HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

Housing and Urban Development Act of 1968, as amended.

OBJECTIVES:

To counsel homeowners, homebuyers, prospective renters and tenants under HUD programs, and conventional and other government programs in improving their housing conditions and in meeting the responsibilities of tenancy and homeownership.

TYPES OF ASSISTANCE:

Project Grants.

USES AND USE RESTRICTIONS:

To provide housing counseling grants to HUD-approved housing counseling agencies; to HUD-approved national, regional, and multi-State intermediaries; and to State housing finance agencies. Grants provide housing counseling services for single family home buying, homeownership, mortgage default, rental, and rental delinquency under HUD and other programs.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   An applicant for a housing counseling grant must (1) Be a HUD-approved housing counseling agency in a HUD-approved national, regional, or multi-state intermediary or a State housing finance agency; (2) Submit an application under a Notice of Funding Availability (NOFA) for a counseling grant; and (3) Provide various written assurances and related documentation as part of the application to be selected for a housing counseling grant.

Beneficiary Eligibility:   An individual, group of individuals, and a family who are tenants, homeowners, and home buyers under HUD and other programs.

Credentials/Documentation:   To become a HUD-approved housing counseling agency, applicant must (1) Meet the requirements of the Housing Counseling Handbook 7610.1 as revised; (2) Contact the nearest HUD Homeownership Center or HUD Headquarters and confer on the eligibility requirements for becoming HUD-approved; and (3) Obtain an application to become HUD-approved and complete and return it to the HUD Homeownership Center of HUD Headquarters which has jurisdiction and approves or disapproves the application.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   The HUD Super NOFA Information Center will obtain a list of HUD-approved housing counseling organizations from HUD's Housing Counseling Clearinghouse and will forward application kits for housing counseling grants to the HUD-approved housing counseling agencies; to the HUD-approved national, regional and multi-state intermediaries; and to the State housing finance agencies. These organizations must meet the requirements contained in the application for a housing counseling grant: 1. The application must reach HUD on or prior to the final date and time for receipt of applications; 2. The applicant or its affiliates and/or brands must have an ongoing housing counseling program; and 3. The applicant must be capable of starting counseling on the effective date of the grant award. The applicant must use Standard Form 424, Application for Federal Assistance, and other forms or formats furnished by HUD and required by OMB Circular No. A-102. This program is exempt from E.O. 12372, "Intergovernmental Review of Federal Programs". Because agencies approved by HUD are nonprofit or public organizations, the housing counseling application process for grants is exempt from State review.

Application Procedure:   The applications for housing counseling grants will be reviewed and evaluated by HUD. Selections for grant awards will be based on written assurances, related documentation, and funds requested and funds used and other criteria that determine the grant amounts. This program is subject to the provisions of OMB Circular No. A-110. The standard applications forms as furnished by the Federal agency and required by OMB Circular No. A-102 must be used for this program.

Award Procedure:   Grants are awarded competitively by HUD. Grant agreements are issued by HUD to the successful applicants.

Deadlines:   Due dates and times for the receipt of applications for housing counseling grants are specified in the application.

Range of Approval/Disapproval Time:   Fiscal Year 2000 funds are available until obligated.

Appeals:   Applicants for housing counseling grants may appeal their denial of a grant award or the insufficiency of the grant amount to HUD. Applicants may also appeal their denial of an application for a housing counseling grant.

Renewals:   HUD-approved housing counseling organizations are subject to a biennial performance review by HUD to retain status as a HUD-approved counseling agency. HUD may conduct a review at any time it deems it necessary.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   This program has no statutory formula. Grantees need to leverage their HUD grant with funding from other resources, as HUD only partially supports the costs of housing counseling activities. This program has no matching requirements.

Length and Time Phasing of Assistance:   Funding assistance is for a discrete period of time, generally 1 year. Grantees invoice HUD on a periodic basis for housing counseling services delivered. Payments of grant funds are subsequently made to grantees via direct deposit/electronic funds transfer (DD/EFT).

POST ASSISTANCE REQUIREMENTS:

Reports:   Grantees must file periodic invoice including semi- annual performance reports as well as final reports pursuant to grant agreement.

Audits:   A performance review once every two years is required and made by HUD. No other audits are required, but may be performed by HUD Homeownership Centers or Headquarters, HUD Office of Inspector General or General Accounting Office.

Records:   As required in grant document and Housing Counseling Handbook, HUD 7610.1 REV-4 dated August 1995.

FINANCIAL INFORMATION:

Account Identification:   86-0162-0-1-451; 86-0205-0-1-604.

Obligations:   (Grants) FY 99 $17,500,000; FY 00 est $15,000,000; and FY 01 est $24,000,000. (NOTE: Amounts reported reflect allocation of new budget authority rather than obligation amounts.)

Range and Average of Financial Assistance:   For fiscal year 1999, the grants ranged from $1,500 to a maximum of $100,000. The average counseling grant was $15,000.

PROGAM ACCOMPLISHMENTS:

For fiscal year 1999, HUD provided funding for 342 local housing agencies, 10 HUD-approved intermediaries, and 32 State housing finance agencies. For fiscal year 2000, plans are to fund approximately 350 local housing agencies, 12 HUD-approved intermediaries and 6 State housing finance agencies.

REGULATIONS, GUIDELINES, AND LITERATURE:

No Housing counseling regulations have been issued. The revised Housing Counseling Program Handbook 7610.1 REV 4 was distributed in August 1995 to all HUD Offices. Copies are available by contacting Headquarters.

INFORMATION CONTACTS: