HUD Archives: News Releases

Krista Mills
(502) 582-6163 ext. 203
For Release
November 13, 2003

An estimated 730,000 individuals and families to benefit from housing counseling


LOUISVILLE - Nearly 730,000 individuals and families will have a greater opportunity to find housing or keep the
homes they have because of more than $37 million in housing counseling grants announced today by Housing and Urban Development Secretary Mel Martinez. Kentucky receives $292,072. See attached chart for Kentucky grant recipients.

It is estimated these grants will assist more than 430,000 people to either become first-time homeowners or remain homeowners after their purchase. The grants were awarded to 17 national and regional organizations and approximately 350 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.

"These housing counseling grants are an important part of this Administration's goal to expand homeownership opportunities, particularly for minorities,"said Martinez. "President Bush and I are committed to opening the doors to the American Dream to more American families."

The 17 national and regional agencies distribute much of the HUD funding to community-based grassroots organizations that provide free 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. Notably, 3 of the 17 intermediaries are faith-based, including 2 that are first time housing counseling grant recipients.

Of the $37.561 million in grants, $2.7 million is being awarded specifically to combat predatory lending, including awards to 4 national and regional intermediaries and 34 state and local organizations. Grantees will assist unwary borrowers in avoiding 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, $2 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 4 national intermediaries and 35 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 risky process.

President Bush is proposing to increase HUD's Housing Counseling grant program to $45 million next year - a 12.5 percent increase. The organizations that provide counseling services help people become or remain homeowners or find rental housing. In addition, HUD-funded housing counseling agencies assist homeless persons to find the transitional housing they need to move toward a permanent place to live.

Who benefits from housing counseling?

Based on past experience, HUD anticipates the counseling grants announced today will enable approximately
257,000 would-be homeowners to learn how to improve their credit, strengthen money management skills and avoid predatory lenders and other unscrupulous practices. Another 175,000 existing homeowners will learn how to avoid delinquency and default, restructure debt and maintain their home. In addition, nearly 213,000 individuals and
families who will receive HUD-funded counseling are renters. Counseling services will help them find housing closer to their jobs or health care as well as teach them about tenant rights. Finally, an estimated 16,000 homeless individuals and families will learn how to find emergency services and secure transitional housing.

HUD awards annual grants under this program through a competitive process. Organizations that apply for grants
must be HUD-approved and are subject to biannual 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, 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.


Kentucky Housing Counseling Grants

Kentucky Housing Corporation
Frankfort, KY
$150,000 - Comprehensive Counseling
Kentucky Housing Corporation (KHC) is a State Housing Finance Agency that assists low to moderate-income
families to become credit-ready and help them understand the process and the responsibilities of homeownership.
KHC Housing Program provides Pre-Purchase Counseling, Post-Purchase/Mortgage Delinquency Counseling, Home
Buyer Education, Post-Purchase Education, and Predatory Lending Classes. KHC partners with local communities to educate first-time homebuyers through the Yes You Can…Own a Home Program (YYC). Presently, there are 94 approved counselors, representing 43 agencies that provide counseling services. In addition to housing counseling programs, there are 65 local coordinators, representing 49 agencies to provide homebuyer education classes. KHC serves the underserved areas throughout the 120 counties in Kentucky, specifically targeting very low-to-low
income families, persons with disabilities, minorities and families with limited English proficiency.

Tenant Services & Housing Counseling, Inc.
Lexington, KY
$30,000 - Comprehensive Counseling
Tenant Services & Housing Counseling (TSHC) is a private, nonprofit charitable organization operating as a housing crisis center since 1971. The goal of the agency is to provide counseling, referral information and advocacy for low and moderate-income families. The Agency focuses on families who are experiencing a range of housing problems encompassing the issues of quality, affordability, legality and discrimination. TSHC has been a HUD-certified housing counseling agency since January 1989. The current staff has a combined sixty-six (66) years experience with the organization and are certified to provide counseling services in the program areas of mortgage defaults,
pre-purchase, home equity conversion mortgage, tenant-landlord, and homebuyer education seminars. As of September 30, 2002, TSHC had successfully counseled 1,716 clients resulting in 38 clients purchasing housing.

Realtor-Community Housing Foundation
Lexington, KY
$20,000 - Comprehensive Counseling
Realtor-Community Housing Foundation (RCHF) provides pre-purchase, mortgage default, post-occupancy and HECM counseling. RCHF's primary geographical service area is Fayette, Bourbon, Clark, Jessamine, Madison, Scott and Woodford counties. In addition to one-on-one counseling, the agency also provides homeownership seminars. In addition to their housing counseling activities, RCHF provides a program that makes exterior home repairs at no cost to low-income senior homeowners and constructs at no cost to recipients, wheelchair ramps or makes other necessary exterior home modifications for individuals who have mobility impairments.

Lexington, KY
$48,147 - Comprehensive Counseling
REACH provided housing counseling to 217 clients, which fifty-seven clients purchased homes, and six modified their mortgages. Seventy-nine clients decided not to purchase a home. REACH was able to meet its performance goals by increasing the number of clients who completed counseling by 10 percent, increasing the number of clients who remain active in counseling by 15 percent, and offering post-purchase counseling to clients who purchase homes.
The agency provides housing counseling for 11 counties. REACH provides low to moderate-income families and individuals with the knowledge and skills needed to become financially self-sufficient. The agency also provides
credit repair, pre and post counseling, house financing, and home maintenance.

Campbellsville Housing and Redevelopment Authority
Campbellsville, KY
$18,980 - Comprehensive Counseling
The Campbellsville Housing and Redevelopment Authority provides Home Buyer Education Programs, Pre-purchase, Post-purchase, HECM, and Tenancy counseling. The agency counseled 124 clients in fiscal year 2002. The Campbellsville Housing and Redevelopment Authority also became the managing agent for the Lebanon Housing Authority in 1998. Campbellsville Housing and Redevelopment Authority goals are to increase homeownership opportunities, promote decent affordable housing, strengthen communities, ensure equal opportunity in housing,
and promote the participation of grass-roots faith- based and other community based organizations.

Purchase Area Housing Corporation
Mayfield, KY
$24,945 - Comprehensive Counseling
Purchase Area Housing Corporation (PAHC) provides housing counseling for low to moderate income persons, which includes pre-occupancy, mortgage default, HECM, home rehabilitation, and homelessness. They serve Ballard, Calloway, Carlisle, Fulton, Graves, Hickman, Marshall, and McCracken counties. PAHC counseled 146 clients in fiscal year 2002. Plans are on going in Calloway County, KY to expand the availability of a transitional home which will aid those in need of temporary housing until more permanent housing can be obtained. PAHC is currently administering a Supportive Housing Grant. They have enrolled over 300 participants per year and each year exceeds the previous year. PAHC staff works with several cities and counties in the administration of CDBG, HOME, and Rural Housing Service Programs.


Content Archived: March 11, 2011