FOR APPLICATION KITS, FURTHER INFORMATION AND TECHNICAL ASSISTANCE:

I. Authority; Purpose; Amount Allocated; and Eligibility.

(1) The counseling needs of first-time homebuyers by offering Homebuyer Education and Learning Program (HELP) training sessions;

(2) The counseling needs of eligible persons 62 or older who desire to use the Home Equity Conversion Mortgage (HECM) in order to convert their equity into a lump sum payment or an income stream that can be used for home improvements, medical costs, and/or pay living expenses.

(1) Amount Allocated. Under this SuperNOFA, $18 million is made available for eligible applicants for three (3) programs under Housing Counseling.

(a) The estimated amount of funds available for sub-allocation is as follows:

(i) Local Housing Counseling Agencies. Approximately $5 million has been made available for grants to local HUD-approved housing counseling agencies. Funding allocated to each of the HUD Homeownership Centers by a formula that reflects the increased emphasis on the expansion of homeownership opportunities for first-time homebuyers and its intent to ensure appropriate geographical distribution of program funds. For FY 1998, no individual local housing counseling agency may be awarded more than $100,000.

A local, HUD-approved housing counseling agency may apply for a sub-grant to a State housing finance agency, whether or not the local agency has a housing counseling grant from HUD. The local agency, however, shall disclose all funding sources to HUD.

Allocations for use in local agency programs by HUD Homeownership Center are estimated as follows:

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(ii) National, Regional, and Multi-State Intermediaries. Approximately $6 million is being set aside to fund HUD-approved national, regional and multi-state intermediaries that apply for funding under this SuperNOFA. No national, regional, or multi-state intermediaries may receive more than $1 million. No affiliate of an intermediary, as a sub-grantee, can be awarded a sub-grant more than $100,000. An affiliate may apply to a State housing finance agency for a sub-grant whether or not the affiliate received a sub-grant from a HUD-approved national, regional, or multi-state intermediary.

(iii) State Housing Finance Agencies. Approximately $7 million is being set aside to fund State housing finance agencies, that have a role as a housing counseling agency and/or as an intermediary to affiliates, offering housing counseling services. The amount of funding available to each of the four HUD Homeownership Center jurisdictions is as follows:

Homeownership Center	Funding Allocation
Atlanta, GA	$1,978,375.00
Denver, CO	$1,555,575.00
Philadelphia, PA	$2,051,875.00
Santa Ana, CA	$1,414,175.00

No State housing finance agency may receive more than $500,000, and no affiliate of a State housing finance agency, as a sub-grantee, can be awarded a sub-grant more than $100,000. A State housing finance agency may provide a sub-grant to local, HUD-approved housing counseling agencies, and to affiliates of national, regional, or multi-state intermediaries.

(iv) Remaining and Deobligated Funds/Reallocations. If funds remain after HUD has funded all approvable grant applications in its Homeownership Center jurisdictions, or Headquarters, or if any funds become available due to deobligation, that amount shall be reallocated and used in keeping with the statute and in a manner that will improve the delivery of housing counseling service nationwide.

(b) Funding Levels. The Factors for Award will be used to determine successful applicants for funding. HUD requires that successful applicants participate in negotiations to determine the specific grant amount and the terms of the grant agreement. HUD will follow the negotiation procedures described in Section III(D) of the General Section of the SuperNOFA.

(i) Local Housing Counseling Agencies. HUD will fund local housing counseling agencies according to the budget submitted with the application, in an amount not to exceed $100,000. Amounts requested by local housing counseling agencies should reflect anticipated operating needs for housing counseling activities, based upon counseling experience during the previous fiscal year and current agency capacity.

(ii) National, Regional, or Multi-State Intermediaries. The intermediaries will distribute the majority of funds awarded to their proposed local housing counseling affiliates. HUD will give the selected intermediaries wide discretion to implement the housing counseling program with their affiliates. The intermediary may decide how to allocate funding among its affiliates, and may determine funding levels at or below $100,000 for individual affiliates with the understanding that a written record will be kept of how this determination is made. This record shall be made available to the agencies affiliated with the intermediary and to HUD. Affiliates are not eligible for capacity building costs. Intermediaries should budget an amount which reflects their best estimate of cost to oversee and fund these housing counseling efforts, as well as, funding the needs of their affiliates.

(iii) State Housing Finance Agencies. HUD will fund State housing finance agencies according to the budget submitted with the application, in an amount not to exceed $500,000. State housing finance agencies have two roles. The agency can operate as a housing counseling agency and/or as an intermediary for affiliates that perform housing counseling functions in their respective States or territories.

(c) Capacity Building and Capacity Building Costs. In FY 1998, the following amounts of housing counseling grant funds may be used by each grantee for "capacity building" and/or upgrading "capacity building", as defined in this Housing Counseling Program section of the SuperNOFA (see capacity building costs in the application kit).

Local Housing Counseling Agencies - up to $4,000
National, Regional, or Multi-State
Intermediaries - up to $5,000
State Housing Finance Agencies - up to $5,000

(i) Capacity building costs are: purchasing computer equipment and housing counseling case management and tracking software capable of exporting the HUD-9902 data into a database file, such as Data Now; enhancing telephone service, such as purchasing telecommunications equipment for the hearing-impaired (TTY) to serve persons with hearing impairments (as an alternative to using the TTY relay service); installing FAX machines.

(ii) For local housing counseling agencies, intermediaries and state housing finance agencies that do not have an adequate computer systems, or need to upgrade computer equipment, HUD requires that up to $4,000 of the grant, for local housing counseling agencies, and up to $5,000 of the grant, for intermediaries and State housing finance agencies, be used to acquire items defined as capacity building costs. Affiliates of State housing finance agencies and intermediaries are not eligible for capacity building costs. Any equipment purchased must meet HUD specifications. Title to equipment acquired by a recipient with program funds shall vest in the recipient, subject to the provisions of 24 CFR part 84, subpart E. Computer training for one staff person may be paid from the capacity building cost set-aside, as may training on how to use a TTY.

(d) Use of Counseling Funds and Supplementing HUD Funding.

(i) Housing Counseling Role. Amounts requested by the State housing finance agency should reflect anticipated operating needs for housing counseling activities, based upon the counseling experience during FY 1997 and current agency capacity. To the maximum extent possible, State housing finance agencies must seek other private and public sources of funding to supplement HUD funding. HUD never intends for its counseling grant funds to cover all costs incurred by an agency participating in the program. State finance housing agencies may use the HUD grant to undertake any of the eligible counseling activities described in the Housing Counseling Program section of the SuperNOFA.

(ii) Intermediary Role. Amounts requested by the State housing finance agency should reflect their best estimates of costs to oversee and fund its housing counseling affiliates. In this intermediary role, the agency will distribute HUD funds to its affiliates. Note that HUD housing counseling funding is not intended to fully fund either the agency in its intermediary role or the housing counseling programs of their affiliates. To the maximum extent possible, the State housing finance agency and its affiliates are expected to seek other private and public sources of funding for housing counseling to supplement HUD funding.

(e) Program Award Period. Housing Counseling grants are fundable for a period of twelve (12) calendar months. This period may begin from the date that the award is executed by HUD, or not more than 90 days prior thereto.

(D) Eligible Applicants. Under the housing counseling program, HUD contracts with qualified public or private nonprofit organizations to provide the services authorized by the statute. Currently there are approximately 1250 HUD-approved local housing counseling agencies, including branch offices, and approximately 13 HUD-approved intermediary organizations. Annually, all HUD-approved agencies and intermediaries are eligible to apply for housing counseling grants. However, an agency or intermediary that is approved by HUD, or a state housing finance agency does not automatically receive HUD funding. HUD expects that all agencies, intermediaries and state housing finance agencies will continually work to develop other funding resources. In FY 1997, 350 HUD-approved local housing counseling agencies and 5 HUD-approved national, regional, and multi-state intermediaries received funding from HUD. For the first time, under this SuperNOFA, HUD is encouraging State housing finance agencies, that perform housing counseling functions either as a practitioner and/or as an intermediary to local or statewide housing counseling affiliates, to apply for funding.

(1) Three types of organizations are eligible to submit applications in accordance with this Housing Counseling Program section to this SuperNOFA:

(a) HUD-approved national, regional, or multi-state housing counseling organizations (also known as "intermediaries" or "umbrella groups");

(b) HUD-approved local housing counseling agencies; and,

(c) State housing finance agencies.

(2) National, regional, and multi-state intermediaries; and State housing finance agencies must identify all their proposed affiliates in their application. Note: National, regional, and multi-state intermediaries must assure that their proposed affiliates are unique to their team, and will not undertake a separate application for funds, either as an affiliate of another intermediary or State housing finance agency, or directly as a HUD-approved local housing counseling agency. Should any duplication occur, both the intermediary and the local housing counseling agency involved will automatically be ineligible for further consideration to receive FY 1998 housing counseling funds.

(a) An intermediary and State housing finance agency applicant must also assure that it will execute a sub-grant agreement with its affiliates that clearly delineates their mutual responsibilities for program management, and includes appropriate time frames for reporting results to HUD. Once funded, the national, regional, and multi-state intermediaries and state housing finance agencies will be given broad discretion in implementing their housing counseling programs.

(b) On behalf of HUD, the intermediaries and State housing finance agencies will act as managers in the housing counseling process, and as such, may determine funding levels and counseling activity for each of their affiliates, except that no single affiliate may receive more than $100,000. HUD will hold the intermediary and State housing finance agency accountable for the performance of its affiliates.

(c) Local housing counseling agencies may apply either directly to HUD for funding, or as a part of an affiliated intermediary or state housing finance agency network. Continuation of funding for housing counseling activities, as a separate and discrete program for FY 1999, and thereafter, is not guaranteed. Therefore, HUD encourages local housing counseling agencies to consider affiliating with a larger entity as one avenue of possible future funding and support for local programs.

(d) Local housing counseling agencies that are not currently HUD-approved, may receive FY 1998 funding only as an affiliate of a HUD-approved national, regional, or multi-state intermediary; or State housing finance agency. In this instance, the intermediary or State housing finance agency must certify that the quality of services provided will meet, or exceed, standards for local HUD-approved housing counseling agencies.

(E) Eligible Activities. Eligible activities will vary depending upon whether the applicant is a HUD-approved local housing counseling agency; a HUD-approved national, regional, or multi-state housing counseling intermediary, or affiliate; or, a State housing finance agency, or affiliate.

(1) Comprehensive Housing Counseling. Local Housing Counseling Agencies funded under this SuperNOFA may use HUD funds to deliver comprehensive housing counseling, or to specialize in the delivery of particular housing counseling services, according to the housing needs they identified for their target area in the plan that is part of its application. HUD recognizes that local housing counseling agencies may offer a wide range of services, including:

(a) Homebuyer Education Programs where HUD's Homebuyer Education and Learning Program (HELP) materials are used in sessions that consist of approximately sixteen (16) hours of training. Completion of the training may allow graduates to receive first-time homebuyer incentives, such as, the reduction in the FHA insurance premium. Marketing and Outreach personnel at each HUD Homeownership Center will be available to assist agencies in this endeavor.

(b) Pre-purchase Homeownership Counseling covering such issues as purchase procedures, mortgage financing, down payment/closing cost fund accumulation, accessibility requirements of the property, and if appropriate, credit improvement, and debt consolidation.

(c) Post-purchase Counseling including such issues as property maintenance, and personal money management.

(d) Mortgage delinquency and default resolution counseling including restructuring debt, arrangement of reinstatement plans, loan forbearance, and loss mitigation.

(e) Home Equity Conversion Mortgage (HECM) counseling that assist clients, who are 62 years old or older, with the complexities of converting the equity in their home to income that is used to pay living expenses or medical expenses.

(f) Loss Mitigation Counseling for clients who may be facing default and foreclosure, and need mortgage default resolution and foreclosure avoidance counseling.

(g) Outreach Initiatives including providing general information about housing opportunities within the community and providing appropriate information to persons with disabilities.

(h) Renter Assistance including information about rent subsidy programs, rights and responsibilities of tenants, and lease and rental agreements.

(2) Housing Counseling Clients. HUD-funded local housing counseling agencies may elect to offer their services to a wide range of clients, or may elect to serve a more limited audience, provided limitations do not violate the requirements of the Fair Housing Act. Potential clients include: first-time homebuyers, homebuyers and homeowners eligible for, and applying for, HUD, VA, FmHA (or its successor agency), State, local, or conventionally financed housing or housing assistance; or persons who occupy such housing and seek the assistance of a HUD-approved housing counseling agency to resolve a housing need. This includes accessible housing needs for persons with disabilities, renters, or, persons age 62 or older, who wish to convert the equity in their home to avoid default/foreclosure, pay medical expenses or create an income stream that can be used to pay living expense. Local housing counseling agencies may elect to offer this assistance in conjunction with any HUD housing program; however, they must be familiar with FHA's single family and multifamily housing programs.

(3) National, Regional, or Multi-State Counseling Intermediaries. The primary activity of HUD-approved national, regional, or multi-state intermediaries will be to manage the use of HUD housing counseling funds. This includes the distribution of housing counseling funding to affiliated local housing counseling agencies. Local affiliates of the selected national, regional, or multi-state intermediaries are eligible to undertake any or all of the housing counseling activities, described herein for the HUD-approved local housing counseling agencies. The local affiliates receiving funding through intermediaries do not need to be HUD-approved in order to receive these funds from the intermediary. However, the national, regional, or multi-state intermediary organization must be HUD-approved, as of this SuperNOFA publication date.

(4) State Housing Finance Agencies. The primary activity of State housing finance agencies will be to provide housing counseling services as a local housing counseling agency and/or manage the use of HUD housing counseling funds, including the distribution of counseling funding to its affiliated local housing counseling organizations. The State housing finance agency, and its local affiliates, are eligible to undertake any or all of the housing counseling activities, described herein, for the HUD-approved local housing counseling agencies. The State housing finance agencies, as either a housing counseling agency or intermediary, and it local affiliates do not need to be HUD-approved in order to receive these funds.

II. Program Requirements.

(1) It will not discriminate against any employee or applicant for employment under the program on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion;

(2) It will not discriminate against any person applying for counseling under the program on the basis of religion and will not limit such assistance or give preference to persons on the basis of religion; and

(3) It will provide no religious instruction or religious counseling, conduct no religious services or worship, engage in no religious proselytizing, and exert no other religious influence in the provision of assistance under the Housing Counseling Program.

III. Application Selection Process.

(1) HUD-approved housing counseling agency applicants within the HUD Homeownership Center's jurisdiction;

(2) HUD-approved national, regional, or multi-state intermediaries; and

(3) State housing finance agencies.

Intermediaries and State housing finance agencies, in their role as intermediary, will award sub-grants to affiliates.

(a) (10 points) The knowledge and experience of the proposed project director and staff, including the day-to-day program manager, consultants and contractors in planning and managing programs for which funding is being requested. Experience will be judged in terms of recent, relevant and successful experience of the applicant's staff to undertake eligible program activities. The applicant has sufficient personnel or will be able to quickly access qualified experts or professionals, to deliver the proposed activities in a timely and effective fashion, including the readiness and ability of the applicant to immediately begin the proposed work program. To demonstrate that the applicant has sufficient personnel, the applicant must submit the proposed number of staff years by the employees and experts to be allocated to the project, the titles and relevant professional background and experience of each employee and expert proposed to be assigned to the project, and the roles to be performed by each identified employee and expert.

(b) (10 points) The applicant's past experience in terms of its ability to attain demonstrated measurable progress in the implementation of its most recent activities where performance has been assessed as measured by expenditures and measurable progress in achieving the purpose of the activities. HUD will also consider any documented evidence of the grantee's failure under past awards to comply with grant award provisions.

(1) The extent to which the proposed design and scope of the activities provide for geographic coverage for target areas as well as persons traditionally underserved, including identification of immediate benefits to be achieved and indicators by which these benefits will be measured;

(2) The extent to which the applicant has a clear agenda of the work activities to be performed;

(3) Proposed tasks that use technically competent methodologies that have been documented for conducting the work to be performed. HUD will make an evaluation of the applicant's soundness of approach by assessing the extent to which the proposed work plan identifies documented methodologies for the types of services to be performed.

(4) Relationship between the proposed activities, community needs and the purpose of the program funding.

(5) Affirmatively furthering fair housing may be undertaken in a variety of ways, as appropriate to the community. Making counseling offices and services accessible to persons with a wide range of disabilities and helping such persons to locate suitable housing in locations throughout the metropolitan or community area are suggested for both national, regional, or multi-state housing counseling organization, as well as for local counseling agencies. The following are additional suggestions:
(a) For National, Regional, or Multi-State Intermediaries and State Housing Finance Agencies.

(i) Implement affirmative marketing strategies to attract all segments of the population listed as prohibited bases in the Fair Housing Act, who are least likely to apply for housing counseling to purchase or retain their homes.

(ii) Taking actions to reduce concentrations of poverty and/or minority populations. This could include working with, or adopting the counseling practices of, agencies which conduct opportunity counseling to encourage low-income and minority persons to move to low-concentration areas and helping to locate suitable housing in such areas. It could also include working with local lenders to develop alternative lending criteria: For instance, the counseling agency may make referrals to the lenders of clients with good credit and payment histories, but who do not fit the standard profiles for lending practices or of clients with financial patterns which reflect cultural differences (such as family savings pools common among some Asian populations). Such activity should also focus on finding appropriate housing, free from environmental hazards, for all segments of the population in neighborhoods with good transportation, schools, employment opportunities, and other services.

(b) For Local Housing Counseling Agencies. Participate in local fair housing strategies with major emphasis on remedying the effects of past discrimination and limitations in the community. This could include: working with CPD Entitlement Jurisdictions to help to identify impediments to fair housing choice which have been identified in the process of working with clients; becoming familiar with the jurisdiction's identified impediments and adjusting its counseling activities to help overcome these impediments; and/or working with other public and private resources to develop fair housing strategies applicable to the counseling activities, on a community-wide or metropolitan-wide basis. HUD also will evaluate the extent to which the proposed work plan contains community awareness, education and outreach programs.

(1) The extent to which the applicant has partnered with other entities to secure additional resources to increase the effectiveness of the proposed program activities. Resources may include funding or in-kind contributions, such as services or equipment, allocated to the purpose(s) of the award the applicant is seeking. Resources may be provided by governmental entities, public or private nonprofit organizations, for-profit private organizations, or other entities willing to partner with the applicant. Applicants may also partner with other program funding recipients to coordinate the use of resources in the target area.

(2) Applicants must provide evidence of leveraging/partnerships by including in the application letters of firm commitments, memoranda of understanding, or agreements to participate from those entities identified as partners in the application. Each letter of commitment, memoranda of understanding, or agreement to participate should include the organization's name, proposed level of commitment and responsibilities as they relate to the proposed program. The commitment must also be signed by an official of the organization legally able to make commitments on behalf of the organization.

(1) Coordinated its proposed activities with those of other groups or organizations prior to submission in order to best complement, support and coordinate all known activities and if funded, the specific steps it will take to share information on solutions and outcomes with others. Any written agreements or memoranda of understanding in place should be described.

(2) Taken or will take specific steps to become active in the community's Consolidated Planning process (including the Analysis of Impediments to Fair Housing Choice) established to identify and address a need/problem that is related to the activities the applicant proposes.

(3) Taken or will take specific steps to develop linkages to coordinate comprehensive solutions through meetings, information networks, planning processes or other mechanisms with:
(a) Other HUD-funded projects/activities outside the scope of those covered by the Consolidated Plan; and

(b) Other Federal, State or locally funded activities, including those proposed or on-going in the community(s) served.

IV. Application Submission Requirements.

(1) Form HUD-9902, Housing Counseling Agency Fiscal Year Activity Report, for fiscal year October 1, 1996 through September 30, 1997. Where an applicant did not participate in HUD's Housing Counseling Program during FY 1997, this report should be completed to reflect the agency's counseling workload during that period. This form must be fully completed and submitted by every applicant for FY 1998 HUD funding;

(2) Computer Equipment Inventory (if applicable);

(3) Budget Work Sheet. A realistic, proposed budget for use of HUD funds, if awarded. This should be broken down into two categories (i) direct housing counseling costs and (ii) capacity building costs:

(4) Exhibits for national, regional, multi-state, or agencies and State housing finance agencies as described in (2)(a)-(2)(c) below and in the application kit;

(5) Evidence of Housing Counseling Funding Sources (required by all applicants);

(6) Descriptive Narrative - Each applicant is to provide a descriptive narrative that sets forth the prior fiscal year's performance as related to its goals, objectives and mission. The narrative describes the most recent operational and program activities of the organization;

(7) Current Housing Counseling Plan. The plan describes the applicant's housing counseling needs, goals, and objectives as related to the scope of services it will provide, including a description of counseling activities to be performed.

(8) A description of organization capability;

(9) Direct-labor and Hourly-labor rate and Counseling Time Per Client;

(10) Congressional District Information;

(11) State housing finance agencies must submit their statutory background that created the respective agency, and sets forth its authorities to operate as a State housing finance agency.

(B) National, Regional, and Multi-State Intermediaries; and State Housing Finance Agencies. National, regional, and multi-state intermediaries; and, State housing finance agencies; must submit an application which covers both their network organization and their affiliated agencies. This application must include:
(1) Description of affiliated agencies. For each, list the following information:

(a) Organization name;

(b) Address;

(c) Director and contact person (if different);

(d) Phone/FAX numbers (including TTY, if appropriate);

(e) Federal tax identification number;

(f) ZIP code service areas;

(g) Number of staff providing counseling;

(h) Type of services offered (defined by homebuyer education programs, pre-purchase counseling, post-purchase counseling, mortgage default and delinquency counseling, HECM counseling, outreach initiatives, renter assistance, and other);

(i) Number of years of housing counseling experience.

(2) Relationship with Affiliates. Briefly describe the intermediary's, or State housing finance agency's, relationship with affiliates (i.e. membership organization, field or branch offices, subsidiary organizations, etc.).

(3) Oversight System. Describe the process that will be used for determining affiliate funding levels, distributing funds, and monitoring affiliate performance.

V. Corrections to Deficient Applications.

VI. Environmental Requirements.

Return to the 1998 Funds Available