ARKANSAS

Homeowner Assistance Fund (HAF)

HAF Plan and 

Program Guide

REVISED: NOVEMBER 2021
ARKANSAS | Homeowner Assistance Fund TOC

Contents

Overview.............................................................................................................................1

Homeowner Needs and Engagement.............................................................................2

2.1 Data-Driven Assessment ............................................................................................... 2

2.2 Public Participation ........................................................................................................ 7

Program Design .................................................................................................................7

3.1 Program Design Overview............................................................................................. 7

3.2 Eligibility Requirements................................................................................................. 7

3.3 Structure of Assistance ................................................................................................. 9

3.4 Prioritization/Targeting .................................................................................................. 9

3.5 Application Process........................................................................................................11

3.6 Payment Process ............................................................................................................11

3.7 Marketing and Targeting Efforts ..................................................................................12

3.8 Other Available Sources of Assistance ....................................................................12

3.9 Best Practices and Coordination with Other HAF Participants ...........................13

Performance Goals............................................................................................................13

Readiness ...........................................................................................................................14

5.1 Staffing and Systems Overview....................................................................................14

5.2 Program Administration/Project Management........................................................14

5.3 Call Center........................................................................................................................14

5.4 Application Processing..................................................................................................15

5.5 System Solution ..............................................................................................................15

5.6 Pilot Program ..................................................................................................................15

Budget ................................................................................................................................17

Appendix A: Program Term Sheets .................................................................................18

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Overview

On March 11, 2021, President Biden signed into law 

the American Rescue Plan Act (hereinafter referred 

to as the “ARPA”), setting aside a total of $1.9 trillion 

in federal funding for coronavirus pandemic related 

expenses and needs. Section 3206 of the ARPA 

established the Homeowner Assistance Fund (“HAF”), 

which provides approximately $9.9 billion in federal 

funding to states, territories, and tribal governments 

to assist low-to-moderate income homeowners who 

have experienced a negative financial impact 

associated with the coronavirus pandemic. 

The HAF was established to mitigate financial 

hardships associated with the coronavirus pandemic to prevent homeowner mortgage delinquencies, 

defaults, foreclosures, loss of utilities or home energy services, and displacement of homeowners experiencing financial hardship after January 21, 2020, through qualified expenses related to mortgages. 

Additionally, the HAF requires not less than 60 percent of the state’s total allocation be made available 

to homeowners at or below 100 percent of the area median income (“AMI”) or 100 percent of the median 

income for the United States, whichever is greater. The remaining portion of funding must be prioritized 

for socially disadvantaged individuals before providing funding to other eligible homeowners. The State 

of Arkansas understands these eligibility requirements and is committed to developing and administering 

a program that meets the intent of the guidance, all while allowing compliant, efficient, and uninterrupted 

funding to Arkansas’s most vulnerable homeowners. 

To receive funding under the HAF, states were required to submit a Notice of Funds Request by April 25, 

2021, and enter into a Financial Assistance Agreement with Treasury regarding the use of these funds. 

The State of Arkansas submitted its notice within the required time frame and entered into the requisite 

agreement for a total allocation of $63,330,313 in HAF funding to be administered by the Arkansas 

Development Finance Authority (“ADFA”), a division of the Arkansas Department of Commerce. ADFA 

elected to opt-in and receive the allowed 10 percent allocation advance to fund and administer a pilot 

program summarized herein. Additionally, the state was required to submit the Plan to Treasury by August 

20, 2021, for review and approval to receive funds beyond the initial 10 percent payment received for 

the pilot program. Accordingly, ADFA developed this plan outlining the intent and distribution strategy for 

the State of Arkansas’s HAF allocation. This plan has been modified to reflect feedback received from 

Treasury subsequent to the original submission.

The State of Arkansas and ADFA are incredibly grateful for this federal funding opportunity. It will provide 

immediate, needed assistance to homeowners in the state who have struggled to meet their housing 

financial obligations due to the ever-present negative impacts of the coronavirus pandemic. ADFA is 

available to answer any questions or provide additional details as needed by Treasury. We stand ready 

to assist our most vulnerable homeowners and launch Arkansas’s HAF program upon receiving Treasury’s 

approval and the remaining funding.

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Homeowner Needs and Engagement

2.1 Data-Driven Assessment

ADFA performed a data-driven needs assessment to understand the homeowner needs across the state 

of Arkansas. The findings and information were used in the development and shaping of our plan and 

approach, including our marketing and outreach strategy. 

Foreclosure and Delinquency Data/Information

The state of Arkansas has approximately 1,163,647 housing units – comprised of approximately 761,809 

owner-occupied units. Of the owner-occupied units, an estimated 403,551 units have mortgages.1 

While all of the owner-occupied units across the state may not have been negatively impacted by the 

coronavirus pandemic, the data indicates a significant need in the state of Arkansas for owner-occupied 

loans that are troubled. ADFA used data provided by Treasury to better understand the overall estimated 

need within the state, which is summarized below:2

2

1 U.S. Census Bureau, 2019 American Community Survey 1-Year Estimates, Table DP04

2 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

Loan Types – State of Arkansas Loan Units

FHA 80,319 

USDA 33,059 

VA 34,884 

Totals 148,262 

EXHIBIT 1

Days Delinquent FHA USDA VA Total

Loan Units 60 Day Delinquent 879 323 282 1,484 

Loan Units 90 Day Delinquent 7,768 2,845 2,440 13,053 

EXHIBIT 2

Forbearance FHA USDA VA Total

Forbearance Count 5,753 1,911 1,891 9,555 

Forbearance $ (Unpaid Principal) $642,231,683 Unavailable Unavailable $642,231,683

Forbearance $ (Delinquent Balance) Unavailable $8,967,501 $15,548,296 $24,515,797 

EXHIBIT 3
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In addition to the data provided by Treasury, ADFA obtained data from three loan servicers – ServiSolution, 

US Bank and Wells Fargo - summarizing the impact to those loans serviced in the state of Arkansas. The 

data obtained from ServiSolutions is isolated to loans originated by ADFA.

Based on the data provided by the three servicers, we concluded an average monthly payment costs of 

approximately $835. We also obtained data from American Community Survey (“ACS”) to further support 

the monthly owner cost for homeowners within the state of Arkansas.3

 The ACS survey indicated median 

monthly owner costs to be approximately $1,094.

Our review of the combined data above from the three servicers indicated homeowners on average are 

delinquent approximately 8 months, as demonstrated in Exhibit 6 below.

The combination of these facts highlights the immediate need for a mortgage reinstatement program.

State of Arkansas Unemployment Data

As ADFA assessed program needs, we also considered the state’s unemployment rates. The current 

unemployment rate, as of June 2021, for the state of Arkansas is 4.4%.4 The unemployment rate at the 

height of the pandemic reached as high as 10% in April 2020. As the graph demonstrates below, the 

unemployment rate has improved significantly over the last year. While a significant improvement, ADFA 

3 U.S. Census Bureau, 2019 American Community Survey 1-Year Estimates, Table DP04

4 U.S. Rates - U.S. Bureau of Labor Statistics, https://data.bls.gov/timeseries/LASST050000000000006?amp%253bdata_tool=XGtable&output_

view=data&include_graphs=true, August 2021

 Arkansas Rates - https://data.bls.gov/timeseries/LASST050000000000003?amp%253bdata_tool=XGtable&output_view=data&include_graphs=true, 

August 2021

 South Region Rates - https://data.bls.gov/timeseries/LASRD930000000000003?amp%253bdata_tool=XGtable&output_view=data&include_

graphs=true, August 2021

Other Needs FHA USDA VA Total

Bankruptcy Loan Count 857 225 550 1,632 

Loan Units - Active Foreclosures 113 382 275 770

Loan Units - Loss Mitigation

ALL Options 6,721 1,377 2,158 10,256 

EXHIBIT 4

Loan Servicer Wells Fargo U.S. Bank ServiSolutions

# of loans in state 45,430 Not Available 4,453

# of loans in default 2,738 1,478 254

# active in COVID forbearance 1,337 747 Unavailable

Average monthly PITI $1,010 $872 $558 

Average amount delinquent $8,570 $8,076 $2,880 

EXHIBIT 5

Loan Servicer Wells Fargo U.S. Bank ServiSolutions

Median days 210 360 60

Average/Median months 7 12 4

EXHIBIT 6
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recognizes many borrowers have not fully recovered from the financial impacts of the coronavirus 

pandemic. Therefore, we believe a mortgage reinstatement program could meet the immediate need to 

assist homeowners in their continued efforts of recovery. 

Demographics/Socially Disadvantaged Individuals

ADFA recognizes the need for prioritizing those socially disadvantaged individuals, as those individuals 

typically face significant housing challenges. Socially disadvantaged individuals as defined by Treasury 

are those individuals 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 participant’s 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 a (1) member of a group that has been subjected 

to racial or ethnic prejudice or cultural bias within American society; (2) resident of a majority-minority 

Census tract; (3) individual with limited English proficiency; (4) resident of a U.S. territory, Indian 

reservation, or Hawaiian Home Land, 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.

We also reviewed data from the Congressional Research Services for the persistent poverty counties 

across the state to identify geographic areas where homeowners are considered socially disadvantaged. 

ADFA identified 17 counties included within the report as follows: Bradley, Chicot, Columbia, Crittenden, 

Desha, Jefferson, Lafayette, Lee, Lincoln, Mississippi, Monroe, Nevada, Phillips, Poinsett, St. Francis, 

Searcy, and Woodruff.5 Our marketing and outreach efforts will ensure those potentially eligible 

homeowners within these persistent poverty counties are aware of the program and information needed 

EXHIBIT 7

5 Congressional Research Service “The 10-20-30 Provision: Defining Persistent Poverty Counties” February 24, 2021
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to gain access to apply. 

Data was also provided by Treasury highlighting the need across several demographics that fall within 

the definition of the socially disadvantaged individuals. 

The following exhibit demonstrates the percentage of homeowners by race and ethnicity within the state 

of Arkansas.6

FHA USDA VA Total

# of Black Borrowers in Forbearance 1,642 275 469 2,386

# of Hispanic Borrowers in Forbearance 436 30 55 521 

Other Minority Borrowers (Combined) in 

Forbearance 519 89 48 656 

# of Black Borrowers 90+ Days Delinquent 2,292 444 582 3,318

# of Hispanic Borrowers 90+ Days Delinquent 470 45 64 579

Other Minority Borrowers (Combined) 90+ Days 

Delinquent 625 105 70 800

EXHIBIT 8

EXHIBIT 9

6 U.S. Census Bureau’s American Community Survey (ACS) 2015-2019 5-year estimates, Tables B25003, B25003B, B25003C, B25003D, B25003E, B25003F, B25003G, 

B25003H, B25003I
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Utilities Assessment 

ADFA analyzed data around delinquent utilities associated with loan units in poor standing. The 

assessment performed by ADFA for utilities related to homeownership include gas, electricity, water, 

sewer, and waste. As current data was not readily available related to utility delinquency, ADFA’s 

assessment was based on certain assumptions, including 1) homeowners in forbearance based on 

Treasury data, 9,555 homeowners, are also behind on utility payments and 2) the average number of 

months calculated above for the three servicers was assumed in this analysis, resulting in 8 months 

on average. Based on those assumptions, ADFA estimated the total associated unpaid utilities to be 

$2,417,415. ADFA estimated monthly utility amounts based on various data sources as outlined below. 

These estimates were used to project the unpaid utility needs based on the loan units and average 

months of delinquency. 

★ Gas at $65 monthly 7

★ Electricity at $109 monthly 8

★ Water at $22 monthly 9

★ Sewer at $33 monthly 10

★ Waste at $24 monthly 11

Internet Assessment 

ADFA estimated the total associated unpaid internet bills to be $506,415. Similar to the utility 

assessment, as data was not readily available on internet delinquencies, the same assumptions were 

made within the internet assessment. We obtained the listing of the top nine residential internet 

providers across the state to determine average monthly plan prices to arrive at the average monthly 

internet bill of $53 per household. The average monthly internet bill was used within our projections to 

determine the need related to delinquent internet bills.

Conclusion

While difficult to project the total dollar amount associated with troubled loans across the state of 

Arkansas, the data assessment and information gathered demonstrates a significant and immediate 

need for homeowners across the state. Many of the data sources and information obtained are based 

on government backed loans, which we know typically serve those individuals in the low-to-moderate 

income levels. Considering all factors mentioned within this assessment, we believe the mortgage 

reinstatement program will serve the immediate need for a program to reduce mortgage delinquencies 

and related home costs, as well as the need for assistance with utility and internet related expenses.

ADFA’s proposed program design for mortgage reinstatement and related homeowner expenses is 

further described in section 3.

7 ADFA obtained natural gas prices per region from the U.S. Energy Information Administration and multiplied by the monthly price. Gas consumption data was obtained 

from Table CE2.1 Annual household site fuel consumption in the U.S. published by the U.S. Energy Information Administration.

8 ADFA obtained the monthly prices from the Annual Electric Power Industry Report, Form EIA-861 Schedule 4A-D.

9 ADFA inspected the U.S. Department of the Interior and U.S. Geological Survey Circular 1441 for Estimated Use of Water in the United States and calculated the local water 

company rates by consumption estimates for the average household size.

10 ADFA reviewed the U.S. Geological Survey for water use to obtain the average water use per day and calculated the monthly average sewer price for a household of 3. 

We obtained sewer prices from local water association authorities in the state.

11 ADFA reviewed local residential solid waste collection and sanitation prices to determine the average monthly waste cost per household of 3.
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2.2 Public Participation

Arkansas values the input and feedback from key stakeholders and the community on the HAF 

plan and use of funding. Public participation was obtained through in-person events, webinars, 

and a platform, to submit input. ADFA hosted multiple events in early June for key stakeholders and the 

community to learn about the program and provide input. The state also hosted numerous webinars and 

in-person meetings for the community and key stakeholders. Meetings included; religious establishments, 

charitable organizations, county judges, banking associations, financial institutions, media associations, 

realtor associations, among others, to educate the stakeholders and community on the HAF plan and 

facilitate live feedback/participation sessions. In an effort to ensure all identified stakeholders were privy 

to the same information, the state recorded the webinar and emailed it to all participants and individuals 

registered for the webinar, including those unable to attend. The webinar recording was posted to the 

public websites (arkansashaf.com and adfa.arkansas.gov) for viewing, including information in English 

and Spanish. Instructions were provided in the webinar and the recording on the method for submitting 

additional feedback as well as input on the plan after the webinar’s conclusion through a SmartSheet. In an 

effort to further engage participation from the citizens of Arkansas, the link to the SmartSheet and information on the process were also posted to the public websites (arkansashaf.com and adfa.arkansas.gov). 

Public comment was open beginning June 8, 2021. Feedback and input submitted before the submission of 

this plan were considered and incorporated as determined appropriate by the state. 

The original draft plan was searchable online. Due to additional guidance being provided from Treasury, 

August 2, 2021, ADFA has updated this public version of the plan to reflect all updated guidance as well as 

reflect the content in this submission to Treasury. This updated public version of the plan was posted to the 

public websites (arkansashaf.com and adfa.arkansas.gov), following the original submission to Treasury. The 

updated public version of the plan was posted in English and Spanish, as well as shared with organizations 

reaching those citizens with disabilities or individuals without reliable internet access. Individuals seeking 

information in languages besides English and Spanish are able to contact our call center for information in 

multiple languages.

Program Design

3.1 Program Design Overview

ADFA used the data driven needs assessment to understand the potential needs throughout the state of 

Arkansas. The data indicates a significant need related to troubled loans. The Arkansas HAF intends to 

address the immediate need of mortgage delinquencies and associated homeowner expenses to allow the 

citizens of Arkansas to recover from the negative impacts of the coronavirus pandemic. 

3.2 Eligibility Requirements

Homeowner Income

The Arkansas HAF program will require homeowners to have incomes equal to or less than 

3
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150 percent of the AMI or 100 percent of the median income for the United States, whichever is 

greater, to be considered an eligible homeowner. HAF participants are given two options to use in 

calculating income for eligibility determination:

1. Department of Housing and Urban Development’s (“HUD”) definition of “annual income” in 24 

CFR 5.609.

OR

2. Use adjusted gross income (“AGI”) as defined for purposes of reporting on Internal Revenue 

Service (“IRS”) form 1040 series for individual federal annual income tax purposes.

Further, the guidance allows for two approaches for supporting income verification:

1. The household may provide a written attestation as to household income together with 

supporting documentation such as pay stubs, W-2s or other wage statements, IRS Form 

1099s, tax filings, depository institution statements demonstrating regular income or attestation from an employer.

OR

2. The household may provide a written attestation as to household income. In addition, the HAF 

participant may use a reasonable fact-specific proxy for household income, such as reliance 

on data regarding average incomes in the household’s geographic area. 

Based on experience in the pilot program, ADFA does intend to implement a fact-specific proxy for 

the program. The approach will include written attestation plus reasonable fact-specific proxy for 

household income. A written attestation as to household income will be provided by the homeowner, 

and the proxy will be used for the homeowner’s income verification. If the household falls within 

any of the seventeen (17) persistent poverty counties identified, the household will be presumed to 

meet income verification requirements. Doing so will avoid unnecessary barriers to participation and 

ease the documentation burden for these socially-disadvantaged homeowners. If a household does 

not fall within any of the seventeen (17) persistent poverty counties, the applicant will be required 

to provide a written attestation within the system along with supporting documentation. Required 

supporting documentation is outlined within the attached Program Term Sheets in Appendix A. 

Arkansas’s HAF program, utilizing the HUD approved AMI and NMI data, will calculate income limits 

as follows:

Income Limits for Income-Targeting Population (the greater of the two below):

★ 100% of AMI – Two times the income limit for very-low-income families, for the relevant 

household size, as published by HUD in accordance with 42 USC 1437a(b)(2) for purposes of 

the HAF

★ 100% of NMI - The median income of the United States, as published by HUD for purposes of 

the HAF

⊲ The median income for the fiscal year 2021 for the United States is $79,900 as of HUD 

publication April 1, 2021
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Income Limits for Eligible Homeowner Population: 

★ Income limits for program eligibility are noted within the Program Term Sheets in Appendix A

Financial Hardship 

Financial hardship will also be an eligibility requirement for the Arkansas HAF program. Therefore, 

the homeowner will be required to complete a self-attestation certifying they have experienced 

financial hardship after January 21, 2020 (including a hardship that began before January 21, 2020, 

but continued after that date). The self-attestation will require the homeowner to describe the nature 

of the financial hardship. The form will be completed within the system as part of the application. 

Other Eligibility Requirements

See attached Program Term Sheets within Appendix A for other eligibility requirements. 

3.3 Structure of Assistance

Available Assistance/Caps 

Program caps were determined based upon readily available data obtained from loan servicers. Each program 

cap is stated within the respective Program Term Sheets within Appendix A.

Eligible Expenses

ADFA will administer a mortgage loan reinstatement program designed to assist vulnerable homeowners 

across the state who have fallen behind on their mortgage payments and related property costs (included 

within escrow). ADFA will also have a utility and internet program designed to assist homeowners who 

have fallen behind on utility and internet expenses. Eligible expenses are outlined within the Program Term 

Sheets included in Appendix A.

Arrearages of qualified expenses are eligible regardless of the date they were incurred, including if they 

arose before January 2020. 

3.4 Prioritization/Targeting

Treasury guidance requires 60 percent of amounts made available to the state to assist homeowners with 

incomes equal to or less than 100 percent of the AMI or equal to or less than 100 percent of the median 

income for the United States, whichever is greater. The remaining allocation to the state must be prioritized 

for socially disadvantaged individuals, and after prioritization to those individuals, funds will be made 

available to other eligible households. 

The Arkansas HAF program intends to meet the targeting and prioritization requirements with an early 

advantage period for the Socially Disadvantaged population. Funds will be set aside for the incometargeting requirements and tracked separately from the remaining funding to ensure the condition is met.

At the same time, the remaining funds will be utilized for the priority group. 
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Prioritization within income-targeting applicants

The state also recognizes the need to prioritize certain types of loans based on the mortgage portfolios represented by the low-to-moderate income homeowner. Therefore, the state has determined it 

appropriate to prioritize certain loan types within the amounts made available to the income-targeting 

applicant based on the need. Homeowners who have FHA, Department of Veterans Affairs (“VA”), or US 

Department of Agriculture (“USDA”) mortgages and homeowners who have mortgages made with the 

proceeds of mortgage revenue bonds will be prioritized for assistance. Applicants will have the option on 

the application to select if their mortgage falls within one of the types above. For all applications submitted 

within the first 30 days that select one of the mortgage types listed above, the state will prioritize review of 

those applications. Suppose during the review process, the homeowner is determined to have a mortgage 

type other than those listed above. In that case, the application will be returned to the waitlist until after 

the priority period. After all priority applications have been reviewed, applications will be reviewed on 

a first-come, first-serve basis, based on the submission date. The only exception to the priority detailed 

above will be those homeowners that can prove they are currently facing foreclosure.

Prioritization for socially disadvantaged applicants

Based on experience in other federally funded programs, the state has determined an early advantage 

priority period of 30 days to be appropriate. Therefore, for all applications submitted within the first 30 

days of the program that self-identify as socially disadvantaged, those applications will be reviewed first. 

Socially Disadvantaged and income targeted applications submitted within the first 30 days will receive 

priority processing and take 

precedence over other 

applications in the pipeline. 

While the initial review may 

take longer than 30 days, it 

will be based on the submission date. Once the early 

advantage SDI applications 

have been reviewed, we will 

then begin actively monitoring 

the portfolio to manage 

priority. Through our pipeline 

management, we will ensure we meet the targeting goals and requirements set forth by Treasury for both 

income targeting and the socially disadvantaged population. We believe the approach noted within the 

plan allows the program to meet the prioritization requirements as well as ensure uninterrupted funding to 

applicants.

Marketing and outreach will be a significant component to ensure those within the socially disadvantaged 

priority group are aware of the program and ways to apply with sufficient time to meet the priority window. 

ADFA will use a two-step method to determine whether a homeowner is a “socially disadvantaged 

individual” as defined by the HAF guidelines. Additionally, we will measure the success of the outreach 

and marketing and use our pipeline to help inform us of changes needed to ensure we’re reaching the 

Socially Disadvantaged applicants and meeting the income targeting goals.
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The first step is to verify if the applicant’s home address falls within either:

1. A majority-minority Census tract

2. A U.S. Territory, Indian reservation or Hawaiian Home Land or 

3. 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). 

If the applicant resides within one of the geographic areas, they are designated “socially disadvantaged.”

For the second step, our application will also have a section in which the applicant can self-attest to 

qualifying as a “socially disadvantaged individual”. The attestation will ask the applicant if they identify as 

a “socially disadvantaged individual” based on the following definition: “Socially disadvantaged individuals 

are those whose 

1. 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, stemming from circumstances beyond the individuals 

control 

2. Member of a group that has been subjected to racial or ethnic prejudice or cultural bias within 

American society or 

3. individual with limited English proficiency”. 

This will be a yes/no question in response to the definition above. If the applicant satisfies step one 

or provides a self-attestation in step two, the applicant will be considered a “socially disadvantaged 

individual”.

3.5 Application Process

Homeowners interested in the program will apply to the program through a secure portal monitored and 

maintained by the program management team. The application will be designed to meet the eligibility and 

compliance requirements while reducing the documentation burden to the applicant, as recommended 

by Treasury. Applicants will experience a user-friendly and easily digestible application. As applications 

are submitted, the application processing team will evaluate and review applications. In addition to their 

application, applicants will be required to submit specific documentation to support their application. The 

application processing team will contact and assist applicants should additional documentation or explanation 

be needed to process the application. The program will also have a paper application process available to 

accommodate any applicants unable to apply through the online portal, as well as accommodations for other 

applicant needs.

3.6 Payment Process

Payments will be made directly to the lender, servicer, utility provider, internet provider, or other applicable thirdparty authorized to collect eligible charges. For payments in the mortgage reinstatement program, payments 

will be made using the Common Data File (“CDF”) process. For the utility and internet program, the information 

will be compiled within the system to produce a payment file. Once the payment file is assembled, the file will 

be transmitted through a secure portal to the payment team, a separate team to ensure proper controls and 
ARKANSAS | Homeowner Assistance Fund 12

segregation of duties between the eligibility and payment teams. The payment team will use the payment file 

to initiate payments to utility providers, internet providers, or other applicable third-party authorized to collect 

eligible charges based on the information provided in the payment file.

3.7 Marketing and Targeting Efforts

ADFA will focus first on marketing and outreach to those populations meeting the income-targeting limits 

and populations which are socially disadvantaged. The outreach efforts will use demographic data to identify 

these potentially qualified applicants. Information compiled in our data driven analysis is also being used in 

development of the marketing and outreach efforts. The market data allows us to view each county’s population 

by income, race/ethnicity, and homeownership. In addition, the data provides statistics on the county’s 

smartphone ownership and internet access. ADFA will use this data to guide the outreach efforts by the county 

and allow us to tailor our materials to best suit the citizens of an area. 

The communications plan will combine strategic partnerships with businesses, mortgage servicers, cities 

and counties, community and faith leaders, and print, radio, and digital media. ADFA’s partners will serve as 

connection points and will be provided an outreach toolkit to help disseminate information in their spheres 

of influence. These toolkits will include digital/social graphics and pre-crafted posts, posters, fliers, FAQs and 

eligibility documents, website links, and talking points documents.

All materials will be provided in English, Spanish, and Marshalles, and the Call Center will also be equipped to 

support additional languages as needed.

Additionally, ADFA has built and will maintain a website to educate and inform potential applicants by 

providing details on eligibility, requirements, program status updates, and an online application portal. The 

website has already been deployed to provide the community and stakeholders with general information regarding the process for plan submission and the ability to track the status of the program launch. 

Additional information will continue to be developed for the website and added upon approval of the plan 

from the Treasury. ADFA will create a program social media page that will share important information. The 

HAF will use targeted paid social media ads to reach identified populations. Printed fliers and posters will 

be distributed from critical locations. Broadcast Public Service Announcements and local news and talk 

radio will also be used to share program details.

ADFA recognizes the success of this program is largely dependent upon effective marketing and outreach. 

Therefore, strong emphasis and efforts will be dedicated to ensuring the citizens of Arkansas, especially those 

in the income-targeting group and socially disadvantaged group, are aware of the program and have the 

resources needed to apply.

3.8 Other Available Sources of Assistance 

ADFA understands the importance of ensuring homeowners are aware of all available assistance 

programs. The HAF program will make an effort to connect homeowners with other assistance programs 

as needed. As outlined in the Utility and Internet Program Term Sheet, applicants will have requirements 

on efforts to connect with other programs. See the Program Term Sheets for additional information.

In addition, other assistance programs and organizations could include Home Telephone Service, 

Arkansas Community Action Agencies, Legal Aid groups, United Way 211, etc. 
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3.9 Best Practices and Coordination with Other HAF Participants

Through its affiliation with the National Council of State Housing Authority (“NCSHA”), ADFA has been 

communicating with peer Housing Finance Agencies (“HFA”) on an almost daily basis since being selected 

to administer this program in Arkansas. There are now, at a minimum, weekly calls between multiple 

levels of staff of multiple State HFAs and Arkansas that provide a platform for sharing best practices and 

innovative ideas. Sharing of files and forms has been prolific and has been instrumental in forming our plan 

and program. We have also been working daily with our servicers to ensure that our data is relevant in our 

decision-making.

4 Performance Goal

Program Design Element Metrics of Success Goal

Allow homeowners to 

reinstate mortgages or 

pay other housingrelated costs

★ Number of home losses avoided 

due to HAF funds

★ Dollar amount paid for mortgage 

related expenses

★ Number of days spent to provide 

assistance from application to 

funding

★ Assist 1,900 homeowners with risk 

of home loss

★ Commit $50.9M dollars of 

mortgage reinstatement 

assistance

⊲ $30.5M dollars to LMI

★ 45 days to provide assistance 

once applicant has provided all 

required documents

Payment assistance 

for homeowner’s utilities 

(e.g., electric,gas, home 

energy, and water)

★ Dollar amount paid for utility 

related delinquencies

★ Number of days spent to provide 

assistance

★ Commit $2.4M dollars of utility 

assistance

⊲ $1.4M dollars to LMI

★ 45 days to provide assistance 

once applicant has provided all 

required documents

Payment assistance for 

homeowner’s internet 

service (e.g., broadband)

★ Dollar amount paid for internet 

related delinquencies

★ Number of days spent to provide 

assistance

★ Commit $506k dollars of internet 

assistance

⊲ $304k dollars to LMI

★ 45 days to provide assistance 

once applicant has provided all 

required documents
ARKANSAS | Homeowner Assistance Fund 14

Readiness

5.1 Staffing and Systems Overview

The State of Arkansas has engaged HORNE LLP (“HORNE”) and ProLink Solutions (“ProLink”) to assist in 

the program planning and administration. Since late May, both vendors have been working with the state 

to develop the plan and system and prepare to execute the program launch. HORNE will be responsible 

for project management, program administration, marketing, and call center operations. ProLink will 

provide the system solution and necessary system training for the HAF program. The system of record 

for the program will be ProLink+. ProLink+ has been deployed for the pilot program. Development to 

improve the overall applicant experience will continue in an effort to be ready to launch the full program 

following approval from Treasury. The call center is utilizing the Five9 system, which is described further 

below. The call center has launched and is currently providing services for the pilot program as well as 

general inquiries related to the larger program. Our program team has been staffed by local Arkansans.

5.2 Program Administration/Project Management

HORNE will serve as the program administrator for the State of Arkansas. HORNE has over 15 years 

of experience administering federal funding. Including relevant experience in administering housing 

programs and expertise in federal funding related to the coronavirus pandemic. With more than 1,900 

employees, HORNE stands ready to deploy resources immediately and ramp up resources as the program 

needs demand. 

HORNE has a team of Program Management and Subject Matter Experts already deployed and dedicated 

to the Arkansas HAF program. The dedicated team includes, but is not limited to, attorneys, Certified 

Public Accountants, and experts in LMI housing programs to ensure all angles are considered and 

covered. 

Standard Operating Procedures (“SOP”) have been developed and implemented for the pilot program. The 

SOPs for the pilot program are the starting point for the larger program. Program Management is actively 

preparing the SOPs for the larger program, with completion anticipated following any additional feedback 

and final approval from Treasury. 

5.3 Call Center

The call center and customer service management functions will provide professional, compassionate, 

and empathetic service to the citizens of Arkansas. A turn-key solution, including a robust cloud contact 

technology – Five9, has been deployed. The Call Center will also be equipped to support multiple 

languages as needed.

Five9 is a proven technology solution that can route, manage, and provide reporting data for all daily 

contacts. The system’s capacity is only limited by the number of Customer Service representatives (“CSR”) 

answering calls. HORNE has significant experience with Five9 from similar programs, allowing the team to 

use best practices in configuring and launching the solution for the Arkansas HAF. 

5
ARKANSAS | Homeowner Assistance Fund 15

CSRs went through extensive training one week before the call center launch, including training on 

high quality and empathetic customer service, ProLink+, Five9 system, and the program’s requirements. 

The state has secured a location for the call center, which is now being used for call center operations. 

Staffing levels are determined based on our experience in other federally funded coronavirus relief 

programs and anticipated call volumes. The Five9 technology has the capability of tracking call volume 

and anticipating staffing levels based on call volume. The call center manager will closely monitor the 

volumes to determine if staffing levels are appropriate to meet the demand. HORNE has CSRs that will 

be cross-trained to step in and assist during times of increased call volume if additional resources are 

needed.

5.4 Application Processing

Application processing will be supported by a team of QAQC Supervisors and Eligibility Analyst. The team 

has been hired and trained to support the pilot program. The staffing levels have been estimated based 

on the number of anticipated applications. As data becomes available in the pilot program and throughout 

the larger program, HORNE is prepared to scale up quickly should additional resources be needed to 

meet the demand and ensure timely approval and funding. 

Training has been provided to the team members dedicated to the pilot program, which included training 

on ProLink+, SOPs, extensive training on the program details and overall HAF guidance released by 

Treasury. Additional training will be held prior to launch of the larger program for any changes made based 

on feedback from Treasury.

5.5 System Solution

ADFA has chosen ProLink as the software provider for the HAF implementation. ProLink has been in the 

Affordable Housing Technology business for over 20 years, and clients include state and local housing 

finance agencies, tax credit syndicators/investors, and developers. ProLink+ is an updated version of a 

system ProLink built to support the Hardest Hit Fund. By using this existing technology to support the HAF 

program, they can launch on an expedited timeline. In addition, the technology includes a public-facing 

Homeowner Portal website and an Agency Portal website, which serves as a workspace for ADFA and 

its service providers for the HAF program. These two websites operate off of a single database, ensuring 

data integrity across the system. ProLink+ is being used for the Pilot Program; therefore, it will be ready 

and available to the public in Arkansas on the first day of the program launch. ADFA and HORNE received 

training on the operation of the ProLink+ software during mid-June for the Pilot Program. 
ARKANSAS | Homeowner Assistance Fund 16

5.6 Pilot Program 

The state received the initial 10 percent payment from Treasury and has launched a pilot program to 

deliver immediate resources to a targeted population. An assessment was done on loans originated by 

ADFA to determine the targeted population for the pilot program, specifically targeting the reduction 

of mortgage delinquencies. Initially working with two servicers, US Bank and ServiSolutions - Alabama, 

information was gathered on the potential applicants demonstrating a need of up to $7,174,155 for approximately 1,440 homeowners. As the pilot program continues, ADFA is currently working to expand the pilot 

program population.

ProLink+, as described in previous sections, is the system of record for the pilot program. As the pilot 

program continues, we will use best practices to shape the upcoming program and remaining system 

development. In addition, using ProLink+ to administer the pilot program allows the program administration team to become experts at the system and fine-tune policies and procedures, leading to significant 

efficiencies for the larger program launch. 

During the pilot program, data will be monitored to determine if the program design should be modified, 

such as program caps and eligibility determinations.

Several modifications to this plan are a result of data gathered during the pilot program.
ARKANSAS | Homeowner Assistance Fund 17

Budget

HAF Program Budget

* Treasury allocated $63,330,313 to the State of Arkansas for HAF. States are required to set aside 60 percent of the allocation 

to be made available to homeowners having incomes equal to or less than 100 percent of the AMI or equal to or less than 100 

percent of the median income for the United States, whichever is greater. The HAF program will allocate 25 percent of the total 

allocation to other eligible homeowners, with prioritization on the socially disadvantaged group. Based on Treasury guidance, 

an aggregate amount not to exceed 15 percent of the total funding from the HAF will be used for expenses related to planning, 

community engagement, needs assessment, and administrative expenses related to the HAF participant’s disbursement of the 

HAF funds.

Mortgage Reinstatement Program $ 50,906,936

Payment Assistance for Homeowner’s Utilities $ 2,417,415

Payment Assistance for Homeowner’s Internet Service $ 506,415

TOTAL $ 53,830,766

PROGRAM RELATED ADMIN:

IT Costs $ 1,266,606

Administration, Underwriting, Call Center, Marketing and Outreach, Etc. $ 6,399,999

Other Administration Costs $ 1,832,942

TOTAL ADMINISTRATION COSTS $ 9,499,547

PROGRAM ALLOCATION* $ 63,330,313

6
ARKANSAS | Homeowner Assistance Fund 18

Appendix A

ARKANSAS MORTGAGE REINSTATEMENT PROGRAM

CRITERIA PROGRAM TERMS

Brief description

Provide funds to eliminate or reduce past due payments and other delinquent amounts, including payments under a 

forbearance plan, on forward mortgages, or loans secured by manufactured homes.

HAF Funds may be used to bring account partially or fully current, 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 legal fees. If the maximum amount per program cap is less than 

the total amount needed to bring the homeowner current on all existing mortgages, the homeowner may cover the 

shortfall if acceptable by the servicer.

Homeowners who indicate during the pre-qualification survey they are unable to resume mortgage payments – 

even if the loan was reinstated - will be referred to their servicers, housing counselors and/or legal services to 

explore alternate loss mitigation options. Housing counselors and legal services can help these homeowners work 

with their loan servicers to achieve a loss mitigation solution that best fits their hardship.

Maximum amount 

of assistance per 

homeowner

Each Homeowner will be eligible for up to $40,000 through this program to be used only for the homeowner’s 

primary residence.

Homeowner 

eligibility criteria 

and documentation 

requirements

General Eligibility Requirements (based on Treasury guidance provided August 2, 2021):

★ Homeowner has experienced a financial hardship after January 21, 2020 (including a hardship that began 

before January 21, 2020, but continued after that date), and provided an attestation describing the nature of 

the financial hardship

★ Homeowner has 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

★ Homeowner must be applying for assistance related to the dwelling that the homeowner owns and is the 

homeowner’s primary residence

Same as General Eligibility Requirements (noted above) plus:

★ Property must be located within the state of Arkansas

★ Property must not be vacant, abandoned or condemned

★ Mortgage must be held by a lender/servicer with an NMLS number, which would include federally backed 

and privately funded mortgages. Private party mortgages are ineligible for assistance

Indicate documentation requirements listed here (Additional documentation could be required based on specific 

circumstances, but the program is committed to reduce documentation barriers as feasible):

 Documents required for all applicants:

★ Identification for the Borrower & Co-borrower(s), (if applicable)

★ Income documents for the Borrower & Co-borrower(s), (if applicable) - (e.g., 2020 federal tax return, W-2s, 

other wage statements, unemployment statements, social security statements, etc. ,unless exempt based on 

fact-specific proxy)

⊲ NOTE: Household income will be determined based on Borrower & Co-borrower(s) income only, as 

those represent the individuals financially responsible for the mortgage

★ Proof of homeownership, ONLY if cannot be determined by HAF based on publicly available ownership 

records 

★ Documents from mortgage servicer demonstrating delinquency. Documents should indicate the account 

number, payment amount, payment due date, total past due amount, type of loan, and payment remittance 

address (e.g., most recent mortgage statement, letters from mortgage holders, etc.)

★ Original mortgage to determine if the unpaid principal balance of which was, at the time of origination, not 

more than the conforming loan limit

⊲ This will ONLY be required from applicant if cannot be determined by the program based on publicly 

available records or corrdination with the serviers
ARKANSAS | Homeowner Assistance Fund 19

CRITERIA PROGRAM TERMS

Homeowner 

eligibility criteria 

and documentation 

requirements

 Additional documents that could be needed based on individual situations:

★ Power of attorney or probate documents, if applicable

★ Zero income attestation form, if applicable

★ Self-employment attestation form, if applicable

 Documents to be completed within the system as part of application:

★ Third-party authorization form

★ Financial hardship self-attestation form

⊲ NOTE: For program documents, if the applicant needs certain accommodations, the forms can be 

provided in other formats (e.g., paper application, additional languages, etc.)

★ Acknowledgment of Program Terms and Conditions

Loan eligibility 

criteria specific to 

the program

Delinquent by at least two payments, including any payments during a forbearance period.

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

Payment 

requirements Payments will be made directly to the lender or servicer, as appropriate.

ARKANSAS UTILITY/INTERNET/BROADBAND PAYMENT ASSISTANCE 

TERM SHEET

CRITERIA PROGRAM TERMS

Brief description

Provide funds to resolve delinquent payments for utility and/or internet access services.

HAF funds may be used to pay delinquent amounts in full, including interest or reasonably required legal fees, 

under circumstances in which a delinquency threatens access to utility or internet services. The provided 

assistance must bring the homeowner’s account current. If internet access services are bundled with other 

services, the bundled services can be included as an eligible expense, as partial funding would threaten access to 

internet services.

Maximum 

assistance per 

homeowner

Each Homeowner will be eligible for up to $2,500 through this program with respect to the applicant’s primary 

residence.

Homeowner 

eligibility criteria 

and documentation 

requirements

General Eligibility Requirements (based on Treasury guidance provided August 2, 2021):

★ Homeowner has experienced a financial hardship after January 21, 2020 (including a hardship that began 

before January 21, 2020, but continued after that date), and provided an attestation describing the nature of 

the financial hardship

★ Homeowner has 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

★ Homeowner must be applying for assistance related to the dwelling that the homeowner owns and is the 

homeowner’s primary residence
ARKANSAS | Homeowner Assistance Fund 20

CRITERIA PROGRAM TERMS

Homeowner 

eligibility criteria 

and documentation 

requirements

Same as General Eligibility Requirements (noted above) plus:

★ Property must be located within the state of Arkansas

★ Property must not be vacant, abandoned or condemned

★ Homeowner is at least two installment payments in arrears on one or more of the following:

• utilities, such as electric, gas, home energy, and water OR

• internet service, including broadband internet access service

⊲ NOTE: If an eligible homeowner is on a payment plan for utility/internet expenses incurred prior to the application date, those expenses will be considered arrears and can be included as eligible expenses.

★ Assistance sufficient to resolve the delinquency is not available from Arkansas Low Income Home Energy 

Assistance Program (“LIHEAP”) and, without HAF assistance, the homeowner is likely to lose services

Indicate documentation requirements (Additional documentation could be required based on specific circumstances, 

but the program is committed to reduce documentation barriers as feasible):

 Documents required for all applicants:

★ Identification for the Borrower & Co-borrower(s) (if applicable)

★ Income documents for the Borrower & Co-borrower(s) (if applicable) (e.g., 2020 federal tax return, W-2s, other wage 

statements, unemployment statements, social security statements, etc., unless exempt based on fact-specific proxy)

⊲ NOTE: Homeowner income will be determined based on Borrower & Co-borrower(s) income only, as 

those represent the individuals financially responsible for the mortgage

★ Proof of homeownership ONLY if cannot be determined by the program based on publicly available ownership 

records

★ Documents from utility companies or internet company demonstrating delinquency. Documents should indicate 

the account number, payment amount, payment due date, total past due amount, type of utility/internet charges, 

and payment remittance address (e.g., most recent statement)

★ Original mortgage to determine if the unpaid principal balance of which was, at the time of origination, not more 

than the conforming loan limit

⊲ This will ONLY be required from applicant if cannot be determined by the program based on publicly 

available ownership records or corrdination with the servicers

★ If applying for assistance that is covered under the LIHEAP, document demonstrating the applicant has applied 

for LIHEAP and provide evidence that they were either denied or require more assistance than was able to be 

provided through LIHEAP

★ Self-attestation form certifying the applicant has attempted to obtain assistance from other programs and 

assistance sufficient to resolve the delinquency is not available from other utility or internet assistance programs, 

and without HAF assistance, the homeowner is likely to lose services

Additional documents that could be needed based on individual situations:

★ Power of attorney or probate documents, if applicable

★ Zero income attestation form, if applicable

★ Self-employment attestation form, if applicable

Documents to be completed within the system as part of application:

★ Third-party authorization form

★ Financial hardship self-attestation form

⊲ NOTE: For program documents, if the applicant needs certain accommodations, the forms can be 

provided in other formats (e.g., paper application, additional languages, etc.)

★ Acknowledgment of Program Terms and Conditions
ARKANSAS | Homeowner Assistance Fund 21

CRITERIA PROGRAM TERMS

Loan eligibility 

criteria specific to 

the program

N/A

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

Payment 

requirements

Funds will be paid directly to the utility provider, internet provider, or other applicable third-party authorized to 

collect eligible charges.
arkansashaf.com