HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 1 of 29

United States Department of the Treasury

Homeowner Assistance Fund Plan

Submitted by State of North Carolina

HAF Grantee Plan Name

HAFP-0043
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United States Department of the Treasury

Homeowner Assistance Fund Plan For Participants 

with Allocations $5 million or Greater

Allocation Amount $5 Million or Greater

Submission Date 11/24/2021 2:23 PM

Total Plan Requested Amount $273,337,247.00

Record Type State

Application Record SLT-0039

HAF Grantee Plan Status (external) Funded
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Homeowner Needs and Community Engagement

What Quantitative Data Has Informed the Participant’s Planning?

Treasury will assess the extent to which a Participant has, in the course of its HAF planning process, relied on

quantitative data, including from community-based organizations or organizations that serve potentially

eligible homeowners. 

In its HAF planning process, has the Participant obtained quantitative data from mortgage servicers, private

data providers, government entities, community-based organizations, or other sources to inform its planning

about how to target and best serve eligible homeowners with mortgage delinquencies, defaults, foreclosures?

Yes

If yes, please list and, briefly describe each source of quantitative data.

• Data provided by Treasury – Treasury provided data, contributed by a number of federal

agencies, including information on mortgage delinquencies and forbearances, breakdowns by

demographic factors, and concentration among mortgage servicers. 

• Data provided from mortgage servicers – received data from a few of the servicers listed in the

Treasury data as being NC’s top servicers for FHA, VA and USDA loans in forbearance. These

data can be received on a regular basis, though the data thus far has been provided for

diagnostic purposes only at this point. 

• BlackKnight: Atlanta Fed calculations using Black Knight’s McDash Flash daily mortgage

performance data (available with a two-day lag), U.S. Census Bureau 2017 FIPS Codes. These

data include non-forborne delinquencies and loans in forbearance by county. 

• Corelogic: The Agency utilized CoreLogic’s Market Trends monthly data. Market Trends data

include 90+ day delinquent loans. The CoreLogic Market Trends Report provides approximately

a 75% to 90% loan coverage, varying by market. 

• Data from American Community Survey on homeownership – used 2019 American Community

Survey 5-year estimates to identify share of nonwhite homeowners in all 100 North Carolina

counties. 

• Data from Urban Institute on credit health – used credit bureau data compiled and analyzed by

Urban Institute to understand the impact of the pandemic on household’s credit health.

Specifically, we examined share of resident with debt in collections for the latest month available

(October 2020). Available from: 

https://datacatalog.urban.org/dataset/credit-health-during-covid-19-pandemic

• Neighborhood Watch: April – June 2021 data from HUD’s Neighborhood Watch program was

used to indicate delinquency and foreclosure rates for FHA loans.

• ServiSolutions: The Agency utilized ServiSolutions data of NCHFA homeownership loans from

May and June 2021 to assess prevalence of loan delinquency and/or forbearance as well as the

volume of delinquent payments.

In its HAF planning process, has the Participant obtained and reviewed quantitative data or studies regarding

which demographic segments in its jurisdiction have historically experienced discrimination in the housing or

housing finance market?

Yes
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If yes, please list and, briefly describe each source of quantitative data.

Data from utility providers: The NC Utilities Commission collected monthly data starting in

August 2020 on residential customer arrearages, disconnections, reconnections and payment

plans from 40 utilities (electric, natural gas, water, and wastewater) state-wide.

In its HAF planning process, has the Participant obtained quantitative data from utility providers or entities

charged with assessing and collecting property taxes or relied on quantitative data or studies to inform its

planning about how to target and best serve eligible homeowners at risk of displacement due to utility

arrearage or tax foreclosure?

Yes

If yes, please list and, briefly describe each source of quantitative data.

• Centers for Disease Control and Prevention/ Agency for Toxic Substances and Disease

Registry/ Geospatial Research, Analysis, and Services Program. (2018) CDC/ATSDR Social

Vulnerability Index: The index ranks counties and census tracts on 15 social factors that impact

a community's ability to prevent human suffering or financial loss in a disaster.

• Consumer Finance Protection Bureau. (Mar 2021). Housing Insecurity and the COVID-19

pandemic.: This report summarizes relevant research on the impact of the pandemic on the

housing market, particularly its impact on low-income and minority households. 

• Fair Housing Project (2020). The State of Fair Housing in North Carolina: The report found

the majority of fair housing complaints occurred in five counties and were typically based on

race and disability. 

• Gascon, Charles S. and Ricketts, Lowell and Schlagenhauf, Don, The Homeownership

Experience of Minorities During the Great Recession (2017). Review, Vol. 99, Issue 1, pp.

139-167, 2017: This study explores the experiences of homeowners during the Great Recession,

finding that Black and Hispanic homeowners experienced substantial payment difficulties

resulting in a higher share of foreclosures. 

• Gilbert, P. (2013). The State of Exclusion: An Empirical Analysis of the Legacy of Segregated

Communities in North Carolina. UNC Center for Civil Rights.: This report measures and maps

impacts of community segregation and exclusion in five areas, including housing.

• North Carolina Department of Commerce. (2021). Analysis of Impediments to Fair Housing

Choice.: This report review identifies barriers to housing choice and evaluates the impact on

availability and accessibility of affordable housing. 

• Quillian, L., Lee, J.J. & Honoré, B. Racial Discrimination in the U.S. Housing and Mortgage

Lending Markets: A Quantitative Review of Trends, 1976–2016. Race Soc Probl 12, 13–28

(2020): This study examines trends in racial discrimination over the past 30 to 40 years and finds

discrimination persists in the mortg. market.

In the following text box, please list any source not listed above of quantitative information, including

sources of data on the performance of any of the Participant’s previously implemented programs, that the

Participant used to inform its HAF planning process, briefly describe how the data informed the Participant’s

planning.

• Hardest Hit Fund: The Agency utilized staffing, systems, and organizational expertise gained

through administering the Hardest Hit Fund (HHF) Programs in North Carolina to inform

outreach, marketing and program design for Homeowner Assistance Funds. The Agency

reviewed HHF data as a factor when establishing HAF program structure and benefits. 

• McCargo, A and Hyun Choi, J. (Nov 2021). Closing the Gaps: Building Black Wealth through

Homeownership. Urban Institute. 
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https://www.urban.org/sites/default/files/publication/103267/closing-the-gaps.pdf: This report

reviews the critical role housing equity plays in building wealth for Black families, reviews the

historical factors that have contributed to disparate outcomes, and explores ways to improve

wealth equity through homeownership.

Did the Participant communicate with mortgage servicers regarding the development of its program design?

Yes

Did the Participant communicate with other HAF participants regarding the development of its program

design?

Yes

How Has Community Engagement and Public Participation Informed the

Participant’s Planning?

Treasury will assess the extent to which a Participant’s assessment of homeowner needs has been informed

by and reflects input from organizations and individuals representing eligible homeowners, including any

opportunities for public participation in the development of the Participant’s plan. Treasury will pay

particular attention to the extent of the Participant’s engagement with populations that are the subject of

statutory targeting requirements.

Has the Participant requested and received input on its HAF planning process from providers of housing

counseling services or providers of legal assistance to homeowners facing foreclosure or displacement?

Yes

Provider information

If yes, please list such providers, including the providers’ address and website. Please indicate by checking

the appropriate box below if the provider’s primary purpose is to serve low- and moderate-income

households or to address the impacts of housing discrimination on one or more demographic groups in the

Participant’s jurisdiction.

Provider Name 

Provider Address 

Provider Website

Provider

Primarily

Serves

LMI

Households

Provider

Addresses

Impact of

Housing

Discrimination

BHO, Inc.

3470 Old Ocean Highway ,Bolivia,North Carolina 28422

http://facebook.com/BHO2020

Centre for Homeownership & Economic Development

960 Corporate Drive, Suite 405 ,Hillsborough,North Carolina 27278

http://homeownershipcentre.org
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Charlotte Center for Legal Advocacy

1431 Elizabeth Avenue ,Charlotte,North Carolina 28204

http://charlottelegaladvocacy.org

DHIC

450 E. Davie Street ,Raleigh,North Carolina 27601

http://dhic.org

Cleveland County Community Development Corporation

823 West Warren Street ,Shelby,North Carolina 28150

http://clevelandcountycdc.org

Jordan Price Law Offices

1951 Clark Avenue ,Raleigh,North Carolina 27605

http://jordanprice.com

Legal Aid of North Carolina

P.O. Box 26087 ,Raleigh,North Carolina 27611

http://legalaidnc.org

EmPOWERment Inc.

109 N. Graham St., Suite 200 ,Chapel Hill,North Carolina 27516

http://empowermentinc.org

Family Service of the Piedmont

902 Bonner Drive ,Jamestown,North Carolina 27282

http://fspcares.org

Financial Protection Law Center

272 N Front St # 342 ,Wilmington,North Carolina 28401

http://N/A

Kingdom Community Development Corporation

129 N. Main Street ,Spring Lake,North Carolina 28390

http://kingdomcdc.org

Land Loss Prevention Project

PO Box 179 ,Durham NC,North Carolina 27702

http://landloss.org

North Carolina Housing Coalition

PO Box 569 ,Durham,North Carolina 27702

http://nchousing.org

Lexington Housing Community Development Corporation

21 W. 2nd Street ,Lexington,North Carolina 27292

http://lhcdc.org

Monroe Union County CDC

PO Box 887 ,Monroe,North Carolina 28111

http://muccdc.com
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NC League of Municipalities

434 Fayetteville St. ,Raleigh,North Carolina 27601

http://nclm.org

North Carolina Association of Community Development

Corporations (NCACDC)

110 Fountain Park Drive ,Battleboro,North Carolina 27809

http://ncacdc.org

Smoky Mountain Housing Partnership

2177 Asheville Rd. ,Waynesville,North Carolina 28786

http://smokymountainhousing.org

North Carolina Justice Center

224 S. Dawson St. ,Raleigh,North Carolina 27601

http://ncjustice.org

Olive Hill Community Economic Development Corporation

PO Box 4008 ,Morganton,North Carolina 28680

http://ohcedc.org

Pisgah Legal Services

Pisgah Legal Services PO Box 2276,Asheville,North Carolina 28802

http://pisgahlegal.org

Prosperity Unlimited, Inc

1660 Garnet St. ,Kannapolis NC,North Carolina 28083

http://prosperitycdc.org

S J Adams Consulting

4128 Cobblestone Place ,Durham,North Carolina 27707

http://sjadamsconsulting.net

White Oak Foundation, Inc.

1624 White Oak Church Rd. ,Apex,North Carolina 27523

http://wofnc.org

Wilson Community Improvement Association, Inc.

504 East Green St. ,Wilson,North Carolina 27893

http://wciainc.org

Has the Participant requested and received input regarding its HAF planning process from community-based

organizations or organizations that serve potentially eligible homeowners?

Yes

Community Information

If yes, please list such organizations, including the providers’ address and website if available. Please

indicate by checking the appropriate box below if the provider’s primary purpose is to serve low- and

moderate-income households or to address the impacts of housing discrimination on one or more

demographic groups in the Participant’s jurisdiction.
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Organization Name 

Organization Address 

Organization Website

Organization

Primarily

Serves LMI

Households

Provider

Addresses

Impact of

Housing

Discrimination

Caldwell County Habitat for Humanity

PO Box 1341, Lenoir, North Carolina 28645

http://caldwellhabitat.org

Durham Congregations, Associations and Neighborhoods (CAN)

732 Ninth Street, #604,, Durham, North Carolina 27705

http://durhamcan.org

Carolinas Credit Union League

323 W. Jones St., Suite 200, Raleigh, North Carolina 27603

http://carolinasleague.org

Habitat for Humanity of the Charlotte Region

3815 Latrobe Drive, Charlotte, North Carolina 28211

http://habitatcltregion.org

Habitat for Humanity of Orange County, NC

88 Vilcom Center Drive, Suite L110, Chapel Hill, North Carolina

27514

http://orangehabitat.org

Habitat for Humanity of Randolph County

3060 U.S. 220 Business Asheboro, NC 27205, Asheboro, North

Carolina 27205

http://habitatrc.org

Habitat for Humanity of Wake County

2420 North Raleigh Boulevard, Raleigh, North Carolina 27604

http://habitatwake.org

HomeTrust Bank

PO Box 10, Asheville, North Carolina 28802

http://htb.com

Merrick-Moore Community Development Group

2322 Cheek Road, Durham, North Carolina 27704

http://N/A

NC Realtors

4511 Weybridge Lane,, Greensboro, North Carolina 27407

http://ncrealtors.org

NC Association of County Directors of Social Services

3509 Haworth Drive Suite 402, Raleigh, North Carolina 27609

http://ncacdss.org
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North Carolina Community Action Association

4428 Louisburg Rd., Suite 101, Raleigh, North Carolina 27616

http://nccaa.net

PNC Bank

301 Fayetteville St., Raleigh, North Carolina 27601

http://pnc.com

The Rural Center

4021 Carya Drive, Raleigh, NC 27610, Raleigh, North Carolina 27610

http://ncruralcenter.org

Partners for Impact

N/A, N/A, North Carolina 99999

http://partnersforimpact.com

DreamKey Partners

4601 Charlotte Park Drive, Suite 350, Charlotte, North Carolina 28217

http://www.dreamkeypartners.org

NC Department of the Health and Human Services – LIHEAP

2001 Mail Service Center, Raleigh, North Carolina 27699

http://ncdhhs.gov/divisions/social-services/low...

Has the Participant consulted with localities or tribal governments (cities, counties, or rural communities) in

its jurisdiction regarding the needs of eligible homeowners in its jurisdiction?

Yes

Has the Participant provided an opportunity for public input regarding its HAF Plan through public hearings

or published materials?

Yes

If yes, please indicate whether a proposed or draft plan was published, please describe where details about the

comment solicitation were posted, for how long, in what languages, and whether any efforts were made to

make the posting accessible to persons with disabilities or individuals without reliable internet access.

The Agency engaged stakeholders, potential vendors and HFAs to gain insight on homeowner

need, assistance to best address the need, and program design for effective implementation. The

Agency sought feedback through a public comment period, with the plan available June 16-23,

2021 on nchfa.com. Comments were accepted until the Plan’s submission to Treasury. 

The NCHFA website has accessibility features for people with disabilities, like the use of a

high-contrast color palette and links to assist those with visual impairments and the use of alt

text and other accessibility features for those using screen readers. The website is optimized for

use with all screen sizes; is compatible with mobile, tablet and computers; and is accessible via all

major web browsers.

The Plan was sent via email to the Agency’s listservs and partner coalitions. The lists included

additional stakeholders like those representing individuals from socially disadvantaged groups,

rural coalitions, real estate groups, financial institutions, and professional organizations. Groups
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were included that may provide feedback relevant to populations who may not have internet

access. The Plan was sent to nearly 3,200 email recipients. Follow up emails were sent throughout

the duration of the public comment period. The initial email reached nearly 3,000 recipients, and

over 2,100 of those emails were opened. The Agency’s HAF webpage received over 1,300 visitors

during the comment period. Members of the public could also call the Agency and speak to a

staff member regarding their comments or questions. Available Agency staff spoke both English

and Spanish, and additional translation services were available but have not yet been needed.

The Agency received 46 public comments, now published on the website. 

The Agency’s website offers an online sign-up for interested homeowners to be notified when the

program starts. At that time, the Agency will send email notification to these potentially eligible

homeowners. 

* See feedback responses

How Will the Participant Continue to Assess the Needs of Eligible

Homeowners?

Treasury anticipates that an ongoing process of assessing the needs of eligible homeowners will help address

the needs of potentially eligible homeowners as economic conditions change over time.

Does the Participant plan to update its assessment of community needs within the next year to determine

whether its HAF program design should be updated to address changing needs of potentially eligible

homeowners?

Yes

What additional data would be helpful to the Participant as it seeks to assess homeowner needs over time?

- Data on manufactured housing loans 

- Monthly data from servicers on loan delinquency, ideally at the loan level, but at a minimum

the census tract level.

- Additional information on LEP by income and tenure

*See feedback responses for more information
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Program Design

What are the Program Design Elements Through Which the Participant Will

Deliver HAF Assistance to Eligible Homeowners?

A program design element is a specific activity or program, which is consistent with a qualified expense

category, under which a Participant will disburse HAF funds in accordance with the HAF Plan. Please note

that multiple program design elements may fit under a single qualified expense category; for example, a

mortgage assistance program that has different terms for federally backed mortgages and manufactured-home

mortgages may constitute two separate program design elements, for which case the Participant provides a

separate term sheet or other description for each program design element. 

HAF participants must have at least one program design element intended to reduce mortgage delinquency

among targeted populations. Treasury encourages HAF participants to consider program design elements that

address homeownership preservation for targeted populations in areas where there is a sustained trend of

increasing property taxes or utility costs, including for households that do not have mortgages.

Please identify each qualified expense category in which the Participant will offer a program design element

by checking the boxes below.

mortgage payment assistance 

 mortgage principal reduction, including with respect to a second mortgage provided by a nonprofit

or government entity 

 payment assistance for homeowner’s utilities, including electric, gas, home energy, and water 

 payment assistance for homeowner’s insurance, flood insurance, and mortgage insurance 

 payment assistance for delinquent property taxes to prevent homeowner tax foreclosures 

 payment assistance for down payment assistance loans provided by nonprofit or government

entities 

 financial assistance to allow a homeowner to reinstate a mortgage or to pay other housing-related

costs related to a period of forbearance, delinquency, or default 

facilitating mortgage interest rate reductions 

 payment assistance for homeowner’s internet service, including broadband internet access service,

as defined in 47 CFR 8.1(b) 

 payment assistance for homeowner’s association fees or liens, condominium association fees, or

common charges 

 measures to prevent homeowner displacement, such as home repairs to maintain the habitability of

a home or assistance to enable households to receive clear title to their properties 
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For each program design element that the Participant will offer, the Participant is required to upload a term

sheet or other description, that, at a minimum, provides the following information regarding that program

design element. Term sheets for all of Participant’s HAF programs may be uploaded together as one

document.

Title Upload Date

Response to Treasury Feedback on NC HAF State Plan 11/24/2021 11:26 AM

NCHAF Term Sheet Final Revised 11.19.2021 11/23/2021 10:36 AM

A HAF participant may elect to revise its HAF Plan over time to add or subtract program design elements.

Does the Participant anticipate adding additional program design elements to this HAF Plan within one year

of this submission?

Yes

Treasury has provided sample term sheets to assist HAF participants in developing their HAF plans.

Participants may use these sample term sheets, in whole or in part, as part of their submission. To the extent

the Participant intends to structure the program differently with respect to significant program terms

described in the Sample Term Sheets, Treasury will, in the course of its review of the HAF Plan, request a

justification for how the alternate approach will further the objectives of the HAF, including targeting and

prioritization requirements. In the chart below, the HAF Participant may provide a justification for significant

deviations from the terms described in the sample term sheets upon initial submittal. (optional for initial

submission)

Program

Design

Element

Deviation from sample terms Justification

Brief

Description

Removal of: HAF funds will be

used only to supplement other

loss mitigation options offered

by the servicer under investor

requirement or where, without

HAF funds, the homeowner

would not quality for that

loss-mitigation option.

Based on NCHFA’s experience with the Second

Mortgage Refinance Program offered under the

Hardest Hit Fund (HHF), requiring homeowners to

exhaust all available loss mitigation options as a

requirement for eligibility tends to create detrimental

hurdles for homeowners seeking immediate relief,

particularly those facing foreclosure. Homeowners

experiencing financial hardships that threaten the

stability of their primary housing, can easily fall

victim to mortgage resolution fatigue as additional

obstacles to mortgage relief are presented. These

homeowners may be at greater risk of ceasing to seek

out mortgage resolution options, leaving them at a

greater risk for displacement.
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Homeowner

eligibility

criteria and

documentation

requirements

Addition of: Statement attesting

to experiencing a financial

hardship after January 21, 2020

associated with the coronavirus

pandemic.

Self-attestations will be used to verify homeowners

have met the Treasury requirement of having

experienced a financial hardship after January 21,

2020 that was associated with the coronavirus

pandemic. Attestations will identify the specific

nature of the hardship, weather it relates to a loss of

income or an increase in expenses. Reliance on

self-attestations minimizes potential complexity

associated with underwriting for eligibility.

Homeowner

eligibility

criteria and

documentation

requirements

Addition of: Documentation

verifying the property is the

homeowner’s primary residence.

Documentation will be required to verify the property

is the homeowner’s primary residence. Specific

program requirement will allow for maximum

flexibility regarding the types of documentation a

homeowner may provide to verify primary residence.

Form of

Assistance

Addition of: subject to recapture

in the event of a false claim of

fraudulent misstatements on the

application.

NCHAF program design will incorporate a

compliance program with quality control reviews that

include identification of red flags that may indicate

instances of fraud. Instances of suspected homeowner

fraud will be investigated and confirmed homeowner

fraud associated with any NCHAF grant will be

subject to the recapture of funds.

Eligibility

criteria

specific to the

program

Addition of: Delinquent by at

least one payment to any

qualified expense eligible for

reinstatement with HAF funds.

NCHAF allows flexibility to provide funds to

reinstate not only delinquent mortgage accounts, but

also any stand alone housing related qualified

expense. Homeowners who owe delinquent amounts

to housing related qualified expenses, however, are

current on mortgage obligations, are eligible to

receive NCHAF funds.

Brief

Description

Addition of: NCHAF funds may

be used for future payments to

any qualified expense for

homeowners experiencing a

continuing or new financial

hardship associated with the

coronavirus pandemic. NCHAF

funds in an aggregate amount not

to exceed three (3) months of

payments to each eligible

qualified expense may be

provided no more frequently

than every three (3) months after

initial NCHAF funds are

provided. NCHAF funds for

future payments may be

available to eligible as defined

by program guidelines and

subject to availability of funds.

NCHAF program design will allow for the flexibility

to provide continued forward mortgage payments

and/or payments for other housing related costs every

three (3) months for homeowners who are unable to

resume making full monthly payments due to a

continuing financial hardship or who have

experienced a new financial hardship associated with

the coronavirus pandemic after initial NCHAF funds

were provided. Forward payments may be disbursed

no more frequently than every three (3) months

provided the homeowner submits a request for

continued payment assistance through the online

application portal and attests to a continuing or new

financial hardship. Future NCHAF payments will be

subject to funding availability.
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Brief

Description

Addition of: Additional NCHAF

funds in an aggregate amount not

to exceed three (3) months of

future payments may be

provided in conjunction with

NCHAF funds used to reinstate

any qualified expense.

NCHAF program design will allow for the flexibility

to provide three (3) months of forward payments to

any qualified expense in conjunction with full

reinstatement funds for delinquent homeowners.

Providing three (3) months of forward payments, in

addition to the reinstatement, provides homeowners

who have been suffering from a period of financial

hardship a valuable transition period, allowing time

to prepare for resuming regular monthly mortgage

payments and/or housing related costs. This transition

period will serve to increase the success rate of the

homeowner’s ability for continued, long term

retention of the property. Funds are disbursed in one

lump sum.

Homeowner

eligibility

criteria and

documentation

requirements

Addition of: Household meets

income requirements as defined

by program guidelines.

Homeowners are eligible to receive NCHAF funds

only if 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,

consistent with Treasury guidance.

Homeowner

eligibility

criteria and

documentation

requirements

Addition of: (A) A written

attestation as to household

income and (B) If applicable,

documentation of household

income or proof of receipt of

certain federal means-tested

programs

All homeowners will be required to provide an

attestation as to household income. Homeowners who

reside in a census tract with one or more of the

federal distress and/or low-income designations

defined in program guidelines, are presumed to meet

the income eligibility requirements, and are not

required to provide additional supporting income

documentation. Homeowners who do not reside in

one of the identified census tracts, must provide

documentation such as paystubs, W-2s or other wage

statements, IRS Form 1099s, tax filings, depository

institution statements, an attestation from an

employer, to determine the household income and to

ensure homeowners meet the income requirements of

having 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. Alternatively,

homeowners may provide proof of receipt of certain

federal means-tested programs defined in program

guidelines, and will not be required to provide

additional source of income documentation.

Payment

requirements

Addition of: Payments may be

made directly to the lender or

servicer, tax authority, insurance

provider, homeowners or

condominium association, or

other third party as appropriate.

Payments to qualified expenses will be made directly

to these entities and no funds shall be disbursed

directly to the homeowner.
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Homeowner

eligibility

criteria and

documentation

requirements

Removal of: Statement of

current ability to resume any

required regular payments after

account is reinstated (OR)

Ability to resume any required

regular payments with assistance

from Grantee Mortgage Payment

Assistance Program.

NCHAF program design allows for the flexibility for

assistance to be provided to homeowners on a

continued, future basis after initial reinstatement is

provided. Homeowners who are experiencing

continued financial hardship or who encounter a new

hardship after initial funds are provided, have the

option to request future payments no more frequently

than every three (3) months without the need to

restart the application process. Eligible homeowners

can request consideration for future payments by

accessing their previously submitted application in

the online portal, making the overall application

experience less burdensome on the homeowner and

provides greater accessibility to the program.

Brief

Description

Addition of: (A) Reinstate a first

and/or subordinate mortgage(s),

and/or provide payment

assistance to homeowners unable

to make full mortgage payments

due to a continuing or new

financial hardship associated

with the coronavirus pandemic.

AND (B) Provide funds to pay

other delinquent amounts,

including costs associated with a

period of delinquency or default,

extinguishment of a partial

claim, homeowner’s insurance,

flood insurance, homeowner’s

association fees or liens,

condominium association fees

and/or common charges, and

costs payable under a unit

occupancy agreement by a

resident member/shareholder in a

cooperative housing

development.

NCHAF program design will allow for the flexibility

to provide funds not only to reinstate mortgages

secured by the primary residence, but also to pay

other associated or stand-alone qualified housing

related expenses. NCHAF program design also

provides a mechanism for homeowners who may not

have yet reached full homeownership stabilization, an

option to request additional payment assistance on a

rolling basis should their circumstances cease to

improve or should they be faced with a new

coronavirus related hardship after initially being

assisted.

Brief

Description

Removal of Reduce past due

payments

Eligible homeowners must be fully reinstated with

NCHAF funds. Partial reinstatements are less likely

to achieve the goal of positioning eligible

homeowners in sustainable financial standing related

to housing affordability. 

However, if NCHAF funds are insufficient to fully

reinstate the homeowner, NCHAF funds may be

provided to supplement a loss mitigation option

offered by the servicer(s) or if the servicer(s) agrees

to waive any amounts required in excess of the

maximum amount of the NCHAF grant, resulting in

full reinstatement of the homeowner’s mortgage(s)

and other past due housing related costs.
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 16 of 29

Homeowner

eligibility

criteria and

documentation

requirements

Addition of: Hardship affidavit

describing the nature of the

financial hardship if delinquency

to any qualified expense began

prior to January 2020.

NCHAF program design will allow for delinquent

amounts that incurred prior to January 2020 to be

reinstated with NCHAF funds. Homeowners with

such delinquent amounts that are in need of

reinstatement, will provide a hardship affidavit that

describes the nature of the hardship. Eligible

homeowners must have experienced a coronaviruses

pandemic related financial hardship on or after

January 21, 2020 in addition to the previous hardship.

Form of

Assistance

Removal of: Assistance will be

structures as an interest free loan

payable upon transfer of the

property and forgivable over a

period of time.

NCHAF assistance will be provided to homeowners

in the form of a non-recourse grant.

Documentation of Homeowner Income

Homeowners are eligible to receive amounts allocated to a HAF participant under the HAF only if 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. In addition, not less than 60% of amounts made available to each HAF

participant must 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. The HAF guidance describes permissible ways for HAF participants to determine

homeowner income.

Under the HAF guidance, one permissible approach for determining income is for (1) the household to

provide a written attestation as to household income and (2) the HAF participant to use a reasonable

fact-specific proxy for household income, such as reliance on data regarding average incomes in the

household’s geographic area. Will the Participant allow income to be determined in this way?

Yes

If yes, please describe the fact-specific proxy or proxies to be used for the income determination.

If the homeowner is not able to produce the needed documentation, the following alternate,

fact-specific proxy can be used for verifying income. If the homeowner lives in a census tract with

one or more of the following federal distress and/or low-income designations, the homeowner is

presumed to meet the income eligibility requirements:

a. FHFA Duty to Serve designations of Areas of Concentrated Poverty

b. HUD designations of Racial and/or Ethnic Areas of Concentrated Poverty

c. FFIEC designations of distressed, underserved, poverty, remote rural and/or unemployment)

d. HUD designations of Qualified Census Tracts for use in the Low-Income Housing Tax Credit

program

In addition, the program may consider using proof of qualification for certain federal and/or

state-level means tested benefit programs as a basis for income qualification in the event the

above-described fact specific proxy is indeterminant or otherwise fails.

Under the HAF guidance, HAF participants may provide waivers or exceptions to this documentation

requirement as reasonably necessary to accommodate extenuating circumstances, such as disabilities,
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 17 of 29

practical challenges related to the pandemic, or a lack of technological access by homeowners; in these cases,
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 18 of 29

the HAF participant is still responsible for making the required determination regarding household income

and documenting that determination. Will the Participant allow applicants to request such waivers or

exceptions?

Yes

Eligible Mortgage Types

Please indicate which of the following mortgage types are eligible to be assisted under one or more of the

Participant’s program design elements.

 First Mortgages 

 Reverse Mortgages (Home Equity Conversion Mortgages, Single-Purposes Reverse Mortgages, or

Proprietary Reverse Mortgages) 

 Contracts for Deed or Land Contract (if it is a credit transaction secured by a consensual security

interest in a dwelling) 

 Second Mortgages 

 Loans Secured by Manufactured Housing (secured by real estate or dwelling) 

If the Participant excludes any of the forgoing mortgage types from one or more program design elements,

explain the exclusion.

N/A

How Will the Participant Target HAF Resources Consistent with Statutory

Requirements? 

The Participant must describe how it will target HAF resources in accordance with the HAF guidance.

Targeting strategies are affirmative efforts to inform, encourage the participation of, and facilitate access to

resources for targeted households, including by offering multiple intake formats, engaging with nonprofit

organizations (e.g., housing counselors or legal services organizations) to provide additional pathways into

the program, and providing community outreach, partnerships with housing counseling agencies or legal aid

organizations, or other educational services that are aligned with the HAF participant’s program design, in a

manner that is culturally and linguistically relevant to the targeted communities.

Defining Socially Disadvantaged Individual

Please describe the process the Participant will use to determine whether a homeowner is a “socially

disadvantaged individual” as defined in the HAF guidance.

The Agency’s approach is to provide access to HAF assistance statewide but enhanced and

deeper targeting in counties and areas most likely to be home to socially disadvantaged

individuals. 

If a homeowner meets any of the four indicators included in the August 2, 2021 HAF guidance

definition of Socially Disadvantaged Individuals, then the homeowner will be categorized as such

(with the excluded category being a resident of a territory, Indian reservation or Hawaiian Home

Land). The process can be through self-attestation of a membership in a group subjected to
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 19 of 29

racial, ethnic or cultural bias or someone with Limited English Proficiency. For the geographic

measures of majority-minority census tracts or persistent poverty counties, a geocoding of the

homeowner’s residence will provide confirmation of residence within these geographic

boundaries.

Public Communications

Will the Participant engage in a public communications campaign to raise awareness among targeted

populations about the availability of HAF resources, in media such as television, newspapers, online media,

or social media?

Yes

If yes, please indicate whether the public communications campaign will include communications that

primarily target the following populations:

 Homeowners earning less than 100% of area median income 

 member of a group that has been subjected to racial or ethnic prejudice or cultural bias within

American society; 

 resident of a majority-minority Census tract; (3) 

 resident of a U.S. territory, Indian reservation, or Hawaiian Home Land 

 homeowners in persistent poverty counties; 

 individual with limited English proficiency 

Please indicate in which languages, in addition to English, public communications to targeted populations

will be undertaken:

Spanish

Outreach

Will the Participant engage in outreach through partnerships with organizations that focus primarily on

serving homeowners earning incomes below 100% of area median income or socially disadvantaged

individuals and that have the capacity to engage targeted communities in a culturally and linguistically

relevant manner to encourage the submission of applications for HAF resources from targeted populations?

Yes

If yes, please indicate whether the community outreach efforts will include partnerships with organizations

that primarily target the following populations:

 member of a group that has been subjected to racial or ethnic prejudice or cultural bias within

American society; 

 resident of a majority-minority Census tract; (3) individual with limited English proficiency; 

 resident of a U.S. territory, Indian reservation, or Hawaiian Home Land;
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 20 of 29

 homeowners that reside in persistent poverty counties; 

 individual with limited English proficiency. 

Housing Counseling and Legal Services

Will the Participant facilitate access for eligible households to housing counseling or legal services?

No

Targeting specific groups of homeowners

Will the Participant conduct outreach specifically tailored to target potentially eligible households that:

 have mortgages or mortgage assistance contracts held or backed by the Participant? 

 have mortgages backed by any of the following agencies: Federal Housing Administration;

Department of Veterans Affairs; U.S. Department of Agriculture? 

 have privately held mortgages? 

What Efforts will be Made to Address Barriers to HAF Program Participation for

Potentially Eligible Homeowners, Including Those with Limited English

Proficiency or Who are Disabled?

Targeted outreach may be needed to reach homeowners who are likely to experience barriers to access,

including persons with limited English proficiency and those with disabilities.

Indicate all of the languages, in addition to English, in which the Participant’s HAF application and other

program documents will be made available.

Spanish

Will the Participant’s HAF applications and other program documents be provided in forms that are

accessible to persons with disabilities?

Yes
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 21 of 29

Performance Goals

Treasury will consider the goals and benchmarks the Participant proposes to use to measure the effectiveness

of its programs, including whether those goals address the homeowner needs identified by the Participant, the

extent to which the goals are disaggregated by key homeowner characteristics as appropriate for the

jurisdiction, and whether they include a goal focused on reducing mortgage delinquency.

Please describe Participant’s goals and benchmarks for each of its programs with the following program

design elements.
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 22 of 29

Program Design

Element Metric of Success Goal

Mortgage Payment

Assistance

Number of home losses

avoided due to HAF

funds. 

Number of Socially

Disadvantaged

households served.

1) Prevent 8,000 home losses in 24 months

2) Prevent 4,800 home losses among the targeted

population homeowners (income and/or social

disadvantage)

3) Share of households served is at least proportional to

the state’s population of homeowners who are socially

disadvantaged

Mortgage

Reinstatement

Number of home losses

avoided due to HAF

funds. 

Number of Socially

Disadvantaged

households served.

1) Prevent 15,000 home losses in 24 months

2) Prevent 9,000 home losses among the targeted

population homeowners (income and/or social

disadvantage)

3) Share of households served is at least proportional to

the state’s population of homeowners who are socially

disadvantaged

Payment Assistance

for Homeowner’s

Insurance

Number of home losses

avoided due to HAF

funds. 

Number of Socially

Disadvantaged

households served.

1) Prevent 2,100 home losses in 24 months

2) Share of households served is at least proportional to

the state’s population of homeowners who are socially

disadvantaged

Payment Assistance

for HOA fees or liens

Number of home losses

avoided due to HAF

funds. 

Number of Socially

Disadvantaged

households served.

1) Prevent 1,500 home losses in 24 months

2) Share of households served is at least proportional to

the state’s population of homeowners who are socially

disadvantaged

Payment Assistance

for Delinquent

Property Taxes

Number of home losses

avoided due to HAF

funds. 

Number of Socially

Disadvantaged

households served.

1) Prevent 3,500 home losses in 24 months

2) Share of households served is at least proportional to

the state’s population of homeowners who are socially

disadvantaged
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 23 of 29

Readiness

Staffing, Systems and Contractors 

Treasury seeks information regarding the Participant’s organizational capacity to implement its HAF Plan.

Does the Participant anticipate needing to hire additional staff to implement this HAF Plan?

Yes

Does the Participant anticipate significant information technology system upgrades to implement this HAF

Plan?

No

Does the Participant have policies or procedures that govern the implementation of each HAF program

design element described in this HAF Plan?

No

If no, is a policy and procedure in development for each HAF program design element described in this HAF

Plan?

Yes

Will the Participant use HAF funds to assist eligible households through a program that was operational

before the Participant first received HAF funds?

No

Will the Participant use any third-party contractor or partner to conduct program administration (such as

reviewing applications, determining eligibility, processing payments, conducting reporting, and reviewing

compliance) for some or all of the Participant’s HAF programs?

Yes

If yes, has the Participant entered into all necessary arrangements with all of the third-party contractors or

partners that will conduct program administration?

No

Use of Initial Payment

If the Participant has already received any HAF funds from Treasury, provide the following information

about the use of such funds as of June 30, 2021.
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What amount of the HAF funds that the Participant has received been disbursed to eligible homeowners?

$0.00

Has the Participant begun accepting applications from homeowners for any HAF-funded programs?

No

How much of the HAF funds that the Participant has received been obligated?

$0.00

Provide a brief description of how the Participant has used the HAF funds it has received.

NCHFA has spent $202,806 on start-up activities of the total 10% allocation received of

$27,333,724.70. This includes NCHFA administrative expense, outreach and marketing expenses,

as well as bilingual communication expenses to support plan development, publication, and

program planning. Further, letting of the IEM contract has resulted in a commitment of an

additional $22,964,520.80 over the next 5 years.
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 25 of 29

Budget

Budgeting of HAF Funds by Program Design Element 

Specify the amounts of HAF funds that the Participant proposes to allocate to each of the following program

design elements, if offered:

Measure Amount

Mortgage Payment Assistance $73,604,254.00

Mortgage Principal Reduction $0.00

Payment Assistance for Homeowner’s Internet Service $0.00

Payment Assistance for HOA fees or liens $1,858,693.00

Payment Assistance for Delinquent Property Taxes $4,646,733.00

Mortgage Reinstatement $149,438,940.00

Facilitate Mortgage Interest Rate Reduction $0.00

Payment Assistance for Homeowner’s Insurance $2,788,040.00

Payment Assistance for Down Payment Assist. Loans $0.00

Payment Assistance for Homeowners Utilities $0.00

Other measures to prevent homeowner displacement

Measure Amount

N/A $0.00

Displacement Prevention Sub-Total $232,336,660.00

Counseling or Legal Services

The Participant may allocate up to 5% of its HAF funds for counseling or educational efforts by housing

counseling agencies approved by the Department of Housing and Urban Development or a tribal government,

or legal services, target to households eligible to be served with funding from the HAF related to foreclosure

prevention or displacement.
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Specify the Participant’s allocations for the following Amount

Counseling or Educational Services $0.00

Legal Services $0.00

Services Sub-Total $0.00

Reimbursement of Funds Expended After January 21, 2020

As described in the HAF guidance, HAF funds may be used for reimbursement of certain expenses between

January 21, 2020 and the date when the first HAF funds are disbursed by the HAF participant under the HAF

for a qualified expense (with certain limitations, as set forth in the HAF guidance).

Type of Expense Amount

N/A $0.00

Reimbursement Sub-Total $0.00

Allocation of Administrative Expenses

Type of Expense Amount

NCHFA Direct/Indirect/Travel $4,225,000.00

Third Party Vendors $36,350,087.00

Risk Management/Insurance/Building Services $183,500.00

Printing/Mail/Delivery/Office Supplies $242,000.00

Administrative Expenses Sub-Total $41,000,587.00

Total Plan Requested Amount $273,337,247.00

Amount Requested Confirmation:

Yes
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 27 of 29

Contacts

Please identify up to three contacts for the Participant- a primary contact, a designated point of contact for

reporting, and an additional contact.

Primary Contact

Name: Stephanie McGarrah

Agency/Office: NC Pandemic Recovery Office

Email: stephanie.mcgarrah@osbm.nc.gov

Phone Number: 9842360600

Reporting Contact

Name: Tara Fikes

Agency/Office: NC Pandemic Recovery Office

Email: tara.fikes@osbm.nc.gov

Phone Number: 9842279340

Additional Contact

Name: Lisa Fox

Agency/Office: NC Pandemic Recovery Office

Email: lisa.fox@osbm.nc.gov

Phone Number: 9842360600

Proprietary or Otherwise Non-Public Information

Does your plan submission include any information or materials that are proprietary or otherwise non-public?

No

If "Yes," please indicate which information or materials are proprietary or otherwise non-public.
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 28 of 29

Title VI Assurances

You must provide on behalf of the HAF Participant assurances that the HAF Participant will comply with

Title VI of Civil Rights Act of 1964. Please download the assurances, then review, sign, and upload the

signed copy to this page before submitting the HAF Plan.

Title Upload Date

6. HAF-Title VI Assurance (5-18-2021) NC.pdf 08132021 8/19/2021 12:18 AM
HAF Grantee Plan - HAFP-0043 -State of North Carolina - Extracted 02/15/2022 16:40:14 Page 29 of 29

Official Certification

I (the undersigned) certify that the information provided in the HAF submission is accurate and complete

after reasonable inquiry of people, systems, and other information available to the HAF Participant. The HAF

participant and I acknowledge that any materially false, fictitious, or fraudulent statement or representation

(or concealment or omission of material fact) in this submission may be the subject of criminal prosecution

under the False Statements Accountability Act of 1996, as amended, 18 U.S.C. § 1001 and also may subject

me and HAF Participant to civil penalties and/or administrative remedies for false claims or otherwise,

(including 31 U.S.C. §3729 et seq.). I am an authorized representative of HAF Participant with authority to

make the above certifications and representations on behalf of the HAF Participant.

Name of HAF Participant:

State of North Carolina

Name and Title of Certifying Official

Name: Charles Perusse

Title: State Budget Director

Telephone: 9198074717

Email: charles.perusse@osbm.nc.gov