Hud Releases $37 Million In Grants For Low-Income Housing
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 by the Department of Housing and Urban Development.
The grants are expected to 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.
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.