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Housing Counseling Program (HUD) Grant Opportunity - FAQs

1) What is the Housing Counseling Program grant?

The Housing Counseling Program is a discretionary grant opportunity administered by the U.S. Department of Housing and Urban Development (HUD). It funds organizations that deliver housing counseling services to people across the housing spectrum, including homebuyers, current homeowners, low- to moderate-income renters, and individuals experiencing homelessness.

2) What is the main purpose of this program?

The program is designed to strengthen housing stability by pairing households with trained counselors who provide practical guidance on topics like budgeting, credit, loan terms, tenant responsibilities, and steps required to secure or maintain safe, affordable housing. The broader goal is to help people make informed housing decisions, avoid predatory or unsustainable financing, and build long-term financial and housing resilience.

3) Who can benefit from HUD-funded housing counseling services supported by this program?

According to the opportunity description, counseling services may support:

• Homebuyers
• Current homeowners
• Low- to moderate-income renters
• Individuals experiencing homelessness

4) What kinds of issues can housing counselors help with?

The opportunity highlights practical counseling and education areas such as budgeting, credit, understanding loan terms, tenant responsibilities, and navigating the steps needed to secure or maintain safe, affordable housing.

5) Does the program focus on financial literacy?

Yes. A major emphasis described for the program is improving financial literacy as part of strengthening housing stability and supporting better housing decision-making.

6) How does the program support sustainable homeownership?

The program emphasizes expanding sustainable homeownership by supporting counseling that can include education on preparing for homeownership, understanding mortgages, comparing loan products, and planning for the ongoing costs of owning a home.

7) What consumer protection concerns does the program address in homeownership counseling?

HUD-funded counselors are expected to help clients recognize risky lending features and avoid situations such as inflated appraisals, excessive interest rates, or repayment terms that a household cannot realistically afford. The intent is to reduce downstream harms that can result from bad loan structures.

8) What negative outcomes is the program trying to prevent with better loan and mortgage guidance?

The program description notes that addressing risky or unsustainable financing early can help reduce outcomes such as loss of equity, rising debt burdens, delinquency, default, and foreclosure.

9) Does the program include foreclosure prevention counseling?

Yes. The program supports foreclosure prevention and loss mitigation counseling for homeowners who are already struggling, focusing on preventing or resolving mortgage delinquency, default, and foreclosure.

10) What is the goal of foreclosure prevention and loss mitigation counseling under this program?

The explicit goal described is preserving homeownership when possible. Counseling is intended to help homeowners move into stable, affordable repayment arrangements and avoid repeating the problems that led to distress in the first place.

11) What types of options might counselors discuss with homeowners facing mortgage trouble?

The opportunity states that counselors may work with borrowers to evaluate options such as loan modifications or refinancing, while also helping borrowers understand homeownership responsibilities and the consequences of different choices.

12) Does the program support reverse mortgage counseling?

Yes. Funded applicants may provide reverse mortgage counseling for older homeowners who are considering converting home equity into income.

13) What is the purpose of reverse mortgage counseling in this program?

Reverse mortgage counseling is described as a consumer protection and informed decision-making measure. It helps elderly homeowners understand how reverse mortgages work, the costs and obligations involved, and how proceeds might be used for legitimate needs.

14) What examples of "legitimate needs" are mentioned for reverse mortgage proceeds?

The opportunity description lists examples such as home repairs, medical bills, or everyday living expenses.

15) Who is eligible to apply for this HUD grant opportunity?

Eligibility is limited to specific HUD-recognized or housing-finance entities. The eligible applicant types listed are:

• HUD-approved Local Housing Counseling Agencies (LHCAs)
• HUD-approved national and regional intermediaries
• State Housing Finance Agencies (SHFAs)
• HUD-approved Multi-State Organizations (MSOs)

16) Is cost sharing or a matching contribution required?

No. The opportunity states that cost sharing or matching funds are not required.

17) What type of funding instrument is used?

The funding instrument identified for this opportunity is a grant.

18) What is the CFDA number associated with this opportunity?

The associated CFDA number provided is 14.169, identified as the Housing Counseling Assistance Program.

19) What is the Funding Opportunity Number for the referenced round?

The opportunity references Funding Opportunity Number FR 5300 N 02.

20) Are the dates in the description current or historical?

The posted information reflects a historical funding round, with a posted date of June 16, 2009, a closing date of July 17, 2009, and an archive date of July 18, 2009.

21) What was the estimated total funding amount for the referenced funding round?

The estimated total funding for that round was $58,000,000.

22) Who should eligible local agencies, MSOs, and SHFAs contact for administrative and program questions?

HUD directed local agencies, MSOs, and SHFAs to contact the Housing Ownership Center (HOC) serving their area.

23) Who should intermediaries contact for administrative and program questions?

Intermediaries were instructed to contact HUD Headquarters Program Support Division at (202) 708-0317.

24) Is there a relay service number available for callers who use relay services?

Yes. The Federal Information Relay Service is listed as 800-877-8339.