A group of Democratic lawmakers, including Rep. Dan Kildee (D-MI), chief deputy whip of the House Democratic Caucus, are urging Congress to fully fund the U.S. Department of Housing and Urban Development’s Housing Counseling Assistance Program in the upcoming fiscal year.
While the House passed the full $100 million request for the program on July 29, the U.S. Senate has proposed reducing the funding amount.
The Housing Counseling Assistance Program provides funding to local organizations to give free or low-cost housing and financial counseling to homeowners, renters, homebuyers, and the homeless. Research shows that families who work with a housing counselor are more likely to make their mortgage payments, avoid foreclosure, maintain higher credit scores and increase their savings account balances.
“The COVID-19 pandemic has severely impacted many renters and homeowners, jeopardizing the housing security of millions of working families. Housing counselors have played an important role in empowering renters and homeowners with the financial, budgetary, and money management advice that has helped workers secure affordable housing, modify loans on more favorable terms and find alternatives to eviction and foreclosure,” the letter to Congressional leaders states. It was signed by 37 members of Congress, including Kildee.
The lawmakers point out that the Senate proposal would only provide $57.5 million for the Housing Counseling Assistance Program, which is the present funding levels.
“Given the challenges consumers are facing—and a demand for housing counseling that far outpaces current resources—this level is insufficient to build upon the program and support the millions of families who rely on its services,” the letter added.