Housing Counseling
Program Description

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Summary:
This program provides counseling to consumers on seeking, financing, maintaining, renting, or owning a home.

Purpose:
The Housing Counseling Assistance Program enables anyone who wants to (or already does) rent or own housing-whether through a HUD program, a Veterans Affairs program, other Federal programs, a State or local program, or the regular private market-to get the counseling they need to make their rent or mortgage payments and to be a responsible tenant or owner in other ways. The counseling is provided by HUD-approved housing counseling agencies.

Three strategic goals undergird the programs: (1) to improve the quality of renter and homeowner education, (2) to develop a reliable stream of funding and resources for counseling agencies, and (3) to enhance coordination among local housing providers. HUD intends that these strategies together will create a new expectation among mortgage lenders and insurers, homebuilders, real estate brokers, nonprofit organizations, and government agencies: to make counseling an integral part of services for potential renters and homebuyers.

Type of Assistance:
HUD awards grants to HUD-approved Housing Counseling Agencies and State Housing Finance Agencies through a competitive process.

Eligible Grantees:
Only HUD-approved housing counseling agencies and State Housing Finance Agencies are eligible to apply for Housing Counseling grants. To become HUD-approved, an agency must contact the nearest FHA Homeownership Center to confer about the agency's eligibility and submit an application for approval. A national intermediary must submit an application to HUD's Headquarters. Grantees must file quarterly invoices, mid-term performance reports, and a final report. The Homeownership Center reviews the performance of each agency every 2 years to decide whether the agency can keep its HUD approved status.

Eligible Customers:
Individuals, families, or groups who are tenants, homeowners, or homebuyers , may receive counseling from HUD-approved and HUD funded housing counseling agencies.

Eligible Activities:
The Housing Counseling Assistance Program mandates three things: (1) When a lender is first contacted by a potential renter or homebuyer, the lender must provide a list of HUD approved housing counseling agencies; (2) the counselor-who has been chosen by the renter or homebuyer (the client)-must provide HUD-specified information for the particular program that the client is interested in; and (3) for some HUD programs, the HUD-approved counseling agency must give the client a certificate verifying that counseling has been completed. The counselor follows seven steps: -- Interview the client confidentially to learn basic information about the client and her or his housing need or problem. -- Identify resources (within the counseling agency, the client's community, or HUD) that might help meet the need or resolve the problem. -- Design a counseling plan for the client. -- Explain the plan to the client and obtains the client's consent for the counselor to carry out the plan, including the actions the client must take. -- Refer the client to other resources within the community and assist the client in making appointments. -- Recommend additional private or group counseling sessions conducted by the agency or other community resources. -- Monitor the client's progress toward meeting the need or resolving the problem. The program also offers loss mitigation counseling.

Application:
Applicants for grants from this program must be HUD-approved counseling agencies. HUD publishes it's Housing Counseling Notice Of Funding Availability (NOFA) in the Federal Register and on its website. To apply, the agency must use the Grants.gov electronic application system. HUD evaluates applications and issues grant agreements to successful applicants. Applicants may appeal a grant denial or amount to HUD.

Funding Status:
HUD pays only part of the costs of an agency's counseling activities, so grantees need to leverage their HUD grant with funding from other resources.

Technical Guidance:
This program is authorized by Section 106 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701x). No program regulations have been issued; the program is guided by the Housing Counseling Program Handbook (HUD Handbook No. 7610.1. The program is administered by HUD's Office of Housing-Federal Housing Administration.

For More Information:
A searchable list of HUD-approved housing counseling agencies can be found on the Internet or by calling (800) 569-4287. The rationale for the counseling program is described in The National Homeownership Strategy: Partners in the American Dream, Chapter 7, "Homeownership Education and Counseling," which is available from HUD USER.