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250 Initiative

250 Faith-Based and Community Organizations Wanted to Become HUD-Approved Housing Counseling Agencies

Section 106(a)(2) of the Housing and Urban Development Act of 1968 provides HUD with the legislative authority to provide housing counseling services directly, or through private or public organizations with special competence and knowledge in counseling low- and moderate-income families. As a Housing Counseling Agency, nonprofits can potentially receive funding from HUD for their counseling services.

HUD's overall objective is to provide housing counseling services, including outreach to potential first-time home buyers and persons eligible for assistance under home-buying, homeownership, and rental housing programs. National, regional, and local public and private nonprofit organizations can become HUD-approved after meeting a variety of criteria.

Benefits for Your Organization In addition to becoming eligible to apply for grants through HUD’s Housing Counseling Program, certification as a HUD-Approved Housing Counseling Agency greatly enhances your credibility with partners, lenders, and the families you serve. Your organization will also be eligible for HUD training opportunities, and you will receive housing counseling referrals from HUD headquarters and field offices.

Benefits to Your Community Homeownership is key wealth creator in America. Yet many barriers continue to exist to homeownership, particularly in minority communities across the nation. While national homeownership rates were at 68% in 2003, the minority homeownership rate was 49%, a difference of 19 percentage points. Through effective housing counseling, faith-based and community organizations can contribute to growth and stability of their communities, as homeownership is de-mystified for citizens and delinquencies and foreclosures are limited as a result of budget and credit counseling.

Self-Check List

If you can answer YES to the following preliminary requirements, please complete the form below and select “Submit.” If you don't meet the requirements, we would still like you to reply indicating the reasons why. Application assistance may be available to you.

• Nonprofit status. The applicant must submit evidence of nonprofit status as defined by section 501(C)(3) of the Internal Revenue Code.
• Experience. The applicant must have successfully administered a housing counseling program for at least one year.
• Community-Based. The applicant must have functioned for at least one year in a geographic area that the applicant proposed to serve.
• Audit. The applicant must have had an independent audit of its financial records during the twelve months preceding the date of applying for HUD approval.
• Counseling Resources. The applicant must have sufficient resources to implement the proposed counseling plan no later than the date of HUD approval.
  
  
  • Funding - enough funds on hand to cover the cost of operations for the first twelve months following HUD approval.
  • Staff - employees must be trained in housing counseling with a minimum of six months experience in the job they will perform in the counseling plan.
  • Language Skills - staff must be fluent in the language of the clients served.