HUD Archives: News Releases

Kristine Foye
(617) 994-8218
For Release
October 14, 2009

Funding, part of $60 million awarded nationwide, is critical to preventing foreclosures

Massachusetts 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 $4,569,169 in housing counseling grants announced today by the U.S. Department of Housing and Urban Development (see attached list
for grant amounts in Massachusetts)

"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 Donovan. "This critical funding will help counseling organizations continue to assist families in making more informed choices before they buy a home and counsel families facing foreclosure."

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 offe
r 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 (including three in Massachusetts), five 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.


Housing Counseling Grants Awarded in Massachusetts

National Organizations in Massachusetts
Boston Citizens' Housing and Planning Association, Inc.
Boston Housing Partnership Network
Jamaica Plain NACA (Neighborhood Assistance Corporation of America)

Local Agencies in Massachusetts
Boston Greater Boston Legal Services
Boston Greater Boston Legal Services
Chelsea Chelsea Restoration Corporation
Chelsea Chelsea Restoration Corporation
Gardner RCAP Solutions, Inc.
Pittsfield Berkshire County Regional Housing Authority-H
Plymouth Plymouth Redevelopment Authority
Plymouth Plymouth Redevelopment Authority
Quincy Quincy Community Action Programs, Inc.
Quincy Quincy Community Action Programs, Inc.
Stoneham Community Service Network, Inc.
Taunton Pro-Home, Inc.
Taunton Pro-Home, Inc.

* Detailed individual grant summaries are available on the HUD website.


Content Archived: June 27, 2011