Monday, Dec 12 2011 5:24PM

The U.S. Department of Housing and Urban Development (HUD) recently announced more than $40 million in grants will be used to fund a variety of housing counseling programs nationwide.

The grants will be awarded to State Housing Finance Agencies and HUD-approved housing counseling agencies, which help citizens avoid foreclosure and mortgage scams, make informed decisions about buying and renting and how to improve their credit. The agency estimates 500 applicants will be approved.

"We fought hard to persuade Congress to restore funding for housing counseling in HUD’s Fiscal Year 2012 budget and I’m pleased that they did so. We will now work to make these important resources available to help families as quickly as possible," said HUD Secretary Shaun Donovan.

Housing counseling agencies approved by HUD typically offer free or low-cost services to renters, homeless individuals and families or others in need. Their assistance with housing issues and related financial advice can be difficult to obtain at higher prices, since those who most need the help often have strained finances. Agencies unable to obtain funding as they have in the past might be forced to charge more for their services, likely limiting the number of households they could assist.

Rural Community Assistance Corporation (RCAC) is a regional HUD housing counseling intermediary with a network of counseling organizations serving clients throughout the western United States.

Service delivery, understanding and complying with the reporting responsibilities that come with receiving federal grants can be time-consuming, costly and overwhelming. Having an experienced intermediary organization administer the grant greatly reduces the burden and helps ensure successful grant performance.

For further reference, check out this source: U.S. Department of Housing and Urban Development