HUD
No. 03-025 Alan Gelfand (973) 622-7900 ext. 3105 |
For
Release Thursday November 13, 2003 |
BUSH ADMINISTRATION ANNOUNCES MORE THAN $37 MILLION IN GRANTS TO PROMOTE HOMEOWNERSHIP AND HOUSING FOR LOW-INCOME FAMILIES
In New Jersey, 14 Grantees Receive Over $500,000
NEWARK - Nearly 730,000 individuals and families nationwide
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. In New Jersey, 14 local agencies received a total
of $539,197.
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.
###
Note to editors:A breakdown of New Jersey grant recipients follows.Note: The following key corresponds to grant type:
CC= Comprehensive Housing Counseling
PL = Predatory Lending
S8 = Counseling in Conjunction with HUD's Section 8 Homeownership
Voucher Program
CO = Colonias
STATE AND LOCAL HOUSING COUNSELING GRANTEES |
|||
NEW
JERSEY City |
Housing
Counseling Agency |
Awarded |
Type |
Burlington | BURLINGTON COUNTY COMMUNITY ACTION PROGRAM | $40,400
|
CC |
Camden City | JERSEY COUNSELING & HOUSING DEVELOPMENT INC. | $36,000
|
CC |
Cape May | CONSUMER CREDIT & BUDGET COUNSELING, INC. | $33,336
|
CC |
Dover | HOUSING PARTNERSHIP FOR MORRIS COUNTY, INC. | $35,000
|
CC |
Freehold | GARDEN STATE CONSUMER CREDIT COUNSELING, INC. | $20,197
|
CC |
Freehold | MONMOUTH COUNTY BOARD OF CHOSEN FREEHOLDERS | $25,107
|
CC |
Hackensack | CITIZEN ACTION OF NEW JERSEY | $36,740
|
S8 |
Hackensack | CITIZEN ACTION OF NEW JERSEY | $40,000
|
PL |
Hackensack | CITIZEN ACTION OF NEW JERSEY | $49,838
|
CC |
Hackensack | FAIR HOUSING COUNCIL OF NORTHERN NEW JERSEY | $35,169
|
CC |
Millville | AFFORDABLE HOMES OF MILLVILLE ECUMENICAL (AHOME), INC. | $26,001
|
CC |
Mt. Ephraim | SENIOR CITIZENS UNITED COMMUNITY SERVICES OF CC, INC | $15,000
|
CC |
Newark | ST. JAMES COMMUNITY DEVELOPMENT CORPORATION | $15,000
|
CC |
Paterson | HOUSING AUTHORITY OF THE CITY OF PATERSON | $36,740
|
S8 |
Paterson | HOUSING AUTHORITY OF THE CITY OF PATERSON | $29,669
|
CC |
Somerville | SOMERSET COUNTY COALITION ON AFFORDABLE HOUSING | $45,000
|
CC |
Trenton | ISLES, INC. | $20,000
|
CC |
State
Total: |
$539,197
|