2012 hc nofa final.pdf

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5600-N-25]

Notice of Funding Availability (NOFA) for HUD’s Fiscal Year 2012

Housing Counseling Program

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD.

ACTION: Notice of Funding Availability for HUD‟s Fiscal Year (FY) 2012 Housing

Counseling Program.

SUMMARY: Today‟s posting provides information and instructions for the FY 2012 Housing

Counseling program. This Notice is comprised of both the Notice of HUD‟s Fiscal Year (FY)

2012 Notice of Funding Availability (NOFA), Policy Requirements and General Section

(General Section) to HUD‟s FY 2012 NOFAs for Discretionary Programs, and this program section to the NOFA.

HUD's Housing Counseling Program is authorized by Section 106 of the Housing and

Urban Development Act of 1968 (12 U.S.C. 1701x), and the Housing Counseling program regulations at 24 CFR Part 214. In addition to the application requirements set forth in this document, applicants must also comply with the requirements established in HUD‟s FY2012

Notice of Funding Availability (NOFA) Policy Requirements and General Section to HUD‟s

FY2012 NOFAs for Discretionary Programs (General Section). The authority for this NOFA is the Department of Housing and Urban Development Appropriations Act, 2012.

APPLICATION RECEIPT DEADLINE DATE: The application deadline date is January

12, 2012. Applications must be received by Grants.gov no later than 11:59:59 p.m. Eastern time on the application deadline date. See Section IV of the General Section, regarding application procedures, timely filing requirements, and grace period policy.

FOR FURTHER INFORMATION CONTACT: Questions regarding specific program requirements should be directed to the agency contact identified in this program NOFA.

Questions regarding the 2012 General Section should be directed to the Office of Departmental

Grants Management and Oversight at 202-708-0667 (this is not a toll-free number) or the NOFA

Information Center at 800-HUD-8929 (toll-free). Persons with hearing or speech impairments may access these numbers via TTY by calling the Federal Relay Service at 800-877-8339. The

NOFA Information Center is open between the hours of 10:00 a.m. and 6:30 p.m. Eastern time, Monday through Friday, except federal holidays.

OVERVIEW INFORMATION:

A. Federal Agency Name: Department of Housing and Urban Development, Office of Single

Family Housing.

B. Funding Opportunity Title: Housing Counseling Program.

C. Announcement Type: Initial Announcement.

D. Funding Opportunity Number: FR-5600-N-25. OMB Approval number is: 2502-0261.

E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.169 Housing Counseling

Assistance Program.

F. Dates. The application deadline is 11:59:59 p.m. eastern time on January 12, 2012.

Applications must be received by Grants.gov no later than 11:59:59 p.m. eastern time on the application deadline date.

G. Available Funds. Approximately $40.05 million is available for eligible applicants under this program NOFA.

FULL TEXT OF ANNOUNCEMENT.

I. FUNDING OPPORTUNITY DESCRIPTION.

A. Program Description. This program supports the delivery of a wide variety of housing counseling services to homebuyers, homeowners, low- to moderate-income renters, and the homeless. The primary objectives of the program are to improve financial literacy, expand homeownership opportunities, improve access to affordable housing and preserve homeownership. Counselors provide guidance and advice to help families and individuals improve their housing conditions and meet the responsibilities of tenancy and homeownership.

Additionally, counselors may provide counseling services to homeowners to prevent or resolve mortgage delinquency, default, and foreclosure, with the primary objective to preserve homeownership. Counselors provide guidance and advice to help families and individuals meet the responsibilities of homeownership and modify or refinance their loans. Counselors also help borrowers avoid inflated appraisals, unreasonably high interest rates, unaffordable repayment terms, and other conditions that can result in a loss of equity, increased debt, default, and eventually foreclosure. Counselors can also assist homeowners with inquiries related to mortgage scams, and reporting instances of potential mortgage scam victimization.

Applicants funded through this program may also provide Reverse Mortgage Counseling to senior homeowners who seek to convert equity in their homes into income that can be used to pay for home improvements, medical costs, living expenses, or other expenses.

B. Comprehensive Counseling Grant Applicant Categories. HUD will award a single

Comprehensive grant to qualified applicants through one of four categories:

1. Local Housing Counseling Agencies (LHCAs);

2. National and Regional Intermediaries (Intermediaries);

3. State Housing Finance Agencies (SHFAs); and

4. Multi-State Organizations (MSOs).

C. Supplemental Funding for Reverse Mortgage Counseling. Also, supplemental funding is available to LHCAs, Intermediaries, SHFAs and MSOs for Reverse Mortgage Counseling.

D. Authority. The authority for this NOFA is the Department of Housing and Urban

Development Appropriations Act, 2012. HUD's Housing Counseling Program is authorized by

Section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x). Housing

Counseling regulations are codified in the Code of Federal Regulations (CFR) at 24 CFR Part

214. The Home Equity Conversion Mortgage (HECM) Program is authorized by Section 255 of the National Housing Act (12 U.S.C. 1715z-20). HUD‟s Home Equity Conversion Mortgage

(HECM) Counseling Standardization and Roster final rule is codified at 24 CFR Part 206.

E. Definitions.

1. Affiliate. A nonprofit organization participating in the HUD-related housing counseling program of a regional or national intermediary, or state housing finance agency. An affiliate is incorporated separately from the regional or national intermediary or state housing finance agency. An affiliate is also:

a. Duly organized and existing as a tax-exempt nonprofit organization;

b. In good standing under the laws of the state of the organization; and

c. Authorized to do business in the states where it proposes to provide housing counseling services.

2. Applicant. A HUD-approved housing counseling agency or SHFA applying for a Housing

Counseling grant from HUD through this NOFA. The term “Applicant” includes the agency‟s branch or branch offices identified in its application.

3. Branch. An organizational and subordinate unit of a local housing counseling agency, multi-state organization, regional or national intermediary, or state housing finance agency not separately incorporated or organized, that participates in HUD's Housing Counseling program. A branch or branch office must be in good standing under the laws of the state where it proposes to provide housing counseling services. A branch or branch office cannot be a sub-grantee or affiliate.

4. Counseling. Counselor-to-client assistance that addresses unique financial circumstances or housing issues and focuses on ways of overcoming specific obstacles to achieving a housing goal such as repairing credit, addressing a rental dispute, purchasing a home, locating cash for a down payment, being informed of fair housing and fair lending requirements of the Fair Housing Act, finding units accessible to persons with disabilities, avoiding foreclosure, or resolving a financial crisis. To be considered housing counseling and eligible for reimbursement under this NOFA, at a minimum a housing counselor must perform and document these activities:

a. Budget/Financial Analysis. A review of a client's income, expenses, spending habits, and use of credit in order to evaluate their unique financial situation relative to their housing needs.

b. Action Plan. Except for Reverse Mortgage Counseling, housing counselors and clients must establish an action plan that outlines what the housing counseling agency and the client will do in order to meet the client‟s housing goals and, when appropriate, addresses the client‟s housing problem(s).

c. Discuss Alternatives. Identify and discuss with the client at least 3 alternatives and options available to the client, including FHA programs and products if applicable, relevant to the specific housing need. For example, if a particular company, loan product, property, etc. is discussed, the counseling must also include a detailed discussion of alternative companies, loan products, properties, etc.

d. Follow-up. Efforts made by the counselor to have follow-up communication with the client, to assure that the client is progressing toward his or her housing goal(s), to modify or terminate housing counseling services, and to learn and report outcomes.

5. Delinquency/Default Counseling. Counseling provided to homeowners, who are presently in default or at risk of default, to prevent or resolve mortgage delinquency, mortgage default, or foreclosure. This includes counseling senior homeowners with HECM loans that may be delinquent and/or in danger of default.

6. Education. Formal classes, with established curriculum and instructional goals, provided in a group or classroom setting, or other format approved by HUD, covering one or more of the eligible topics in Section III.C.1. of this NOFA.

7. Mediation Assistance. Non-legal counselor assistance provided to a client during a designated process for bringing about an agreement or reconciliation between opponents in a housing dispute that will benefit the client‟s overall housing situation.

8. Grantee. A HUD-approved housing counseling agency or SHFA that receives housing counseling funds from HUD through this NOFA. The term “Grantee” includes the agency‟s branch or branch offices identified in its application.

9. HUD HECM Roster Counselor. A housing counselor that has met the requirements in

HUD‟s Home Equity Conversion Mortgage (HECM) Counseling Standardization and Roster final rule (24 CFR Part 206) and appears on the HUD HECM Counselor Roster.

10. Intermediary. A HUD-approved organization that provides housing counseling services indirectly through its branches or affiliates for whom it exercises control over the quality and type of housing counseling services rendered. The Housing Counseling program recognizes two types of intermediaries, which include:

a. National Intermediary. A national intermediary is an organization which operates in multiple regions of the United States, which provides:

(1) Housing counseling services through its branches or affiliates or both; and

(2) Administrative and supportive services to its network of affiliates or branches, including, but not limited to, pass-through funding, training, and technical assistance.

b. Regional Intermediary. A regional intermediary is an organization which operates in a generally recognized region within the United States, such as the Southwest, Mid-Atlantic, New

England, which provides:

(1) Housing counseling services through its branches or affiliates or both; and

(2) Administrative and supportive services to its network of affiliates, or branches, including, but not limited to, pass-through funding, training, and technical assistance.

11. Local Housing Counseling Agency (LHCA). A housing counseling agency that directly provides housing counseling services. An LHCA may have a main office, and one or more branch offices, in no more than two contiguous states.

12. Multi-State Organization (MSO). A multi-state organization provides housing counseling services through a main office and branches in two or more states.

13. State Housing Finance Agency (SHFA). Any public body, agency, or instrumentality created by a specific act of a state legislature empowered to finance activities designed to provide housing and related facilities and services, through land acquisition, construction or rehabilitation, throughout an entire state. SHFAs may provide direct counseling services or sub-grant housing counseling funds to affiliated housing counseling agencies within the SHFA‟s state, or both. The term state includes the fifty states, Puerto Rico, the District of Columbia, Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, and the U.S.

Virgin Islands.

14. Sub-grantee. An affiliate of a HUD-approved intermediary or SHFA that receives a sub-grant of housing counseling funds provided under a HUD housing counseling grant. All sub-grantees must be identified in the grantee‟s application. Under certain conditions, including approval by HUD, grantees may amend their sub-grantee list after awards are made. See

General Section.

15. Reverse Mortgage. A reverse mortgage is a mortgage that pays a homeowner loan proceeds drawn from accumulated home equity and that requires no repayment until a future time.

II. AWARD INFORMATION

A. Amount Allocated. Of the approximately $45 million appropriated for housing counseling in

FY2012, approximately $ 40.05 million is available for eligible applicants under this NOFA.

Approximately $36.05 million is available for Comprehensive Counseling. Approximately $4 million is available for Reverse Mortgage Counseling. Available funding may also include carryover and recaptured funds, in addition to the appropriations.

B. Specific Allocations. Housing counseling funding is distributed over four applicant categories, as shown below.

Applicant Categories Who is Eligible Total Amount Available

Category 1 – LHCAs HUD-approved Local Housing

Counseling Agencies

$10,250,000

Category 2 –

Intermediaries

HUD-approved National and

Regional Intermediaries

$25,800,000

Category 3 – SHFAs State Housing Finance Agencies $2,800,000

Category 4 – MSOs Multi-State Organizations $1,200,000

1. Category 1 – Local Housing Counseling Agencies (LHCAs). For the grant period October

1, 2011 through September 30, 2012, approximately $10.25 million is available from HUD to directly fund HUD-approved LHCAs, including approximately $9.05 million for Comprehensive

Counseling, and approximately $1.2 million for Reverse Mortgage Counseling. An LHCA can only request funding for its main office and branches located in no more than two contiguous states.

2. Category 2 – Intermediaries. For the grant period October 1, 2011 through September 30, 2012, approximately $25,800,000 is available from HUD to directly fund HUD-approved

Intermediaries, including approximately $23,200,000 for Comprehensive Counseling, and approximately $2.6 million for Reverse Mortgage Counseling.

3. Category 3 -- State Housing Finance Agencies (SHFAs). For the grant period October 1, 2011 through September 30, 2012, approximately $2,800,000 is available to fund SHFAs that provide housing counseling services directly or serve as intermediaries to Affiliates who offer housing counseling services, including $2,700,000 for Comprehensive Counseling, and $100,000 for Reverse Mortgage Counseling supplemental funding. .

4. Category 4 – Multi-State Organizations (MSOs). For the grant period October 1, 2011 through September 30, 2012, approximately $ 1.2 million is available to fund MSOs to provide housing counseling services directly through branch offices throughout their HUD-approved multi-state service area, including approximately $ 1.1 million for Comprehensive Counseling, and approximately $100,000 for Reverse Mortgage Counseling supplemental funding.

C. Maximum Awards. The period of performance will be for a period of 12 calendar months.

Should sufficient funds be available, the maximum award amounts are outlined below. HUD reserves the right to increase or decrease the maximum award amount based on the availability of funds.

1. Category 1. No individual LHCA may be awarded more than $90,000 which may include supplemental funding for Reverse Mortgage Counseling. The maximum amount for the Reverse

Mortgage Counseling supplemental funding is $45,000. The maximum amount for

Comprehensive Counseling is $45,000. HUD anticipates that the average total award for

LHCAs will be approximately $20,500.

2. Category 2. Awards for individual HUD-approved intermediaries may not exceed $3 million, which includes any Reverse Mortgage Counseling supplemental funding. The limit for

Comprehensive Counseling is $2.3 million, the maximum amount for Reverse Mortgage

Counseling is $700,000. HUD anticipates that the average total award for Intermediaries will be

$990,000.

3. Category 3. No individual SHFA may be awarded more than $600,000, which includes

Comprehensive Counseling and Reverse Mortgage Counseling supplemental funding. The maximum amount for Comprehensive Counseling is $500,000. The maximum amount for

Reverse Mortgage Counseling is $100,000. HUD anticipates that the average total award for

SHFAs will be approximately $150,000.

4. Category 4. No individual MSO may be awarded more than $600,000 which includes

Reverse Mortgage Counseling supplemental funding. The limit for Comprehensive Counseling is $500,000 and the limit for Reverse Mortgage Counseling is $100,000. HUD anticipates that the average total award for MSOs will be approximately $240,000.

D. Minimum Grant Requests

1. Minimum Grant Request for Comprehensive Funds. LHCA applicants must request a minimum of $15,000. SHFAs and MSOs must request a minimum of $30,000 and

Intermediaries must request a minimum of $200,000. For applicants requesting only

Comprehensive Counseling funding, HUD will consider the amount of the Comprehensive

Counseling grant being requested to be the value entered into box 18a on form SF424.

2. Minimum Grant Request for Reverse Mortgage Counseling Supplemental Funds.

Intermediaries must request a minimum of $50,000 for Reverse Mortgage Counseling supplemental funding. LHCAs must request a minimum of $10,000 for Reverse Mortgage

Counseling supplemental funding. MSOs and SHFAs must request a minimum of $15,000 for

Reverse Mortgage Counseling supplemental funding.

E. Total Grant Request. Box 18a of Form SF 424 should reflect the total award being requested, including any supplemental funds. For applicants requesting supplemental funding, box 18a of Form SF 424 should reflect the total of the Comprehensive and Reverse Mortgage

Counseling funds requested, if applicable. For those applicants requesting supplemental funding, the narrative response to Factor 3 must make clear the exact Comprehensive and supplemental amounts being requested.

F. Award Instrument. HUD will use a Grant Agreement. All Housing Counseling Program awards will be made on a cost reimbursement basis.

III. ELIGIBILITY INFORMATION

A. Eligible Applicants. Eligible applicants for Comprehensive Counseling grants include:

HUD-approved Local Housing Counseling Agencies (LHCAs); HUD-approved national and regional intermediaries (Intermediaries); State Housing Finance Agencies (SHFAs); and HUD-approved Multi-State Organizations (MSOs). Grantees and sub-grantees that were previously awarded HUD MMMSA counseling funds for FY 2012 are also eligible for FY 2012 funding through this NOFA covering the same period of performance.

B. Cost Sharing or Matching. No specific matching funds are required. However, in order to receive points under Rating Factor 4, applicants are required to demonstrate the commitment of other private and public sources of non-federal funding to supplement HUD funding for the applicant‟s counseling program. HUD does not intend for its Housing Counseling grant to cover all costs incurred by an applicant. 24 CFR Part 214 explains the conditions under which agencies participating in HUD‟s Housing Counseling Program are permitted to charge fees to counseling recipients. While agencies are strongly encouraged to aggressively leverage funds from other private and public sources, fee income can be used to help satisfy this requirement.

Agencies participating in HUD‟s Housing Counseling Program are not permitted to charge fees for default counseling or homeless counseling.

C. Other.

1. Eligible Activities for Comprehensive Counseling Awards under all Applicant

Categories. Grantees and sub-grantees will only be reimbursed for the applicable activities outlined in this Section. HUD reserves the right to reject funding requested for any costs that are outside the scope of housing counseling services listed below:

a. Individual Counseling or Group Education/Classes regarding the following topics:

(1) Pre-Purchase/Home Buying. This includes: improving financial literacy; evaluating mortgagor readiness; search assistance; fair housing and fair lending, including whether or not the beneficiary belongs to a protected class, and how to recognize discrimination; budgeting for mortgage payments; money management (does not include administration of debt management plans whereby an organization pays bills on behalf of a client); selecting a real estate agent;

home inspection; lead-based paint laws, including the Lead Disclosure Rule; lead safety awareness, toxic mold, radon and other conditions that affect the living environment; alternative sources of mortgage credit; how to apply for special programs available to potential homebuyers;

how to identify and avoid predatory lending practices and mortgage fraud; Real Estate

Settlement Procedures Act (RESPA), including settlement procedures and closing costs; loan document review; locating housing that provides physical accessibility for persons with disabilities; locating sources and methods to help pay for accessibility modifications; how to purchase a home using the Section 8 Homeownership Voucher Program, how to address utility costs and energy efficiency; and referrals to community services and regulatory agencies.

Applicants that provide homebuyer education must also offer individual counseling that complements the group sessions. During the course of pre-purchase counseling and homebuyer education the client(s) must be provided a copy of the following materials: “For Your

Protection Get a Home Inspection”, (HUD Form 92564), and “Ten Important Questions to Ask

A Home Inspector.” Both documents can be found at http://portal.hud.gov/hudportal/HUD?src=/i_want_to/buy_a_home

(2) Resolving or Preventing Mortgage Delinquency or Default. This includes:

restructuring debt; financial literacy; obtaining re-certification for mortgage subsidy; establishing reinstatement plans; seeking loan forbearance, and managing household finances. This can also include: helping clients affected by or reporting lending discrimination, predatory lending and mortgage fraud; homeownership preservation and foreclosure prevention strategies; explaining the foreclosure process; loan document review; providing referrals to other sources; assisting clients with locating alternative housing; pursuing loss mitigation strategies; counseling senior homeowners with reverse mortgages that may be delinquent and/or in danger of default; or providing non-legal counselor assistance to a client during a third party meeting between a lender/servicer and homeowner to achieve loss mitigation and/or avoid foreclosure.

Where applicable, HUD encourages applicants to ask the following two questions of each homeowner to whom they provide default and/or non-delinquency post-purchase counseling in order to help identify possible loan scams and, if applicable, address the process for doing so in the grant proposal:

Did anyone offer to help modify your mortgage, either directly, through advertising, or by any other means such as a flyer?

Were you guaranteed a loan modification or asked to do any of the following: pay a fee, sign a contract, redirect mortgage payments, sign over title to your property, or stop making loan payments?

(3) Non-Delinquency Post-Purchase. This includes information and advice on finding favorable mortgage loan terms, personal money management and financial literacy, and relations with lenders. It also includes information and advice on home improvement and rehabilitation;

property maintenance; loan and grant options; the loan or grant application processes; what housing codes and housing enforcement procedures apply for the intended activity; accessibility codes and how to design features to provide accessibility for persons with disabilities; non-discriminatory lending and funding for persons who modify their dwellings to accommodate disabilities; and physical accessibility. Agencies that provide post-purchase education classes must also offer individual counseling to complement group sessions.

(4) Locating, Securing, or Maintaining Residence in Rental Housing. This refers to renter-related topics, including: helping clients obtain and utilize rent subsidies; pre-rental search assistance; mobility counseling; fair housing rights; how to recognize discrimination; locating housing that provides physical accessibility for persons with disabilities; locating sources and methods to help pay for accessibility modifications; financial literacy; budgeting for rent payments; educating clients on landlords‟ and renters‟ rights; Lead Disclosure Rule requirements; lead safety awareness, toxic mold, radon and other conditions that affect the living environment; explaining the eviction process; ensuring clients understand their rights when faced with displacement; explaining the responsibility of the entity causing displacement; providing non-legal counselor assistance to a client during a designated process for bringing about an agreement or reconciliation between opponents in a housing dispute in order to benefit the client‟s overall housing situation; and providing assistance with locating alternate housing.

(5) Shelter or Services for the Homeless. Includes financial literacy, and referrals to social, community, and homeless services such as emergency shelter or transitional housing.

(6) Reverse Mortgage Counseling. This counseling and education assists senior homeowners who seek to convert equity in their homes into income that can be used to pay for home improvements, medical costs, living expenses, or other expenses. This includes providing the statutory-required counseling to individuals/families that may be eligible for, or are interested in obtaining, an FHA-insured HECM. Reverse Mortgage Counseling also includes information regarding purchasing a home using a reverse mortgage.

b. Marketing and Outreach Initiatives. This includes providing general information and materials about housing opportunities and issues, conducting informational campaigns, advocating with lenders for non-traditional lending standards, and raising awareness about critical housing topics, such as fair housing rights and remedies, lending discrimination, predatory lending, mortgage fraud, other fair lending issues, or energy efficiency options to reduce homeowner energy costs. For example, grant funds may be utilized to purchase and disseminate materials related to the Loan Modification Scam Alert Campaign:

http://www.loanscamalert.org/.

NOTE: Marketing and outreach initiatives should follow affirmative marketing principles and be directed at those populations least likely to seek counseling services or the information marketed, including those of racial, religious or national origin groups not normally served by the sponsoring agency. To do so, it may be necessary to broaden the target areas or provide translation and interpretive services in languages other than English in order to reach a greater variety of racial and ethnic minorities. It may also require providing outreach and services in alternative formats for persons with disabilities (e.g., Braille, large type, sign language interpreters, audio, assistive listening devices, etc.)

c. Training. Eligible expenses include training on housing counseling topics, including, but not limited to, loss mitigation, FHA Mortgage Programs, fair housing, Lead Disclosure Rule and

Lead Safe Housing Rule, RESPA, and default and foreclosure prevention, with the purpose of increasing the capacity of housing counselors and program managers.

d. Computer Equipment/Systems. Computer equipment/systems with the objective of improving the quality of counseling and education services available.

e. Administrative Costs. This includes administrative costs associated with managing a network of housing counseling agencies and/or branch offices.

f. Capacity Building. This includes costs associated with hiring additional staff to meet the demand for counseling and effectively spend grant awards.

http://www.loanscamalert.org/

g. Audit Costs and Related Services. This includes costs associated with audits required by, and performed in accordance with the Single Audit Act, as implemented by OMB Circular A-

133.

h. Mortgage Modification Scam Identification and Reporting. Eligible expenses include identifying and reporting potential loan modification scams, for example with the Loan

Modification Scam Prevention Network: http://www.preventloanscams.org and the HUD Office of Inspector General (OIG) Hotline:

toll-free at 800-347-3735 fax 202-708-4829 e-mail hotline@hudoig.gov

2. Threshold Requirements. Applications that do not meet all of the following relevant

Threshold Requirements are not eligible to receive funding under this NOFA.

a. FY2012 General Section Thresholds. Applicants and sub-grantees must meet the Threshold

Requirements in Section III.C.2 of the FY 2012 General Section. Each applicant and sub-grantee must meet the threshold set forth at Section III.C.2.d of the FY 2012 General Section -

“Resolution of Outstanding Civil Rights Matters.”

b. Only HUD-approved Housing Counseling Agencies and SHFAs May Apply. Applicants must be currently approved by HUD as an LHCA, a Housing Counseling Intermediary or a

Multi-State Organization (MSO), and have secured HUD approval as a housing counseling agency by the publication date of this Housing Counseling Program NOFA. SHFAs are not required to be HUD-approved, but must meet the eligibility requirements listed in this NOFA and in the Housing Counseling regulations, codified at 24 CFR Part 214. Sub-grantees and affiliates of HUD-approved intermediaries and SHFAs are not considered HUD-approved

LHCA‟s simply as a result of this affiliation. Approval as an LHCA must be secured directly from a HUD Homeownership Center (HOC).

c. Client Management System. The applicant, and all affiliates and branches, if applicable, must utilize a client management system that interfaces, or is working to interface, with HUD‟s databases and must describe the system in Rating Factor 1, Sub-factor 2(c). Information on client management systems and interfacing with HUD‟s database is found on HUD‟s website:

http://www.hud.gov/offices/hsg/sfh/hcc/hccprof21.cfm .

d. Housing Counseling. All applicants must propose a work plan that includes the provision of housing counseling. Providing only education or marketing and outreach does not fulfill this requirement.

e. Applicants Requesting Supplemental Reverse Mortgage Counseling Funding. LHCAs, SHFAs, MSOs and Intermediaries are eligible to apply for Reverse Mortgage Counseling supplemental funding. Applicants who apply for Reverse Mortgage Counseling Supplemental funding must also apply for Comprehensive funding with the exception of LHCAs and MSOs http://www.preventloanscams.org/ mailto:hotline@hudoig.gov http://www.hud.gov/offices/hsg/sfh/hcc/hccprof21.cfm included in the Comprehensive Counseling application of an intermediary organization or SHFA.

Only LHCAs and MSOs meeting these criteria can apply for Reverse Mortgage Counseling

Supplemental Funding exclusively; however, they are still required to submit a complete application. For applicants applying for both Comprehensive Counseling and Reverse Mortgage

Counseling supplemental funding, a separate application is not needed to apply for the supplemental funding, but each rating factor response must also address the supplemental funding. Applicants requesting supplemental Reverse Mortgage Counseling funding must also meet the following requirements:

(1) HUD HECM Roster Counselor. LHCAs must have at least one HUD HECM Roster counselor; Intermediaries must have at least 10 HUD HECM Roster counselors within their network of affiliates or branches. MSOs and SHFAs must have at least 2 HUD HECM Roster counselors within their network of branches or affiliates. In order to be eligible, the HECM

Counselor(s) must be approved and listed on the HECM Roster no later than the NOFA application deadline date.

(2) Request the Supplemental Funding. Request the supplemental funding by identifying in box 18a of Form SF 424 total of the Comprehensive request and any supplemental funding request, and making clear in the narrative response to Rating Factor 3 the exact

Comprehensive and Reverse Mortgage Counseling supplemental amounts, if applicable, being requested.

3. Other Program Requirements.

a. Applicant Status. To receive a grant or sub-grant under this Housing Counseling NOFA, all applicants and sub-grantees must be:

(1) In good standing under the laws and regulations of the state of their organization; and

(2) Authorized to do business in the states where they propose to provide housing counseling services.

(3) All grantees and sub-grantees must use counseling and education facilities and services that are accessible to persons with disabilities or provide other means of accommodation for persons with disabilities, in accordance with Section 504 of the Rehabilitation Act of 1973 and its implementing regulations at 24 CFR Parts 8 & 9, and Title III of the Americans with

Disabilities Act. In addition, counseling services must comply with effective communication requirements pursuant to Section 504 of the Rehabilitation Act of 1973 and its implementing regulations at 24 CFR 8.3 and 8.6. All grantees and sub-grantees must help persons with disabilities locate suitable housing in locations throughout the applicant‟s community, target area, or metropolitan area, as defined by the applicant.

(4) All applicants must have an active registration in CCR. All sub-awardees must have a

DUNS number.

b. Limits on Applications. Except as provided below, applicants and sub-grantees are limited to choosing one grant applicant category to apply for and access Comprehensive funds and supplemental funding. Applicants and their sub-grantees may not “double-dip”. In other words, applicants and sub-grantees are prohibited from accessing these types of funding from multiple sources and or through multiple grant applicant categories.

(1) HUD-approved LHCAs. HUD-approved LHCAs may either:

(a) Apply directly to HUD for grant funding, including Comprehensive and/or supplemental funding for Reverse Mortgage Counseling, under Applicant Category 1; or

(b) Be included in the respective application of, and receive one sub-grant for

Comprehensive Counseling, and supplemental funding, if applicable, from, an intermediary, MSO or SHFA under Applicant Category 2, 3, or 4. The only exceptions to this rule are:

(c) HUD-approved LHCAs with one or more HUD HECM Roster Counselors that are awarded Comprehensive funds directly from HUD, but do not receive Reverse Mortgage

Counseling supplemental funding directly from HUD, may receive a sub-grant or be reimbursed exclusively for Reverse Mortgage Counseling activities from a HUD-approved intermediary, MSO, or SHFA administering the Reverse Mortgage Counseling supplemental funds made available through this NOFA, or by another entity designated by HUD; and

(d) HUD-approved LHCAs that receive Comprehensive Counseling funds through an intermediary or SHFA, but do not receive Reverse Mortgage Counseling supplemental funding from an intermediary or SHFA, may apply directly to HUD and receive a supplemental grant for

Reverse Mortgage Counseling under Category 1; and

(e) HUD-approved LHCAs that are awarded Comprehensive funds directly from HUD may also be reimbursed for default counseling by an intermediary that receives a Category 2 award and that provides default counseling exclusively.

Funded LHCAs may not make sub-grants to other HUD-approved LHCAs or non-HUD-approved entities.

(2) HUD-approved Intermediaries. HUD approved intermediaries may only apply for a grant, including Comprehensive and/or supplemental funding for Reverse Mortgage Counseling under Applicant Category 2.

(3) SHFAs. SHFAs may only apply for grants under Applicant Category 3 for

Comprehensive Counseling funds and supplemental funding for Reverse Mortgage Counseling.

(4) MSOs. HUD-approved MSOs may either:

(a) Apply directly to HUD for grant funding, including Comprehensive and/or supplemental funding for Reverse Mortgage Counseling, under Applicant Category 4 ; or

(b) Be included in the respective application of, and receive sub-grants for, Comprehensive

Counseling, and supplemental funding, if applicable, from a single intermediary or SHFA under

Applicant Categories 2 or 3.

The only exceptions to this rule are:

(c) HUD-approved MSOs with one or more HUD HECM Roster Counselors that are awarded Comprehensive funds directly from HUD, but do not receive Reverse Mortgage

Counseling supplemental funding directly from HUD, may receive a sub-grant or be reimbursed exclusively for Reverse Mortgage Counseling activities from a HUD-approved intermediary administering the Reverse Mortgage Counseling supplemental funds made available through this

NOFA or by another entity designated by HUD; and

(d) HUD-approved MSOs that receive Comprehensive Counseling funds through an intermediary or SHFA, but do not receive Reverse Mortgage Counseling supplemental funding from an intermediary, may apply directly to HUD and receive a grant for Reverse Mortgage

Counseling under Category 4; and

(e) HUD-approved MSOs that are awarded Comprehensive funds under category 4 may also be reimbursed for default counseling by an intermediary that receives a category 2 award that provides default counseling exclusively.

(5) Sub-grantees of Intermediaries and SHFAs.

(a) Sub-grantees or branches of intermediaries, MSOs and SHFAs are not required to be

HUD-approved, although HUD-approved LHCAs may apply to an intermediary or SHFA as a sub-grantee.

(b) Intermediaries, MSOs and SHFAs that award sub-grants to counseling agencies that are not HUD-approved must assure that the sub-grantee organizations meet or exceed HUD‟s approval standards.

(c) Sub-grantees must also be in compliance with all civil rights threshold requirements and other civil rights related program requirements. For a listing of civil rights threshold and program requirements, refer to Section III.C.2.d. and III.C.5 of the FY 2012 General Section.

Intermediaries that do not ensure their sub-grantee‟s compliance with HUD standards may be prohibited from participating in the Housing Counseling Program. HUD will monitor sub-grantees.

(d) To be eligible for funding under Categories 2, 3 or 4, proposed sub-grantees‟ branches must not have directly applied for or received a grant under Category 1 of this NOFA, or applied for or received a sub-grant or funding from another intermediary, MSO or SHFA under Category

2, 3 or 4 of this NOFA. Sub-grantees or branches may apply for and receive funding for

Comprehensive Counseling, and supplemental funding, if applicable, from only one intermediary, MSO or SHFA under Category 2, 3 or 4. The only exceptions to this rule are:

(i) sub-grantees or branches that have one or more HUD HECM Network Counselors that receive a sub-grant or funding for Comprehensive Counseling from an intermediary, MSO or SHFA under Category 2, 3, or 4 may also receive a sub-grant, or be reimbursed exclusively for Reverse Mortgage Counseling activities, from a HUD-approved intermediary administering the Reverse Mortgage Counseling supplemental funds made available through this NOFA or by another entity designated by HUD; and

(ii) sub-grantees and branches that receive a sub-grant or funding for Comprehensive

Counseling from an intermediary, MSO or SHFA under Category 2, 3, or 4, may also be reimbursed for default counseling by an intermediary that receives a Category 2 award that provides default counseling exclusively.

(e) Intermediaries and SHFAs that make sub-grants must execute sub-grant agreements with sub-grantees that clearly delineate the mutual responsibilities for program management, including appropriate time frames for reporting results to HUD. Intermediaries, MSOs and

SHFAs have wide discretion to decide how to allocate their HUD Housing Counseling funding among branches and sub-grantees, with the understanding that a written record must be kept documenting and justifying funding decisions. These records must meet the data requirements of the Transparency Act (see General Section), and must be made available to sub-grantees, branches and to HUD, within 30 days of making the sub-award or allocation to branches.

c. List of HUD-approved and Participating Housing Counseling Agencies. Pursuant to

Section 106(c)(5)(D) of the Housing and Urban Development Act of 1968, HUD maintains a list of all HUD-approved and HUD-funded counseling agencies, including contact information that interested persons can access. All HUD-approved LHCAs and their branches, and all sub-grantees and branches that receive funding under Applicant Categories 2, 3 and 4 of this NOFA may be placed on this list and must accept subsequent referrals, or when they do not provide the services sought, make a reasonable effort to refer the person to another organization in the area that can provide the services.

d. Compliance with Fair Housing and Civil Rights Law. Applicants and their sub-grantees must comply with all applicable fair housing and civil rights requirements found in 24 CFR

5.105(a), including, but not limited to, the Fair Housing Act, Section VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title III of the Americans with Disabilities

Act, and Section 109 of the Housing and Community Development Act of 1974. Refer to Section

III.C.5. of the FY 2012 General Section for more information.

e. Inherently Religious Activity. Organizations funded under this program may not engage in inherently religious activities, such as worship, religious instruction, or proselytization, as part of the programs or services funded under this program. If an organization conducts such activities, these activities must be offered separately, in time or location, from the programs or services funded under this part, and participation must be voluntary and not a condition of the HUD programs or services.

f. Indirect Cost Rate. Grantees that plan to use grant funds to cover direct costs only are not required to provide an indirect cost rate. However, Grantees that plan to use grant funds to cover any indirect costs must submit their approved indirect cost rate established by their cognizant federal agency. If the grantee does not have an established indirect cost rate, it will be required to develop and submit an indirect cost proposal to HUD, or the cognizant federal agency as applicable, for determination of an indirect cost rate that will govern the award. Applicants that do not have a previously established indirect cost rate with a federal agency shall submit an initial indirect cost rate proposal to their cognizant federal agency immediately after the applicant is advised that it will be offered a grant and, in no event, later than three months after the start date of the grant. OMB Circular A122 can be located at 2 CFR Part 230. Applicants can review Indirect Cost Training on www.hud.gov at:

http://www.hud.gov/offices/adm/grants/training/odgmotraining.cfm

g. Ensuring the Participation of Small Businesses, Small Disadvantaged Businesses, and

Woman-Owned Businesses. See the General Section for information on this topic.

h. Subcontracting. Grantees and sub-grantees must deliver all of the housing counseling set forth in the applicant‟s work plan provided in response to Rating Factor 3 of this NOFA.

i. Conflicts of Interest. See the General Section and 24 CFR Part 214.

j. Accessible Technology. See the General Section.

k. Participation in HUD Sponsored Program Evaluation. See the General Section.

l. Home Inspection Materials. If grantee provides pre-purchase counseling and/or homebuyer education the client(s) must be provided a copy of the following materials: “For Your

Protection Get a Home Inspection”, (HUD Form 92564), and “Ten Important Questions to Ask

A Home Inspector” (both documents can be found at http://portal.hud.gov/hudportal/HUD?src=/i_want_to/buy_a_home).

m. Affirmatively Furthering Fair Housing. Under Section 808(e)(5) of the Fair Housing Act, HUD has a statutory duty to affirmatively further fair housing. HUD requires the same of its funding recipients. See Section III.C.5.b. of the FY 2012 General Section for additional information on this requirement. To meet this requirement, in the narrative responses to the

Rating Factor 3 (3)(b), applicants must describe the organization's counseling, education, outreach, and other activities that affirmatively further fair housing. Examples include, but are not limited to, the following:

Make persons aware of discriminatory practices;

Make persons aware of innovative housing design or construction to increase access for persons with disabilities;

Make available language assistance services to persons with Limited English Proficiency

(on the basis of national origin). For example, describe plans to take reasonable steps to provide meaningful access to persons with Limited English Proficiency (LEP), pursuant to Title VI of the Civil Rights Act of 1964, for example, materials that are available in languages other than English. Applicants may refer to the Department‟s January 22, 2007

Final Guidance to Federal Financial assistance Recipients Regarding Title VI Prohibition http://www.hud.gov/ http://www.hud.gov/offices/adm/grants/training/odgmotraining.cfm

Against National Origin Discrimination Affecting Limited English Proficient Persons (72

FR 2732);

Affirmative fair housing marketing, including making persons aware of new or rehabilitated housing in a manner that provides greater housing choice or mobility for persons in classes protected by the Fair Housing Act;

Provide households with information, counseling and/or education regarding rights and remedies available under Federal, state and local fair housing and civil rights laws;

Where there are instances suggesting that violations of such laws have occurred or are occurring, report/provide information to HUD or local Fair Housing Assistance Program

(FHAP) agencies to investigate, and/or provide clients with contact information for local fair housing enforcement agencies in case the individual wants to pursue the claim on their own;

Affirmatively market counseling and education services; and/or effectively serving and

/or communicating with persons with disabilities, in accordance with Section 504 of the

Rehabilitation Act of 1973 and its implementing regulations at 24 CFR Parts 8 & 9, and

Title III of the Americans with Disabilities Act, for example, providing written materials that are available in large print or Braille, sign language interpreters, audio, and assistive listening devices, etc.

n. Limited English Proficiency. Housing counseling agencies shall take reasonable steps to ensure meaningful access to their services to individuals with Limited English Proficiency.

Applicants are to comply with Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and may refer to the Department‟s January 22, 2007 Final

Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against

National Origin Discrimination Affecting Limited English Proficient Persons (72 FR 2732).

IV. APPLICATION AND SUBMISSION INFORMATION.

A. Addresses to Request Application Package. See the General Section for specific procedures concerning the electronic application submission and timely receipt requirements.

Applications and forms that you need to apply for funding under this NOFA are available from http://www.grants.gov/applicants/apply_for_grants.jsp . If applicants have difficulty accessing the information, applicants may call the help desk help line at 800 518-GRANTS or e-mailing support@grants.gov. The Grants.gov help desk is available 24 hours a day, 7 days per week, except federal holidays.

B. Content and Form of Application Submission.

1. Size Limitations and Format for Narrative Statements. Applicants must be as specific and direct as possible. For LHCAs, the narrative portion (responses to all factors) must be limited to 50 double-spaced, 12-point font, single-sided pages. Intermediaries, MSOs and

SHFAs are limited to a total of 100 double-spaced, 12-point font, single-sided pages for the narrative portion. Pages in excess of the size limit will not be read. Number the pages of the http://www.grants.gov/applicants/apply_for_grants.jsp narrative statements and include a header that includes the applicant‟s name and the Rating

Factor number and title. Within each narrative, clearly identify each sub-factor immediately above the response for that sub-factor.

You must submit narratives as an electronic file in Microsoft Word Office 2007 (or earlier) (.doc or docx), Microsoft Excel 2007 (or earlier) (.xls or xlsx), or in Adobe (.pdf) format that is compatible with Adobe

Reader 9.4 or the latest version available from Grants.gov. If

HUD receives a file in a format or software other than those specified or that is not compatible with HUD software, HUD will not be able to read the file, and it will not be reviewed. Each response to a Rating Factor for Award should be clearly identified and can be incorporated into a single attachment or all attachments can be zipped together into a single attached ZIP file. However, HUD advises applicants that files zipped within zipped files cause problems and can result in the application attachments not able to be opened or read. Applicants should develop files, then zip the files together, and then place them as an attachment to the application. If you have any questions, you can contact the NOFA Information Center or the

HUD program contact listed in the program NOFA. Documents that applicants possess in electronic format,…