HUD doubles down on housing counseling funding

The U.S, Department of Housing and Urban Development announced new investments in housing counseling for homebuyers, providing $48 million in grants.

The funding, announced at a housing and redevelopment conference this week, aims to augment educational resources geared toward underserved communities to help support wealth generation and financial inclusion that comes with homeownership. These awards will further efforts at 160 HUD-approved organizations that provide housing counseling services or train professionals to assist previously disadvantaged consumers, who may have little limited knowledge of the home-purchase process.

"Buying a home and keeping a home can be an overwhelming experience, particularly for first-time home buyers," said HUD Acting Secretary Adrianne Todman, in a press release. "HUD-certified housing counselors are available to help every step of the way. They provide vital information about available resources, such as down payment assistance."  

Among the grantees are 14 service providers working with historically Black colleges and universities. The full list of recipients supported by HUD includes counseling agencies, state housing finance groups, educational institutions and nonprofits working in specific geographic designations. 

Educational topics covered in counseling and training include pre-purchase planning and financial literacy, along with foreclosure and rental eviction prevention. 

"For so many individuals and families, finding safe and affordable housing options may seem out of reach," said HUD assistant secretary and Federal Housing Administration Commissioner Julia Gordon. "Unbiased housing counseling helps to turn the aspiration of obtaining [a] safe and affordable place to call home into reality."

While efforts are often geared toward the first-time buyer, approved counseling agencies also provide resources to help existing homeowners address appraisal bias, disaster recovery, heirs' property management and reverse mortgages. 

HUD's efforts are among numerous initiatives rolled out by banks and housing agencies across the country to encourage wealth building and shrink the U.S. minority homeownership gap. 

In 2022, the Black homeownership rate in the U.S. sat at 44.1%, considerably smaller than the White share of  72%, according to the National Association of Realtors. While the gap narrowed marginally from the previous year, it had grown by 1% over the previous decade. 

The share of Black homeowners also lags other minority groups, with Hispanics and Asians seeing their rates grow to record highs of 51.1% and 63%, respectively.

HUD's latest announcement comes after it awarded $10 million in housing couseling grants to 23 organizations in June. Earlier in September, the federal agency also entered into an agreement with Zillow to expand promotion of counseling services available through its "Let's Make Home the Goal" program, which targets previously underserved communities. 

Ads now appearing on the real estate brokerage's platform allows HUD to increase the campaign's reach from 5 million to 8 million consumers in 52 media markets.