HUD AWARDS $618,000 IN HOUSING COUNSELING GRANTS TO 16 HOUSING COUNSELING ORGANIZATIONS IN COLORADO
Colorado grants part of $60 million in HUD funding critical to prevent foreclosure

DENVER - Colorado families facing foreclosure, seeking affordable rental housing, or hoping to buy their first home
will have a greater opportunity to find housing, or keep the homes they have, because of nearly $618,000 in housing counseling grants announced today by the U.S. Department of Housing and Urban Development (see attached list).

HUD Deputy Secretary Ron Sims made the announcement during an address before the 21st annual conference of Housing Colorado in Breckenridge.

"It is so important that families have a better understanding of how to manage their financial futures, whether
they're buying a first home or struggling to avoid foreclosure." said Sims. "The grants we announce today will help counseling organizations in Colorado to continue helping families find affordable housing or stay in the homes they have."

Housing counseling grants will assist families in becoming first-time homeowners and remaining homeowners after
their purchase. HUD-approved counseling agencies not only provide homeownership counseling, but also offer
financial literacy training to renters and homeless individuals and families.

The funding announced today is part of $60 million in housing counseling grants awarded nationwide. These grants
will support the direct provision of housing counseling services by 24 national and regional organizations, 5 multi-
state organizations, and 463 state and local housing counseling agencies. In addition, HUD is awarding $5 million
to three national organizations to train approximately 4,400 counselors who will receive the instruction and certification necessary to effectively assist families with their housing needs.

National and regional agencies distribute much of HUD's housing counseling grant 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.

Counseling agencies will use $8 million to help assist senior citizens seeking reverse mortgages or Home Equity Conversion Mortgages (HECM). These agencies will provide counseling for the rapidly growing number of elderly homeowners who seek to convert equity in their homes into income that can be used to pay for home
improvements, medical costs, and other living expenses.

The organizations that provide housing counseling services help people become or remain homeowners or find rental housing, and assist homeless persons in finding the transitional housing they need to move toward a permanent
place to live. Grant recipients also help homebuyers and homeowners realistically evaluate their readiness for a
home purchase, understand their financing and downpayment options, and navigate what can be an extremely confusing and difficult process.

In addition, grantees help combat predatory lending by helping unwary borrowers review their loan documentation, and 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. Likewise, foreclosure prevention counseling helps homeowners facing delinquency or default employ strategies, including expense reduction, negotiation with lenders and loan servicers, and loss mitigation, to avoid foreclosure. With foreclosures at critical levels nationwide, these services are more important than ever.

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.

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HUD is the nation's housing agency committed to sustaining homeownership; 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 and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.