Microsoft Word - Idaho HAF Term Sheets 8.1.23 (003).docx

Homeowner Assistance Fund Plan

PROGRAM DESIGN

Program Template: Idaho Homeowner Assistance Program

Date: August 31, 2021 (updated 8/1/2023)

Term Sheet

Program Design Elements:

1. Allow homeowners to reinstate mortgages or pay other housing

related costs

2. Mortgage payment assistance (For three additional month post

reinstatement, if maximum assistance has not been reached)

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

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

last resort after all other loss mitigation options.)

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

gas, home energy, and water

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

insurance

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

condominium association fees, or common charges

7. Payment assistance for delinquent property taxes to prevent

homeowner tax foreclosures

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

reinstatement/assistance program.

Criteria

Program Terms

Brief Description

This program will provide funds to eliminate or reduce past due

payments and other delinquent amounts, including payments under a

forbearance plan, on forward mortgages, reverse mortgages, loans

secured by manufactured homes, or contracts for deed.

HAF Funds may be used to bring the account fully current, with no

remaining delinquent amounts, and to repay amounts advanced by

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

including property taxes, hazard insurance premiums, flood or wind

insurance premiums, ground rents, condominium fees, cooperative

maintenance fees, planned unit development fees, homeowners’

association fees or utilities that the servicer advanced to protect lien

position. Payment may also include any reasonably required servicer

fees, legal fees, and property preservation fees.

Provide payment assistance for up to three months in conjunction

with mortgage reinstatement unless maximum amount of assistance

has already been reached.

For mortgage reinstatement, funds may be used to help homeowners

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

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

barrier to the homeowner resuming regular monthly mortgage

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

including interest or reasonable required legal fees and under

circumstances in which a delinquency threatens access to utility

services. The provided assistance must bring the homeowner’s

account current.

For a homeowner that is concurrently going through loss mitigation

stemming from a coronavirus pandemic related delinquency, HAF

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

permanently sustainable monthly payment for borrowers that are

unable to resume their monthly mortgage payment that is reset due

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

principal reductions; reduce the rate of interest; recast payment

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

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

leveraged with other available loss mitigation options and results in a

sustainable monthly payment amount for the borrower.

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

mortgage, provide funds to resolve property charge defaults that

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

HAF funds may be used to pay past due property taxes, HOA fees,

condominium fees, or cooperative maintenance or common charges

that threaten sustained ownership of the property. Past due hazard

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

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

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

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

funds may be used to help homeowners resolve delinquent payments

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

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

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

unsanitary environment. All other eligibility requirements must be

met.

IHFA will make reasonable efforts to have HAF participants identify

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

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

mitigation options offered by the servicer under investor

requirements or where, without HAF funds, the homeowner would

not qualify for that loss mitigation option.

HAF Reinstatement

Program Goal

o mitigate financial hardships associated with the coronavirus

pandemic by providing eligible Idaho homeowners assistance for the

purposes of reinstating their delinquent mortgages, resume affordable

mortgage payments, and avoid foreclosure and displacement.

Size of HAF

Reinstatement Program

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

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

administrative costs.

Targeted Population of

Homeowners and

Financial Challenges

Program Seeks to

Address

IHFA will target Idahoans who are socially disadvantaged and those who

are low-to-moderate income.

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

stability by assisting with past due mortgage amounts accrued while on

COVID-19 forbearance plans.

Goal #2: Stabilize the mortgage delinquency across Idaho.

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

forbearance plans and get back on track.

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

households from displacement.

Homeowner Eligibility

“Eligible Homeowners” for Idaho’s HAF Reinsta

tement programs must

meet the following criteria:

• Homeowner must have experienced a Qualified Financial

Hardship after January 21, 2020(including a hardship that

began before January 21, 2020, but continued after that

date).

• Homeowner must currently own and occupy the property as

their primary residence.

• Homeowner must meet the Homeowner Income Eligibility

Requirements.

• Homeowner must be delinquent by at least one installment

payment or otherwise in default, as reflected in documentation

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

missed payments during a forbearance period.

• Homeowners without a mortgage loan or who have a reverse

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

Condo Association dues, hazard Insurances(reverse mortgages

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

risk of being displaced may be eligible for assistance if they

meet all other eligibility requirements. Delinquencies must

have occurred after January 21, 2020.

• Homeowner must attest that they experienced a financial

hardship after January 21, 2020. The attestation must

describe the nature of the financial hardship.

• Homeowners who have previously filed for bankruptcy but who

are no longer in bankruptcy must provide proof of court ordered

“discharge” or “dismissal”.

• Homeowner must complete and sign Affidavit, Application,

Disclosures, and 3

Party Authorization forms

• Homeowner agrees to provide all necessary documentation to

satisfy program guidelines within timeframes established by

Idaho Housing and Finance Association, including self-

certification or attestation of socially disadvantaged status, as

applicable.

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

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

greater than the conforming loan limit in effect at time of

origination.

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

• Homeowner will provide a statement of current ability to

resume any required regular payments after account is

reinstated or brought current. Self attestation will be required.

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

assistance.

Eligible Legal Ownership

Structures

“Eligible Legal Ownership Structures” include only the following:

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

LLP, LP or LLC do not qualify)

• Those where the homeowner has transferred their ownership

right into non- incorporated, Living Trusts, provided the

homeowner occupies the home as the primary/principal

residence.

Qualified Financial

Hardship

A “Qualified Financial Hardship”

is a material reduction in income or

material increase in living expenses associated with the coronavirus

pandemic that has created or increased a risk of mortgage delinquency,

mortgage default and foreclosure, loss of utilities or home energy

services, and displacement of a homeowner.

 Reduction of Income – Documented temporary or

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

 Increase in living expenses – Documented increase in 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].

Applicant attestation as to financial hardship after January 21,

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

(job loss, reduction in income, etc.)

*This includes documented hardship that began before January 21,

2020, but continued after that date.

Homeowner

Income Eligibility

Requirements

To be eligible for assistance under the Idaho HAF Reinstatement

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

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

income for the United States, whichever is greater.

Income Determination: Applicant attestation as to household income,

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

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

demonstrating regular income, or an employer attestation.

Homeowner

Prioritization

Idaho Housing and Finance Association will prioritize funding to the

following populations:

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

assist homeowners having incomes equal to or less than

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

100% of the median income for the United States,

whichever is greater.

 Amounts not made available to homeowners that meet the

above income-targeting requirement will be prioritized for

assistance to socially disadvantaged individuals as long as

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

median income or 100% of the median income for the

United States, whichever is greater.

o “Socially Disadvantaged Individuals” are those

whose ability to purchase or own a home has been

impaired due to diminished access to credit on

reasonable terms as compared to others in

comparable economic circumstances, based on

disparities in homeownership rates in the HAF

participants jurisdiction as documented by the U.S.

Census. The impairment must stem from

circumstances beyond their control. Indicators of

impairment under this definition may include being

(1) member of a group that has been subjected to

racial or ethnic prejudice or cultural bias within

American society, (2) resident of a majority-

minority Census tract; ( 3) individual with limited

English proficiency; (4) resident of an Indian

reservation, or (5) individual who lives in a

persistent-poverty county, meaning any county

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

poverty over the past 30 years as measured by the

three most recent decennial censuses.” (Treasury

Guidance Dated 8/2/2021)

 All remaining funds not otherwise prioritized will be

available for other Eligible Homeowners.

Eligible Prope

rties

“Eligible Properties” are those that are:

• Single-family (attached or detached) properties

• Condominium units

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

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

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

the Emergency Rental Assistance Program, they may be ineligible

to receive funds under the HAF Program.]

• Manufactured homes permanently affixed to real property and

taxed as real estate

• Manufactured homes permanently affixed to real property that

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

insured by a title policy.

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

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

a title policy.

Ineligible properties are those that:

• Vacant or abandoned

• Mobile homes not permanently affixed to real property

• 2

homes

• Investment property

Eligible Uses of HAF

Reinstatement Program

Proceeds

“Eligible Uses of HAF Reinstatement Program Proceeds”:

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

number. This would include federally backed and privately funded

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

be reviewed on a case-by-case basis.

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

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

include any escrow shortages.

 Subordinate mortgage lien payment (P&I)

 Manufactured home loan monthly payment (principal, interest,

taxes, insurance, and HOA dues) to include escrow shortages.

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

loans).

 Homeowner’s association fees, condominium association fees or

common charges.

 For a homeowner that is concurrently going through loss

mitigation stemming from a coronavirus pandemic related

delinquency, HAF funds may be used for loss mitigation

measures intended to result in a permanently sustainable

monthly payment for borrowers that are unable to resume their

monthly mortgage payment that is reset due to investor offered

loss mitigation. Funds may be used to effect principal

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

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

and as otherwise appropriate to ensure such assistance, when

leveraged with other available loss mitigation options and

results in a sustainable monthly payment amount for the

borrower.

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

 Homeowner’s delinquent property taxes to prevent homeowner

tax foreclosure

 Homeowner delinquent utility payments. Funds may be used to

help homeowners resolve delinquent payments for utilities

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

due amount is deemed to be a barrier to the homeowner

resuming regular monthly mortgage payments, or if the

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

homeowner maintaining their home, being displaced, or creating

an unsafe or unsanitary environment.

 Counseling or educational efforts by housing counseling agencies

approved by HUD or a tribal government or legal services,

targeted to households eligible to be served with funding from

the HAF related to foreclosure prevention or displacement

 De Minimis lender-assessed fees

Maximum Per Household

HAF Assistance

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

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

Form of Assistance

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

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

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

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

forgivable after ten years.

Payout of HAF

Assistance/Payment

requirements

Idaho Housing and Finance Association will disburse HAF assistance

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

State Tax Commission, Hazard Insurance Provider, Homeowners’

Association/Condominium Association, or utility provider. Funds will not

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

Payments to lenders/servicers are only authorized to those

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

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

deed of trust and proof and legal ownership

Funds will not be issued to borrowers or any other parties

Idaho Housing and Finance Association will make no more than one

disbursement to each payee, per application.

Idaho Housing and Finance Association will disburse the amount quoted

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

hazard insurance provider, HOA or condominium association or utility

provider. Any discrepancies to be resolved by the homeowner.

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

Housing and Finance Association can provide, homeowner may pay the

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

of their limit.

HAF assistance will be prioritized to Eligible Uses of HAF Reinstatement

Program Proceeds as follows:

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

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

mortgage)

3) Condominium/homeowners’ association fees

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

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

funds are available not to exceed the Maximum Per Household HAF

Assistance.

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

they have not exceeded the maximum household amount and that

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

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

Program Launch

The application and intake process is designed

and will be operated in a

manner to avoid barriers to equitable access and allow flexibility,

particularly with regard to documentation requirements.

Homeowners will apply for assistance either through the online portal or

over the telephone.

Program Dur

ation

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

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

defined by US Treasury. HAF recipients shall not incur any

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

period of performance ends.

Idaho Housing and Finance Association plans to disburse all funds

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

or sooner as defined by the US Treasury.

Application Process

Idaho applicants will be able to

apply through an online portal and

by telephone with IHFA staff.

Required Application

Documents

 Idaho Homeowner Reinstatement Program Application

 Third Party Authorization (TPA) and Disclosure Form

 Signed acknowledgement that Idaho HAF assistance is in the

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

 Qualifying hardship attestation and supporting documentation

from homeowner certifying and identifying the eligible hardship

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

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

mortgage).

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

document, such as federal tax return

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

returns or alternative income documents as applicable.

 Homeowners’ association, condominium association or common

charges statements showing delinquent amount.

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

statement showing past due amounts

 Homeowner’s delinquent property tax bill if not escrowed

 Statement of current ability to resume regular monthly

payments after reinstatement and self attestation

 Past due utility bills, if applicable

 Photo Identification

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

not listed on monthly statement.

Eligibility Determination

Notes

IHFA staff summarizes their determination of the applicant’s eligibility

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

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

action taken.

Quality Control (QC)

Idaho Housing and Finance Association will ensure program integrity by

undertaking system- generated, random selection of case reviews after

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

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

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

of three cases weekly.

HAF Assistance

Approval

and Funds Disbursement

Reservations for assistance may not exceed the Maximum Per

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

summarize funding details based on applicant’s request and generally

prioritized as follows:

1) mortgage/housing payment reinstatement

2) property taxes and homeowner’s insurances

3) condominium /homeowners’ association fees

Funds will be paid, as applicable, to the mortgage servicer or other

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

authorized to collect eligible charges in accordance with reinstatement

instructions received from the payee. Payments may be made through

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

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

method accepted by the mortgage servicer or authorized payee.

Program Partner

Requirements

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

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

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

 Private lenders, including Land Contract payees to provide

written delinquency quote, contact information, and ACH

account information.

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

Program Leverage with

Other Financial Resources

Idaho Housing and Finance Association will undertake best effort

approach to leverage the assistance that might be available for

homeowners through other federal programs that have been created

expressly for that purpose before using HAF funds.

Program Exclusions

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

number, as determined on a case by case basis.

 Mortgages that are current at the time of application.

 Homeowners without a mortgage or that have a reverse

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

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

Guidelines)

Ineligible properties:

 Vacant or abandoned

 Mobile homes not permanently affixed to real property

 2

homes

 Investment property