible unemployed 

and substantially underemployed homeowners, allowing them to: 

1) Secure re-employment in their occupation; or 

2) Access training made available through the Indiana Department of 

Workforce Development that will help them secure employment in a 

new occupation. 

3. Target 

Population / 

Areas 

Our target population is low- to moderate-income homeowners in any 

county in Indiana. Homeowners in the 46 counties classified as hardest hit 

will be eligible for a longer term of assistance (18 months) than 

homeowners residing in other counties (12 months). 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

$205,160,139.00 

5. Borrower 

Eligibility 

Criteria 

1) Unemployed and eligible for unemployment insurance OR (in limited 

cases) underemployed and able to document both current financial 

hardship and a prior period of unemployment resulting in a current 

delinquency; 

2) Engaged in approved training, education or structured volunteer work 

EXCEPT for the limited number of cases in which we will assist 

currently employed individuals; 

3) Enrollment in counseling; 
TAMPA/134448.1 

4) Current household income below 120% AMI adjusted for borrower 

household size; 

5) Documentation of six months of pre-hardship timely payments; 

6) Agreement to pay 30% of current income toward PITI EXCEPT for the 

limited number of cases in which we will assist currently employed 

individuals; in those cases, individuals will be expected to make some 

contribution toward clearing their delinquency, with 30% serving as 

the standard; 

7) Owning only one home; 

8) Submission of hardship affidavit documenting inability to pay 

mortgage; 

9) Veterans and military personnel (active or reserve) will receive priority 

over all other applicants; and 

10) Filed for unemployment insurance on or after the UBP implementation 

date. 

11) IHCDA will require the borrower to contribute 30% of his or her 

current household income for PITI based on documentation of 

unemployment benefits. Borrower delinquency of more than thirty 

days for two payment periods (consecutive or nonconsecutive) is cause 

for automatic termination of assistance. 

6. Property / 

Loan 

Eligibility 

Criteria 

1) Principal balances below $217,000 (80% of FHA Loan Limit for single 

family homes in the majority of Indiana). 

2) Loan-to-value below 125% at time of application inclusive of HHF 

assistance. 

7. Program 

Exclusions 

1) Property is vacant, abandoned or condemned. 

2) Borrower has not exhausted or been ruled ineligible for other programs 

(federal or direct lender). 

3) Borrower has liquid assets sufficient to make 6 months’ worth of 

payments, excluding retirement accounts. 

4) Borrower is ineligible for unemployment benefits (for example due to 

nature of job loss or no W-2 reportable wages). 

5) Property is subject to a second mortgage and second mortgage servicer 

will not agree to forbearance or other arrangements during assistance 

period. 

8. Structure of 

Assistance

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

loan, secured by a junior lien on the property. The loan is forgiven at a 

rate of 20% per year in years 6 through 10 of the loan term. This loan will 

only be repayable if the borrower sells the property before the forgiveness 

period expires and there is sufficient equity to pay the loan. All funds 

returned to the UBP may be recycled until December 31, 2017; thereafter 

they will be returned to Treasury. 

9. Per Household 

Assistance 

Total assistance per household is not to exceed $18,000 in hardest hit 

counties or $12,000 in balance of state. 
TAMPA/134448.1 

10. Duration of 

Assistance 

In hardest hit counties, up to eighteen months or three months after reemployment, whichever comes first; in balance of state, up to one year or 

three months after re-employment, whichever comes first. Eligibility for 

assistance will be reduced by the number of months’ payment required to 

bring a homeowner current on their mortgage upon commencement of 

assistance. 

11. Estimated 

Number of 

Participating 

Households 

An estimated 5,895 households will receive assistance, at an average 

assistance level of about $702 per month for an average of about sixteen 

(16) months of assistance, inclusive of payments to clear delinquencies and 

assistance after re-employment. 

12. Program 

Inception / 

Duration 

Provided that IHCDA receives prompt and reasonable cooperation from 

servicers, IHCDA anticipates that the pilot period will begin as soon as 

November 1, 2010 (but no later than March 1, 2011) and will last for five 

(5) months. After the pilot period, IHCDA anticipates that the program 

will last for approximately two (2) years. 

13. Program 

Interaction 

with Other 

Programs (e.g. 

other HFA 

programs) 

IHCDA manages the Homeless Prevention and Rapid Re-Housing 

Program (HPRP) funding for the balance of state Continuum of Care. 

IHCDA assessment tool for HPRP will incorporate screening for HHF 

eligibility for homeowners at risk of homelessness through foreclosure. 

HPRP administrators will be trained on eligibility requirements and 

screening for HHF. IHCDA also manages the Indiana Foreclosure 

Prevention Network (IFPN), which is a coalition of community service and 

housing-related organizations, government agencies, lenders, realtors, and 

trade associations that are actively addressing Indiana’s foreclosure crisis 

through a variety of methods. IHCDA anticipates contracting with some 

of the organizations which are providing IFPN counseling services to 

provide eligibility screening, intake and preliminary underwriting for HHF. 

Finally, IHCDA will work with the Indiana Department of Workforce 

Development (DWD) to coordinate efforts; for example, the availability of 

HHF for qualified unemployed persons may be noted in Unemployment 

Insurance benefit determination letters from DWD. 

14. Program 

Interactions 

with HAMP 

Borrowers will be pre-screened for HAMP, HAFA and HAMP-UP and 

programs offered by lenders. Eligible households will receive assistance 

from these programs before receiving assistance through the UBP except 

where not eligible for HAMP. 

15. Program 

Leverage 

No leveraging from banks and servicers is required. IHCDA anticipates 

entering into participation agreements with servicers that will set forth 

IHCDA’s expectations for servicers, including acceptance of payment 

from IHCDA and application of payment to PITI only.

16. Qualify as an 

Unemployment 

Program 

; Yes  No