By Janis Bowdler, Director, Wealth Building Policy Project, NCLR
In the current political atmosphere—where partisan politics seem to trump the needs of so many Americans—it’s encouraging to hear that some of our Congressmen are willing to protect programs that are so crucial to vulnerable communities. Among these programs is the U.S. Department of Housing and Urban Development’s (HUD) Housing Counseling Assistance Program, which may be spared from deep spending cuts that would have bankrupted the program altogether.
Last week, the National Council of La Raza (NCLR) was pleased to hear that the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development marked up their bill to include $60 million for HUD’s housing counseling program. While this amount still falls short of the $88 million the program had previously received in funding, it certainly provides a substantial budget at a time when numerous programs are seeing major cutbacks. In fact, when the House Appropriations Subcommittee on Transportation, Housing and Urban Development marked up their bill earlier this month, they had eliminated funding completely.
Last year, more than two million families received counseling through HUD’s Housing Counseling Assistance Program, including one-on-one sessions and essential advice for first-time homebuyers, seniors, renters, homeless individuals, and families facing foreclosure. The counseling program is essential—particularly because Americans are in the midst of a foreclosure crisis with no end in sight. Approximately 17% of Latino homeowners are projected to lose their homes, a development that guts their family savings and contributes to family discord. Indeed, homebuyers who receive consumer education in the form of counseling are less likely to default on their home loan in the first place and more likely to acquire a reasonable mortgage modification. Without the funding for HUD’s program, nonprofits that provide counseling will be forced to cut these services and lay off staff, while those families in need will lose a vital lifeline that can help them stay afloat.
NCLR is committed to ensuring that the $60 million in funding for this program stays intact. Not only have representatives from our organization and our Affiliates participated in hearings on Capitol Hill, where we voiced support for the program, but we continue to meet leadership on both committees to make sure they understand the importance and effectiveness of this program.
So far, discussions are proving promising, and it appears that members from the House Subcommittee and Senate Subcommittee may be able to negotiate funding for housing counseling assistance. NCLR is pleased to see that a program which has long enjoyed bipartisan support still finds champions from both the Democratic and Republican parties. And while putting housing counseling back on the table is a major victory, we have not crossed the finish line just yet. We need everybody to lend their support by continuing to call your representatives and senators to ask that they protect funding for HUD’s Housing Counseling Assistance Program.