Kansas Homeowner Assistance Fund 

Term Sheets

KANSAS OFFICE OF RECOVERY

Laura Kelly, Governor 

DeAngela Burns-Wallace, Secretary of Administration 

September 14, 2021, Treasury Approved January 21, 2022, Updated October 7, 2022
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Table of Contents 

Introduction ..................................................................................................................................................2

Guiding Principles for Program Design .....................................................................................................2

Summary of Program Elements................................................................................................................3

Mortgage Reinstatement Assistance Term Sheet ........................................................................................4

Mortgage Payment Assistance Term Sheet..................................................................................................6

Property Charge Assistance Term Sheet.......................................................................................................8

Utility/Internet/Broadband Payment Assistance Term Sheet....................................................................10

Program Design Deviation Justification ......................................................................................................12
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Introduction

The COVID-19 public health crisis and resulting economic crisis have severely strained many 

households across the United States, threatening housing stability for renters and 

homeowners. In response to this crisis, Congress passed the American Rescue Plan Act (ARPA), 

to assist residents, small businesses, and governments respond and recover from the impacts of 

the coronavirus pandemic, including $9.96 billion to assist vulnerable homeowners through the 

Homeowner Assistance Funds (HAF). 

Kansas was allocated $56.6 million through HAF to assist Kansas homeowners in need. The HAF 

was established to mitigate financial hardships associated with the coronavirus pandemic by 

providing eligible homeowner assistance to prevent mortgage delinquencies and defaults, 

foreclosures, loss of utilities or home energy services, and displacement of homeowners 

experiencing financial hardship associated with the coronavirus pandemic.

The COVID-19 pandemic is creating a housing crisis, threatening Kansas homeowners’ ability to 

keep up with mortgage and utility payments. As of May 2021, this has led to 15,430 home loans 

delinquent, of which 70% of these loans were behind more than 90 days. As a result, thousands 

of homeowners are at risk of losing their homes and having their utilities shut off.

To address this crisis, the Kansas Recovery Office has partnered with the Kansas Housing 

Resource Corporation (KHRC) to create the Kansas Homeowner Assistance Fund (KHAF)

program. KHRC is a self-supporting, nonprofit, public corporation that serves as the primary 

administrator of federal housing programs for the state of Kansas. KHRC delivers solutions to 

those who are working to end the housing crisis in Kansas. The corporation’s vision can only be 

achieved when all Kansans have the support and resources they need to achieve their goals, no 

matter where they are in their housing journey.

The KHAF program is currently in the design phase, with particular attention to ensuring the 

program is responsive to the needs of Kansas homeowners during this difficult time. The 

program design is guided by three principles, as outlined below, and includes four elements 

that address homeowner mortgage and non-mortgage assistance needs. These four program 

elements are summarized below, followed by draft Term Sheets that detail the program goals, 

eligibility, the form and amount of assistance and other key program design components. 

Guiding Principles for Program Design

1. To best position homeowners to obtain and maintain secure housing and best position

homeowners to securely remain in their home. 

2. To expedite delivery of assistance.

3. To not use taxpayer funds to pay what is already resolved with the mortgage servicer.
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Summary of Program Elements

The draft program design includes 4 program elements to be paired with housing counseling 

services to assist homeowners achieve and maintain their housing. See Table 1 for additional 

information about the elements.

1. Mortgage Reinstatement Assistance – to better position homeowners to obtain stable 

housing by curing past due mortgage payments (principal, interest, taxes, insurance, and 

related fees) through reinstatement or a loan modification from their service provider.

2. Mortgage Payment Assistance – to better position homeowners to obtain or maintain 

stable housing by maintaining monthly mortgage payments current for up to 6 months.

3. Property Charge Assistance – to assist with past due property charges and maintain 

charges coming due within 90 days that threaten displacement and/or the homeowner’s 

ability to sustain ownership of the property by assisting with property taxes, insurance 

premiums, and certain fees. 

4. Utility/Broadband Assistance – to assist with homeowners’ past due payments and 

maintain charges coming due within 90 days for utilities and internet, including 

broadband services. 
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Mortgage Reinstatement Assistance Term Sheet

Criteria Terms

Brief description Provide financial assistance to eligible homeowners (applicants) to better 

position them to obtain housing stability. This may be accomplished by 

curing their delinquent mortgage payments (principal, interest, taxes, 

insurance, and related fees) through reinstatement or a loan modification 

from their mortgage servicer where possible.

Maximum amount of 

assistance per homeowner

Each homeowner will be eligible for up to a combined total of $50,000 in 

mortgage assistance (Mortgage Reinstatement Assistance + Mortgage 

Payment Assistance) through this program, to be used only for the 

homeowner’s primary residence.

Homeowner eligibility 

criteria and documentation 

requirements

General Eligibility Requirements: 

The property is the homeowner's primary residence

The property is in Kansas

The applicant(s) is on the mortgage and/or title

The applicant(s) income is equal to or less than the applicable HAF Income 

Limits (income equal to or less than 150% of the area median income or 

100% of the median income for the United States, whichever is greater)

Homeowner had a qualified financial hardship after January 21, 2020.

Documentation Requirements: 

To confirm income for eligibility, targeting, and qualified financial hardship 

the homeowner must provide the following:

1. A written attestation as to household income and a fact-specific 

proxy in lieu of income documentation. Fact-specific proxies include 

residing within a HUD designated Qualified Census Tract and may 

be based on data from other state and federal entities including the 

U.S. Census, U.S. Department of Housing and Urban Development 

(HUD), Kansas Department of Revenue, Kansas Department of 

Labor, Kansas Department for Children and Families (DCF). 

OR

2. A written attestation as to household income and income 

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

IRS Form 1099s, tax filings, depository institution statements 

demonstrating regular income, an attestation from an employer, or 

proof of receipt of a federal means-tested program which requires 

income to be at or below the required income for an eligible 

homeowner under HAF. For households experiencing a material 

increases in expenses, a complete and signed affidavit is required.

Plus: Statement of ability to resume any required regular payments after 

account is reinstated when Mortgage Payment Assistance is not 

necessary.
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Eligible Property Type Eligible properties are dwellings that includes a one- to four-unit dwelling, 

residential real property that includes a one- to four-unit dwelling, and 

manufactured/mobile home affixed or unaffixed to real property.

Loan eligibility criteria 

specific to the program

Delinquent by at least one mortgage payment.

Form of assistance Mortgage assistance totaling $25,000 or less will be structured as a nonrecourse grant. If Mortgage assistance exceeds $25,000, mortgage 

assistance will be structured as a recourse grant with a two-year term (up to 

the maximum mortgage assistance amount).

Payment requirements Funds will be paid directly to servicers and service providers or other 

applicable third parties authorized to collect eligible charges.
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Mortgage Payment Assistance Term Sheet

Criteria Terms

Brief description Provide financial assistance to eligible homeowners (applicants) to better 

position them to obtain or maintain housing stability. This may be 

accomplished by maintaining their monthly mortgage payments (principal, 

interest, taxes, insurance, and related fees) for a period of six (6) month 

increments.

Maximum amount of 

assistance per homeowner

Each homeowner will be eligible for up to a combined total of $50,000 in 

mortgage assistance (Mortgage Reinstatement Assistance + Mortgage 

Payment Assistance) through this program, to be used only for the 

homeowner’s primary residence.

Homeowner eligibility 

criteria and documentation 

requirements

General Eligibility Requirements: 

The property is the homeowner's primary residence

The property is in Kansas

The applicant(s) is on the mortgage and/or title

The applicant(s) income is equal to or less than the applicable HAF Income 

Limits (income equal to or less than 150% of the area median income or 100% 

of the median income for the United States, whichever is greater)

Homeowner had a qualified financial hardship after January 21, 2020.

Documentation Requirements: 

To confirm income for eligibility, targeting, and qualified financial hardship 

the homeowner must provide the following:

1. A written attestation as to household income and a fact-specific 

proxy in lieu of income documentation. Fact-specific proxies include 

residing within a HUD designated Qualified Census Tract and may be 

based on data from other state and federal entities including the U.S. 

Census, U.S. Department of Housing and Urban Development (HUD), 

Kansas Department of Revenue, Kansas Department of Labor, Kansas 

Department for Children and Families (DCF). 

OR

2. A written attestation as to household income and income 

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

IRS Form 1099s, tax filings, depository institution statements 

demonstrating regular income, an attestation from an employer, or 

proof of receipt of a federal means-tested program which requires 

income to be at or below the required income for an eligible 

homeowner under HAF. For households experiencing a material 

increases in expenses, a complete and signed affidavit is required.

Eligible Property Type Eligible properties are dwellings that includes a one- to four-unit dwelling, 

residential real property that includes a one- to four-unit dwelling, and 

manufactured/mobile home affixed or unaffixed to real property.
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Loan eligibility criteria 

specific to the program

If Reinstatement Assistance was not received, statement of current inability 

to maintain mortgage payments due to unemployment, underemployment or 

other continuing hardship demonstrating a material reduction in income or 

material increase in expenses is required. Substantiation of a material

reduction in income must be documented by paystubs, W-2s or other wage 

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

demonstrating regular income, unemployment documentation, 

documentation of deceased family member resulting in loss of income, or an 

attestation from an employer, proof of receipt of a federal means-tested 

program which requires income to be at or below the required income for an 

eligible homeowner under HAF.

For households experiencing a material increases in expenses, a complete and 

signed affidavit is required.

Form of Assistance Mortgage assistance totaling $25,000 or less will be structured as a nonrecourse grant. If Mortgage assistance exceeds $25,000, mortgage assistance 

will be structured as a recourse grant with a two-year term (up to the 

maximum mortgage assistance amount).

Payment requirements Funds will be paid directly to servicers and service providers or other 

applicable third parties authorized to collect eligible charges.
Treasury Approved 1/21/2022 8 | P a g e

Property Charge Assistance Term Sheet

Criteria Terms

Brief description Provide funds to assist with property charge expenses and past due

expenses that threaten displacement and/or the homeowner’s (applicant’s)

ability to obtain or maintain ownership of the property. 

Assistance funds may be used to pay past due amounts in full, including 

reasonable late fees, for property taxes, insurance premiums (including 

homeowner's insurance, flood insurance), HOA fees, condominium fees, 

cooperative maintenance, or common charges. 

Funds may also be used to pay charges coming due in the 90 days following 

program approval.

Provided assistance may not exceed the non-mortgage Maximum 

Assistance. 

Maximum assistance per homeowner Each Homeowner will be eligible for up to a combined total of $10,000 in 

non-mortgage assistance (Property Charge Assistance + 

Utility/Internet/Broadband Payment Assistance) through this program, to be 

used only for the homeowner’s primary residence. 

Homeowner eligibility 

criteria and documentation 

requirements

General Eligibility Requirements: 

The property is the homeowner's primary residence

The property is in Kansas

The applicant(s) is on the mortgage and/or title

The applicant(s) income is equal to or less than the applicable HAF Income 

Limits (income equal to or less than 150% of the area median income or 

100% of the median income for the United States, whichever is greater)

Homeowner had a qualified financial hardship after January 21, 2020 .

Documentation Requirements: 

To confirm income for eligibility, targeting, and qualified financial hardship 

the homeowner must provide the following:

1. A written attestation as to household income and a fact-specific 

proxy in lieu of income documentation. Fact-specific proxies include 

residing within a HUD designated Qualified Census Tract and may 

be based on data from other state and federal entities including the 

U.S. Census, U.S. Department of Housing and Urban Development 

(HUD), Kansas Department of Revenue, Kansas Department of 

Labor, Kansas Department for Children and Families (DCF). 

OR

2. A written attestation as to household income and income 

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

IRS Form 1099s, tax filings, depository institution statements 

demonstrating regular income, an attestation from an employer, or 

proof of receipt of a federal means-tested program which requires 

income to be at or below the required income for an eligible 

homeowner under HAF. For households experiencing a material 

increases in expenses, a complete and signed affidavit is required.
Treasury Approved 1/21/2022 9 | P a g e

Eligible Property Type Eligible properties are dwellings that includes a one- to four-unit dwelling, 

residential real property that includes a one- to four-unit dwelling, and 

manufactured/mobile home affixed or unaffixed to real property.

Loan eligibility criteria 

specific to the program

Eligibility criteria for assistance for past due amounts: Must have at least one 

payment past due on an eligible expense;

Eligibility criteria for assistance for charges coming due: If Reinstatement 

Assistance was not received, statement of current inability to maintain 

payments due to unemployment, underemployment, or other continuing 

hardship by attesting to a material reduction in income or a material 

increase in expenses. Documentation of a material reduction in income is 

required and may include paystubs, W-2s or other wage statements, IRS 

Form 1099s, tax filings, depository institution statements demonstrating 

regular income, unemployment documentation, documentation of deceased

family member resulting in loss of income, an attestation from an employer 

of reduced income, or proof of receipt of a federal means-tested program 

which requires income to be at or below the required income for an eligible 

homeowner under HAF. 

For households experiencing a material increase in expenses, a complete 

and signed affidavit is required.

Form of assistance Assistance will be structured as a non-recourse grant. 

Payment requirements Funds will be paid directly to servicers and service providers or other 

applicable third parties authorized to collect eligible charges.
Treasury Approved 1/21/2022 10 | P a g e

Utility/Internet/Broadband Payment Assistance Term Sheet

Criteria Terms

Brief description Provide funds to assist with past due payments for utility and/or internet 

access services. 

Assistance funds may be used to pay past due amounts in full, including 

reasonable late fees, for utilities (including electric, gas, home energy, water, 

and wastewater) and/or internet service, including broadband service.

Funds may be used to pay prospective charges for up to the first 90 days 

following approval.

Provided assistance may not exceed the non-mortgage Maximum 

Assistance. 

Maximum assistance per 

homeowner

Each Homeowner will be eligible for up to a combined total of $10,000 in 

non-mortgage assistance (Property Charge Assistance + 

Utility/Internet/Broadband Payment Assistance) through this program, to be 

used only for the homeowner’s primary residence. 

Homeowner eligibility 

criteria and documentation 

requirements

General Eligibility Requirements: 

The property is the homeowner's primary residence

The property is in Kansas

The applicant(s) is on the mortgage and/or title

The applicant(s) income is equal to or less than the applicable HAF Income 

Limits (income equal to or less than 150% of the area median income or 

100% of the median income for the United States, whichever is greater)

Homeowner had a qualified financial hardship after January 21, 2020.

Documentation Requirements: 

To confirm income for eligibility, targeting, and qualified financial hardship 

the homeowner must provide the following:

1. A written attestation as to household income and a fact-specific 

proxy in lieu of income documentation. Fact-specific proxies include 

residing within a HUD designated Qualified Census Tract and may 

be based on data from other state and federal entities including the 

U.S. Census, U.S. Department of Housing and Urban Development 

(HUD), Kansas Department of Revenue, Kansas Department of 

Labor, Kansas Department for Children and Families (DCF). 

OR

2. A written attestation as to household income and income 

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

IRS Form 1099s, tax filings, depository institution statements 

demonstrating regular income, an attestation from an employer, or 

proof of receipt of a federal means-tested program which requires 

income to be at or below the required income for an eligible 

homeowner under HAF. For households experiencing a material 

increases in expenses, a complete and signed affidavit is required.
Treasury Approved 1/21/2022 11 | P a g e

Plus: Statement of ability to resume any required regular payments after 

account is reinstated when Mortgage Payment Assistance is not 

necessary.

Eligible Property Type Eligible properties are dwellings that includes a one- to four-unit dwelling, 

residential real property that includes a one- to four-unit dwelling, and 

manufactured/mobile home affixed or unaffixed to real property.

Loan eligibility criteria 

specific to the program

Eligibility criteria for assistance for past due amounts: Must have at least one 

payment past due on an eligible expense;

Eligibility criteria for assistance for charges coming due: If Reinstatement 

Assistance was not received, statement of current inability to maintain 

payments due to unemployment, underemployment or other continuing 

hardship by attesting to a material reduction in income or a material 

increase in expenses. Documentation of a material reduction in income is 

required and may include paystubs, W-2s or other wage statements, IRS 

Form 1099s, tax filings, depository institution statements demonstrating 

regular income, unemployment documentation, documentation of deceased 

family member resulting in loss of income, an attestation from an employer 

of reduced income, or proof of receipt of a federal means-tested program 

which requires income to be at or below the required income for an eligible 

homeowner under HAF. 

For households experiencing a material increase in expenses, a complete 

and signed affidavit is required. 

Form of assistance Assistance will be structured as a non-recourse grant. 

Payment requirements Funds will be paid directly to servicers and service providers or other 

applicable third parties authorized to collect eligible charges.
Treasury Approved 1/21/2022 12 | P a g e

Program Design Deviation Justification

Program

Design

Element

Deviation from

sample terms

Justification

Reinstatement Change from requiring an 

applicant to pursue loss 

mitigation prior to seeking 

assistance to providing 

support ‘adjacent’ to loss 

mitigation – including premodification.

HAF programs and mortgage servicers have a shared desire to mitigate financial hardships for 

associated with the coronavirus pandemic by preventing homeowner mortgage delinquencies, 

defaults, foreclosures and displacement of homeowners experiencing financial hardship after 

January 21, 2020. The HAF programs’ and mortgage servicers’ coordinated effort to 

accomplish this shared desire has two basic elements driven by two different sets of 

motivating factors. Mortgage servicers’ primary objective is to collect a debt owed by their 

client in the most efficient and effective means possible for them. HAF programs’ primary 

objective is to provide financial assistance to eligible applicants in the most effective and 

efficient means possible for the applicant – while providing the greatest opportunity for longterm viability and housing stability. 

While these two entities share a common desire, their differing objectives and motivation 

necessitate a program assistance delivery approach that calls for aiding eligible applicants 

independently of mortgage servicers to the highest extent possible. This is not to imply no 

coordination of effort is required. Mortgage servicers will still do what they must to 

accomplish their prescribed objective. Their being aware that a borrower of theirs has received 

HAF assistance can serve as a means of streamlining their processes for assisting HAF 

assisted applicants that remain housing insecure.

Our intent in program design is to put the Homeowner in the best position for success in a 

forward driven mindset. Providing reinstatement and ongoing mortgage assistance payments 

enables a homeowner to emerge from forbearance, achieve reinstatement and establish a 

reliable track record of on time payments for 90 days or more thereby positioning the 

homeowner for pre-modification loss mitigation options such as enhanced (if low equity) or 

traditional refinance options (for established equity and lower % of principal remaining). This 

accomplishes two things: empowers the homeowner to work more collaboratively with their 

loan servicers on options that are more favorable to the borrow; and provides future 

modification options should the borrow continue to experience difficulty in the mid-long term 

with ongoing payments and reduces the impact on credit worthiness by preventing delinquent 

credit reporting post forbearance.

Kansas specifically has two significant impediments to a forced loss mitigation: 

1) The State lacks an expansive network of foreclosure prevention and housing 

counseling service providers. Kansas was not a Hardest Hit Fund recipient and 

has not had the same opportunity to build a robust foundation of foreclosure 

prevention support networks that many other states have. While we have 

budgeted funding for expansion of housing counseling and legal services, the 

current Treasury limitation on those services only being accessible to HAF 

recipients and capped at just 5% of a HAF recipient’s total award will leave 

inadequate support available to applicants being forced through complex and 

often time-intensive loss mitigation. 

2) The State has a significant majority of conventional mortgage borrowers who 

will not have the same streamlined Advance Loan Modifications options 

available to GNMS borrowers. Our program design empowers an equity 

framework, allowing for both FHA/USDA/VA and other government backed 

borrowers to emergence from forbearance while working through ALM options 

– ensuring that non GNMS are not ‘first up’ for assistance resulting in a 

disproportionate benefit to low DTI and moderate-income borrowers.

Our design leverages proven success in similar ‘prepare for refinance’ frameworks developed 

and deployed to achieve the same objective, the Homeowner Affordable Refinance Program 

(HARP) as a primary example. An applicant having already received any eligible assistance 

from the HAF programs’ will be better positioned to benefit from all options made available 

by mortgage servicers.
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Term Sheets specify the 

eligibility of Manufactured 

Homes affixed or unaffixed 

to real property. 

The COVID-19 pandemic and resulting economic crisis has impacted all corners of the 

country across age, race, class, and nearly every other distinction that can be drawn. The 

short-term and long-term recovery from the pandemic requires that residents be able to obtain 

and maintain stable housing. In 2015, there were nearly 8 million families in the U.S. that 

lived in manufactured homes with a median income of $29,000, according to the Lincoln 

Institute of Land Policy. 

Manufactured homes are second only to 1-Unit housing types in Kansas, according to the U.S. 

Census 2015-2019 ACS, comprising over 4% of the housing stock. Less than 17% of 

manufactured homes sold in the U.S. between 2014 and 2020 were titled as real estate. 

Excluding unaffixed mobile homes would leave the majority of manufactured homeowners 

without the type of housing safety net provided by the Emergency Rental Assistance Program 

and the Homeowner Assistance Fund during this crisis and would hinder the State’s recovery. 

In order to be able to serve the target populations identified in the HAF Plan, manufactured 

homeowner assistance must be an eligible component. Due to the lower barrier to entry for 

homeownership of manufactured homes compared to site-built homes, the demographics of 

manufactured home ownership and those who experienced significant economic impacts have 

significant overlap. Manufactured homes account for a significant portion of the housing stock 

for residents in the priority income brackets as identified by the U.S. Treasury. 

Treasury has further identified the need to target socially disadvantaged communities, 

including those that have experienced housing discrimination historically. These communities, 

which include communities of color, were often also disproportionately impacted by the 

COVID-19 pandemic, both with regard to their physical health and economic stability. Some 

of the highest rates of loan originations for households of color are in the southwest region of 

Kansas, which is also the portion of the state with some of the highest portions of 

manufactured homes ownership in the state. 

As established in the Treasury guidance, dwelling means any building, structure, or portion 

thereof that is occupied as, or designed or intended for occupancy as, a residence by one or 

more individuals. This definition is sufficiently broad to be inclusive of a manufactured home 

not affixed to the real estate. While typically the term mortgage refers to a security interest in 

real estate, the definitions provided by the Treasury can include a personal property loan 

secured by a manufactured home, as that would be a “credit transaction that is secured by a 

consensual security interest on a principal residence of a borrower that is a one-to four-unit 

dwelling. . .” Additionally, the Treasury allows for a loan secured by a manufactured home as 

part of the mortgage definition.

Additionally, in the HAF Plan Template on page 7, Treasury lists the types of mortgages to be 

included in the HAF program and includes “Loans Secured by Manufactured Housing 

(secured by real estate or a dwelling)”. 

The use of HAF to assist manufactured home owners, including those with chattel loans, is 

further supported by analysis from the Manufactured Housing Institute and the National 

Council of State Housing Agencies. 

The purpose of HAF, as stated by Treasury is to mitigate financial hardships associated with 

the coronavirus pandemic by providing funds to eligible entities for the purpose of preventing 

homeowner mortgage delinquencies, defaults, foreclosures, loss of utilities or home energy 

services, and displacements of homeowners experiencing financial hardship. Consistent with 

the stated purpose, Kansas recognizes the that providing assistance to manufactured home 

owners, whether the property is, either affixed or unaffixed, is key to effectively address the 

housing need in Kansas, particularly among the program’s target populations.