HUD Awards Extra Funding to Housing Counselors

Secretary of Housing and UrbanrnDevelopment (HUD) Secretary Shaun Donovan has announced the award of $73rnmillion in housing counseling grants to more than 500 national, regional, andrnlocal organizations.  The grants representrnan increase of $13 million or 22 percent over last year’s funding.  According to HUD, the funds will permitrnhundreds of thousands of households a greater opportunity to find housing orrnkeep their existing homes.  </p

Donovan pronounced thernHUD-approved counseling agencies a critical part of the nation’s housingrnrecovery.  “These organizations are on the frontrnlines of helping families who are desperate to remain in their homes,” he said.rn “Now, more than ever, it’s crucialrnthat we support these agencies that are working with struggling families on arnone-to-one basis to manage their money, navigate the homebuying process, andrnsecure their financial futures.”</p

HUD-approved counselingrnagencies assist families in becoming and remaining homeowners throughrnhomeownership counseling and financial literacy training.  Renters and homeless individuals as well asrnpotential and actual homeowners are eligible for the counseling.</p

In addition to the $68rnmillion designated for direct provision of counseling services to low-andrnmoderate- income families, this year $5 million is earmarked for trainingrnapproximately 4,500 counselors. rnCounseling agencies will use $9.5 million of the funds to assist seniorrncitizens seeking reverse mortgages which allow the elderly to convert thernequity in their homes into income.  </p

Counseling helps peoplernbecome or remain homeowners or find rental housing, and assist homeless personsrnin finding the transitional housing they need to move toward a permanent placernto live. It also helps individuals realistically evaluate their readiness for arnhome purchase, understand their financing and down payment options, andrnnavigate what can be an extremely confusing and difficult process.  Grantees also help combat predatory lendingrnby assisting borrowers in reviewing loan documentation, and avoiding potentialrnmortgage scams, unreasonable interest rates or repayment terms, and participaternin foreclosure prevention programs. </p

HUD awards annual grantsrnunder the housing counseling program through a competitive process.rnOrganizations that apply for grants must be HUD-approved and are subject tornperformance reviews to maintain their HUD-approved status.  A complete list of grantees and awards can bernviewed HERE

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