It cofunds the work on HiveTips, HivePatron and MyAltWallet, covering the coders hrs, severs and domain names.
As per the current Pre-HF proposal (above) you are 100% correct. All line items are paid for prior to them being paid from the DHF.
Note: Financially speaking, with the accountability, the auditing and transparency of all financial dealing to date, along with the fact that payments are only "after the fact" and not "in advance", this proposal is what we could classify as 100% trustless.