As part of its continuing effort to help families find decent housing and to
prevent future foreclosures, the U.S. Department of Housing and Urban
Development (HUD) today announced $64,521 in housing counseling grants to 3
organizations in Arkansas. As a result of this funding, Arkansas households
will have a greater opportunity to find housing or keep their current homes.
“The HUD-approved counseling agencies this funding
supports are crucial in helping struggling families on a one-to-one basis to
manage their money, navigate the homebuying process, and secure their financial
futures,” said HUD Secretary Shaun Donovan. “We fought hard to persuade
Congress to restore funding for housing counseling in HUD’s budget and now we’re
working to make these important resources available as quickly as
possible.”
Nationally, $42 million in housing
counseling grant funds was announced today that will directly support the
services of 468 organizations, including:
27
national and regional organizations;
6
multi-state organizations;
16 State
Housing Finance Agencies (SHFAs); and
419
local housing counseling agencies.
Included
in that amount is $4 million that was awarded to agencies to assist senior
citizens seeking reverse mortgages or Home Equity Conversion Mortgages (HECM). These agencies will provide counseling for
the rapidly growing number of elderly homeowners who seek to convert equity in
their homes into income that can be used to pay for home improvements, medical
costs, and other living expenses.
HUD
housing counseling grants will support the following Arkansas state and local
agencies (a link to summaries for each
grantee is at the end of the release):
Arkansas
Grants
Helena
|
Southern Bancorp Community
Partners
|
$20,620
|
Jonesboro
|
Jonesboro Urban Renewal and Housing
Authority Housing and Community Development Organization (JURHA
HCDO)
|
$21,211
|
Russellville
|
Universal Housing Development
Corporation
|
$22,690
|
State Total
$64,521
Housing counseling grants assist families in becoming
homeowners, many for the first time, and remaining homeowners after their
purchase. They also provide assistance to renters and the homeless, and offer
financial literacy training to individuals and families.
Grantees
also help combat predatory lending by helping unwary borrowers review their loan
documentation, and avoid potential mortgage scams, 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. Likewise, foreclosure prevention counseling helps homeowners
facing delinquency or default employ strategies, including expense reduction,
negotiation with lenders and loan servicers, and loss mitigation, to avoid
foreclosure. With foreclosures at critical levels nationwide, these services are
more important than ever.
National
and regional agencies distribute much of HUD’s housing counseling grant funding
to community-based grassroots organizations that provide information 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 counseling providers.
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