BUSH ADMINISTRATION ANNOUNCES $43.7 MILLION IN HOUSING COUNSELING GRANTS FOR
LOW-INCOME FAMILIES
WASHINGTON - Nearly 910,000 individuals and families will have a greater opportunity
to find housing or keep the homes they have because of more than $36 million
in housing counseling grants announced today by Housing and Urban Development
Secretary Alphonso Jackson.
It is estimated these grants will assist more than 709,000 people to either
become first-time homeowners or remain homeowners after their purchase. The
grants were awarded to 18 national and regional organizations and approximately
340 state and local housing counseling agencies. These organizations will provide
counseling services and will help meet the Bush Administration's goal of increasing
minority homeownership by 5.5 million families by the end of the decade.
"HUD's Housing Counseling program plays a key role in support of the President's
goal," said Jackson. "Under this Administration, more families are
receiving counseling services than ever before and more families are purchasing
and keeping their homes. In addition, this program is also helping more families
find the help they need to secure decent and affordable rental housing."
The national and regional agencies distribute much of the HUD funding to community-based
grassroots organizations that provide advice and guidance to low- and moderate-income
families seeking to improve their housing conditions. In addition, these larger
organizations help improve the quality of housing counseling services and enhance
coordination among other counseling providers. Three of the 18 intermediaries
receiving grants this year are faith-based organizations.
Of the $36,014 million in housing counseling grants, $2.5 million is being
awarded specifically to combat predatory lending, including awards to five national
and regional intermediaries and 42 state and local organizations. Grantees will
assist unwary borrowers to avoid unreasonably high interest rates, inflated
appraisals, unaffordable repayment terms, and other conditions that can result
in a loss of equity, increased debt, default, and even foreclosure.
Additionally, $1.7 million is being awarded specifically for counseling in
conjunction with HUD's Section 8 Homeownership Voucher Program, which allows
low-income individuals to use rental vouchers to purchase homes. Awards under
this category are made to 5 national intermediaries and 34 state and local agencies.
These grant recipients will help program participants realistically evaluate
their readiness for a home purchase, understand their financing and down-payment
options, and navigate what can be an extremely confusing and difficult process.
This year, as part of its ongoing effort to improve housing counseling services,
HUD will also award a $7.75 million grant to the Neighborhood Reinvestment Corporation
(NRC) to standardize counseling services nationwide and provide training to
housing counselors working at HUD-approved housing counseling agencies. NRC
will conduct national, regional, and local training sessions for approximately
5,000 counselors on a broad array of housing topics. HUD's purpose in awarding
this grant is to expand the knowledge and skills of housing counselors and improve
the quality of counseling services offered by HUD-approved housing counseling
agencies. NRC is nationally recognized as a leader in the field of housing counseling
training and will bring an additional $8 million in leveraged funds to support
this counselor training effort.
The organizations that provide housing counseling services help people become
or remain homeowners or find rental housing. HUD-funded housing counseling agencies
also assist homeless persons to find the transitional housing they need to move
toward a permanent place to live.
HUD awards annual grants under the housing counseling program through a competitive
process. Organizations that apply for grants must be HUD-approved and are subject
to Biennial performance reviews to maintain their HUD-approved status.
HUD is the nation's housing agency committed to increasing homeownership, particularly
among minorities, creating affordable housing opportunities for low-income Americans,
and supporting the homeless, elderly, people with disabilities and people living
with AIDS. The Department also promotes economic and community development as
well as enforces the nation's fair housing laws. More information about HUD
and its programs is available on the Internet.
###
Note to editors: