CALIFORNIA MORTGAGE 

RELIEF PROGRAM

Homeowner Assistance Fund 

American Rescue Plan Act of 2021
TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 01

2. OVERALL PROGRAM DESIGN 03

3. HOMEOWNERS’ NEEDS AND ENGAGEMENT 09

4. PERFORMANCE GOALS — MEASURING AND REPORTING 21

5. READINESS 23

6. BUDGET 37

7. RISK MANAGEMENT AND MONITORING 41

8. CONCLUSION 45

9.

APPENDIX A: CALIFORNIA MORTGAGE RELIEF PROGRAM 

TERM SHEET 46

10.

APPENDIX B: CALIFORNIA MORTGAGE RELIEF PROGRAM 

PUBLIC FEEDBACK ANALYSIS 51
Housing Assistance Fund Plan

California Mortgage Relief Program

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Administration of Homeowner Assistance Fund

The American Rescue Plan Act of 2021 provides $9.961 billion for a Homeowner Assistance Fund (HAF) 

to mitigate financial hardships associated with the coronavirus pandemic by providing funds to prevent 

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

and displacement. Based on the allocation formula to states established by U.S. Treasury, California will 

receive $1.055 billion in HAF funds. 

The California Housing Finance Agency (CalHFA), through its special-purpose affiliate the CalHFA 

Homeowner Relief Corporation (CalHRC), will be managing HAF funds on behalf of the State of California 

given its extensive expertise in the mortgage assistance and homeownership space. 

CalHFA has developed the California HAF Mortgage Relief Program proposal (“Proposal”) using lessons 

learned from administering the largest mortgage assistance program in the state’s history, Keep Your 

Home California, as well as feedback received from other state government partners, homeowners, 

housing counselors, housing advocates, legal aid and mortgage servicers. The Proposal outlines 

readiness, needs assessment, performance goals, program design and more. 

The California Mortgage Relief Program (“Program”) is designed as a stopgap measure to avoid 

preventable foreclosures and displacement of the most vulnerable homeowners that do not have other 

loss mitigation options, with a focus on serving socially disadvantaged populations. This will complement 

the various initiatives already announced by United States Federal Government, the State of California, 

local government and community organizations. 

The Program is initially designed to provide streamlined assistance to fully reinstate mortgage 

delinquencies, thus providing assistance to homeowners that have suffered a hardship during the 

COVID-19 pandemic. The Program will be available to households under 100% of Area Median Income 

that are either: a) on various forms of public assistance; b) significantly housing burdened; or c) where the 

servicer has not provided any loss mitigation options for the borrower to stay in their home. Recipients 

will also be connected to HUD-approved housing counselors.

Given design features, the Program is expected to serve predominantly lower income and socially 

disadvantaged households. In addition, the Program will use a data-driven approach to target socially 

disadvantaged and vulnerable homeowners, including targeted marketing and community outreach. 

A percentage of the allocated funds will be reserved for socially disadvantaged and underserved 

communities, using various geographic and loan metrics.

In order to get ahead of looming forbearance deadlines, CalHFA launched a pilot phase of the Program in 

August 2021, using funds from the initial 10% allocation of California’s HAF funds.

1. EXECUTIVE SUMMARY
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California Mortgage Relief Program

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The COVID-19 Crisis and its Effects on Homeownership in California

On March 4, 2020, Governor Gavin Newsom declared a State of Emergency as a result of the threat of a 

global pandemic related to the outbreak of coronavirus illness in the State of California. This Executive 

Order provided, among other things, that the State must prepare for, respond to, and implement measures 

to mitigate the spread of coronavirus.

By the spring of 2021, tens of millions of Californians and the state’s overall economy had felt the dire 

effects of the pandemic and its related financial impacts. While the state’s economy is bouncing back, 

millions of individuals are still facing hardships as a direct result of the pandemic, most notably the 1.4 

million Californians who are still unemployed and having difficulty making rent or mortgage payments. 

Since the start of the pandemic, a number of federal and state programs have worked as stopgaps, 

helping families avoid eviction and mortgage default thus far.1

California’s unemployment rate rose from 4.3% in February 2020 (before the pandemic) to 7.9% in May 

2021, which was substantially higher than the overall U.S. unemployment rate of 5.8% in May 2021.2

During this period, 4.9% of the mortgages in California went into forbearance, a total of 364,000. This 4.9% 

forbearance rate ranks 8th among the 15 states with the highest number of total loans in forbearance.3

Furthermore, Realtors predict that the pandemic recession could result in up to 60,000 foreclosures 

in California this year, which would negatively impact the health and well-being of those homeowners 

experiencing foreclosure and exacerbate the racial wealth gap among socially disadvantaged 

homeowners.4 Households of color in California were more likely than white households to be behind 

on mortgage payments and at higher risk of foreclosure, a situation that “reflect[s] the impact of the 

pandemic on employment sectors in which [people in households of color] often work.”5 Specifically, 65% 

of California workers in industries highly affected by the pandemic – retail, restaurants, travel and tourism, 

arts and entertainment, and personal services – are people of color.6

1 Lourdes Morales, How Has COVID 19 Affected Renters and Homeowners? California Legislative Analyst Office, January 

19, 2021 https://lao.ca.gov/reports/2021/4312/COVID-19-renters-homeowners-011921.pdf

2 California Department of Finance, Finance Bulletin, June 2021 https://www.dof.ca.gov/Forecasting/Economics/

Economic_and_Revenue_Updates/documents/2021/Jun-21.pdf

3 Andy Walden. “Deferred Payments During Forbearance Beginning to Erode Equity Positions.” Black Knight. February 3, 

2021. https:// www.blackknightinc.com/blog-posts/deferred-payments-during- forbearance-beginning-to-erode-equitypositions/

4 California Little Hoover Commission, Issue Brief: COVID’s Impact on California Housing, April 2021 https://lhc.ca.gov/

sites/lhc.ca.gov/files/Reports/258/Report258.pdf

5 Carolina Reid and Meg Heisler. “The Ongoing Housing Crisis: California Renters Still Struggle to Pay Rent Even as Counties 

Re-Open.” Terner Center for Housing Innovation at the University of California, Berkeley. October 2, 2020. https://ternercenter. 

berkeley.edu/research-and-policy/ongoing-housing-crisis/

6 Sara Kimberlin, Aureo Mesquita, and Alissa Anderson. “California Workers With Less Education, People of Color, 

and Immigrants are at Greatest Financial Risk due to COVID-19.” California Budget & Policy Center. April 2020. https://

calbudgetcenter.org/ wp-content/uploads/2020/04/CA_Budget_Center_COVID_worker_ demographics_04152020.pdf
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2.1. Introduction

The U.S. Treasury first issued guidance for the use of the HAF funds on April 14, 2021. As an eligible entity 

that was approved to participate in HAF, CalHFA entered into a Financial Assistance Agreement with 

Treasury and received 10% of California’s total allocation amount on June 22, 2021. U.S. Treasury opened a 

portal for states to submit their plans on August 6, 2021, with a submission deadline of August 20, 2021.

In August 2021, CalHFA launched a pilot phase of the Program using funds from that initial allocation of 

California’s HAF funds. Running this pilot is allowing CalHFA to do an end-to-end test of the Program and 

onboard mortgage servicers, while targeting assistance to California homeowners with the most urgent need. 

Following this pilot phase, CalHFA will make any necessary process enhancements. With Treasury’s 

approval of this Proposal, CalHFA will then launch the Program in full to serve as many vulnerable 

homeowners as possible using the full HAF allocation.

2.2. Overview of the California Mortgage Relief Program

During CalHFA’s community outreach process, California homeowners and other stakeholders 

consistently ranked mortgage assistance/reinstatement as the top priority for use of HAF funds. For this 

reason, and based on CalHFA’s own assessment of need, the Program will initially take a holistic approach 

to assisting homeowners by deploying streamlined, simplified assistance that fully reinstates mortgage 

delinquencies. During the application process, homeowners will be encouraged to connect with housing 

counseling services. 

By providing full reinstatement in the form of a one-time grant paid directly to a homeowner’s mortgage 

servicer, as well as providing this connection to housing counseling, CalHFA aims to keep homeowners in 

their homes and set them up to create a sustainable homeownership outcome for the longer term. 

CalHFA’s program is also designed to avoid overlap with other assistance programs such as the state’s $2 

billion in water and energy arrearage payment programs.

During the run of the Program, CalHFA will expand the available uses of funds depending on need, 

community feedback and availability of funds. CalHFA’s reinstatement program will serve homeowners 

with HECM reverse mortgages and a second program is being designed to fund delinquent property tax 

payments.

Assistance will be available to eligible homeowners statewide and will be heavily focused on ensuring 

usage by socially disadvantaged communities as well as areas of high homeowner vulnerability, through a 

system of fund reservation as well as a robust and targeted outreach effort.

2. Overall Program Design
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 INITIAL ALLOCATION 

$100 Million

 Total Allocation

$1 Billion 

Overall Program Objectives

CalHFA’s Program Goals

y Implement a statewide Program that will assist the state’s most vulnerable 

homeowners that do not have other loss mitigation options. 

y Encourage connections with California’s effective housing counseling network to complement 

the assistance with education and create the best possible outcomes for homeowners. 

y Prioritize assistance to socially disadvantaged groups who are historically the most 

vulnerable homeowners and have felt the greatest negative impact from the pandemic.

y Establish a streamlined application process to provide eligible homeowners with a 

simple and effective method for receiving assistance, especially those in the most 

difficult financial situations.

2.3. Eligibility Determinations 

Eligible Homeowners

Eligible Homeowners for the California Mortgage Relief Program must meet the following criteria:

y Homeowner must currently own and occupy the property in California as their primary residence.

y Homeowner must not own and occupy more than one property. 

y Homeowner must meet the Income Eligibility Requirements (defined below)

y Homeowner must attest that they experienced a Qualified Financial Hardship after 

January 21, 2020. The attestation must describe the nature of the financial hardship. 

y The original, unpaid principal balance of the homeowner’s first mortgage loan, at the time 

of origination, cannot be greater than the “conforming loan limit” (as determined under the 

provisions of the Housing and Economic Recovery Act of 2008) in effect at time of origination.

y Homeowners cannot have cash on hand, or assets that can be rapidly converted to cash, that 

is equal to or greater than the relief funds needed + $20,000. For example, homeowners with 

an arrearage of $30,000 will be ineligible if they have $50,000 or more in cash/assets. (This 

program defines cash/assets as cash or assets that can be converted into cash in a short 

amount of time, including things like money market instruments and marketable securities. 

This excludes savings in a tax-advantaged retirement account).

y Homeowners with HECM reverse mortgages can receive assistance.
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Co-owners are not permitted to separately apply for Program assistance. Receiving other forms 

of governmental assistance, including other forms of COVID-19 assistance from the CARES Act, 

Consolidated Appropriations Act of 2021 or the American Rescue Plan Act, does not disqualify a 

household from the California Mortgage Relief Program. 

Qualified Financial Hardship

Homeowners must attest that they have a Qualified Financial Hardship. A Qualified Financial Hardship 

is a material reduction in income or material increase in living expenses associated with the coronavirus 

pandemic that has created or increased the risk of mortgage delinquency, mortgage default, foreclosure 

or displacement for a Qualified Homeowner.

y Reduction of Income: Temporary or permanent loss of earned income after January 21, 

2020 directly related to the coronavirus pandemic.

y Increase in Living Expenses: Increase in out-of-pocket household expenses after 

January 21, 2020 such as: medical expenses, increase in household size, or costs to 

reconnect utility services directly related to the coronavirus pandemic.

Homeowners must complete and sign an affidavit, which includes an attestation of Qualified Financial 

Hardship. CalHFA received significant stakeholder feedback regarding the need to simplify documentation 

requirements wherever feasible, which informed the decision to use attestation.

Eligible Legal Ownership Structures

Eligible Legal Ownership Structures include only natural persons (i.e., LLP, LP or LLC do not qualify), and nonincorporated/revokable Living Trusts, provided the homeowner occupies the home as their primary residence. 

Income Eligibility Requirements

To be eligible for assistance under the California Mortgage Relief Program, all household members over 

the age of 18 must provide income documentation of a collective household income equal to or less than 

100% of the Area Median Income adjusted by household size.

The Program is making an effort to encourage homeowners to explore loss mitigation, while also being 

mindful not to create additional barriers to access for the most vulnerable Californians. Therefore, most 

applicants must only demonstrate that their household income is less than 100% of AMI. In certain 

circumstances, however, applicants will need to provide a denial of alternative workout options (excluding 

short sale and deed in lieu).

No workout denial letter is needed for these households:

y Severally housing burdened 

» Housing to Income ratio is greater than 40% (The Program defines HTI as mortgage payment, 

taxes and insurance divided by gross income of the borrower(s) )
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y Public Assistance proxy

» All household income comes from public assistance (The Program defines public assistance as 

Unemployment, Medical, WIC, SNAP, FDPIR, TANF, SNP, Section 8 and any other income-based 

county, municipality, state and/or federal assistance program)

» Households whose income is mixed (public assistance and non public assistance) but the 

public assistance income is more than 50% of the mortgage PITI

These households must provide a workout denial letter:

y Less housing burdened

» Housing to Income ratio is less than or equal to 40% and homeowner does not have Public 

Assistance proxy above 

CalHFA is focused on households at or below 100% of Area Median Income because those Californians 

are most vulnerable to losing their homes to foreclosure and have fewer options for loss mitigation or 

suitable replacement housing. It will continue to monitor program utilization and homeowner need and 

may increase its income threshold in the future, with a focus on serving moderate income households in 

socially disadvantaged communities.

Reservation for Socially Disadvantaged Populations

The Program will reserve 40% of the allocated funds for socially disadvantaged populations. The amount 

reserved was derived through a data-driven approach that uses a combination of Qualified Census Tract 

data (HUD) and the Owner Vulnerability Index (UCLA).

Property Eligibility Criteria

Eligible properties:

y Single-family (attached or detached) properties

y One-unit owner-occupied

y Condominium units 

y Manufactured homes permanently affixed to real property and taxed as real estate

Ineligible properties:

y Vacant or abandoned

y Second homes

y Investment property

y Chattel – Manufactured homes not affixed to permanent foundations
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Manufactured homes with lot rent arrears can receive assistance through California’s Emergency Rental 

Assistance (ERA) program. While ERA will provide significant relief to mobile homeowners, CalHFA, in 

consultation with its state and federal partners, will further analyze the need in this space and what policy 

responses would be most effective.

Eligible Uses of Program Proceeds

Mortgage obligations as listed below are Eligible Uses of Program Proceeds:

y Existing first mortgage loan payment (principal, interest, taxes and insurance), plus any 

escrow shortages to fully reinstate the mortgage to a “current” status

» For loans with no impound accounts and delinquent property taxes, borrowers must establish 

an impound account with their servicer to allow for delinquent property taxes to be paid

» Must be at least two payments past due at time of application for assistance

» Delinquency must occur prior to the Program’s launch date 

y Payment of owed taxes and any forced place insurance on HECM reverse mortgage loans 

to fully reinstate to a “current” status.

Ineligible Uses of Program Proceeds

y A loan that has already been approved for a modification, including a COVID-19 partial 

claim, is not eligible

Assistance Disbursement Details

Mortgage reinstatement under the Program is paid out according to these guidelines:

y Assistance will be structured as a non-recourse grant.

y Maximum assistance per household is $80,000.

y CalHFA will disburse assistance directly to mortgage servicer.

y CalHFA will make no more than one disbursement to each participant in the Program.

y CalHFA will disburse the amount quoted by the servicer; any discrepancies to be 

resolved by the homeowner and servicer.

CalHFA reserves the right to change from a first come, first served disbursement model to a prioritized 

disbursement model to ensure assistance is disbursed in a manner that is consistent with the Program’s 

focus on equity.

Program Duration

The period of performance for the HAF funds begins on the date hereof and ends on September 30, 2026. 

HAF recipient shall not incur any obligations to be paid with the funding from this award after such period 

of performance ends. 
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CalHFA plans to disburse all funds by September 30, 2025.

Program Application Process

Applications will be accepted online through the Outreach Navigator and Intake Review (ONAIR) Portal. All 

applications will be entered into the online portal and reviewed on the reviewer portal. A network of local 

partners as well as a call center will be available to assist homeowners through the application process, 

including in-language support and connecting applicants to internet services.

Required Application Documents

In response to public feedback about the need for a streamlined application process, efforts will be made 

to avoid barriers to equitable access and allow for flexibility, particularly with regard to documentation 

requirements.

Required application documents include, but may not be limited to, the following:

y California Mortgage Relief Program application

y Affidavit which includes an attestation of the Qualified Financial Hardship

y Third Party Authorization (TPA) and Disclosure Form

y Mortgage Statement for first mortgage

y Valid California identification and Social Security Number

y Income documentation: W2’s, paystubs, previous years’ tax returns or alternative 

income documents as applicable such as proof of an Income Proxy such as 

Unemployment, Medi-Cal, WIC, SNAP, FDPIR, TANF, SNP, Section 8 and any other 

income-based county, municipality, state and/or federal assistance program (Public 

Assistance)

y Two months of bank statements for accounts of all household members above the age 

of 18

Additional Documentation Requirements in Certain Cases

In certain cases, CalHFA will require additional documentation to ensure that assistance is focused on 

Californians most in need and is delivered efficiently.

y Homeowners that have a Housing to Income ratio of less than or equal to 40%, and are 

not using the Public Assistance proxy, will need to provide a denial of alternative workout.

» This additional requirement is needed to ensure that Program assistance is focused on 

the most vulnerable households that do not have other loss mitigation options. This is in 

accordance with U.S. Treasury guidance that directs states to “avoid using assistance in a 

manner that replaces other loss mitigation resources that otherwise would be available.” 
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y Homeowners in active bankruptcy will need to provide written substantiation from both 

their loan servicer and the Bankruptcy Trustee that the homeowner(s) may receive 

mortgage assistance funds and said funds shall be applied to any first lien loan 

arrearage on their primary residence

» This additional documentation requirement allows CalHFA a more efficient path to 

reinstatement for those homeowners by ensuring that the mortgage servicer and bankruptcy 

trustee will accept the assistance funds

y Homeowners with HECM reverse mortgages who owe payment to their servicer for 

taxes and forced place insurance, must provide copies of their tax bill and insurance bill 

showing the amount due.

2.4. Best Practices and Coordination with Other HAF Participants

CalHFA is collaborating with a group of western states including Oregon, Washington, Idaho, Texas, 

Colorado, New Mexico and Arizona. CalHFA is also exchanging program development and operational 

ideas directly with states nationwide. Engagement at the national level includes attendance at NCSHA 

National Council of State Housing Agencies meetings with administration officials, industry and 

consumer groups, as well as meetings with the Housing Policy Council regarding COVID Response HAF.

To assess the needs of California homeowners, CalHFA will use a sophisticated, data-driven central 

Geographic Information System (GIS) platform called CORD (Community Outreach Rapid Deployment), 

to identify those who are potentially eligible to participate in the Program. Examining the size and 

scope of the target population will inform the development of the Program. The Program team will then 

prioritize outreach and engagement efforts using the CORD platform to ensure income-qualified, socially 

disadvantaged individuals are made aware of financial resources, know how to apply, and are motivated 

to take action. Through layering mortgage, census and other key data sources, the platform will reach the 

target population at a granular level.

The Program therefore intends to implement a highly targeted outreach and engagement program that will: 

y Prioritize engagement of socially disadvantaged homeowners who meet the eligibility 

criteria using detailed data to identify the target population and inform strategies and 

tactics that most effectively engage the audience.

y Ensure HAF funds are disbursed to the eligible population by focusing on targeted message delivery.

y Assess and adjust the outreach and engagement targeting in real time through monitoring 

incoming application and participation data through the CORD tool, which works together 

with the intake system.

y Analyze efficacy in meeting program goals.

3. Homeowners’ Needs and Engagement
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California leads the nation in terms of diversity in race, ethnicity, language and socioeconomic conditions. 

The demographics of those eligible for the Program represent a wide range of characteristics. 

In order to most effectively reach and activate eligible populations, the Program’s outreach and 

engagement efforts will focus on:

y Developing and implementing marketing strategies and messaging that prompt 

struggling homeowners to take action and seek assistance

y Partnering with local nonprofits that reflect and serve socially disadvantaged 

communities to engage the targeted population

y Launching a targeted paid and earned media strategy to communicate directly with the 

eligible population

y Creating authentic in-language educational materials to drive eligible homeowners with 

limited English proficiency to take action to participate in the Program

y Developing, deploying and managing CORD, a one-stop portal with targeting data, 

marketing material, reporting templates and dashboards 

IDENTIFY

Use CORD’s data-driven platform to identify eligible 

populations, serve as a clearinghouse and offer 

resources and reporting for partners.

REACH

Identify and communicate directly with target 

population through data mapping.

ACT

Drive eligible populations to take action and apply 

for HAF funds through compelling messaging and 

effective targeting.

SECURE

Monitor real-time data to ensure eligible 

populations are informed and actively applying for 

the Program. 

3.1. Data-Driven Assessment of Homeowners’ Needs

Understanding the hardships California’s distressed homeowners faced and continue to face during the 

coronavirus pandemic is crucial to identifying the key needs that will guide the plan and funding of the 

Program. CalHFA is focused on ensuring that the Program meets the performance outcomes outlined by 

the U.S. Treasury’s HAF guidance, including preventing mortgage delinquencies, defaults, foreclosures, 

and displacements of homeowners experiencing financial hardship. In order to do this, CalHFA examined 

key data sets and indicators to determine the potential size and scope of the populations that meet 

the threshold financial qualifications for the Program. Analysis of these data sets informed both the 

parameters of the relief program and the outreach and marketing plans described in detail below.

In order to design a program that effectively targets eligible homeowners with the proper assistance, 

CalHFA is leveraging information and data from a variety of verifiable sources. CalHFA is analyzing 

homeowner data about financial hardships – such as mortgage delinquencies, defaults, foreclosures, and 

post-foreclosure evictions – and other hardship indicators, including trends over time disaggregated by 
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demographic categories and geographic areas that reveal social disadvantage. Our approach is to use the 

data analyzed within the CORD system in conjunction with information that has been collected through 

ongoing community engagement and public participation efforts. 

CalHFA’s Data-Driven Assessment of Homeowner Needs is divided into two primary categories: predictive 

data and actual data.

Predictive Data

CalHFA is defining predictive data as data that assists with the identification and estimation of eligibility, 

need and potential demand for assistance. CalHFA will identify, load, and consolidate data relevant to the 

program into CORD.

Predictive data includes, but is not limited to, the sources listed below in Table 1:

Table 1

Data Set Description Category

First American Data Tree Detailed geographical data for single-family 

homes in California Mortgage Data

Census Table B19101 (A-1 

series)

Family income by race/ethnicity at the county 

level

Household Income/

Demographic

Census Table DP03 Detailed income level and other economic data 

at Census Tract level Household Income

Census Table DP05 Demographic information at the ZIP/Census 

Tract Level Demographics

Census Table B25098 Mortgage holder income, county level Mortgage Data

FRB-Atlanta Delinquency 

Data

Delinquency data by county from Federal 

Reserve Bank of Atlanta Mortgage Delinquencies

HUD Income Limits HUD-calculated Area Median Income (AMI), very 

close to county level Household Income

NMDB Delinquency Data National Mortgage Database mortgage 

performance data given by state by quarter Mortgage Delinquencies

US BLS: Labor Force 

Statistics

The unemployment rate (%) for a county, with 

historic data for trends Workforce

Owner Vulnerability Index 

(OVI) by UCLA

An index developed by UCLA that identifies 

areas that are most likely to contain at-risk 

homeowners

Household Income/

Mortgage Delinquencies

Federal Reserve Bank of Atlanta Citation: 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
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CalHFA will consolidate variables from the above data sets into a single iterative index that aligns with 

Program goals and eligibility criteria. Variables within the index will be weighted according to priority and 

relevance to the Program. Weighting will also be adjusted based on margins of error in the source data 

set calculations and introduced through transforming one geography to another (e.g., ZIP code data to 

Census Tract-level data). 

The index will provide a foundational data set that will drive area prioritization, resource allocation, 

demand estimation and targeting and outreach efforts. Given large variances in population distribution 

and demographic composition within counties and ZIP codes, data in the index will be calculated down to 

the Census Tract geography level, which will provide the state with the clearest and most focused picture 

possible of homeowner needs, risk, and priority for the Program.

This index will be periodically re-calculated when certain data sets are updated – for example, when 

updated delinquency and workforce statistics are released. 

The details for how the index has been initially calculated are provided below. In order to compute a 

baseline dataset for the populations targeted by the Program, we separate into two categories: those who 

are delinquent/in forbearance at or below 100% AMI, and those who are socially disadvantaged.

Baseline Data for Those at or Below 100% AMI

Data from the US Census Bureau’s table “MORTGAGE STATUS BY HOUSEHOLD INCOME IN THE PAST 12 

MONTHS” (Table B25098 ACS 5-year Estimates) provides an approximate number of households in each 

county with a mortgage and their income. According to this table, there are approximately 5,030,939 total 

owner-occupied mortgage holders in California.

Data from this table for Alameda County is shown below as an example:

ESTIMATE MARGIN OF ERROR

TOTAL: 308,891 ±2,593

WITH A MORTGAGE: 226,016 ±2,557

LESS THAN $10,000 2,842 ±329

$10,000 TO $24,999 5,962 ±484

$25,000 TO $34,999 5,155 ±456

$35,000 TO $49,999 8,653 ±521

$50,000 TO $74,999 18,762 ±781

$75,000 TO $99,999 21,794 ±824

$100,000 TO $149,999 46,229 ±1,340

$150,000 OR MORE 116,619 ±1,918

Table B25098 ACS 5-year Estimates for Alameda County
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With these income limits, an estimated number of households with a mortgage that are below 100% of 

the AMI for that county can be determined. 

The data from Federal Reserve Bank of Atlanta provides the percentage of mortgages that are in 

forbearance in each county. Applying this percentage to the number of households below 100% AMI 

calculated in the previous step provides an estimate of the number of mortgages under 100% of AMI that 

are in forbearance.

Finally, the data from Federal Reserve Bank of Atlanta, does not consider the ratio of households in 

forbearance who are current. Based on analysis from Fannie-Mae’s CAS dataset, 11.3% of loans in 

forbearance are actually current. Removing 11.3% of the number of mortgages under 100% of AMI that 

are in forbearance (calculated in the previous step), yields an estimated 113,000 (90% confidence interval) 

total households in California that would be eligible to apply for the Program at the 100% AMI level.

Baseline Data for the Socially Disadvantaged

Using analysis based on the data below, the Program will define socially disadvantaged homeowners 

as Californians that live in Qualified Census Tracts (QCT) or areas with “high” and “highest” vulnerability 

values on the Owner Vulnerability Index (OVI), developed by the UCLA Center for Neighborhood 

Knowledge, discussed in more detail below. 

QCTs host 377,500 owner-occupied mortgages – 22,400 of those are estimated in delinquency, 

independent of income. These census tracts are defined to be ‘qualified’ if 50% of households are below 

60% AMI or have a poverty rate of 25% or more. Below is the ethnic distribution in these areas:

QCT Distribution State Distribution

White Alone 17.42% 37.18%

Black or African American Alone 8.66% 5.52%

American Indian or Alaskan Native Alone 0.43% 0.36%

Asian Alone 10.05% 14.28%

Native Hawaiian or Other Pacific Islander Alone 0.42% 0.36%

Other Race Alone 0.25% 0.25%

Two or More Races 2.15% 3.03%

Hispanic/Latino 60.61% 39.02%
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The Owner Vulnerability Index is a rating system designed by the UCLA Center for Neighborhood 

Knowledge to assign to each ZIP code a rating to know how exposed a neighborhood may be to 

delinquency or worse. The index is comprised of four dimensions: burden (households paying more 

than 50% of income to household cost), income after housing costs, high interest rate mortgages, 

and foreclosure rates from 2007 – 2012. CalHFA looked specifically at the 20% of the ZIP codes rated 

as the most vulnerable, and found that of the 1,721,300 owner-occupied mortgages in those areas, 

approximately 102,266 are delinquent. We also saw a predominantly higher Black and Latino population in 

those highest vulnerability ZIP codes, which is represented in the chart below.

OVI Distribution State Distribution

White Alone 23.41% 37.18%

Black or African American Alone 7.84% 5.52%

American Indian or Alaskan Native Alone 0.37% 0.36%

Asian Alone 8.79% 14.28%

Native Hawaiian or Other Pacific Islander Alone 0.38% 0.36%

Other Race Alone 0.23% 0.25%

Two or More Races 2.22% 3.03%

Hispanic/Latino 56.77% 39.02%

CalHFA will consolidate variables from the above data sets into a single iterative index that aligns with 

Program goals and eligibility criteria. Variables within the index will be weighted according to priority and 

relevance to the Program. Weighting will also be adjusted based on margins of error in the source data 

set calculations and introduced through transforming one geography to another (e.g., ZIP code data to 

Census Tract-level data). 

Actual Data

CalHFA will continuously monitor Program performance through measuring actual data and will use 

this data to refine and improve the index and other predictive tools wherever possible. For example, 

once sufficient data has been obtained regarding Program application hot spots and gaps, correlation 

coefficients and other statistical means can be used to assess the accuracy of CalHFA’s predictive data, 

which can then be adjusted and improved where necessary.

Further, CalHFA will closely monitor actuals to identify any emerging trends that may require re-allocation 

of resources – for example, a spike in pre-foreclosures or delinquencies in a particular area may require 

specific targeting. Actual data includes, but is not limited to, the sources listed below in Table 2:
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Table 2

Data Set Description Category

Pre-foreclosure, 

foreclosure, and 

delinquency data

Based on public FRB-Atlanta data, Notices of Default, 

and other court records, including from pay-to-use 

datasets, and will be updated regularly. This data will 

be combined with Census Tract income information 

to determine potential eligibility for the program and 

if readjusted outreach efforts are required following a 

spike or increased trend in certain areas.

Mortgage 

Delinquencies

Eligibility Pre-screener / 

Navigator Inquiries

Distinct sessions from the Eligibility Pre-screener, 

geo-coded to at least the user’s ZIP code, will provide a 

measurable indication of demand and engagement.

Program Need/

Risk/Demand

Application / Case Status

Geo-locations of applications/cases based on their 

status (e.g., funded, pending, more information 

needed) will provide a measurable indication of 

demand, engagement, hot spots, and gaps that may 

require readjustment of outreach targeting efforts and 

methods.

Program Need/

Risk/Demand

UI Exhausted Claims by 

County The number of exhausted UI for the county by month Program Need/Risk/Demand

US BLS: Labor Force 

Statistics

The Unemployment rate (%) for a county, with historic 

data for trends

Program Need/

Risk/Demand

The CORD platform is flexible to rapidly transform and load additional data sets if required and as 

conditions change, due to wildfires, local states of emergency, or any disaster areas declaration. The CORD 

platform provides CBOs with the ability to view these data sets and the option to cancel or edit their reports 

as needed. CORD allows for data to be layered and visualized to identify greatest areas of need across 

multiple metrics. Additionally, CBOs are granted access to onboarding and training material, as well as a 

help desk to assist in their use of the CORD platform. Lastly, the CORD platform has the ability to leverage 

submitted applications by comparing them with the predictive data to ensure efficacy of these methods.

A key function of several “actuals” data sources in the table above, particularly the workforce data, is to 

assist the state in predicting whether or not potentially eligible households (based on income and AMI) 

are likely to financially struggle to pay their mortgages and are at higher risk of defaulting. As mentioned 

above, CalHFA’s index will be re-calculated on a regular basis and when needed. It will serve as both a fixed 

and historical data point and will allow CalHFA to rapidly assess changes in potential risk and demand. 
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For example, if new workforce data is released that shows a large spike in UI claims in a county (perhaps 

following the closure of a major business), CalHFA will recalculate the index and re-assess targeting 

efforts when necessary.

3.2. Public Participation and Community Engagement

During the development of the Program, CalHFA sought feedback from the public and conducted 

extensive outreach to other state governmental partners, state legislative staff, and staff of the California 

Congressional delegation, as well as other key stakeholders in the public, private and nonprofit sectors. In 

order to fully assess the needs of struggling populations, it was especially important to hear directly from 

distressed homeowners, advocates, housing counselors, state and local leaders, the tribal community 

and other stakeholders.

To receive as much feedback as possible, CalHFA provided several ways for the public to participate. On 

June 9, 2021, CalHFA posted a public notice that provided three ways to submit comments on its website 

and sent invitations to participate to over 3,300 organizations and individuals who represent homeowners 

or the servicing industry, including counseling agencies and intermediaries, housing and legal advocacy 

groups, mortgage servicers and local government groups:

Virtual Listening Sessions: CalHFA hosted three virtual listening sessions that were 

open to the public, including one session that sought feedback from Tribal leaders and 

communities. Over the course of the three sessions, 213 individuals participated and 

CalHFA fielded 57 comments and questions.

Email Submission: The public was also given the opportunity to provide comment through 

email submission. CalHFA received 13 written reports/proposals with recommendations 

through the online submission process. The email address will remain active and open, 

allowing the public to provide further feedback as the Program develops.

Survey: Interested parties were also invited to complete a nine-question survey developed 

by CalHFA that sought feedback on topics such as reaching California’s most vulnerable 

homeowners, operational concerns and the prioritization of socially disadvantaged 

populations. CalHFA received 93 responses through the survey.

As stated throughout this Proposal, feedback that CalHFA received from California homeowners and 

stakeholders has informed and justified key elements of the Program and will continue to inform any 

adjustments that are made. 

For example, CalHFA’s continuing analysis of the evolving need and ongoing communication with 

stakeholders has resulted in expansion of the reinstatement program to include reverse mortgages and 

the planned creation of a second program to fund delinquent property tax payments. Please see Appendix 

B for public feedback analysis.
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3.3. Methods for Targeting Program Outreach/Marketing

In order to ensure that the Program meets the performance outcomes identified in U.S. Treasury 

guidance, and assists the California homeowners more in need, CalHFA will use various tools to target its 

outreach and marketing to (1) homeowners having incomes equal to or less than 100% of AMI, and (2) 

socially disadvantaged individuals.

CalHFA will conduct the following steps:

1. Identifying appropriate data sources (listed in Table 1 in Section 3.1) that represent factors 

relevant to the Program at the lowest possible geography available (e.g., Census Tract).

2. Transforming and loading these data sources into CORD.

3. Consolidating and analyzing these data sources to identify estimated eligible population 

counts and their locations, relative vulnerability, and overall need for targeting and resource 

allocation purposes.

4. Using demographic information and other 

Census data (such as language, race, and 

ethnicity) to understand key characteristics 

of priority areas to conduct tailored, 

effective outreach. 

5. Leveraging federal verification hubs to 

gather income information as an income 

proxy to identify low-income borrowers to 

more effectively target program eligibility. 

This provides greater flexibility than 

borrower-submitted documentation.

6. Using CORD to monitor the Program and 

to regularly assess performance and 

effectiveness, such as hot spots and gaps 

in Program applications and actual rates 

and trends of delinquencies and adjusting 

and improving outreach targeting efforts 

where necessary.

Figure 1, screenshot from a CORD platform planning 

dashboard showing Census Tracts with a median income 

below 100% of the AMI in red on the map, as well as sample 

data that identifies housing in pre-foreclosure (orange 

house icon within a black circle).
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Funding for outreach efforts will be allocated 

by region and adjusted based on estimated 

numbers of families that meet Program 

criteria. CalHFA will then develop regional 

targeting strategies based on demographic 

data that describes the composition of the 

families within the priority areas identified. 

For instance, partnering with Community 

Based Organizations (CBOs) within that 

region and using methods which align with 

and will be most effective at reaching the 

demographic composition of priority areas 

within that region.

The methods of the state’s targeting and 

outreach activities performed in these 

priority areas will also be driven by data. This approach is summarized graphically in the Venn Diagram 

and includes a non-exhaustive list of example data sets.

3.4. Marketing Plan

The need for mortgage assistance in a state the size of California exceeds the sizable funding allocation 

from the federal government. While it is important to make certain the eligible population is aware of this 

new resource and applies for support, employing a data-driven, surgical approach to marketing ensures 

the messages are delivered to the target population, helping to manage expectations about available 

resources and eligibility among California homeowners who may be ineligible. Using the CORD technology 

to identify the target population at a granular level allows for an efficient use of government funds by 

concentrating spending on the target population. It will also provide important geographic, cultural and 

income insights that will inform message development, which mediums will most effectively reach the 

target population and where to concentrate outreach strategies.

CORD will also provide valuable real-time applicant data that will be monitored throughout the 

implementation period. Using this data will allow the Program to adjust marketing and outreach tactics 

and strategies to better identify, reach, and activate targeted populations and potential applicants. 

Marketing methods and strategies include:

y Strategic Plan: CalHFA will develop a strategic plan that uses the data to determine 

appropriate tactics and methods to effectively reach the target populations, deploys 

local organizations and other trusted messengers as valuable resources for potential 

applicants, and motivates eligible homeowners to apply for and receive HAF funding 

Language Data

Demographic (Census) Data

Knowledgebase

Campaign Materials

Local Knowledge

Physical Locations (e.g., 

schools, community centers)

Geographic Information

Deliquency Rates

AMI and Family Income

Unemployment Cases & 

Labor Rates

Eligibility Navigator

Data

Chatbot Requests

Application Data “HOW”

“PHYSICAL” 

WHERE”

“WHO / 

WHERE”
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and counseling assistance. This will also include an audit of similar state outreach 

programs to assess best practices and lessons learned. Programs like Keep Your Home 

California, which administered assistance programs to homeowners following the 

2008 Financial Crisis, and Housing is Key, a comprehensive state housing assistance 

campaign headlined by the state’s COVID-19 rent relief program, will be assessed.

y Message Development: CalHFA will develop key messages for target audiences by 

incorporating feedback from public comments and leveraging CORD data and analysis. 

Messages will be aimed at informing the targeted populations about the Program and 

motivating potential applicants to act and complete their applications.

y Graphic Design, Branding, Logo: Design elements such as branding and a program 

logo will be consistent with CalHFA standards and will appear on all marketing and 

communications materials distributed from the agency.

y Informational Materials and Digital Content Creation: Key messages will anchor 

informational materials, including fliers, FAQs, content for website and social media. In 

response to stakeholder feedback that stressed the importance reaching non-English 

speaking communities and providing in-language support, materials and content will 

be translated into a minimum of five languages other than English, and assessed for 

cultural competency in order to effectively reach targeted populations. Leveraging 

lessons learned from California’s other housing assistance programs, CalHFA will 

initially translate content into Spanish, Chinese, Vietnamese, Korean and Tagalog. 

Visual content, such as graphics and videos, will be created for users to share across 

social media platforms.

y State Integration: CalHFA will work with other state and local agencies that serve 

the target population to help deliver the Program’s messaging. The Program can 

leverage the websites and social media platforms of agencies such as the Business, 

Consumer Services and Housing Agency, the Department of Financial Protection and 

Innovation (DFPI), the Department of Housing and Community Development (HCD), 

the Department of Fair Employment and Housing, the Employment Development 

Department (EDD) and even other programs like Covered California to deliver 

information about the Program and amplify key messages.

y Earned Media & Public Relations: CalHFA will engage mainstream and ethnic media 

to cover the availability of the Program by holding news conferences, issuing news 

releases and crafting op-eds. Sample media materials will also be provided to local 

partners. Outreach to ethnic media will be critical in expanding marketing reach and 

resources, especially to targeted populations whose primary language is not English.

y Paid Advertising: Targeted marketing efforts will involve paid placements such as print 

and/or radio ads, as well as digital ads (may include display, social media, native, search 

engine and/or video ads). Feedback from stakeholders and homeowners identified 

digital ads and social media as two of the best ways to reach underserved communities, 

in addition to working with nonprofits and community-based organizations.
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y Partner Outreach: During the public comment period, stakeholders strongly 

encouraged CalHFA to partner with community-based organizations to ensure that the 

underserved populations receive accurate and timely information about the Program 

and support during the application process. In response to public feedback, the 

Program will engage traditional housing partners, as well as cultural, faith-based, and 

other community-based organizations to develop and amplify relevant key messages 

that will reach the targeted population. These groups will serve as trusted messengers 

within their respective communities who can activate potential applicants.

y Success Stories: The agency will work with local organizations to identify homeowners 

who received assistance and share their stories. Their stories can be recorded as 

written or visual testimonials, and the content will be shared across all program 

platforms. Since feedback from California homeowners and stakeholders listed news 

reports among the top ways to reach underserved communities, CalHFA believes that 

pitching success stories is an effective way of engaging with news organizations.

y Reporting Narrative: The agency will provide regular reports throughout the lifespan 

of the project, as well as a detailed analysis and key lessons learned after program 

completion. These regular reports, which will include a public-facing dashboard with 

real-time data, will help CalHFA and key stakeholders track the Program’s progress and 

will be especially useful in ensuring that target populations are reached. 

3.5. Inclusion of Local Governments, Nonprofits and Counseling Agencies

CalHFA will work closely with local governments, nonprofit organizations, and housing counseling 

agencies as it develops and begins to administer the Program. 

Cooperation with local governments, nonprofits, and counseling agencies is crucial, not only in helping 

to inform and educate potential applicants, but also in reducing barriers of participation for those eligible 

to receive assistance. CalHFA received feedback that community-based organizations should serve as 

trusted messengers during the application process. CalHFA will work with a local partner network that is 

geographically and linguistically diverse and can encourage and support potential applicants through the 

application process. This may include helping with online access.

In addition to receiving feedback during the public comment period, particularly from nonprofit 

organizations and housing counseling agencies, CalHFA has actively engaged with these groups to gain 

valuable insight and guidance during the Program development. 

Coordinating with these groups, who have an invaluable front-line perspective, will be equally important 

throughout the outreach and implementation of the Program. 
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Reports

Measuring performance outcomes will be critical in determining the impact that the Program has on 

the pandemic-related economic crisis affecting California homeowners. CalHFA will develop a variety of 

performance-based reports to manage and monitor the Program, which will comply with all requirements 

listed in the U.S. Treasury HAF guidance. Overall Program progress will be measured by the total number 

of homeowners assisted and success will be measured by the number of foreclosures prevented and the 

number of homeowners who were assisted in reducing their mortgage delinquency among the targeted 

populations. 

CalHFA will provide the U.S. Treasury all required reports including: 1) demographic information on 

all borrowers; 2) status and final outcomes of borrowers served; 3) quarterly progress reports; and 4) 

additional reports as requested. Some of the detail that will be contained in the Program reports is 

expected to include, but not be limited to, the following summary and detailed data. 

By owner and co-owner(s)

y Income

y Home Mortgage Disclosure Act: race/ethnicity/sex

y Loan-to-Value (LTV), Combined Loan-to-Value (CLTV), Housing to Income (HTI)

y Location: Qualified Census Tracks or OVI

y Program usage: Fund Disbursement Detail

y Arrearage (by dollar and number of months)

y Initial past due date

y Loan performance: post-assistance delinquency status 

y Hardship: self-reported categories

y Homeownership retention (post-assistance outcome within 2 years of assistance): 

» Negative outcome: foreclosure sale, deed in lieu, short sale

» Positive outcome: recipient still owns home, traditional sale 

By Servicer 

y Program participation rate, quantity and percentage of servicers participating

y Number of homeowners and total funds disbursed for each servicer 

y Program performance: approval, denial & withdrawn rates

y Loan performance: post-assistance delinquency status

4. Performance Goals — Measuring and Reporting
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y Loan-to-Value (LTV), Combined Loan-to-Value (CLTV), Housing to Income (HTI)

y Average arrearage (by dollar and number of months)

y Average borrower income

y Average assistance

By Program

y Program participation rate, and quantity participating by program

y Number of homeowners assisted and total funds disbursed by program

y Program performance: approval, denial & withdrawn rates

y Loan performance: post-assistance delinquency status

y Loan-to-Value (LTV), Combined Loan-to-Value (CLTV), Housing to Income (HTI)

y Average arrearage (by dollar and number of months)

y Average borrower income

y Average assistance

Process Goals

1 Reducing Mortgage Delinquency Among Targeted Populations

2 Meaningful Homeownership Retention

3

Average Application Processing Time, From Initial Application Submission 

Through Disbursement of Funds

• 60 days or less

4 Effectiveness At Serving Socially Disadvantaged Homeowners

• Greater than 40%

5

Program Timeliness

• California Mortgage Relief Program: disburse 50% of allocated funds by 

12/31/2022
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Program Design Element Metrics of Success Goal

Mortgage Reinstatement

• Mortgage Relief Program: 

disburse 50% of allocated funds 

by 12/31/2022

Average application processing 

time, from initial inquiry through 

disbursement of funds less than 

60 days.

• Disburse allocated HAF funds 

quickly from initial inquiry 

through disbursement of funds 

to reduce mortgage delinquency 

among targeted populations.

• Deliver help to 20,000 households 

in need from communities at/

below 100% AMI.

• Help these 20,000 homeowners 

by providing assistance to 

eliminate mortgage loan and 

property tax delinquency

• Assist targeted percentage of 

households from communities 

at/below 100% AMI.

• Assist targeted communities with 

Homeownership retention 

5.1. CalHFA Background and Experience

CalHFA was created in 1975 for the sole purpose of providing low cost financing for both rental and 

ownership housing. CalHFA is a quasi-independent agency that is governed by a board of directors 

consisting of appointed and ex-officio members. CalHFA was chartered as the state’s affordable housing 

lender and continues to serve that purpose by providing financing for low- and moderate-income 

Californians. The Agency’s Multifamily Programs Division finances affordable rental housing through 

partnerships with jurisdictions, developers, local, state and federal government partners and more, 

while its Single-Family Programs Division finances first mortgage loans and down payment/closing cost 

assistance to first-time homebuyers. CalHFA’s operations are funded by revenues generated through 

its mortgage loan programs, not taxpayer dollars, although some of its program funding comes from 

California’s General Fund and voter-approved initiatives. Over the course of its existence, CalHFA has 

helped more than 201,000 Californians purchase their first home with a mortgage they can afford; helped 

finance the development and preservation of more than 70,000 affordable homes and apartments for 

veterans, seniors, those with special needs, and families in danger of experiencing homelessness; and 

distributed $2.2 billion to help more than 90,000 Californians avoid foreclosure by administering the Keep 

Your Home California program from 2011 to 2018. Additional information on CalHFA’s homeownership 

programs, along with a database of participating lenders, can be found on CalHFA’s website at 

www.calhfa.ca.gov.

5. Readiness
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CalHFA also has extensive experience administering state bond-funded programs including, but not 

limited to, the California Housing Downpayment Assistance Program in the amount of approximately 

$320 million; the Extra Credit Teacher Program, in the amount of approximately $25 million; the School 

Facility Fee Program, in the amount of approximately $50 million; the Residential Development Loan 

Program, in the amount of approximately $50 million; and the housing loan development component of 

the California Mental Health Services Act, in the amount of $400 million.

In May 2009, CalHFA introduced the CalHFA Loan Modification Program (CMP), a simple, streamlined loss 

mitigation tool aimed at helping families in the CalHFA single-family loan portfolio retain their homes. To 

date, this program has received more than 3,257 applications and approved 2,099 for final modification.

Following the housing crisis that began in 2007, 18 states, including California, were designated as 

“hardest hit,” either because their unemployment rates were at or above the national average or they saw 

steep home price declines since the housing market downturn. In February 2010, the federal government 

created the Hardest Hit Fund to provide targeted aid to families in these states. On June 23, 2010, 

California received approval to administer Hardest Hit funds through CalHFA for foreclosure prevention. 

To receive these funds, CalHFA created the CalHFA Mortgage Assistance Corporation (CalHFA MAC), 

a nonprofit public benefit corporation, to administer the state’s HHF program. California was ultimately 

awarded $2.36 billion in funds to help eligible California homeowners avoid preventable foreclosures.

CalHFA MAC launched the Keep Your Home California (KYHC) program, which offered five unique ways to 

provide financial relief to homeowners and help them remain in their home. 

y The Unemployment Mortgage Assistance Program provided monthly payment 

assistance to eligible homeowners whose hardships were unemployment or 

underemployment. 

y The Mortgage Reinstatement Assistance Program helped reinstate the past due 

mortgages of homeowners who recovered from an eligible hardship such as loss of 

income, death, disability, divorce or unemployment/underemployment. 

y The Principal Reduction Program assisted homeowners whose principal residence was 

“underwater” due to severe negative equity. 

y The Transition Assistance Program acknowledged that some homeowners with a 

permanent, unresolvable hardship, needed assistance with safely transitioning from 

their homes when a short sale or deed-in-lieu of foreclosure was negotiated with their 

servicer.

y The Reverse Mortgage Assistance Pilot Program helped prevent foreclosure by 

reinstating past due property-related expenses and provide an additional financial 

cushion to cover required property-related expenses for up to 12 months in the future. 
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In total, the KYHC program assisted 93,696 Californians and distributed $2.2 billion in mortgage relief. 

This innovative and inclusive program was a great success, highlighted by a 98% rate of foreclosure 

prevention through the Unemployment, Mortgage Reinstatement, Principal Reduction and Reverse 

Mortgage programs.

5.2. Project Procurement & Management

CalHFA employs a comprehensive project management approach to the development of programs that 

involves subject matter experts from within CalHFA, complemented, as necessary, by outside expertise, 

detailed project tracking to ensure timely delivery of programs, and management involvement that 

coordinates necessary resources and determines priorities. Our depth of management experience 

will add significant value to the Program and ensure proper development, implementation, quality, 

compliance, controls and adherence to policies and procedures. We appreciate the opportunity to 

have our experienced team work with the U.S. Treasury to design and implement scalable, innovative 

approaches to foreclosure prevention that meet the needs of California’s most vulnerable and socially 

disadvantaged homeowners. We are confident that our program will complement other federal and 

private-industry programs and activities designed to stabilize California’s housing market.

Within CalHFA, staff has been dedicated to providing outreach and training to borrowers, lenders and local 

governments to ensure a complete understanding of our programs. This outreach effort is coupled with 

our in-house marketing division that provides the necessary materials and media connections to promote 

programs. CalHFA intends to leverage its current systems and protocols in fulfilling the compliance and 

monitoring requirements that come with receiving the monies from the Homeowner Assistance Fund.

5.3. Corporate Governance and Systems

Corporate Governance

Governance refers to the policies, procedures, principles and practices effectuated by management and 

staff, and designed to provide strategic direction and tactical guidance that ensure programmatic goals 

and objectives are achieved, risks are identified and managed appropriately, and resources are assigned 

responsibly. Through CalHFA, the CalHFA Homeowner Relief Corporation, a California nonprofit public 

benefit corporation (“CalHRC”), will establish a corporate governance structure built upon a foundation 

of policies, procedures, principles and practices, to govern and operate the Program with transparency, 

accountability, integrity and security. 
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Board of Directors

A board of directors appointed by CalHFA’s executive director and vested with the authority to manage 

the nonprofit’s business and affairs will be CalHRC’s governing body. The board will be comprised of no 

fewer than five members, all of whom will be seasoned executives with a breadth of relevant operational 

and industry experience. They will implement transparency, accountability and ethics throughout the 

organization and lead the overall direction and strategy of CalHRC. Day-to-day execution of the operation 

will be delegated by the board to the executive management and operation team staff, all of which are 

CalHFA employees.

Policies & Procedures 

Policies and procedures will be foundational to CalHRC’s corporate governance and, as such, will be 

sponsored from the top down, approved by executive leadership, and documented and implemented at 

the executive, managerial and staff levels with responsibility and accountability for compliance held at 

each level. They will serve as the roadmap for day-to-day operations, define employee responsibilities 

and provide guidance on decision-making throughout all operational aspects of the Program. Extensive 

training and the adoption of a conflicts of interest policy for all directors, officers and employees of 

CalHRC will augment the established policies and procedures, to further reinforce adherence and ensure 

a more streamlined, effective and efficient operation.

Technology & System Infrastructure

CalHFA will leverage a commercial, secure, cloud-based client management system to ensure effective 

program delivery, compliance, and reporting, in a manner that will meet the Program requirements and 

guidance from U.S. Treasury. For outreach management, CalHFA has identified and will use a Community 

Outreach Rapid Deployment System to implement a data-driven assessment solution to provide outreach 

planning and targeting. It also provides data reporting to document outreach efforts and success metrics. 

For guided pathways, CalHFA will use an eligibility triage software platform, Navigator, to direct 

applicants to the proper program that best serves their eligibility criteria. For client intake and reporting 

management, CalHFA will use OnAir for applicant service management for inquiry, enrollment, application 

tracking, notifications, determinations, eligibility, disbursements, reporting and as a system of record for 

audit purposes for Program applicants. The system is also cloud-based, mobile friendly and accessible, 

and provides language support. 

CalHFA is planning to update and leverage its existing channels and connectors for the data exchange 

with lenders/servicers, leveraging secure data exchange, such as SFTP sites and secure email. In order 

to ensure performance goals and metrics are managed, the complete system data access model is 

integrated from a reporting perspective and provides detailed information that will enable CalHFA to 

provide all necessary reporting requirements.
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Internal Controls & Quality Assurance

Internal controls will be developed around program risks identified in areas such as strategy, operations, 

finance, information security, fraud, systems and compliance. The internal control program will be 

designed to minimize the aforementioned risks, mitigate conflicts of interest, maximize operational 

efficiency and ensure effectiveness of program administration. Internal controls will be developed by the 

operational vendor, reviewed by management and the quality assurance vendor, and tested throughout the 

life of the Program.

The independent quality assurance vendor will also develop a quality assurance program to assess and 

continually improve program administration and services rendered by the operations vendor. The quality 

assurance program serves as means to measure, report and identify improvement opportunities with 

respect to adherence with policies, procedures, productivity, guidelines and quality standards set by 

management.

5.4. Staffing, Contracts and Partnerships

Experienced Staff

CalHFA’s current programs are overseen and administered by a highly experienced team of middleand senior-level managers. Collectively, CalHFA senior officers have over 175 years of experience in 

the mortgage industry and in single-family low-to-moderate income housing programs. CalHFA as 

a whole has developed extensive experience over the course of its 45-year existence in the creation, 

implementation and management of new programs.

It is expected that an initial wave of homeowners will apply through the online application portal to take 

advantage of the Program followed by monthly inflows of applicants as homeowners experience financial 

hardships, newly default on their mortgages, and/or learn about the Program through the outreach and 

marketing campaign. This will place an immediate demand on current CalHFA and servicer staff once the 

Program is made available.

As mentioned above, CalHFA has created a California nonprofit public benefit corporation, CalHRC, to 

administer the HAF funds on behalf of CalHFA, the named agency by the state of California as an “eligible 

entity” under ARPA. The intent of this structure is to keep federal funds separate and apart from CalHFA’s 

own balance sheet. In addition, this structure allows for greater nimbleness with which to deploy HAF 

funds as quickly as possible to struggling California homeowners. This structure is formally arranged by 

an administrative services agreement between CalHFA and CalHRC, providing for the reimbursement of 

CalHFA resources and staff time to set up, manage and operate the Program, as well as identify roles and 

responsibilities with respect to the disbursement of HAF funds to Program participants.
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The staffing plan detailed below is based on CalHFA’s Proposal for the Program and the efforts needed to 

develop, implement and support the Program for the expected duration. Due to the timeline for proposal 

development, the comprehensive operational impact is not yet fully understood. CalHFA will attempt to 

use its own staff to fulfill as many Program roles as possible. However, due to the urgency needed to 

make the Program available to eligible homeowners, and the amount of time needed to recruit and hire 

staff employed by the State of California, some roles may be filled by knowledgeable contractors, as 

necessary. Because these Program roles are relatively short-term, hiring contract staff may be the best, 

most efficient choice. CalHFA will make this staffing decision based on staff capabilities, availability, 

expediency and reasonableness of cost. 

The following is CalHFA’s best estimate of the staffing requirements for the Program, and includes 

estimates of the number of staff necessary during each year of the planned, three-year Program:

Internal Staffing

Director of Enterprise Risk Management (x1) – The Director of Enterprise Risk Management for CalHFA 

oversees CalHRC as its President, as well as serving on its board of directors. In addition to CalHFA 

staff, the position is responsible to the CalHFA Board, the CalHRC Board and the U.S. Department of 

the Treasury regarding overall Program direction. The President approves administrative rules and 

policies as they pertain to Program design and administration. The position will be part-time through the 

implementation, administration and wind-down periods.

General Counsel (x1) – The CalHFA General Counsel oversees Program legal affairs, including serving as 

Secretary to the CalHRC board of directors. As an officer to both CalHFA and CalHRC, the General Counsel 

will create, facilitate, and retain agreements between CalHFA, CalHRC, respectively, and the Program 

Participants, i.e., Servicers. The Program will rely on CalHFA’s General Counsel to complete all the steps 

required to legally bind the servicer and/or homeowner, as applicable, to carrying out their obligations 

under the Program. The position will be part-time through the implementation, administration and winddown periods.

Staff Counsel (x2) - CalHFA Staff Counsel will assist the General Counsel in oversight to Program legal 

affairs. They will help in the creation, facilitation, and retainment of agreements between CalHFA, CalHRC 

and Program participants. Staff Counsel will also provide all general legal assistance the General Counsel 

may need. The positions will be part-time through the implementation, administration, and wind-down 

periods.

Comptroller (x1) – The CalHFA Comptroller serves as the Chief Financial Officer for CalHRC and will 

oversee the servicer setup, review of budget changes and reporting, and review of audits and quarterly 

financial reports. The Program will rely on the work of this staff resource to disburse authorized mortgage 

assistance payments to servicers on behalf of the Program, among other forms of assistance. The 

position will be part-time through the implementation, administration and wind-down periods.
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Fiscal Services Support Staff (x5) - The Fiscal Services Support Staff will assist the Chief Financial 

Officer with accounting responsibilities, including disbursement transactions, maintaining the general 

ledger, expense and reimbursement payments, review of budget changes and reporting, and other 

accounting-related duties. The positions will be part-time through the implementation, administration and 

wind-down periods.

CalHFA staff member (x1) - This CalHFA staff member serves as the Vice President for CalHRC, 

overseeing the corporation’s management and business activities, subject to the supervision and direction 

of the President, or in their absence, perform the duties and exercises the powers of the President. The 

position will be part-time through the implementation, administration and wind-down periods.

Enterprise Risk Management and Compliance Staff (x2) - The Enterprise Risk Management and 

Compliance staff will assist the Vice President for CalHRC with managing the corporation’s business 

activities, governance structure, risk management and related operational activities. The positions will be 

part-time through the implementation, administration and wind-down periods.

Director of Legislation and Policy (x1) - The CalHFA Director of Legislation and Policy serves as a director 

to the CalHRC board. The position will be part-time through the implementation, administration and winddown periods.

Housing Finance Chief (x1) - The CalHFA Housing Finance Chief will advise on Program design and best 

practices for disbursement of mortgage assistance funds. They will leverage their knowledge base from 

prior programs to help programmatically distribute funds in the most efficient and effective manner to 

qualifying Program participants. The position will be part-time through the implementation, administration 

and wind-down periods.

Director of Marketing & Communications (x1) - The CalHFA Director of Marketing & Communications will 

oversee CalHRC’s direct marketing and public communication activities. The director will collaborate with 

the Outreach and Participation Director to develop a data-driven outreach strategy that raises Program 

awareness and targets eligible homeowners. The position will be part-time through the implementation, 

administration and wind-down periods.

Marketing Support Staff (x3) - The Marketing Support Staff will support the outreach and marketing efforts 

with communication to community based organizations, development of Program material and collateral, 

demographic data sourcing and analysis, public relations and other outreach related responsibilities. The 

positions will be part-time through the implementation, administration and wind-down periods.

Chief Information Officer (x1) - The Chief Information Officer will lead and oversee the development 

and implementation of the Program’s information technology infrastructure. Responsibilities will include 

vendor selection, solution design, development and implementation, contract negotiations, information 

security management and other information technology related activities. The position will be part-time 

through the implementation, administration and wind-down periods.
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Information Technology Support Staff (x5) - The Information Technology Support staff will consist of 

specialists that cover information security and exchange, application systems development and support, 

infrastructure and workstation support, and information technology. They will assist the Chief Information 

Officer in overseeing the development and implementation of the Program’s technology infrastructure. 

The positions will be part-time through the implementation, administration and wind-down periods.

Director of Administration (x1) - The Director of Administration will oversee human resources, internal 

labor relations, contracts and records, and other human resource related activities. The position will be 

part-time through the implementation and wind-down periods.

External Staffing

CalHFA will contract with a consulting vendor, who will collaborate with CalHFA in identifying and 

onboarding the external staff needed to support the Program. External staff, unless otherwise noted in the 

position description, will be directly hired by or contracted through the consulting vendor.

Program Directors (x2) – The Program Directors will advise and direct the overall strategy to implement and 

administer the Program with respect to the objectives of CalHFA and the guidance from the U.S. Treasury. 

The Program Directors will ultimately be responsible for the project management of the Program and will be 

instrumental in evaluating and selecting crucial components of the Program such as vendors, technology 

solution platforms and key staff. They will also serve as Program ambassadors with key stakeholders and 

will be required to report Program progress and updates to senior management on a regular basis. The 

position will be part-time through the implementation, administration and wind-down periods. 

Senior Project Manager (x1) – The Senior Project Manager will lead the planning and implementation of 

the project, which includes establishing and managing work plans, coordinating and facilitating meetings 

between key stakeholders, reporting progress and upcoming deadlines, identifying and addressing project 

risks, and any other project management activity required to stand up and administer the Program. The 

Senior Project Manager will also manage the day-to-day reporting of Program progress with management 

and key stakeholders. The position will be full-time through the implementation and administration 

periods, and part-time during the wind-down period.

Project Management Analyst (x1) – The Project Management Analyst will support the Senior Project 

Manager in the planning and implementation of the project. Responsibilities include establishing and 

managing work plans, coordinating and facilitating meetings between key stakeholders, reporting 

progress and upcoming deadlines, identifying and addressing project risks, and any other project 

management activity required to stand up and administer the Program. The Project Management Analyst 

will also compile the day-to-day reporting of Program progress with management and key stakeholders. 

The position will be full-time through the implementation and administration periods, and part-time during 

the wind-down period.
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Director of Operations (x1) – The Director of Operations oversees all operational aspects of the Program 

and responsible for program administration. Responsibilities include leading the administration of the 

program, reporting of program progress to executive management, managing staff and operational vendors, 

and overseeing any other key operational activity as required by the Program. The position will be full-time 

through the implementation and administration periods, and part-time during the wind-down period. 

Operations Manager (x1) – The Operations Manager is responsible for ensuring the execution of the dayto-day operations of the Program, which includes monitoring program vendors in the administration of 

application intake, processing and underwriting, call centers, Common Data File (CDF) exchange, program 

accounting and reporting, and any other operational activity as required by the Program. The position will be 

full-time through the implementation and administration periods, and part-time during the wind-down period.

Director of Finance (x1) – The Director of Finance will oversee the financial aspects of the Program, 

which includes but is not limited to budgeting, accounting, vendor contract management, audits, 

internal controls, and quality control and compliance programs. The position manages and supports 

external vendors with the development and implementation of internal controls, quality assurance and 

compliance programs, and other accounting related processes. The position will be full-time through the 

implementation and administration periods, and part-time during the wind-down period.

Budget & Accounting Analyst (x1) – The Budget & Accounting Analyst will support the tracking, 

monitoring and reporting of actuals and budget variances for the Program. The analyst will also support 

the day-to-day accounting and financial reporting requirements of the Program. The position will be fulltime through the implementation and administration periods, and part-time during the wind-down period.

Contract Analyst (x1) – The Contract Analyst will handle the day-to day management and procurement 

of all contracts relating to the Program, which includes audit firms, servicers, loan counselors, legal firms, 

operational vendors, consultants, technology vendors and any other program contractors as needed. The 

position will be full-time through the implementation and administration periods, and part-time during the 

wind-down period.

Quality Control & Audit Director (x1) – The Quality Control & Audit Director will implement and ensure 

proper execution of the quality control and compliance programs, as well as manage the audit firm 

relationship. The position will be full-time through the implementation period, and part-time during the 

administration and wind-down periods.

Quality Control Analyst (x1) – The Quality Control Analyst will handle the day-to-day quality control of the 

Program to ensure adherence to program guidance and requirements. Responsibilities include conducting 

QC reviews, recording and tracking all QC findings, and identifying and tracking corrective actions. The 

position will be full-time through the implementation and administration periods, and part-time during the 

wind-down period.
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Compliance Analyst (x1) – The Compliance Analyst will handle the day-to-day monitoring of the Program’s 

compliance to ensure adherence to the Program and industry requirements, as well as federal, state and 

local laws and regulations. Responsibilities include conducting compliance reviews, recording and tracking 

all compliance findings, and identifying and tracking corrective actions. The position will be full-time 

through the implementation and administration periods, and part-time during the wind-down period.

Servicer Management Director (x1) – The Servicer Management Director serves as a liaison between 

the servicers and intermediaries, and the Program. Responsibilities include servicer and intermediary 

outreach, managing the contracts, overseeing servicer and intermediary relationships, providing 

information and materials regarding program guidance, policies and processes, and overseeing any other 

servicer and intermediary related activity. The position will be full-time through the implementation and 

administration periods, and part-time during the wind-down period.

Servicer Lead Associate (x1) – The Servicer Lead Associate will support the Servicer Management 

Director in managing the relationship between the Program and the servicers and intermediaries. The 

associate will help with servicer and intermediary outreach and requests, compiling information and 

materials regarding program guidance, policies and processes, and any other servicer and intermediary 

related activity. The position will be full-time through the implementation and administration periods, and 

part-time during the wind-down period.

Outreach and Participation Director (x1) – The Outreach and Participation Director will oversee the 

outreach and marketing efforts of the Program. Responsibilities include designing the marketing strategy 

and budget, communicating with community-based organizations, managing paid advertising, public 

relations, and developing program collateral and material. The position will be part-time through the 

implementation, administration and wind-down periods.

Outreach Support Specialist (x1) – The Outreach Support Specialist will assist the Outreach and 

Participation Director with the outreach and marketing efforts. Responsibilities include supporting the 

marketing strategy and budget, communication with community-based organizations, paid advertising, 

public relations, and development program collateral and material. The position will be full-time through 

the implementation and administration periods, and part-time during the wind-down period.

Data Support Specialist (x1) – The Data Support Specialist helps identify, compile and analyze relevant 

data sets that support the Program’s data-driven and targeted outreach campaign. The specialist 

works closely with the Data Scientist and the Outreach and Program Director to define and implement a 

targeting methodology with CORD that is consistent with U.S. Treasury and ARPA guidance. The position 

will be part-time through the implementation, administration and wind-down periods.

Data Scientist (x1) – The Data Scientist identifies and sources relevant data sets that will drive the 

Program’s data-driven and targeted outreach campaign. The Data Scientist works closely with the Data 

Support Specialist and the Outreach & Program Director to define and implement a targeting methodology 
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within CORD that is consistent with U.S. Treasury and ARPA guidance. The position will be part-time 

through the implementation, administration and wind-down periods.

Technology Director (x1) – The Technology Director oversees the design, development, implementation 

and maintenance of the technology solution platforms that facilitate Program outreach and 

administration. The director will also be involved with technology vendor selection, management and 

contract negotiations. The position will be full-time through the implementation period, and part-time 

during the administration and wind-down periods.

Product Analyst (x1) – The Product Analyst manages the day-to-day design, development, implementation 

and maintenance of the technology solution platforms that facilitate Program outreach and administration. 

The analyst will be the liaison between technology vendors and the Program, helping guide vendors in the 

design, development and implementation of their solution platform. The position will be full-time through the 

implementation and administration periods, and part-time during the wind-down period.

Quality Assurance Developer (x1) – The Quality Assurance Developer oversees the assurance program 

and testing of the Program’s solution platforms. Responsibilities include establishing and developing test 

plans, reporting deficiencies, and identifying corrective solutions to the director and product analyst. The 

developer will also be the liaison between the solution platform administrative users and the technology 

team, escalating and resolving issues relating to the platform. The position will be full-time through the 

implementation and administration periods, and part-time during the wind-down period.

Business Analyst (x2) – The Business Analysts will validate the effectiveness of the solution platforms 

in meeting the business requirements of the Program. Responsibilities will include cross referencing 

business requirements with platform specifications and analyzing and recommending system 

improvements on system usability. The position will be full-time through the implementation period, and 

part-time during the administration and wind-down periods.

Quality Assurance Tester (x2) — The Quality Assurance Testers will execute test scripts designed 

by the Quality Assurance Developer to ensure adherence to program guidance and requirements. 

Responsibilities include recording test successes and failures, tracking findings, and identifying and 

tracking corrective actions. The position will be full-time through the implementation period, and parttime during the administration and wind-down periods.

Operations Finance Manager (x1) — The Operations Finance Manager will be provided by the operations 

vendor and responsible for the financial accounting of the Program’s in compliance with state and federal 

laws and requirements set forth in the U.S. Treasury HFA Participation Agreement. Responsibilities 

include U.S. Treasury draw down coordination, wire transfer, ACH credit and deposit classification, 

periodic reconcilements and routine vendor payables review, GL coding and reconciliation, and other 

accounting related responsibilities. The position will be full-time through the implementation and 

administration periods, and part-time during the wind-down period.
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Staff Accountant (x1) — The Staff Accountant will be provided by the operations vendor and responsible 

for assisting the Operations Finance Manager with daily accounting operations, including draw downs, wire 

transfers, ACH credit and deposit classification, periodic reconcilements and routine vendor payables review, 

GL coding and reconciliation, and other accounting related responsibilities. The position will be full-time 

through the implementation and administration periods, and part-time during the wind-down period.

Key Business Partners

Audit Firm Vendor – The Audit Firm Vendor will provide independent financial audits, opinion on 

internal controls and quality control consulting for the Program. The staffing will be full-time during the 

implementation and audit periods, and part-time during non-audit periods.

Outside Legal Counsel Vendor – The Outside Legal Vendor will support the General Counsel and Staff 

Counsel, as necessary, on legal issues and resolutions associated with the Program. The anticipated 

Outside Legal Counsel Vendor has extensive real estate, banking and bankruptcy expertise, and 

experience working with CalHFA. The staffing will be part-time throughout the life of the Program.

Consulting Vendor – The Consulting Vendor, collectively with CalHFA, will oversee and manage the 

design, implementation, administration and wind-down of the Program. The vendor will manage all 

aspects of the project, facilitate knowledge transfers, develop, maintain and organize project documents, 

and provide other project duties as assigned. The staffing will be full-time through the implementation and 

administration periods, and part-time during the wind-down period.

Technology Solution Vendor – The Technology Solution Vendor will provide back-end solution services 

to facilitate CDF transmissions with servicers and integrate the OnAir platform with CalHFA’s accounting 

system. The technology vendor has experience working with CalHFA and will leverage prior development 

to implement the back-end platform solution. The staffing will be full-time through the implementation 

and administration periods, and part-time during the wind-down period.

Operations Vendor – The Operations Vendor will provide the administration services for the Program, 

which includes application intake, eligibility and processing, call center services, CDF exchange services 

and back-office accounting (including budget related duties). The vendor will have experience working 

with CalHFA and is familiar with CalHFA systems. The staffing will be full-time through the implementation 

and administration periods, and part-time during the wind-down period.

Quality Assurance Vendor – The Quality Assurance Vendor will review the initial set up of internal 

controls, and design and implement a quality assurance program that will monitor the administration 

of the Program. The vendor will be independent of the Operations Vendor. The staffing will be full-time 

through the implementation and administration periods, and part-time during the wind-down period.
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5.5. Servicers’ Engagement

CalHFA understands the importance of reaching out to and engaging mortgage servicers and mortgage 

servicers associations in order to leverage industry support and help ensure the Program is successful. 

As such, this section will demonstrate how CalHFA plans to conduct outreach and on-boarding of 

servicers and associations to further maintain a positive and effective working relationship with industry 

stakeholders through the life of the Program. The establishment of these working relationships will 

have the goal of benefiting the Program participants. The Servicers Engagement process first includes 

outreach to the mortgage servicers and interested servicer associations. Next, the engagement process 

describes CalHFA’s efforts to foster continued servicer participation and engagement. Both steps are 

important to the Program’s success. 

Servicers Outreach

CalHFA has already taken various preliminary steps to ensure that the servicers outreach portion of the 

Servicers Engagement process is best tailored for success. CalHFA has begun the process of reaching 

out to over 250 servicers as well as multiple servicer associations. This process has been successful 

in garnering commitments and participation from the mortgage service industry. In that vein, the 

CalHFA has already devoted several internal staff and experienced consultants dedicated to this effort 

(see “Readiness”). In addition to kicking off the outreach process, these resources are focused on 

documenting, managing and executing on the servicer outreach strategy for the Program. Tasks they are 

working on include:

y Developing servicer on-boarding contact and program participation data requirements, 

method of data collection and data sharing.

y Defining business requirements for reports necessary to support the “on-boarding” of 

servicers and monitoring the performance of participating servicers.

y Communicating and addressing issues experienced by servicers during the on-boarding 

process of previous programs.

y Developing servicer frequently asked questions (FAQs) to be distributed or posted on 

the Program website.

y Coordination of and preparation for permissible information sharing with interesting, 

auxiliary parties (i.e. applicable Federal and State regulators, Legislators, Servicers 

Associations, etc.)

The Mortgage Relief team is in constant communication with major servicer industry leaders and 

stakeholders as part of the ongoing outreach process, including coordinating with the Department of 

Financial Protection and Innovation, which oversees servicers. 

The CalHFA has also begun to work closely and leverage past relationships with industry leaders that 

have participated in previous Agency programs and endeavors that are closely aligned with the goals of 
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the Program. This engagement will bolster confidence in the potential participating servicers and ensure 

that the Program will be comprehensively staffed and equipped with the necessary tools to ensure the 

Program participants are best served, and the HAF resources are most effectively and impactfully used. 

The state has also obtained the expertise of an independent Servicer Liaison. Accompanied by CalHFA 

oversight, the Servicer Liaison is associated with both the servicer outreach and servicer engagement 

processes. The Service Liaison will be responsible for developing further, more specific outreach 

processes and procedures in concert with CalHFA. Related to outreach, processes and procedures 

that the Service Liaison will drive include, but are not limited to, drafting of the Servicer Enrollment and 

Participation Guidelines; finalizing initial recruitment of potential mortgage service industry participants; 

organizing and assuming a leadership role in telecommunications, webinars, web-based collaborative 

meetings, and other avenues of communication with the servicers; organizing and assuming a leadership 

role in on-going stakeholder engagement in order to communicate developing program goals and 

initiatives; as well as assist in the development of a streamlined and individualized funds and data 

transfer process and the associated CDF. 

Servicers Engagement 

Once the mortgage industry servicers have been reached out to and are committed to working with 

the CalHFA, the engagement process will begin. It begins with servicer execution of the Program 

memorandum of understanding (MOU), and verification of the correct completion of the servicer contact 

sheet and funding agreement. Once the servicer has committed to being involved in the Program, timely 

and effective training relative to the Program policies, procedures, processes and systems will occur. 

The engagement process will use a variety of technologies, personnel, and resources to ensure that the 

servicers are fully engaged, thus providing the best assistance to the Program participants. These tools 

will also help ensure the most efficient and equitable use of HAF funding. CalHFA understands that while 

outreach to servicers is important and, indeed the beginning of the working relationship, the ongoing 

engagement with the servicers will be crucial to support the distribution of allocated funds in the most 

effective and equitable means possible. 

CalHFA will also use a common data file, or CDF, that will be integral for the on-going engagement of 

servicers. This common data file, shared between CalHFA, select CalHFA partners, and the associated 

servicers will be a secure, yet transparent transmission of data and funds. The data file, at its core, is 

an electronic spreadsheet that will highlight key data points for approved participants and track the 

allocation of available funds. The tracking mechanism will serve as a metric for determining whether 

assistance through Program funding will be allocated to the individual applicant. This form of factual 

and unambiguous communication will serve to promote clarity and efficiency throughout engagement 

process. CalHFA has engaged the services of the contractor that successfully built and maintained the 

CDF for the prior CalHFA homeowner assistance program. This will help ensure that the common data file 

is implemented in the most effective and efficient manner.
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CalHFA understands the importance of engaging early and continuously with the servicers, and for that 

reason has given high priority to this area of this Program.

Housing Counselor Collaboration

Through feedback from stakeholders and experience gained by administering the HHF program, as well 

as its ongoing homebuyer assistance programs, CalHFA has found that homeowners who participate in 

housing counseling have more successful outcomes. To that end, CalHFA is providing multiple resource 

avenues so that all applicants can receive housing counseling from a HUD-certified Housing Counseling 

Agency. This counseling, which can be obtained for free through participating agencies, not only helps 

homeowners navigate through various affordable long-term recovery solutions with their mortgage 

servicers, but also provides financial education that will help homeowners maintain a successful 

homeownership experience following reinstatement.

6.1. Operations

Administrative Expenses

CalHFA’s intention is to allocate the HAF monies in a manner that allows the maximum amount to be 

spent directly on assisting eligible homeowners. However, responsibly deploying approximately $1.055 

billion to provide relief for our country’s most vulnerable homeowners does not come without expense – 

both to ensure that the dollars are being spent appropriately and that proper reporting and oversight takes 

place, as required by the U.S. Treasury. 

Indeed, the Program will have a variety of administrative expenses separate and apart from the actual 

funds going toward the affected homeowners. These expenses include the one-time expenses of 

implementation and the ongoing expenses of administering the Program. The one-time expenses are 

associated with designing and implementing the programs and systems needed to support the Program 

in production and to meet the reporting and compliance requirements of the U.S. Treasury. 

The estimated administrative expenses are based on CalHFA’s understanding, at the time of this Proposal, 

of the Program and the efforts needed to implement and execute the Program throughout its anticipated 

duration. CalHFA leveraged multiple sources including current contracts, prior programs’ financials and 

other publicly available information to budget program costs. Contingencies were incorporated within 

all line item expenses to account for unforeseen program costs and future pricing and cost structure 

uncertainties. Expense estimates will be adjusted as the details of the program and operation are more 

fully developed.

6. Budget
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Table 3 identifies the estimated expenses CalHFA anticipates it will incur to implement the Program. 

Some of the primary expenses are:

y Staff and consulting services necessary to implement the new program area and 

associated business processes and compliance and auditing functions

y Initial marketing and outreach efforts

y Formation and operation of a California nonprofit public benefit corporation to 

administer the HAF funds on behalf of CalHFA

y Development and deployment of an outreach management system, that provides datadriven assessments for outreach planning and targeting, and reporting of subsequent 

outreach efforts and success metrics 

y Development and deployment of a front-end web portal and application management 

system to provide key documents and forms, assist communication and facilitate the 

Program’s business processes for processing vendors, servicers, homeowners and 

other stakeholders

y Development and deployment of a back-end application to support ongoing operations, 

track and report Program performance metrics and provide compliance reporting for 

the U.S. Treasury

Table 3: California Mortgage Relief Program Operational Expenses – Implementation Expenses

Implementation Expenses Year 1 % of Funds

Initial Personnel $3,632,398 0.34%

Professional Services (Audit, Legal, etc.) 1,000 0.00% *

Building Equipment & Technology 1,920,933 0.18%

Total Implementation Expenses $5,554,331 0.53%

*For percentages that are less than 0.01% but not 0.00%

The anticipated ongoing administrative expenses for the Program are listed in Table 4. These expenses 

are based on the assumption that all funds will be allocated within the first 18 months of the Program and 

that reporting and compliance functions will continue, with lighter staffing, for a period of 15 months after, 

for a grand total of 36 months (including 3 months of implementation).

Some of the primary expenses are:

y Staffing to support the Program business processes and systems

y Consulting services to support quality assurance, audit, legal, operational processing, 

call center activities and other operational functions 

y Marketing and outreach to servicers, homeowners and other housing stakeholders

y Payment for counseling services for those homeowners where counseling is required
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y Director, officer and employee insurance coverage

y Transactional expenses which include credit reports and banking fees 

y Fees and subscriptions related to on-going system costs (including IT enhancements)

y In-state travel expenses to support ongoing outreach, training and meetings with other 

Program stakeholders

Table 4: California Mortgage Relief Program Operational Expenses – Administrative Expenses

Administration Expenses Year 1 Year 2 Year 3 Year 4 Total % of 

Funds

Staffing $27,245,464 $60,092,665 $6,945,748 $0 $94,283,877 8.93%

Professional Services (Audit, 

Monitoring, Legal, etc.) 3,939,856 8,282,680 97,325 90,675 12,410,536 1.18%

Travel (In-State) 27,203 29,469 9,068 0 65,739 0.01%

Building, Leases & Equipment 188,906 251,875 251,875 0 692,656 0.07%

Information Technology & 

Communications (On Air, 

CORD, etc.)

2,359,300 1,400,400 1,391,400 0 5,151,100 0.49%

Office Supplies / Postage & 

Delivery / Subscriptions 33,814 36,632 11,271 0 81,718 0.01%

Risk Management / Insurance 22,669 30,225 30,225 7,556 90,675 0.01%

Training 5,038 5,038 0 0 10,075 0.00% *

Marketing / Public Relations 9,436,410 17,112,494 3,224,074 1,331,527 31,104,505 2.95%

Transactional Expense: Credit 

Reports 46,096 239,163 0 0 285,258 0.03%

Transactional Expense: 

Banking 28,845 67,819 30,225 0 126,888 0.01%

Total Administration 

Expenses $43,333,600 $87,548,460 $11,991,210 $1,429,758 $144,303,028 13.67%

*For percentages that are less than 0.01% but not 0.00%

Based on CalHFA’s understanding of the Program at the time of this proposal, the current estimate for 

one-time implementation and ongoing operational expenses comprise about ~$150 million, or 14.2%, 

of the HAF monies allocated to California. Table 5 shows the annual anticipated implementation and 

operational expenses throughout the expected three years of the Program. Expenses are projected to be 

significantly heavier in the first year of administration due to costs associated with operations and system 

development. CalHFA anticipates that as much as 70% of total Program applications could arrive during 

the first year. Expenses are expected to taper off significantly during the final 15 months of the Program, 

where responsibilities predominantly include compliance and reporting.
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Table 5: Timeline of Implementation and Operational Expenses

Implementation Year 1 Year 2 Year 3 Year 4 Total

$9,262,689 $43,333,600 $87,548,460 $11,991,210 $1,429,758 $149,857,359

6.2. Programmatic

CalHFA collected delinquency data from loan servicers to determine reasonable assumptions that underly 

the funding projections of the Program. The benefit disbursement was derived from the initial delinquency 

data set, which showed an average PITIA as high as $2,400 for GSE loans on single family residences. 

The average PITIA was then multiplied by the months between the pandemic declaration, and the 

expected launch of the Program, or approximately 17 months, to come to a $40,000 benefit disbursement 

per participant. 

CalHFA intends to gather further delinquency data that may change the underlying assumptions that drive 

the Program’s funding projections. Additionally, upon launch of the Program, actual disbursements may 

deviate from the initial program assumptions. As such, CalHFA provided a sensitivity analysis in Table 6 

to demonstrate the change in program participants if benefit disbursement amounts prove to be higher or 

lower than the initial assumptions.

Table 6: Program Sensitivity Analysis

Benefit $

Program Sensitivity Analysis Program Assumption Low Middle High

Mortgage Reinstatement Program (MRP)

Estimated Benefit $ $40,000 $30,000 $55,000 $80,000 

Estimated Program Disbursement $ 755,489,843 755,489,843 755,489,843 755,489,843 

Estimated Program Participants 18,887 25,183 13,736 9,444 

Estimated Program Applications 37,774 50,366 27,472 18,887 

Deliquent Property Tax Program (DPTP)

Estimated Benefit $ $5,300 $4,000 $6,500 $9,000 

Estimated Program Disbursement $ 150,000,000 150,000,000 150,000,000 150,000,000 

Estimated Program Participants 28,302 37,500 23,077 16,667 

Estimated Program Applications 56,604 75,000 46,154 33,333 

MRP & DPTP

Estimated Program Disbursement $ 905,489,843 905,489,843 905,489,843 905,489,843 

Estimated Program Participants 47,189 62,683 36,813 26,110 

Estimated Program Applications 94,378 125,366 73,626 52,221 
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CalHFA anticipates a majority of applications and disbursements to occur within the first year of 

the Program. Program funding for year one and two is projected to be 70% and 30% respectively. 

Reinstatement Program projections assume a $40,000 benefit disbursement per participant for the 

Program, which will be paid in one lump sum transaction, and a $750 million total allocation. The 

remaining $150 million will be used for the second program which funds delinquent property tax 

payments. The program funding schedule can be seen in Table 7. 

Table 7: Program Funding Schedule

Program Funding Schedule Year 1 Year 2 Year 3 Total

Mortgage Reinstatement Program (MRP)

Estimated Program Applications 14,657 23,118 0 37,774 

Estimated Program Participants 7,328 11,559 0 18,887 

Estimated Program Disbursements $ $293,130,059 $462,359,784 $0 $755,489,843

Percent Disbursed 32.4% 51.1% 0.0% 83.4%

Deliquent Property Tax Program (DPTP)

Estimated Program Applications 594 56,009 0 56,604 

Estimated Program Participants 297 28,005 0 28,302 

Estimated Program Disbursements $ $1,575,000 $148,425,000 $0 $150,000,000

Percent Disbursed 0.2% 16.4% 0.0% 16.6%

MRP & DPTP

Estimated Program Disbursement $ 15,251 79,127 0 94,378 

Estimated Program Participants 7,625 39,564 0 47,189 

Estimated Program Disbursements $ $294,705,059 $610,784,784 $0 $905,489,843

Percent Disbursed 32.5% 67.5% 0.0% 100.0%

7.1. Risk Management

In preparation for the receipt of HAF funding and given the significant public interest surrounding the 

rollout of the Program, CalHFA recognizes the need for a comprehensive risk management program 

to ensure Program disbursements are administered properly and adhere to the letter and spirit of the 

U.S. Treasury guidelines, ARPA legislation, and other state and local laws and regulations. CalHFA has 

extensive experience administering state and federal housing programs, as well as implementing internal 

control, quality assurance and compliance programs to improve performance and mitigate risks relating 

to operations, fraud, reporting and compliance. CalHFA, on behalf of CalHRC, intends to leverage its 

experience and existing programs covering the Agency’s own lending, loan servicing and other business 

functions to oversee the compliance, quality assurance and quality control programs. 

7. Risk Management and Monitoring
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CalHRC, in collaboration with the operations vendor, will establish, document and implement policies, 

procedures, protocols and internal controls that address Program risks, and streamline processes for 

administering, tracking, monitoring and recording Program expenses and disbursements. The vendor 

will leverage the Program’s application management system, OnAir, to administer, track, monitor, record 

and report disbursements on a centralized, secure end-to-end platform. Expense and reimbursement 

processes will be established and implemented outside the platform by vendor professionals and 

monitored through CalHRC’s corporate governance structure. Furthermore, the OnAir system will ensure 

that Program resources are not over-allocated. Commitments will be monitored at the program level and 

reservations will be tracked to limit the amount of assistance any one household may receive.

OnAir will also integrate with CalHFA’s back-office system, Microsoft Dynamics, to seamlessly facilitate 

disbursement bookings and aid in the preparation of financial reports. CalHRC will track and monitor 

Program expenses and disbursements in a manner that is consistent with the administration of prior 

federally funded programs, and in accordance with applicable 2 CFR Part 200 requirements and U.S. 

Treasury guidelines. Expenses will be closely monitored and tracked against the U.S. Treasury-approved 

budget to ensure consistency with 2 CFR Part 200 principles and mitigate the risk of misappropriation.

Quality Assurance Program

An external independent quality assurance vendor will design a program to monitor the administration 

of the HAF monies, which will operate independently from the day-to-day operations teams. The 

assurance program will test eligibility and application review processing to measure, report and identify 

improvement opportunities with respect to adherence with policies, procedures, productivity, guidelines 

and quality standards set by management. When appropriate, respective program management and 

operations managers will leverage quality assurance results to develop action plans designed to address 

any findings regarding a policy, procedure, control and/or system deficiency.

Quality Control Program

CalHRC will also assemble an independent quality control team consisting of a director and two 

supporting staff members. The team will design and implement a program to audit the administration of 

the program, which includes, but not limited to, its policies, procedures and internal controls. CalHFA will 

use a detailed quality control scorecard to audit the Program’s activities to identify areas for improvement 

and provide quality risk management. Each month, a percentage of approved applications will undergo 

a complete quality control audit, which will include an independent verification of all aspects of Program 

requirements. The audit helps ensure the Program remains compliant with Program requirements and 

all federal, state and local laws, including but not limited to, the Equal Credit Opportunity Act and the Fair 

Housing Act.
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7.2. Internal Controls

CalHRC will leverage its prior program experience to oversee the development and implementation of 

the Program’s internal controls. The Program’s operational vendor will design internal controls around 

significant program risks identified through experience, prior programs, management and/or consultants. 

Significant risk categories identified include but are not limited to:

y Eligibility

y Disbursement

y Administration

y Information Security

y Compliance

y Systems

y Fraud

y Accounting

The initial set up of internal controls will be reviewed by management and the external independent 

quality assurance vendor to ensure controls are reasonably designed to minimize the risks above, 

mitigate conflicts of interest, and maximize operational efficiency and effectiveness in accordance 

with program guidelines, ARPA and other applicable state and local laws and regulations. An external 

independent auditor will also perform annual testing and provide an opinion on the effectiveness of 

internal controls. Additionally, CalHFA will review key vendors and partners’ Program activities by carrying 

out the following:

y Review policies, procedures and internal controls for compliance with U.S. Treasury 

guidelines and ARPA requirements.

y Test program processes for adequate controls prior to and during the program operation.

y Evaluate Program’s compliance with audit requirements under the U.S. Office of 

Management and Budget’s (OMB) 2 C.F.R. Part 200 and applicable appendices.

y Recommend and implement process improvements and other compensating controls.

y Perform random monthly audits of Program files – lenders will be contacted with the 

list of files selected for review and will be required to submit copies of the homeowner 

program files.

Fraud Prevention

CalHRC and its vendors will make every effort to design and implement anti-fraud controls to identify 

fraudulent practices and/or entities and ensure the proper administration of disbursements. The 

necessity of fraud prevention was reinforced by feedback CalHFA received from stakeholders. 
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Key elements to a quality fraud mitigation program include:

y Diagnose operational vulnerabilities for fraud.

y Detect gaps in anti-fraud controls.

y Recommend and implement mitigating anti-fraud controls.

y Continuously monitor anti-fraud controls.

y Investigate, verify and report any suspected fraudulent activity in a timely manner.

CalHRC and its operations vendor will emphasize validating, verifying and reviewing information provided 

by applicants, servicers, mortgage originators and other outside organizations that are party to program 

transactions. CalHRC will disseminate fraudulent activity and other related information to the U.S. 

Treasury and other respective fraud prevention groups such as the Federal Trade Commission, Federal 

Bureau of Investigation, and the Financial Crimes Enforcement Network.

7.3. Compliance

CalHRC will employ a comprehensive compliance approach that leverages the documented policies, 

procedures, protocols and internal controls to comply with all U.S. Treasury guidance, and applicable state 

and local rules and regulations, including but not limited to, allowing compliance and oversight by the U.S. 

Treasury, the Comptroller General of the United States, Government Accountability Office, Congressional 

Oversight Panel, and the U.S. Treasury Office of Inspector General, as applicable. Key to an effective 

compliance program is the monitoring of adherence to these established policies, procedures and internal 

controls, which will be accomplished through strong corporate governance, and quality assurance, quality 

control and anti-fraud programs. CalHRC will:

y Develop comprehensive quality assurance and control programs, and implement internal 

controls to minimize risks relating to operations, fraud, reporting and compliance, while 

maximizing operational efficiency and effectiveness.

y Establish a robust monitoring system and associated governance structure to easily identify 

and document noncompliance, and recommend and implement corrective actions quickly.

y Encompass CalHFA and nonprofit entity, CalHRC, and any other key stakeholder involved in 

these programs, including, but not limited to, participating servicers, applicants, vendors and 

professional service providers.

y Upon request, provide federal access to general ledgers, communications and records 

relating to the use of federal funds given to CalHFA.

y Annually test, certify and provide an independent opinion of the effectiveness of internal 

controls to the U.S. Treasury.

y Assess, prior to program launch, that CalHFA has taken appropriate steps to meet Program 

objectives and requirements under 2 CFR. Part 200 and the U.S. Treasury.
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In addition to complying with the requirements of ARPA, CalHFA will require that it and its servicers 

participating in the Program comply with the Equal Credit Opportunity Act, the Fair Housing Act and 

California Government Code Section 12955, which prohibit discrimination in connection with mortgage 

transactions. CalHFA will ensure that it and its servicers do not treat a mortgagor less favorably than 

other mortgagors on grounds such race, color, religion, sex, gender, gender identity, gender expression, 

sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, 

veteran or military status, or genetic information in connection with any loan modification. These laws 

also prohibit redlining. As stated throughout this Proposal, CalHFA is required to obtain an independent 

verification that proper controls be in place and maintained prior to and during Program implementation. 

CalHFA will hire a qualified audit vendor to perform this function.

CalHFA believes the California Mortgage Relief Program outlined in this Proposal will offer California 

homeowners, their lenders and servicers, as well as other stakeholders affected by the pandemic-related 

economic crisis, the unique opportunity to leverage federal funds to help keep homeowners in their 

homes and prevent foreclosures resulting from pandemic related hardships.

8. Conclusion
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California Mortgage Relief Program (“Program”) 

Mortgage Reinstatement Term Sheet

Appendix A

The U.S. Treasury issued guidance for the use of the HAF funds on April 14, 2021. As an eligible entity approved 

to participate in HAF, CalHFA entered into a Financial Assistance Agreement with Treasury and received 10% 

of California’s total allocation on June 22, 2021. In August 2021, CalHFA launched a pilot phase of the Program 

using funds from that initial allocation of California’s HAF funds. Running this pilot allows CalHFA to do an 

end-to-end test of the Program and onboard mortgage servicers, while targeting assistance to California 

homeowners with the most urgent need. Throughout this pilot phase, CalHFA has continually evaluated the 

needs of Californians, and has expanded this program to assist HECM reverse mortgage holders, as well as 

design a new program that, when launched, will focus on property tax delinquencies. Upon Treasury approval of 

this proposal, CalHFA will fully launch the reinstatement program, to serve as many vulnerable homeowners as 

possible using approximately $750 million. 

Mortgage 

Reinstatement 

Program Goal

• To address housing instability and foreclosure by providing Eligible 

Homeowners with financial assistance to eliminate past due housing 

payments.

Size of Mortgage 

Reinstatement 

Program

• The initial allocation of HAF funds is approximately $100 million.

• A successful final approval from U.S. Treasury would increase the final 

allocation of HAF funds to approximately $750 million. A request to amend 

this program may be made, based on the early and constant monitoring and 

reporting of results against goals.

Targeting and 

Outreach

• CalHFA will affirmatively target socially disadvantaged and vulnerable 

homeowners using a data-driven approach that uses a combination of 

Qualified Census Tract data (HUD) and Owner Vulnerability Index (UCLA). This 

will include data-driven targeted marketing and community engagement 

along with engaging housing counselors, as well as using levers in the 

program design to ensure that outcomes effectively prioritize socially 

disadvantaged individuals.

California Mortgage Relief Program (“Program”) Term Sheet
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Eligible Homeowners

• Homeowner must currently own and occupy the property in California as their 

primary residence.

• Homeowner must meet the Homeowner Income Eligibility Requirements.

• Homeowner must own and occupy not more than one property.

• Homeowner must attest that they experienced a financial hardship after January 

21, 2020. The attestation must describe the nature of the financial hardship.

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

at the time of origination, was not greater than the conforming loan limit in 

effect at time of origination.

• Homeowners with HECM reverse mortgages can receive assistance.

• Co-owners are not permitted to separately apply for the Program assistance.

• Receiving other forms of governmental assistance, including other forms of 

COVID-19 assistance from the CARES Act, Consolidated Appropriations Act of 

2021 or the American Rescue Plan Act, does not disqualify a household from 

the California Mortgage Relief Program.

Eligible Legal 

Ownership Structures

• Those where the home is owned by a “natural person” (i.e., LLP, LP or LLC do not qualify)

• Those where the homeowner has transferred their ownership right into nonincorporated, Living Trusts, provided the homeowner occupies the home as 

the primary/principal residence.

Qualified Financial 

Hardship

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

increase in living expenses associated with the coronavirus pandemic that 

has created or increased a risk of mortgage delinquency, mortgage default, 

foreclosure, or displacement for a homeowner.

» Reduction of Income – Temporary or permanent loss of household

» earned income after January 21, 2020.

» Increase in Living Expenses – Increase in out-of-pocket household 

expenses such as, medical expenses, inadequate medical insurance, 

increase in household size, or costs to reconnect utility services directly 

related to the coronavirus pandemic after January 21, 2020.

• Homeowner must complete and sign the Affidavit which includes an 

attestation of Qualified Financial Hardship.

Homeowner 

Income Eligibility 

Requirements

• To be eligible for assistance, all household members must have a collective income 

equal to or less than 100% of the Area Median Income adjusted by household size.

• Homeowners cannot have cash on hand, or assets that can be rapidly converted to 

cash, that is equal to or greater than the relief funds needed + $20,000. (This program 

defines cash/assets as cash or assets that can be converted into cash in a short 

amount of time, including things like money market instruments and marketable 

securities. This excludes savings in a tax-advantaged retirement account).
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Homeowner 

Prioritization

• CalHFA will prioritize funding to socially disadvantaged homeowners defined 

as Californians that live in Qualified Census Tracts (HUD) or areas with “high” 

and “highest” vulnerability values on the Owner Vulnerability Index (OVI), 

developed by the UCLA Center for Neighborhood Knowledge.

» 40% of California’s total allocated funds will be reserved for the 

previously defined socially disadvantaged homeowners 

Eligible Properties

• “Eligible Properties” are:

» Single-family (attached or detached) properties

» Condominium units

» 1-unit owner-occupied

» Manufactured homes permanently affixed to real property and taxed as 

real estate

• “Ineligible Properties” are:

» Vacant or abandoned

» Second homes

» Investment property

Eligible Uses 

of Mortgage 

Reinstatement 

Program Proceeds 

• Existing first mortgage lien loan payment (principal, interest, taxes and 

insurance), plus any escrow shortages to fully reinstatement the mortgage to 

a “current” status.

» For loans with no impound accounts and delinquent property taxes, 

borrowers must establish an impound account with their servicer for 

delinquent property taxes to be paid

» Must be at least two payments past due at time of application for assistance

» Delinquency must occur prior to the launch date of this proposed Program

• Payment of owed taxes and any forced place insurance on HECM reverse 

mortgage loans to fully reinstate to a “current” status.

• Exclusions:

» Any loan already being considered or approved for a partial claim or 

modification is ineligible

Maximum Per 

Household

• CalHFA will not exceed its “Maximum Per Household” amount of $80,000 per 

household

• Assistance is limited to one-time, per household

Assistance Type • Assistance will be structured as a non-recourse grant.
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Payout of Mortgage 

Reinstatement

• CalHFA will disburse Mortgage Relief assistance directly to mortgage servicer.

• CalHFA will make no more than one disbursement to each payee.

• CalHFA will disburse the amount quoted by the servicer; any discrepancies to 

be resolved by the homeowner and servicer.

Program Launch

• CalHFA launched a pilot phase of the program in August 2021. CalHFA is 

prepared for a full launch of the mortgage reinstatement program immediately 

after receiving approval.

Program Duration

• The period of performance for the HAF award begins on the date hereof and 

ends on September 30, 2026. HAF recipient shall not incur any obligations to 

be paid with the funding from this award after such period of performance 

ends.

• CalHFA plans to allocate all funds by September 30, 2025.

Program Application 

Process

• Applications will be accepted online through the Outreach Navigator and 

Intake Review (ONAIR) Portal. All applications will be entered into the online 

portal and reviewed on the reviewer portal.

Required Application 

Documents

In response to public feedback about the need for a streamlined application 

process, efforts will be made to avoid barriers to equitable access and allow for 

flexibility, particularly with regard to documentation requirements.

Required application documents and attestations include, but may not be limited 

to, the following:

• California Mortgage Relief Program application, including attestation of 

Qualified Financial Hardship and other related attestations

• Third Party Authorization (TPA) and Disclosure

• Mortgage Statement

• Valid California identification and Social Security Number

All household members over 18 must provide income documents such as:

• Income documentation: W2’s, paystubs, previous years’ tax returns or 

alternative income documents as applicable such as proof of an Income Proxy 

such as Unemployment, Medi-Cal, WIC, SNAP, FDPIR, TANF, SNP, Section 8 and 

any other income-based county, municipality, state and or federal assistance 

program (Public Assistance)

• Two months of bank statements for all accounts
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Required Application 

Documents (continued)

Additional Documentation Requirements in Certain Cases

In certain cases, CalHFA will require additional documentation to ensure that 

assistance is focused on Californians most in need and is delivered efficiently

1.Certain applicants may need to provide a denial of alternative workout option 

(excluding short sale or deed in lieu)

• No workout denial letter is needed for these households:

» Severally housing burdened

– Housing to Income ratio is greater than 40% (The Program defines HTI 

as mortgage payment, taxes and insurance divided by gross income of 

the borrower(s) )

» Public Assistance proxy

– All household income comes from public assistance (The Program 

defines public assistance as Unemployment, Medical, WIC, SNAP, 

FDPIR, TANF, SNP, Section 8 and any other income-based county, 

municipality, state and/or federal assistance program)

– Households whose income is mixed (public assistance and non public 

assistance) but the public assistance income is more than 50% of the 

mortgage PITI

• These households must provide a workout denial letter:

» Less housing burdened

– Housing to Income ratio is less than or equal to 40% and homeowner 

does not have Public Assistance proxy

2.Homeowners in active bankruptcy will need to provide written substantiation 

from both their loan servicer and the Bankruptcy Trustee that the 

homeowner(s) may receive mortgage assistance funds and said funds shall 

be applied to any first lien loan arrearage on their primary residence.

• This additional documentation requirement allows CalHFA a more efficient 

path to reinstatement for those homeowners by ensuring that the mortgage 

servicer and bankruptcy trustee will accept the assistance funds

3.Homeowners with HECM reverse mortgages who owe payment to their 

servicer for taxes and forced place insurance, must provide copies of their tax 

bill and insurance bill showing the amount due.

Program Partners 

Requirements

• Servicers will be required to execute a HAF Partner agreement and agree to 

communicate using the Common Data File (CDF) format to be provided by 

Treasury.

• If and as required, partners will be asked to sign a W9.
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Appendix B

California Mortgage Relief Program Public Feedback Analysis

SUMMARY

CalHFA received public feedback and recommendations for the state’s HAF program through hosting 

three virtual listening sessions, an online survey and email submissions. The public notice and invitation 

to comment was posted on CalHFA’s website on June 9, 2021. The listening sessions concluded on June 

17 and the online survey closed on June 18. The public is free to continue providing feedback through 

email submission. 

Respondents and comments as of June 20, 2021:

Feedback Method # Participants / 

Respondents # Comments Recorded

Listening Session #1 95 25

Listening Session #2 67 18

Listening Session #3 51 14

Email Submission 9 4

Survey 93

Total 315
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CalHFA heard from several key organizations. Listening session comments and survey and email responses included 

feedback from the president and CEO of Neighborhood Housing Services of Los Angeles County, the CEO of California 

Mortgage Bankers Association, the president of the National Reverse Mortgage Association, a senior staff attorney for 

the National Housing Law Project, a senior attorney for Housing and Economic Rights Advocates, the United Homeowners 

Association, Faith and Community Empowerment, and several HUD approved housing counselors and agencies.

Frequently Discussed Topics

Along with the general urgency for the program expressed by both homeowners and advocates, the most discussed 

issues included eligibility inclusion, other financial assistance, barriers to participation, and effective outreach methods. 

Key Organizations

National Reverse Mortgage Lenders Association

Joseph and Cohen Law Firm

NeighborWorks

Housing and Economic Rights Advocates

National Housing Law Project

Legal Aid Society of San Diego

California Rural Legal Assistance

Celink

Center for Responsible Lending

United Homeowners Association

Homeownership OC

PennyMac Loan Servicing

Fidelity Bank N.A.

Project REACH Los Angeles

California Mortgage Bankers Association

Neighborhood Housing Services of Los Angeles County
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Topics as of June 20, 2021:

Public Listening Sessions

CalHFA received public feedback on the HAF program over the course of three listening sessions. One session was 

specifically focused on input from Tribal community members. 

Eligibility Inclusion and Other Financial Assistance

One frequently identified topic was eligibility inclusion. Several participants suggested that homeowners with reverse 

mortgages should qualify for assistance under the HAF program. Other common suggestions for inclusion were 

homeowners with PACE liens, those who have declared bankruptcy due to the coronavirus, those with trial modifications, 

and those who own manufactured, mobile, or not affixed homes. Participants also suggested that financial assistance be 

offered for other homeowner expenses, such as HOA fees, property taxes, utilities, and different types of insurance. 

Barriers to Participation

On barriers to participation, participants spoke about the challenges of meeting all the documentation requirements, 

including showing proof of sustainability. Participants said they hoped the application process and documentation 

requirements would be simplified and streamlined, especially for non-English speakers, seniors, those with disabilities 

and those who do not have easy access to the internet. In addition, they suggested offering other ways of applying for 

assistance available, such as through paper applications and a mobile app. 

Marketing and Outreach

In terms of marketing and outreach, many participants encouraged the agency to partner with Community Based 

Organizations (CBOs), faith-based organizations, and other culturally competent groups to conduct outreach to the target 

populations. These organizations are seen as trusted members of the community and will be crucial in urging qualifying 

homeowners to apply to the program. Providing authentic communications and outreach will also be important.
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Another key takeaway on outreach methods was the importance of translating materials in more conversational forms 

of different languages rather than using formal translations through automated programs such as Google Translate. 

Several participants mentioned that many in target communities often cannot understand formally translated materials 

or applications used by government programs. Participants also encouraged the agency to partner with ethnic media 

sources and publications to reach the target populations. 

Online Survey

The survey designed by CalHFA contained eight questions and an opportunity for respondents to give open-ended 

feedback. 93 respondents participated in the survey during the public comment period, with 47 offering open-ended 

comments and suggestions. 

Respondent Roles (92 answered)

75 percent of respondents were members of the public/homeowners, with the rest of the respondents representing other 

stakeholders, such as legal aids, housing counselors, loan servicers, mortgage lending, local government/local housing 

authority and nonprofit housing agencies. 
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Marketing and Outreach (92 answered)

On outreach, respondents identified digital ads and social media, news reports, TV and radio, and nonprofits and CBOs as 

the best ways to reach traditionally underserved communities. In addition, several respondents independently suggested 

using direct mail. 

Barriers to Participation (78 answered)

Respondents identified similar barriers to participation as participants in the listening sessions, including documentation 

requirements, lack of access to technology, limited English proficiency, and a complicated and overwhelming application 

process. 

Treasury Eligibility Guidelines (66 answered)

Overall, respondents agreed with the financial qualifications and focus on socially disadvantaged individuals. Some 

stressed the importance of considering each applicant’s circumstance and situation when evaluating their eligibility. 

Others said all homeowners need help as soon as possible. Respondents also suggested that the most effective ways to 

reach the target populations was through partnering with CBOs and local governments and holding community events. 

Prioritizing Use of Funds and Sustainable Outcomes (91 answered each question)

Mortgage payment assistance and reinstatement of all delinquent mortgage payments ranked as the highest priority for 

the use of program funds. Other homeowner expenses such as utilities and internet, and delinquent property taxes ranked 

second and third in priority, respectively. 
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Almost 70 percent of respondents said that funds should prioritize sustainable outcomes, particularly the ability for 

homeowners to remain in their property with a mortgage payment they can afford. About 25 percent of respondents said 

it depends on factors such as sustainable employment and income. 

Assistance for Property Types (60 answered)

Respondents offered mixed recommendations for which property types should receive assistance from the program. 

While many said that all listed property types should be given assistance, some recommended that single family homes 

and owner-occupied properties should be prioritized. Several respondents also recommended that assistance be given to 

homeowners with mobile homes not affixed to real property. 

Operational Efficiency (67 answered)

Most respondents said that there must be clear instructions on how and where to apply to the program, simplified 

documentation requirements, and an easy to navigate program website. By and large, respondents said to make the 

process as simple as possible. Some respondents offered similar suggestions heard during the listening sessions, such 

as working with housing counselors and partnering with community groups to assist with the application process. 

Email Submissions

As of June 29, 2021, CalHFA has received 13 email submissions regarding the HAF program, including 6 from private 

citizens and 7 from housing advocates and other stakeholders. A HUD certified housing counselor encouraged working 

directly with HUD agencies that already have a pipeline of clients who need assistance. Two struggling homeowners 

described their challenges with health issues and financial hardships due to COVID-19. 

Steve Irwin, who is President of the National Reverse Mortgage Lenders Association and who also offered feedback 

during the first listening session, submitted a formal comment letter outlining specific recommendations to ensure 

homeowners with reverse mortgages are eligible for assistance from the program. In addition to eligibility, the letter also 

recommended the program clarify that liens that are required for any assistance structured as a forgivable loan will not 

impair the lien position of any existing mortgage, allow non-borrowing spouses to obtain HAF relief, allow HAF funds 

to pay for imminent property charges and pay to reinstate homeowner insurance policies, allow for self-attestation of 

hardship, have flexibility for required proof in support of loss mitigation sustainability, and allow loan sub-servicers to 

communicate with CalHFA and receive HAF funds on behalf of a master servicer.

Other stakeholders and advocates have also provided feedback via email. Lori Gay, President and CEO of Neighborhood 

Housing Services of Los Angeles County, provided information and data from Los Angeles County’s Mortgage Relief 

Program that her organization is managing. California Mortgage Bankers Association president and CEO Susan Milazzo 

sent a letter with suggestions that included using a targeted and prioritized approach, coordinating with other states’ 

HAF programs, complimenting existing state programs, streamlining payments using the existing infrastructure from the 

state’s HHF program, being flexible, and educating potential applicants through mortgage servicers. In addition, Dennis 

Santiago with Project REACh Los Angeles provided information on the organization’s equity share bridge program and the 

work they have done to explore different implementation pathways.