HUD Archives: News Releases

Dale Gray
(913) 551-5542

For Release
October 8, 2008

HUD funding critical to foreclosure prevention

KANSAS CITY, KS - Hundreds of American families in Kansas will have a greater opportunity to find housing or keep the homes they have because of $97,283.02 in housing counseling grants to two agencies in Kansas announced earlier this week by U.S. Housing and Urban Development Secretary Steve Preston. The funding is part of $50 million awarded to nearly 400 national, state and local agencies across the country.

The Consumer Credit Counseling Service, Inc., Salina, Kansas is receiving $23,369.59 to offer counseling services
that include delinquent mortgage/rent, reverse mortgages, pre-purchase, pre-rental and post-purchase housing counseling. The agency also provides financial education programs for individuals and families who are struggling financially. In addition, the financial education programs are offered to schools, businesses and service providers.
The agency is a nonprofit community service organization established in 1985. It has offices in Salina, Wichita,
Hays, Garden City and Hutchinson and serves all of Central and Western Kansas.

Housing and Credit Counseling, Inc., Topeka, Kansas is receiving $73,913.43 to provide both one-on-one counseling sessions and educational classes in a 19-county service area in northeast Kansas. Counseling services offered
include homeownership (pre-purchase, purchase and home maintenance); consumer credit (post-purchase,
mortgage default, and reverse mortgage); promoting decent, affordable housing (locating, securing and maintaining rental housing); ensuring equal opportunity in housing (programs for homeless individuals and persons with
disabilities); strengthening communities with programs addressing all aspects of budgeting and credit building. The agency has offices in Topeka, Lawrence, Manhattan and Emporia. It has been a HUD certified Comprehensive Counseling Agency since 1978.

"These critical counseling grants not only help put people into homes, but they help keep them there as well," said Preston. "Housing counseling organizations in Kansas and across the nation will continue to help families make more informed choices before they purchase a home, and they will counsel families facing foreclosure. Now, more than
ever, it is critical that Americans better understand how to manage their money, navigate the home buying process, and secure their financial future."

Since 2001, HUD has increased funding to 2,300 approved housing counseling agencies by 150 percent. More than
$47 million will support 21 national and regional organizations and 376 state and local housing counseling agencies.
In addition, HUD is awarding $3 million to two national organizations to train approximately 2,600 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 $4 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 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 on the rise 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.


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, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet


Content Archived: March 15, 2011