Homeowner Assistance Fund Plan

PROGRAM DESIGN

Program Template: Idaho Homeowner Assistance Program 

Date: August 31, 2021 (updated 08/06/2022)

Term Sheet

Program Design Elements:

1. Allow homeowners to reinstate mortgages or pay other housing 

related costs

2. Mortgage payment assistance (For one additional month post 

reinstatement, if maximum assistance has not been reached)

3. Mortgage principal reduction, including with respect to a second 

mortgage provided by a non-profit or government (To be used as a 

last resort after all other loss mitigation options.)

4. Payment Assistance for homeowner’s utilities, including electric, 

gas, home energy, and water 

5. Payment Assistance for homeowner’s, flood, and mortgage 

insurance

6. Payment assistance for homeowners’ association fees or liens, 

condominium association fees, or common charges

7. Payment assistance for delinquent property taxes to prevent 

homeowner tax foreclosures 

NOTE- We are encompassing all seven of the above listed Design Elements into one 

reinstatement/assistance program. 

Criteria Program Terms

Brief Description

This program will provide funds to eliminate or reduce past due 

payments and other delinquent amounts, including payments under a 

forbearance plan, on forward mortgages, reverse mortgages, loans 

secured by manufactured homes, or contracts for deed.
HAF Funds may be used to bring the account fully current, with no 

remaining delinquent amounts, and to repay amounts advanced by 

the lender or servicer on the borrower’s behalf for property charges, 

including property taxes, hazard insurance premiums, flood or wind 

insurance premiums, ground rents, condominium fees, cooperative 

maintenance fees, planned unit development fees, homeowners’ 

association fees or utilities that the servicer advanced to protect lien 

position. Payment may also include any reasonably required servicer 

fees, legal fees, and property preservation fees.

Provide payment assistance for up to one month in conjunction with 

mortgage reinstatement unless maximum amount of assistance has 

already been reached.

For mortgage reinstatement, funds may be used to help homeowners 

resolve delinquent payments for utilities (power, sewer, trash, gas, 

water) only if the outstanding past due amount is deemed to be a 

barrier to the homeowner resuming regular monthly mortgage 

payments. HAF funds may be used to pay prospective charges in full 

including interest or reasonable required legal fees and under 

circumstances in which a delinquency threatens access to utility 

services. The provided assistance must bring the homeowner’s 

account current.

For a homeowner that is concurrently going through loss mitigation 

stemming from a coronavirus pandemic related delinquency, HAF 

funds may be used for loss mitigation measures intended to result in a 

permanently sustainable monthly payment for borrowers that are 

unable to resume their monthly mortgage payment that is reset due 

to investor offered loss mitigation. Funds may be used to effect 

principal reductions; reduce the rate of interest; recast payment 

terms; repay funds advanced by the servicer on the borrower’s 

behalf; and as otherwise appropriate to ensure such assistance, when 

leveraged with other available loss mitigation options and results in a 

sustainable monthly payment amount for the borrower. 

For homeowner’s without a mortgage or who have a reverse 

mortgage, provide funds to resolve property charge defaults that 

threatens a homeowner’s ability to sustain ownership of the property. 

HAF funds may be used to pay past due property taxes, HOA fees, 
condominium fees, or cooperative maintenance or common charges 

that threaten sustained ownership of the property. Past due hazard 

insurance may be covered for those with a reverse mortgage only. 

Must be brought current by program assistance. For homeowner’s 

without a mortgage or that have a reverse mortgage and are behind 

on utilities, due to circumstances related to the COVID-19 pandemic, 

funds may be used to help homeowners resolve delinquent payments 

for utilities (power, sewer, trash, gas, water) only if the outstanding 

past due amount is deemed to be a barrier to the homeowner 

maintaining their home, being displaced, or creating an unsafe or 

unsanitary environment. All other eligibility requirements must be 

met.

IHFA will make reasonable efforts to have HAF participants identify 

their loss mitigation options prior to, or in conjunction with providing 

HAF assistance. HAF funds may be used to supplement other loss 

mitigation options offered by the servicer under investor 

requirements or where, without HAF funds, the homeowner would 

not qualify for that loss mitigation option. 

HAF Reinstatement 

Program Goal

To mitigate financial hardships associated with the coronavirus 

pandemic by providing eligible Idaho homeowners assistance for the 

purposes of reinstating their delinquent mortgages, resume affordable 

mortgage payments, and avoid foreclosure and displacement. 

Size of HAF 

Reinstatement Program

Idaho Housing and Finance Association will utilize up to $64,435,431 of 

its total HAF allocation for this program. Remaining $7,500,000 is for 

administrative costs.

Targeted Population of 

Homeowners and 

Financial Challenges 

Program Seeks to 

Address

IHFA will target Idahoans who are socially disadvantaged and those who 

are low-to-moderate income. 

Goal #1: Help low and moderate-income households return to housing 

stability by assisting with past due mortgage amounts accrued while on 

COVID-19 forbearance plans. 

Goal #2: Stabilize the mortgage delinquency across Idaho.

Goal #3: Assist cost-burdened Idaho families attempting to exit 

forbearance plans and get back on track.

Goal #4: Prevent disadvantaged and low-to-moderate income 

households from displacement.

Homeowner Eligibility “Eligible Homeowners” for Idaho’s HAF Reinstatement programs must 

meet the following criteria:

• Homeowner must have experienced a Qualified Financial 

Hardship after January 21, 2020(including a hardship that 

began before January 21, 2020, but continued after that 

date).

• Homeowner must currently own and occupy the property as 
their primary residence. 

• Homeowner must meet the Homeowner Income Eligibility 

Requirements.

• Homeowner must be delinquent by at least one installment 

payment or otherwise in default, as reflected in documentation 

from the payee or the payee’s agent. Delinquency includes 

missed payments during a forbearance period.

• Homeowners without a mortgage loan or who have a reverse 

mortgage that are delinquent on state property taxes, HOA’s or 

Condo Association dues, hazard Insurances(reverse mortgages 

only), or utilities (power, sewer, trash, gas, water) and are at 

risk of being displaced may be eligible for assistance if they 

meet all other eligibility requirements. Delinquencies must 

have occurred after January 21, 2020.

• Homeowner must attest that they experienced a financial 

hardship after January 21, 2020. The attestation must 

describe the nature of the financial hardship.

• Homeowners who have previously filed for bankruptcy but who 

are no longer in bankruptcy must provide proof of court ordered 

“discharge” or “dismissal”.

• Homeowner must complete and sign Affidavit, Application, 

Disclosures, and 3rd Party Authorization forms

• Homeowner agrees to provide all necessary documentation to 

satisfy program guidelines within timeframes established by 

Idaho Housing and Finance Association, including selfcertification or attestation of socially disadvantaged status, as 

applicable. 

• The original, unpaid principal balance of the homeowner’s first 

mortgage or housing loan, at the time of origination, was not 

greater than the conforming loan limit in effect at time of 

origination.

• Special consideration will be given to FHA, VA and USDA loans.

• Homeowner will provide a statement of current ability to 

resume any required regular payments after account is 

reinstated or brought current. Self attestation will be required.

Co-owners are not permitted to separately apply for HAF Program 

assistance.

Eligible Legal Ownership 

Structures

“Eligible Legal Ownership Structures” include only the following:

• Those where the home is owned by a “natural person” (i.e., 

LLP, LP or LLC do not qualify)

• Those where the homeowner has transferred their ownership 

right into non- incorporated, Living Trusts, provided the 

homeowner occupies the home as the primary/principal 

residence.

Qualified Financial 

Hardship

A “Qualified Financial Hardship” is a material reduction in income or 

material increase in living expenses associated with the coronavirus 
pandemic that has created or increased a risk of mortgage delinquency, 

mortgage default and foreclosure, loss of utilities or home energy 

services, and displacement of a homeowner.

 Reduction of Income – Documented temporary or 

permanent loss of earned income [after January 21, 2020]. 

 Increase in living expenses – Documented increase in outof-pocket household expenses such as, medical expenses, 

inadequate medical insurance, increase in household size, 

or costs to reconnect utility services directly related to the 

coronavirus pandemic [after January 21, 2020]. 

Applicant attestation as to financial hardship after January 21, 

2020*, including description of the nature of the financial hardship 

(job loss, reduction in income, etc.)

*This includes documented hardship that began before January 21, 

2020, but continued after that date.

Homeowner

Income Eligibility 

Requirements

To be eligible for assistance under the Idaho HAF Reinstatement 

Program, homeowners must have incomes equal to or less than 150% 

of the area median income as published by HUD or 100% of the median 

income for the United States, whichever is greater.

Income Determination: Applicant attestation as to household income, 

plus supporting documentation, including paystubs, W‐2s or other wage 

statements, IRS Form 1099, tax filings, depository institution statements 

demonstrating regular income, or an employer attestation. 

Homeowner 

Prioritization

Idaho Housing and Finance Association will prioritize funding to the 

following populations: 

 Not less than 60% will be used for qualified expenses that 

assist homeowners having incomes equal to or less than 

100% of the area median income or equal to or less than 

100% of the median income for the United States, 

whichever is greater. 

 Amounts not made available to homeowners that meet the 

above income-targeting requirement will be prioritized for 

assistance to socially disadvantaged individuals as long as 

they have incomes equal to or less than 150% of the area 

median income or 100% of the median income for the 

United States, whichever is greater.

o “Socially Disadvantaged Individuals” are those 

whose ability to purchase or own a home has been 

impaired due to diminished access to credit on 

reasonable terms as compared to others in 

comparable economic circumstances, based on 

disparities in homeownership rates in the HAF 

participants jurisdiction as documented by the U.S. 

Census. The impairment must stem from 

circumstances beyond their control. Indicators of 

impairment under this definition may include being 
(1) member of a group that has been subjected to 

racial or ethnic prejudice or cultural bias within 

American society, (2) resident of a majorityminority Census tract; ( 3) individual with limited 

English proficiency; (4) resident of an Indian 

reservation, or (5) individual who lives in a 

persistent-poverty county, meaning any county 

that has had 20% or more of its population living in 

poverty over the past 30 years as measured by the 

three most recent decennial censuses.” (Treasury 

Guidance Dated 8/2/2021) 

 All remaining funds not otherwise prioritized will be 

available for other Eligible Homeowners. 

Eligible Properties “Eligible Properties” are those that are:

• Single-family (attached or detached) properties

• Condominium units

• 1 to 4-unit properties where the homeowner is living in one of 

the units as their primary residence. [EXCLUSION: If the 

homeowner of a 1-4 unit property has received payments from 

the Emergency Rental Assistance Program, they may be ineligible 

to receive funds under the HAF Program.]

• Manufactured homes permanently affixed to real property and 

taxed as real estate

• Manufactured homes permanently affixed to real property that 

are on leasehold land, be subject to the mortgage lien, and be 

insured by a title policy.

• Single-Family (attached or detached) properties that are on 

leasehold land, be subject to a mortgage lien, and be insured by 

a title policy.

Ineligible properties are those that: 

• Vacant or abandoned

• Mobile homes not permanently affixed to real property

• 2

nd homes

• Investment property 

Eligible Uses of HAF 

Reinstatement Program 

Proceeds 

 “Eligible Uses of HAF Reinstatement Program Proceeds”:

Mortgages listed below must be held by a servicer with an NMLS 

number. This would include federally backed and privately funded 

mortgages. Mortgages not held by a servicer with a NMLS number will 

be reviewed on a case-by-case basis. 

 Existing first mortgage lien loan payment (principal, interest, 

taxes, insurance, and mortgage insurance, and HOA dues), to 

include any escrow shortages. 

 Subordinate mortgage lien payment (P&I) 

 Manufactured home loan monthly payment (principal, interest, 
taxes, insurance, and HOA dues) to include escrow shortages.

 Land Contract monthly payment (P&I) (For lease held property 

loans). 

 Homeowner’s association fees, condominium association fees or 

common charges.

 For a homeowner that is concurrently going through loss 

mitigation stemming from a coronavirus pandemic related 

delinquency, HAF funds may be used for loss mitigation 

measures intended to result in a permanently sustainable 

monthly payment for borrowers that are unable to resume their 

monthly mortgage payment that is reset due to investor offered 

loss mitigation. Funds may be used to effect principal 

reductions; reduce the rate of interest; recast payment terms; 

repay funds advanced by the servicer on the borrower’s behalf; 

and as otherwise appropriate to ensure such assistance, when 

leveraged with other available loss mitigation options and 

results in a sustainable monthly payment amount for the 

borrower. 

 Homeowner’s hazard, flood and/or mortgage insurance

 Homeowner’s delinquent property taxes to prevent homeowner 

tax foreclosure

 Homeowner delinquent utility payments. Funds may be used to 

help homeowners resolve delinquent payments for utilities 

(power, sewer, trash, gas, water) only if the outstanding past 

due amount is deemed to be a barrier to the homeowner 

resuming regular monthly mortgage payments, or if the 

outstanding past due amount is deemed to be a barrier to the 

homeowner maintaining their home, being displaced, or creating 

an unsafe or unsanitary environment.

 Counseling or educational efforts by housing counseling agencies 

approved by HUD or a tribal government or legal services, 

targeted to households eligible to be served with funding from 

the HAF related to foreclosure prevention or displacement

 De Minimis lender-assessed fees 

Maximum Per Household 

HAF Assistance

Idaho Housing and Finance Association will not exceed its “Maximum Per 

Household HAF Assistance” amount of $50,000 per household. 

Form of Assistance Assistance will be structured as an interest free loan, payable upon sale 

and transfer of the property. For a transfer based on sale of the 

property, the loan will be forgiven if the homeowner’s net proceeds 

from the sale do not cover the HAF loan amount. The loan may be 

forgivable after ten years.

Payout of HAF 

Assistance/Payment 

requirements 

Idaho Housing and Finance Association will disburse HAF assistance 

directly to mortgage lender/servicer or land contract holder, the Idaho 

State Tax Commission, Hazard Insurance Provider, Homeowners’ 
Association/Condominium Association, or utility provider. Funds will not 

be issued to borrowers or any other parties than those listed above. 

Payments to lenders/servicers are only authorized to those 

lenders/services that hold an NMLS number. Private party mortgages 

will be reviewed on a case by case basis and there must be a recorded 

deed of trust and proof and legal ownership

Funds will not be issued to borrowers or any other parties 

Idaho Housing and Finance Association will make no more than one 

disbursement to each payee, per application. 

Idaho Housing and Finance Association will disburse the amount quoted 

by the lender/servicer, land contract holder, State Tax Commission, 

hazard insurance provider, HOA or condominium association or utility 

provider. Any discrepancies to be resolved by the homeowner. 

If homeowner’s past due amount exceeds the amount that Idaho 

Housing and Finance Association can provide, homeowner may pay the 

difference, and Idaho Housing and Finance Association will pay the max 

of their limit. 

HAF assistance will be prioritized to Eligible Uses of HAF Reinstatement 

Program Proceeds as follows:

1) Mortgage/housing loan reinstatement (including escrows), 

2) Property taxes and homeowner’s insurances (hazard and 

mortgage) 

3) Condominium/homeowners’ association fees 

Disbursement to mortgage/housing lender/servicer may include up to 

the next one scheduled monthly payment (“Additional Assistance”) if 

funds are available not to exceed the Maximum Per Household HAF 

Assistance.

Eligible homeowners will be allowed to apply more than once; provided 

they have not exceeded the maximum household amount and that 

program funds are still available. Applicants will be required to submit 

a new application and provide proof of new COVID-19 hardship.

Program Launch The application and intake process is designed and will be operated in a 

manner to avoid barriers to equitable access and allow flexibility, 

particularly with regard to documentation requirements.

Homeowners will apply for assistance either through the online portal or 

over the telephone.

Program Duration The period of performance for the HAF award begins on the date 

hereof and ends no later than September 30, 2026, or sooner as 

defined by US Treasury. HAF recipients shall not incur any 

obligations to be paid with the funding from this award after such 

period of performance ends.
Idaho Housing and Finance Association plans to disburse all funds 

by the end of the Financial Agreement term, September 30, 2026, 

or sooner as defined by the US Treasury. 

Application Process Idaho applicants will be able to apply through an online portal and 

by telephone with IHFA staff.

Required Application 

Documents

 Idaho Homeowner Reinstatement Program Application 

 Third Party Authorization (TPA) and Disclosure Form 

 Signed acknowledgement that Idaho HAF assistance is in the 

form of a Loan due upon transfer by sale of the property. 

 Qualifying hardship attestation and supporting documentation 

from homeowner certifying and identifying the eligible hardship 

and that it occurred after January 21, 2020, as required

 Mortgage Statement for each lien (e.g., first mortgage, second 

mortgage).

 Social Security Number card or unique identifier as shown on a 

legal document, such as federal tax return

 Income documentation; W2’s, paystubs, previous years’ tax 

returns or alternative income documents as applicable.

 Homeowners’ association, condominium association or common 

charges statements showing delinquent amount.

 Homeowner’s hazard, flood and/or mortgage insurance 

statement showing past due amounts

 Homeowner’s delinquent property tax bill if not escrowed

 Statement of current ability to resume regular monthly 

payments after reinstatement and self attestation

 Past due utility bills, if applicable

Applicant must provide each payee’s contact and account information if 

not listed on monthly statement.

Eligibility Determination 

Notes

IHFA staff summarizes their determination of the applicant’s eligibility 

and status in case notes; summary to include applicable details to 

support the decision and advance the case through the pipeline and/or 

action taken. 

Quality Control (QC) Idaho Housing and Finance Association will ensure program integrity by 

undertaking system- generated, random selection of case reviews after 

eligibility determination and prior to funding; 100% review of all declined 

cases and a reasonable selection of each staff’s pipeline based on tenure 

and performance, starting with 10% of volume decreasing to a minimum 

of three cases weekly.

HAF Assistance Approval 

and Funds Disbursement Reservations for assistance may not exceed the Maximum Per 

Household HAF Assistance amount of $50,000; program staff will 

summarize funding details based on applicant’s request and generally 

prioritized as follows:

1) mortgage/housing payment reinstatement 

2) property taxes and homeowner’s insurances

3) condominium /homeowners’ association fees 
Funds will be paid, as applicable, to the mortgage servicer or other 

third-party payee authorized by the servicer, or other third party 

authorized to collect eligible charges in accordance with reinstatement 

instructions received from the payee. Payments may be made through 

electronic transmission for any payees that accept funds in this manner. 

For other payees, funds will be sent directly by check or other payment 

method accepted by the mortgage servicer or authorized payee.

Program Partner 

Requirements

 Lender/servicers to execute a HAF Partner agreement and agree 

to communicate using the Common Data File (CDF) format that 

will be used by other HFA’s administering the HAF program.

 Private lenders, including Land Contract payees to provide 

written delinquency quote, contact information, and ACH 

account information. 

 All servicers/payees will need to provide a current signed W9.

Program Leverage with 

Other Financial Resources

Idaho Housing and Finance Association will undertake best effort 

approach to leverage the assistance that might be available for 

homeowners through other federal programs that have been created 

expressly for that purpose before using HAF funds.

Program Exclusions  Private mortgages not held by a lender/servicer with an NMLS 

number, as determined on a case by case basis. 

 Mortgages that are current at the time of application.

 Homeowners without a mortgage or that have a reverse 

mortgage that have Taxes, HOA’s, utilities, or Insurances due 

prior to January 21, 2020. (We will allow arrearages per Treasury 

Guidelines)

Ineligible properties: 

 Vacant or abandoned

 Mobile homes not permanently affixed to real property

 2

nd homes

 Investment property