HUD Release 09-0032
October 14, 2009
HUD AWARDS $44,472 HOUSING COUNSELING GRANT TO HOUSING AND CREDIT COUNSELING, INC. IN TOPEKA
Kansas grant part of $60 million in HUD funding critical to prevent foreclosure
KANSAS CITY, KS - Kansas 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 a $44,472 housing counseling grant announced today by the U.S. Department of Housing and Urban Development. The grant was awarded to Housing and Credit Counseling, Inc. (HCCI) in Topeka, Kansas.
HCCI has been approved as a HUD housing counseling agency since 1978. The agency has grown from its start in 1972 as a small tenant advocacy organization to a comprehensive housing and credit counseling agency with a $1.4 million operating budget in Fiscal Year 2008. HCCI provides both one-on-one sessions and educational classes in a
19-county service area in northeast Kansas and also provides one-on-one service by telephone and email statewide through offices in Topeka, Lawrence, Manhattan, and Emporia.
"Now, more than ever, it is crucial that Americans understand how to manage their money, navigate the homebuying process, and secure their financial future." said HUD Secretary Shaun Donovan. "This critical funding will help
Housing and Credit Counseling, Inc. continue to assist families in Kansas to make more informed choices before they buy a home and counsel families facing foreclosure."
Housing counseling grants 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.
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.