---
kind: "section"
citation: "12 U.S.C. § 1701x"
title: "12"
title_heading: "Banks and Banking"
number: "1701x"
heading: "Assistance with respect to housing for low- and moderate-income families"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1701x"
units:
  - "Chapter 13 — National Housing"
---

# §1701x. Assistance with respect to housing for low- and moderate-income families

- (a) **Authorization to provide information, advice, and technical assistance; scope of assistance; authorization of appropriations—**
  - (1) The [Secretary](/usc/12/1715z–22a.md?p=4) is authorized to provide, or contract with public or private organizations to provide, information, advice, and technical assistance, including but not limited to—
    - (i) the assembly, correlation, publication, and dissemination of information with respect to the construction, rehabilitation, and operation of low- and moderate-income housing;
    - (ii) the provision of advice and technical assistance to public bodies or to nonprofit or cooperative organizations with respect to the construction, rehabilitation, and operation of low- and moderate-income housing, including assistance with respect to self-help and mutual self-help programs;
    - (iii) counseling and advice to tenants and homeowners with respect to property maintenance, financial management, and such other matters as may be appropriate to assist them in improving their housing conditions and in meeting the responsibilities of tenancy or homeownership; and
    - (iv) the provision of technical assistance to communities, particularly smaller communities, to assist such communities in planning, developing, and administering Community Development Programs pursuant to title I of the Housing and Community Development Act of 1974 [[42 U.S.C. 5301](/usc/42/5301.md) et seq.].
  - (2) The [Secretary](/usc/12/1715z–22a.md?p=4) (A) shall provide the services described in [clause (iii)](#a-1-iii) of paragraph (1) for homeowners assisted under section 235 of the National Housing Act [[12 U.S.C. 1715z](/usc/12/1715z.md)]; (B) shall, in consultation with the [Secretary](/usc/12/1715z–22a.md?p=4) of Agriculture, provide such services for borrowers who are first-time homebuyers with guaranteed loans under section 502(h) of the Housing Act of 1949 [[42 U.S.C. 1472(h)](/usc/42/1472.md?p=h)]; and (C) may provide such services for other owners of single family dwelling units insured under title II of the National Housing Act [[12 U.S.C. 1707](/usc/12/1707.md) et seq.] or guaranteed or insured under chapter 37 of title 38. For purposes of this paragraph and [clause (iii)](#a-1-iii) of paragraph (1), the [Secretary](/usc/12/1715z–22a.md?p=4) may provide the services described in such clause directly or may enter into contracts with, make grants to, and provide other types of assistance to private or public organizations with special competence and knowledge in counseling low- and moderate-income families to provide such services.
  - (3) There is authorized to be appropriated for the purposes of this subsection, without fiscal year limitation, such sums as may be necessary; except that for such purposes there are authorized to be appropriated $6,025,000 for fiscal year 1993 and $6,278,050 for fiscal year 1994. Of the amounts appropriated for each of fiscal years 1993 and 1994, up to $500,000 shall be available for use for counseling and other activities in connection with the demonstration program under section 152 of the Housing and Community Development Act of 1992. Any amounts so appropriated shall remain available until expended.
  - (4) **Homeownership and Rental Counseling Assistance.—**
    - (A) **In general.—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall make financial assistance available under this paragraph to HUD-approved housing counseling agencies and [State](/usc/12/1707.md?p=d) housing finance agencies.
    - (B) **Qualified entities.—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall establish standards and guidelines for eligibility of organizations (including governmental and nonprofit organizations) to receive assistance under this paragraph, in accordance with [subparagraph (D)](#a-4-D).
    - (C) **Distribution.—** Assistance made available under this paragraph shall be distributed in a manner that encourages efficient and successful counseling programs and that ensures that the recipients are geographically diverse and include organizations that serve urban or rural areas.
    - (D) **Limitation on distribution of assistance.—**
      - (i) **In general.—** None of the amounts made available under this paragraph shall be distributed to—
        - (I) any organization which has been convicted for a violation under Federal law relating to an election for Federal office; or
        - (II) any organization which employs applicable individuals.
      - (ii) **Definition of applicable individuals.—** In this subparagraph, the term “applicable individual” means an individual who—
        - (I) is—
          - (aa) employed by the organization in a permanent or temporary capacity;
          - (bb) contracted or retained by the organization; or
          - (cc) acting on behalf of, or with the express or apparent authority of, the organization; and
        - (II) has been convicted for a violation under Federal law relating to an election for Federal office.
    - (E) **Grantmaking process.—** In making assistance available under this paragraph, the [Secretary](/usc/12/1715z–22a.md?p=4) shall consider appropriate ways of streamlining and improving the processes for grant application, review, approval, and award.
    - (F) **Authorization of appropriations.—** There are authorized to be appropriated $45,000,000 for each of fiscal years 2009 through 2012 for—
      - (i) the operations of the Office of Housing Counseling of the Department of Housing and Urban Development;
      - (ii) the responsibilities of the [Director](/usc/12/5481.md?p=10) of Housing Counseling under paragraphs [(2)](#g-2) through [(5)](#g-5) of subsection (g); and
      - (iii) assistance pursuant to this paragraph for entities providing homeownership and rental counseling.
- (b) **Loans to nonprofit organizations or public housing agencies; purpose and terms; repayment; authorization of appropriations; deposit of appropriations in Low and Moderate Income Sponsor Fund—**
  - (1) The [Secretary](/usc/12/1715z–22a.md?p=4) is authorized to make loans to nonprofit organizations or public housing agencies for the necessary expenses, prior to construction, in planning, and obtaining financing for, the rehabilitation or construction of housing for low or moderate income families under section 235 of the National Housing Act [[12 U.S.C. 1715z](/usc/12/1715z.md)] or any other federally assisted program. Such loans shall be made without interest and shall not exceed 80 per centum of the reasonable costs expected to be incurred in planning, and in obtaining financing for, such housing prior to the availability of financing, including, but not limited to, preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site acquisition, application and [mortgage](/usc/12/1707.md?p=a) commitment fees, and construction loan fees and discounts. The [Secretary](/usc/12/1715z–22a.md?p=4) shall require repayment of loans made under this subsection, under such terms and conditions as he may require, upon completion of the project or sooner, and may cancel any part or all of a loan if he determines that it cannot be recovered from the proceeds of any permanent loan made to finance the rehabilitation or construction of the housing.
  - (2) The [Secretary](/usc/12/1715z–22a.md?p=4) shall determine prior to the making of any loan that the nonprofit organization or public housing agency meets such requirements with respect to financial responsibility and stability as he may prescribe.
  - (3) There are authorized to be appropriated for the purposes of this subsection not to exceed $7,500,000 for the fiscal year ending June 30, 1969, and not to exceed $10,000,000 for the fiscal year ending June 30, 1970. Any amounts so appropriated shall remain available until expended, and any amounts authorized for any fiscal year under this paragraph but not appropriated may be appropriated for any succeeding fiscal year.
  - (4) All funds appropriated for the purposes of this subsection shall be deposited in a fund which shall be known as the Low and Moderate Income Sponsor Fund, and which shall be available without fiscal year limitation and be administered by the [Secretary](/usc/12/1715z–22a.md?p=4) as a revolving fund for carrying out the purposes of this subsection. Sums received in repayment of loans made under this subsection shall be deposited in such fund.
- (c) **Grants for homeownership counseling organizations—**
  - (1) **In general—** The [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development may make grants—
    - (A) to nonprofit organizations experienced in the provision of homeownership counseling to enable the organizations to provide homeownership counseling to eligible homeowners; and
    - (B) to assist in the establishment of nonprofit homeownership counseling organizations.
  - (2) **Program requirements—**
    - (A) Applications for grants under this subsection shall be submitted in the form, and in accordance with the procedures, that the [Secretary](/usc/12/1715z–22a.md?p=4) requires.
    - (B) The homeownership counseling organizations receiving assistance under this subsection shall use the assistance only to provide homeownership counseling to eligible homeowners.
    - (C) The homeownership counseling provided by homeownership counseling organizations receiving assistance under this subsection shall include counseling with respect to—
      - (i) financial management;
      - (ii) available community resources, including public assistance programs, [mortgage](/usc/12/1707.md?p=a) assistance programs, home repair assistance programs, utility assistance programs, food programs, and social services; and
      - (iii) employment training and placement.
  - (3) **Availability of homeownership counseling—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall take any action that is necessary—
    - (A) to ensure the availability throughout the United States of homeownership counseling from homeownership counseling organizations receiving assistance under this subsection, with priority to areas that—
      - (i) are experiencing high rates of home foreclosure and any other indicators of homeowner distress determined by the [Secretary](/usc/12/1715z–22a.md?p=4) to be appropriate;
      - (ii) are not already adequately served by homeownership counseling organizations; and
      - (iii) have a high incidence of [mortgages](/usc/12/1707.md?p=a) involving principal obligations (including such initial service charges, appraisal, inspection, and other fees as the [Secretary](/usc/12/1715z–22a.md?p=4) shall approve) in excess of 97 percent of the appraised value of the properties that are insured pursuant to section 203 of the National Housing Act [[12 U.S.C. 1709](/usc/12/1709.md)]; and
    - (B) to inform the public of the availability of the homeownership counseling.
  - (4) **Eligibility for counseling—** A homeowner shall be eligible for homeownership counseling under this subsection if—
    - (A) the home loan is secured by property that is the principal residence (as defined by the [Secretary](/usc/12/1715z–22a.md?p=4)) of the homeowner;
    - (B) the home loan is not assisted under title V of the Housing Act of 1949 [[42 U.S.C. 1471](/usc/42/1471.md) et seq.]; and
    - (C) the homeowner is, or is expected to be, unable to make payments, correct a home loan delinquency within a reasonable time, or resume full home loan payments due to a reduction in the income of the homeowner because of—
      - (i) an involuntary loss of, or reduction in, the employment of the homeowner, the self-employment of the homeowner, or income from the pursuit of the occupation of the homeowner;
      - (ii) any similar loss or reduction experienced by any [person](/usc/12/5481.md?p=19) who contributes to the income of the homeowner;
      - (iii) a significant reduction in the income of the household due to divorce or death; or
      - (iv) a significant increase in basic expenses of the homeowner or an immediate [family member](/usc/12/1707.md?p=e) of the homeowner (including the spouse, [child](/usc/12/1707.md?p=f), or parent for whom the homeowner provides substantial care or financial assistance) due to—
        - (I) an unexpected or significant increase in medical expenses;
        - (II) a divorce;
        - (III) unexpected and significant damage to the property, the repair of which will not be covered by private or public insurance; or
        - (IV) a large property-tax increase; or
    - (D) the [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development determines that the annual income of the homeowner is no greater than the annual income established by the [Secretary](/usc/12/1715z–22a.md?p=4) as being of low- or moderate-income.
  - (5) **Notification of availability of homeownership counseling—**
    - (A) **Notification of availability of homeownership counseling—**
      - (i) **Requirement—** Except as provided in [subparagraph (C)](#c-5-C), the creditor of a loan (or proposed creditor) shall provide notice under clause [(ii)](#c-5-A-ii) to (I) any eligible homeowner who fails to pay any amount by the date the amount is due under a home loan, and (II) any applicant for a [mortgage](/usc/12/1707.md?p=a) described in [paragraph (4)](#c-4).
      - (ii) **Content—** Notification under this subparagraph shall—
        - (I) notify the homeowner or [mortgage](/usc/12/1707.md?p=a) applicant of the availability of any homeownership counseling offered by the creditor (or proposed creditor);
        - (II) if provided to an eligible [mortgage](/usc/12/1707.md?p=a) applicant, [state](/usc/12/1707.md?p=d) that completion of a counseling program is required for insurance pursuant to section 203 of the National Housing Act [[12 U.S.C. 1709](/usc/12/1709.md)];
        - (III) notify the homeowner or [mortgage](/usc/12/1707.md?p=a) applicant of the availability of homeownership counseling provided by nonprofit organizations approved by the [Secretary](/usc/12/1715z–22a.md?p=4) and experienced in the provision of homeownership counseling, or provide the toll-free telephone number described in [subparagraph (D)(i)](#c-5-D-i);
        - (IV) notify the homeowner by a statement or notice, written in plain English by the [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development, in consultation with the [Secretary](/usc/12/1715z–22a.md?p=4) of Defense and the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury, explaining the [mortgage](/usc/12/1707.md?p=a) and foreclosure rights of servicemembers, and the dependents of such servicemembers, under the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) [now [50 U.S.C. 3901](/usc/50/3901.md) et seq.], including the toll-free military one source number to call if servicemembers, or the dependents of such servicemembers, require further assistance; and
        - (V) notify the housing or [mortgage](/usc/12/1707.md?p=a) applicant of the availability of [mortgage](/usc/12/1707.md?p=a) software systems provided pursuant to [subsection (g)(3)](#g-3).
    - (B) **Deadline for notification—** The notification required in [subparagraph (A)](#c-5-A) shall be made—
      - (i) in a manner approved by the [Secretary](/usc/12/1715z–22a.md?p=4); and
      - (ii) before the expiration of the 45-day period beginning on the date on which the failure referred to in such subparagraph occurs.
    - (C) **Notification—** Notification under [subparagraph (A)](#c-5-A) shall not be required with respect to any loan for which the eligible homeowner pays the amount overdue before the expiration of the 45-day period under [subparagraph (B)(ii)](#c-5-B-ii).
    - (D) **Administration and compliance—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall, to the extent of amounts approved in appropriation Acts, enter into an agreement with an appropriate private entity under which the entity will—
      - (i) operate a toll-free telephone number through which any eligible homeowner can obtain a list of nonprofit organizations, which shall be updated annually, that—
        - (I) are approved by the [Secretary](/usc/12/1715z–22a.md?p=4) and experienced in the provision of homeownership counseling; and
        - (II) serve the area in which the residential property of the homeowner is located;
      - (ii) monitor the compliance of creditors with the requirements of subparagraphs [(A)](#c-5-A) and [(B)](#c-5-B); and
      - (iii) report to the [Secretary](/usc/12/1715z–22a.md?p=4) not less than annually regarding the extent of compliance of creditors with the requirements of subparagraphs [(A)](#c-5-A) and [(B)](#c-5-B).
    - (E) **Report—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall submit a report to the Congress not less than annually regarding the extent of compliance of creditors with the requirements of subparagraphs [(A)](#c-5-A) and [(B)](#c-5-B) and the effectiveness of the entity monitoring such compliance. The [Secretary](/usc/12/1715z–22a.md?p=4) shall also include in the report any recommendations for legislative action to increase the authority of the [Secretary](/usc/12/1715z–22a.md?p=4) to penalize creditors who do not comply with such requirements.
  - (6) **Definitions—** For purposes of this subsection:
    - (A) The term “creditor” means a [person](/usc/12/5481.md?p=19) or entity that is servicing a home loan on behalf of itself or another [person](/usc/12/5481.md?p=19) or entity.
    - (B) The term “eligible homeowner” means a homeowner eligible for counseling under [paragraph (4)](#c-4).
    - (C) The term “home loan” means a loan secured by a [mortgage](/usc/12/1707.md?p=a) or lien on residential property.
    - (D) The term “homeowner” means a [person](/usc/12/5481.md?p=19) who is obligated under a home loan.
    - (E) The term “residential property” means a 1-family residence, including a 1-family unit in a condominium project, a membership interest and occupancy agreement in a cooperative housing project, and a manufactured home and the lot on which the home is situated.
  - (7) **Regulations—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall issue any regulations that are necessary to carry out this subsection.
  - (8) **Authorization of appropriations—** There are authorized to be appropriated to carry out this section $7,000,000 for fiscal year 1993 and $7,294,000 for fiscal year 1994, of which amounts $1,000,000 shall be available in each such fiscal year to carry out [paragraph (5)(D)](#c-5-D). Any amount appropriated under this subsection shall remain available until expended.
- (d) **Prepurchase and foreclosure-prevention counseling demonstration—**
  - (1) **Purposes—** The purpose of this subsection is—
    - (A) to reduce defaults and foreclosures on [mortgage](/usc/12/1707.md?p=a) loans insured under the Federal Housing Administration single family [mortgage](/usc/12/1707.md?p=a) insurance program;
    - (B) to encourage responsible and prudent use of such federally insured home [mortgages](/usc/12/1707.md?p=a);
    - (C) to assist homeowners with such federally insured [mortgages](/usc/12/1707.md?p=a) to retain the homes they have purchased pursuant to such [mortgages](/usc/12/1707.md?p=a); and
    - (D) to encourage the availability and expansion of housing opportunities in connection with such federally insured home [mortgages](/usc/12/1707.md?p=a).
  - (2) **Authority—** The [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development shall carry out a program to demonstrate the effectiveness of providing coordinated prepurchase counseling and foreclosure-prevention counseling to first-time homebuyers and homeowners in avoiding defaults and foreclosures on [mortgages](/usc/12/1707.md?p=a) insured under the Federal Housing Administration single family home [mortgage](/usc/12/1707.md?p=a) insurance program.
  - (3) **Grants—** Under the demonstration program under this subsection, the [Secretary](/usc/12/1715z–22a.md?p=4) shall make grants to qualified nonprofit organizations under [paragraph (4)](#d-4) to enable the organizations to provide prepurchase counseling services to eligible homebuyers and foreclosure-prevention counseling services to eligible homeowners, in counseling target areas.
  - (4) **Qualified nonprofit organizations—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall select nonprofit organizations to receive assistance under the demonstration program under this subsection based on the experience and ability of the organizations in providing homeownership counseling and their ability to provide community-based prepurchase and foreclosure-prevention counseling under paragraphs [(5)](#d-5) and [(6)](#d-6) in a counseling target area. To be eligible for selection under this paragraph, a nonprofit organization shall submit an application containing a proposal for providing counseling services in the form and manner required by the [Secretary](/usc/12/1715z–22a.md?p=4).
  - (5) **Prepurchase counseling—**
    - (A) **Mandatory participation—** Under the demonstration program, the [Secretary](/usc/12/1715z–22a.md?p=4) shall require any eligible homebuyer who intends to purchase a home located in a counseling target area and who has applied for (as determined by the [Secretary](/usc/12/1715z–22a.md?p=4)) a qualified [mortgage](/usc/12/1707.md?p=a) (as such term is defined in [paragraph (9)](#d-9)) on such home that involves a downpayment of less than 10 percent of the principal obligation of the [mortgage](/usc/12/1707.md?p=a), to receive counseling prior to signing of a contract to purchase the home. The counseling shall include counseling with respect to—
      - (i) financial management and the responsibilities involved in homeownership;
      - (ii) fair housing laws and requirements;
      - (iii) the maximum [mortgage](/usc/12/1707.md?p=a) amount that the homebuyer can afford; and
      - (iv) options, programs, and actions available to the homebuyer in the event of actual or potential delinquency or default.
    - (B) **Eligibility for counseling—** A homebuyer shall be eligible for prepurchase counseling under this paragraph if—
      - (i) the homebuyer has applied for a qualified [mortgage](/usc/12/1707.md?p=a);
      - (ii) the homebuyer is a first-time homebuyer; and
      - (iii) the home to be purchased under the qualified [mortgage](/usc/12/1707.md?p=a) is located in a counseling target area.
  - (6) **Foreclosure-prevention counseling—**
    - (A) **Availability—** Under the demonstration program, the [Secretary](/usc/12/1715z–22a.md?p=4) shall make counseling available for eligible homeowners who are 60 or more days delinquent with respect to a payment under a qualified [mortgage](/usc/12/1707.md?p=a) on a home located within a counseling target area. The counseling shall include counseling with respect to options, programs, and actions available to the homeowner for resolving the delinquency or default.
    - (B) **Notification of delinquency—** Under the demonstration program, the [Secretary](/usc/12/1715z–22a.md?p=4) shall require the creditor of any eligible homeowner who is delinquent (as described in [subparagraph (A)](#d-6-A)) to send written notice by registered or certified mail within 5 days (excluding Saturdays, Sundays, and legal public holidays) after the occurrence of such delinquency—
      - (i) notifying the homeowner of the delinquency and the name, address, and phone number of the counseling organization for the counseling target area; and
      - (ii) notifying any counseling organization for the counseling target area of the delinquency and the name, address, and phone number of the delinquent homeowner.
    - (C) **Coordination with emergency homeownership counseling program—** The [Secretary](/usc/12/1715z–22a.md?p=4) may coordinate the provision of assistance under [subsection (c)](#c) with the demonstration program under this subsection.
    - (D) **Eligibility for counseling—** A homeowner shall be eligible for foreclosure-prevention counseling under this paragraph if—
      - (i) the home owned by the homeowner is subject to a qualified [mortgage](/usc/12/1707.md?p=a); and
      - (ii) such home is located in a counseling target area.
  - (7) **Scope of demonstration program—**
    - (A) **Designation of counseling target areas—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall designate 3 counseling target areas (as provided in [subparagraph (B)](#d-7-B)), which shall be located in not less than 2 separate metropolitan areas. The [Secretary](/usc/12/1715z–22a.md?p=4) shall provide for counseling under the demonstration program under this subsection with respect to only such counseling target areas.
    - (B) **Counseling target areas—** Each counseling target area shall consist of a group of contiguous census tracts—
      - (i) the population of which is greater than 50,000;
      - (ii) which together constitute an identifiable neighborhood, area, borough, district, or region within a metropolitan area (except that this clause may not be construed to exclude a group of census tracts containing areas not wholly contained within a single town, city, or other political subdivision of a [State](/usc/12/1707.md?p=d));
      - (iii) in which the average age of existing housing is greater than 20 years; and
      - (iv) for which (I) the percentage of qualified [mortgages](/usc/12/1707.md?p=a) on homes within the area that are foreclosed exceeds 5 percent for the calendar year preceding the year in which the area is selected as a counseling target area, or (II) the number of qualified [mortgages](/usc/12/1707.md?p=a) originated on homes in such area in the calendar year preceding the calendar year in which the area is selected as a counseling target area exceeds 20 percent of the total number of [mortgages](/usc/12/1707.md?p=a) originated on residences in the area during such year.
    - (C) **Mortgage characteristics—** In designating counseling target areas under [subparagraph (A)](#d-7-A), the [Secretary](/usc/12/1715z–22a.md?p=4) shall designate at least 1 such area that meets the requirements of subparagraph (B)(iv)(I) and at least 1 such area that meets the requirements of subparagraph (B)(iv)(II).
    - (D) **Expansion of target areas—** The [Secretary](/usc/12/1715z–22a.md?p=4) may expand any counseling target area during the term of the demonstration program, if the [Secretary](/usc/12/1715z–22a.md?p=4) determines that counseling can be adequately provided within such expanded area and the purposes of this subsection will be furthered by such expansion. Any such expansion shall include only groups of census tracts that are contiguous to the counseling target area expanded and such census tract groups shall not be subject to the provisions of [subparagraph (B)](#d-7-B).
    - (E) **Designation of control areas—** For purposes of determining the effectiveness of counseling under the demonstration program, the [Secretary](/usc/12/1715z–22a.md?p=4) shall designate 3 control areas, each of which shall correspond to 1 of the counseling target areas designated under [subparagraph (A)](#d-7-A). Each control area shall be located in the metropolitan area in which the corresponding counseling target area is located, shall meet the requirements of [subparagraph (B)](#d-7-B), and shall be similar to such area with respect to size, age of housing stock, median income, and racial makeup of the population. Each control area shall also comply with the requirements of subclause (I) or (II) of subparagraph (B)(iv), according to the subclause with which the corresponding counseling target area complies.
  - (8) **Evaluation—** Each organization providing counseling under the demonstration program under this subsection shall maintain records with respect to each eligible homebuyer and eligible homeowner counseled and shall provide information with respect to such counseling as the [Secretary](/usc/12/1715z–22a.md?p=4) or the Comptroller General may require.
  - (9) **Definitions—** For purposes of this subsection:
    - (A) The term “control area” means an area designated by the [Secretary](/usc/12/1715z–22a.md?p=4) under [paragraph (7)(E)](#d-7-E).
    - (B) The term “counseling target area” means an area designated by the [Secretary](/usc/12/1715z–22a.md?p=4) under [paragraph (7)(A)](#d-7-A).
    - (C) The term “creditor” means a [person](/usc/12/5481.md?p=19) or entity that is servicing a loan secured by a qualified [mortgage](/usc/12/1707.md?p=a) on behalf of itself or another [person](/usc/12/5481.md?p=19) or entity.
    - (D) The term “displaced homemaker” means an individual who—
      - (i) is an adult;
      - (ii) has not worked full-time, full-year in the labor force for a number of years, but has during such years, worked primarily without remuneration to care for the home and family; and
      - (iii) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.
    - (E) The term “downpayment” means the amount of purchase price of home required to be paid at or before the time of purchase.
    - (F) The term “eligible homebuyer” means a homebuyer that meets the requirements under [paragraph (5)(B)](#d-5-B).
    - (G) The term “eligible homeowner” means a homeowner that meets the requirements under [paragraph (6)(D)](#d-6-D).
    - (H) The term “first-time homebuyer” means an individual who—
      - (i) (and whose spouse) has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the home pursuant to which counseling is provided under this subsection;
      - (ii) is a displaced homemaker who, except for owning a residence with his or her spouse or residing in a residence owned by the spouse, meets the requirements of [clause (i)](#d-9-H-i); or
      - (iii) is a single parent who, except for owning a residence with his or her spouse or residing in a residence owned by the spouse while married, meets the requirements of [clause (i)](#d-9-H-i).
    - (I) The term “home” includes any dwelling or dwelling unit eligible for a qualified [mortgage](/usc/12/1707.md?p=a), and includes a unit in a condominium project, a membership interest and occupancy agreement in a cooperative housing project, and a manufactured home and the lot on which the home is situated.
    - (J) The term “metropolitan area” means a standard metropolitan statistical area as designated by the [Director](/usc/12/5481.md?p=10) of the Office of Management and Budget.
    - (K) The term “qualified [mortgage](/usc/12/1707.md?p=a)” means a [mortgage](/usc/12/1707.md?p=a) on a 1- to 4-family home that is insured under title II of the National Housing Act [[12 U.S.C. 1707](/usc/12/1707.md) et seq.].
    - (L) The term “[Secretary](/usc/12/1715z–22a.md?p=4)” means the [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development.
    - (M) The term “single parent” means an individual who—
      - (i) is unmarried or legally separated from a spouse; and
      - (ii)
        - (I) has 1 or more minor children for whom the individual has custody or joint custody; or
        - (II) is pregnant.
  - (10) **Regulations—** The [Secretary](/usc/12/1715z–22a.md?p=4) may issue any regulations necessary to carry out this subsection.
  - (11) **Authorization of appropriations—** There are authorized to be appropriated to carry out this subsection $365,000 for fiscal year 1993 and $380,330 for fiscal year 1994.
  - (12) **Termination—** The demonstration program under this subsection shall terminate at the end of fiscal year 1994.
- (e) **Certification—**
  - (1) **Requirement for assistance—** An organization may not receive assistance for counseling activities under subsection [(a)(1)(iii)](#a-1-iii), [(a)(2)](#a-2), [(a)(4)](#a-4), [(c)](#c), or [(d)](#d) of this section, or under [section 1701w of this title](/usc/12/1701w.md), unless the organization, or the individuals through which the organization provides such counseling, has been certified by the [Secretary](/usc/12/1715z–22a.md?p=4) under this subsection as competent to provide such counseling.
  - (2) **Standards and examination—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall, by regulation, establish standards and procedures for testing and certifying counselors and for certifying organizations. Such standards and procedures shall require, for certification of an organization, that each individual through which the organization provides counseling shall demonstrate, and, for certification of an individual, that the individual shall demonstrate, by written examination (as provided under [subsection (f)(4)](#f-4)), competence to provide counseling in each of the following areas:
    - (A) Financial management.
    - (B) Property maintenance.
    - (C) Responsibilities of homeownership and tenancy.
    - (D) Fair housing laws and requirements.
    - (E) Housing affordability.
    - (F) Avoidance of, and responses to, rental and [mortgage](/usc/12/1707.md?p=a) delinquency and avoidance of eviction and [mortgage](/usc/12/1707.md?p=a) default.
  - (3) **Requirement under HUD programs—** Any homeownership counseling or rental housing counseling (as such terms are defined in [subsection (g)(1)](#g-1)) required under, or provided in connection with, any program administered by the Department of Housing and Urban Development shall be provided only by organizations or counselors certified by the [Secretary](/usc/12/1715z–22a.md?p=4) under this subsection as competent to provide such counseling.
  - (4) **Outreach—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall take such actions as the [Secretary](/usc/12/1715z–22a.md?p=4) considers appropriate to ensure that individuals and organizations providing homeownership or rental housing counseling are aware of the certification requirements and standards of this subsection and of the training and certification programs under [subsection (f)](#f).
  - (5) **Encouragement—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall encourage organizations engaged in providing homeownership and rental counseling that do not receive assistance under this section to employ organizations and individuals to provide such counseling who are certified under this subsection or meet the certification standards established under this subsection.
  - (6) **Reviews—** The [Secretary](/usc/12/1715z–22a.md?p=4)—
    - (A) may conduct periodic reviews; and
    - (B) shall conduct performance reviews of all organizations receiving assistance under this section that—
      - (i) consist of a review of the organization’s compliance with all program requirements; and
      - (ii) may take into account the organization’s aggregate counselor performance under [paragraph (7)(B)](#e-7-B).
  - (7) **Considerations—**
    - (A) **Covered mortgage loan defined—** In this paragraph, the term “covered [mortgage](/usc/12/1707.md?p=a) loan” means any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and housing cooperatives) designed principally for the occupancy of between 1 and 4 families that is—
      - (i) insured by the Federal Housing Administration under title II of the National Housing Act ([12 U.S.C. 1707](/usc/12/1707.md) et seq.); or
      - (ii) guaranteed under section [1715z–13a](/usc/12/1715z–13a.md) or [1715z–13b](/usc/12/1715z–13b.md) of this title.
    - (B) **Comparison—** For each counselor employed by an organization receiving assistance under this section for prepurchase housing counseling, the [Secretary](/usc/12/1715z–22a.md?p=4) may consider the performance of the counselor compared to the default rate of all counseled borrowers of a covered [mortgage](/usc/12/1707.md?p=a) loan in comparable markets and such other factors as the [Secretary](/usc/12/1715z–22a.md?p=4) determines appropriate to further the purposes of this section.
  - (8) **Certification—** If, based on the comparison required under [paragraph (7)(B)](#e-7-B), the [Secretary](/usc/12/1715z–22a.md?p=4) determines that a counselor lacks competence to provide counseling in the areas described in [subsection (e)(2)](#e-2) and such action will not create a significant loss of capacity for housing counseling services in the service area, the [Secretary](/usc/12/1715z–22a.md?p=4) may—
    - (A) require continued education coupled with successful completion of a probationary period;
    - (B) require retesting if the counselor continues to demonstrate a lack of competence under [paragraph (7)(B)](#e-7-B); and
    - (C) suspend an individual certification if a counselor fails to demonstrate competence after not fewer than 2 retesting opportunities under [subparagraph (B)](#e-8-B).
- (f) **Homeownership and rental counselor training and certification programs—**
  - (1) **Establishment—** To the extent amounts are provided in appropriations Acts under [paragraph (7)](#f-7), the [Secretary](/usc/12/1715z–22a.md?p=4) shall contract with an appropriate entity (which may be a nonprofit organization) to carry out a program under this subsection to train individuals to provide homeownership and rental counseling and to administer the examination under [subsection (e)(2)](#e-2) and certify individuals under such subsection.
  - (2) **Eligibility and selection—**
    - (A) **Eligibility—** To be eligible to provide the training and certification program under this subsection, an entity shall have demonstrated experience in training homeownership and rental counselors.
    - (B) **Selection—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall provide for entities meeting the requirements of [subparagraph (A)](#f-2-A) to submit applications to provide the training and certification program under this subsection. The [Secretary](/usc/12/1715z–22a.md?p=4) shall select an application based on the ability of the entity to—
      - (i) establish the program as soon as possible on a national basis, but not later than the date under [paragraph (6)](#f-6);
      - (ii) minimize the costs involved in establishing the program; and
      - (iii) effectively and efficiently carry out the program.
  - (3) **Training—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall require that training of counselors under the program under this subsection be designed and coordinated to prepare individuals for successful completion of the examination for certification under [subsection (e)(2)](#e-2). The [Secretary](/usc/12/1715z–22a.md?p=4), in consultation with the entity selected under [paragraph (2)(B)](#f-2-B), shall establish the curriculum and standards for training counselors under the program.
  - (4) **Certification—** The entity selected under [paragraph (2)(B)](#f-2-B) shall administer the examination under [subsection (e)(2)](#e-2) and, on behalf of the [Secretary](/usc/12/1715z–22a.md?p=4), certify individuals successfully completing the examination. The [Secretary](/usc/12/1715z–22a.md?p=4), in consultation with such entity, shall establish the content and format of the examination.
  - (5) **Fees—** Subject to the approval of the [Secretary](/usc/12/1715z–22a.md?p=4), the entity selected under [paragraph (2)(B)](#f-2-B) may establish and impose reasonable fees for participation in the training provided under the program and for examination and certification under [subsection (e)(2)](#e-2), in an amount sufficient to cover any costs of such activities not covered with amounts provided under [paragraph (7)](#f-7).
  - (6) **Timing—** The entity selected under [paragraph (2)(B)](#f-2-B) to carry out the training and certification program shall establish the program as soon as possible after such selection, and shall make training and certification available under the program on a national basis not later than the expiration of the 1-year period beginning upon such selection.
  - (7) **Authorization of appropriations—** There are authorized to be appropriated to carry out this subsection $2,000,000 for fiscal year 1993 and $2,084,000 for 1994.
- (g) **Procedures and activities—**
  - (1) **Counseling procedures—**
    - (A) **In general—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall establish, coordinate, and monitor the administration by the Department of Housing and Urban Development of the counseling procedures for homeownership counseling and rental housing counseling provided in connection with any program of the Department, including all requirements, standards, and performance measures that relate to homeownership and rental housing counseling.
    - (B) **Homeownership counseling—** For purposes of this subsection and as used in the provisions referred to in this subparagraph, the term “homeownership counseling” means counseling related to homeownership and residential [mortgage](/usc/12/1707.md?p=a) loans. Such term includes counseling related to homeownership and residential [mortgage](/usc/12/1707.md?p=a) loans that is provided pursuant to—
      - (i) section 105(a)(20) of the Housing and Community Development Act of 1974 ([42 U.S.C. 5305(a)(20)](/usc/42/5305.md?p=a-20));
      - (ii) in the United States Housing Act of 1937 [[42 U.S.C. 1437](/usc/42/1437.md) et seq.]—
        - (I) [section 9(e)](/usc/12/9.md) ([42 U.S.C. 1437g(e)](/usc/42/1437g.md?p=e));
        - (II) [section 8(y)(1)(D)](/usc/12/8.md) ([42 U.S.C. 1437f(y)(1)(D)](/usc/42/1437f.md?p=y-1-D));
        - (III) section 18(a)(4)(D) ([42 U.S.C. 1437p(a)(4)(D)](/usc/42/1437p.md?p=a-4-D));
        - (IV) [section 23(c)(4)](/usc/12/23.md)[^1] ([42 U.S.C. 1437u(c)(4)](/usc/42/1437u.md));
        - (V) [section 32(e)(4)](/usc/12/32.md) ([42 U.S.C. 1437z–4(e)(4)](/usc/42/1437z–4.md?p=e-4));
        - (VI) section 33(d)(2)(B) ([42 U.S.C. 1437z–5(d)(2)(B)](/usc/42/1437z–5.md?p=d-2-B));
        - (VII) sections [302(b)(6)](/usc/12/302.md) and [303(b)(7)](/usc/12/303.md) ([42 U.S.C. 1437aaa–1(b)(6)](/usc/42/1437aaa–1.md?p=b-6), 1437aaa–2(b)(7)); and
        - (VIII) [section 304(c)(4)](/usc/12/304.md) ([42 U.S.C. 1437aaa–3(c)(4)](/usc/42/1437aaa–3.md?p=c-4));
      - (iii) [section 302(a)(4)](/usc/12/302.md) of the American Homeownership and Economic Opportunity Act of 2000 ([42 U.S.C. 1437f](/usc/42/1437f.md) note);
      - (iv) sections [12773(b)(2)](/usc/42/12773.md?p=b-2) and [12808(b)](/usc/42/12808.md?p=b) of title 42;
      - (v) this section and [section 1701w of this title](/usc/12/1701w.md);
      - (vi) [section 4110(d)(2)(G) of this title](/usc/12/4110.md?p=d-2-G);
      - (vii) sections [12872(b)(6)](/usc/42/12872.md?p=b-6), [12873(b)(7)](/usc/42/12873.md?p=b-7), [12874(c)(4)](/usc/42/12874.md?p=c-4), [12892(b)(6)](/usc/42/12892.md?p=b-6), and [12893(b)(6)](/usc/42/12893.md?p=b-6) of title 42;
      - (viii) section 11408(b)(1)(F)(iii)[^1] of title 42;
      - (ix) [sections 202(3)](/usc/12/202.md)[^1] and 810(b)(2)(A)[^1] of the Native American Housing and Self-Determination Act of 1996 ([25 U.S.C. 4132(3)](/usc/25/4132.md?p=3), 4229(b)(2)(A));
      - (x) in the National Housing Act [[12 U.S.C. 1701](/usc/12/1701.md) et seq.]—
        - (I) in [section 203](/usc/12/203.md) ([12 U.S.C. 1709](/usc/12/1709.md)), the penultimate undesignated paragraph of [paragraph (2)](#b-2) of subsection (b), [subsection (c)(2)(A)](#c-2-A), and subsection (r)(4);
        - (II) subsections (a) and (c)(3) of section 237;[^1] and
        - (III) subsections (d)(2)(B) and (m)(1) of section 255 ([12 U.S.C. 1715z–20](/usc/12/1715z–20.md));
      - (xi) section 502(h)(4)(B) of the Housing Act of 1949 ([42 U.S.C. 1472(h)(4)(B)](/usc/42/1472.md?p=h-4-B));
      - (xii) [section 1701z–7 of this title](/usc/12/1701z–7.md); and
      - (xiii) [section 1701z–16 of this title](/usc/12/1701z–16.md).
    - (C) **Rental housing counseling—** For purposes of this subsection, the term “rental housing counseling” means counseling related to rental of residential property, which may include counseling regarding future homeownership opportunities and providing referrals for renters and prospective renters to entities providing counseling and shall include counseling related to such topics that is provided pursuant to—
      - (i) section 105(a)(20) of the Housing and Community Development Act of 1974 ([42 U.S.C. 5305(a)(20)](/usc/42/5305.md?p=a-20));
      - (ii) in the United States Housing Act of 1937—
        - (I) [section 9(e)](/usc/12/9.md) ([42 U.S.C. 1437g(e)](/usc/42/1437g.md?p=e));
        - (II) section 18(a)(4)(D) ([42 U.S.C. 1437p(a)(4)(D)](/usc/42/1437p.md?p=a-4-D));
        - (III) [section 23(c)(4)](/usc/12/23.md)[^1] ([42 U.S.C. 1437u(c)(4)](/usc/42/1437u.md));
        - (IV) [section 32(e)(4)](/usc/12/32.md) ([42 U.S.C. 1437z–4(e)(4)](/usc/42/1437z–4.md?p=e-4));
        - (V) section 33(d)(2)(B) ([42 U.S.C. 1437z–5(d)(2)(B)](/usc/42/1437z–5.md?p=d-2-B)); and
        - (VI) [section 302(b)(6)](/usc/12/302.md) ([42 U.S.C. 1437aaa–1(b)(6)](/usc/42/1437aaa–1.md?p=b-6));
      - (iii) [section 12773(b)(2) of title 42](/usc/42/12773.md?p=b-2);
      - (iv) this section;
      - (v) [section 12872(b)(6) of title 42](/usc/42/12872.md?p=b-6);
      - (vi) section 11408(b)(1)(F)(iii)[^1] of title 42;
      - (vii) [sections 202(3)](/usc/12/202.md)[^1] and 810(b)(2)(A)[^1] of the Native American Housing and Self-Determination Act of 1996 ([25 U.S.C. 4132(3)](/usc/25/4132.md?p=3), 4229(b)(2)(A)); and
      - (viii) the rental assistance program under section 8 of the United States Housing Act of 1937 ([42 U.S.C. 1437f](/usc/42/1437f.md)).
  - (2) **Standards for materials—** The [Secretary](/usc/12/1715z–22a.md?p=4), in consultation with the advisory committee established under [subsection (g)(4)](#g-4)[^1] of the Department of Housing and Urban Development Act, shall establish standards for materials and forms to be used, as appropriate, by organizations providing homeownership counseling services, including any recipients of assistance pursuant to [subsection (a)(4)](#a-4).
  - (3) **Mortgage software systems—**
    - (A) **Certification—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall provide for the certification of various computer software programs for [consumers](/usc/12/5481.md?p=4) to use in evaluating different residential [mortgage](/usc/12/1707.md?p=a) loan proposals. The [Secretary](/usc/12/1715z–22a.md?p=4) shall require, for such certification, that the [mortgage](/usc/12/1707.md?p=a) software systems take into account—
      - (i) the [consumer](/usc/12/5481.md?p=4)’s financial situation and the cost of maintaining a home, including insurance, taxes, and utilities;
      - (ii) the amount of time the [consumer](/usc/12/5481.md?p=4) expects to remain in the home or expected time to maturity of the loan; and
      - (iii) such other factors as the [Secretary](/usc/12/1715z–22a.md?p=4) considers appropriate to assist the [consumer](/usc/12/5481.md?p=4) in evaluating whether to pay points, to lock in an interest rate, to select an adjustable or fixed rate loan, to select a conventional or government-insured or guaranteed loan and to make other choices during the loan application process.

      If the [Secretary](/usc/12/1715z–22a.md?p=4) determines that available existing software is inadequate to assist [consumers](/usc/12/5481.md?p=4) during the residential [mortgage](/usc/12/1707.md?p=a) loan application process, the [Secretary](/usc/12/1715z–22a.md?p=4) shall arrange for the development by private sector software companies of new [mortgage](/usc/12/1707.md?p=a) software systems that meet the [Secretary](/usc/12/1715z–22a.md?p=4)’s specifications.

    - (B) **Use and initial availability—** Such certified computer software programs shall be used to supplement, not replace, housing counseling. The [Secretary](/usc/12/1715z–22a.md?p=4) shall provide that such programs are initially used only in connection with the assistance of housing counselors certified pursuant to [subsection (e)](#e).
    - (C) **Availability—** After a period of initial availability under [subparagraph (B)](#g-3-B) as the [Secretary](/usc/12/1715z–22a.md?p=4) considers appropriate, the [Secretary](/usc/12/1715z–22a.md?p=4) shall take reasonable steps to make [mortgage](/usc/12/1707.md?p=a) software systems certified pursuant to this paragraph widely available through the Internet and at public locations, including public libraries, senior-citizen centers, public housing sites, offices of public housing agencies that administer rental housing assistance vouchers, and housing counseling centers.
    - (D) **Budget compliance—** This paragraph shall be effective only to the extent that amounts to carry out this paragraph are made available in advance in appropriations Acts.
  - (4) **National public service multimedia campaigns to promote housing counseling—**
    - (A) **In general—** The [Director](/usc/12/5481.md?p=10) of Housing Counseling shall develop, implement, and conduct national public service multimedia campaigns designed to make [persons](/usc/12/5481.md?p=19) facing [mortgage](/usc/12/1707.md?p=a) foreclosure, [persons](/usc/12/5481.md?p=19) considering a subprime [mortgage](/usc/12/1707.md?p=a) loan to purchase a home, elderly [persons](/usc/12/5481.md?p=19), [persons](/usc/12/5481.md?p=19) who face language barriers, low-income [persons](/usc/12/5481.md?p=19), minorities, and other potentially vulnerable [consumers](/usc/12/5481.md?p=4) aware that it is advisable, before seeking or maintaining a residential [mortgage](/usc/12/1707.md?p=a) loan, to obtain homeownership counseling from an unbiased and reliable sources[^2] and that such homeownership counseling is available, including through programs sponsored by the [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development.
    - (B) **Contact information—** Each segment of the multimedia campaign under [subparagraph (A)](#g-4-A) shall publicize the toll-free telephone number and website of the Department of Housing and Urban Development through which [persons](/usc/12/5481.md?p=19) seeking housing counseling can locate a housing counseling agency in their [State](/usc/12/1707.md?p=d) that is certified by the [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development and can provide advice on buying a home, renting, defaults, foreclosures, [credit](/usc/12/5481.md?p=7) issues, and reverse [mortgages](/usc/12/1707.md?p=a).
    - (C) **Authorization of appropriations—** There are authorized to be appropriated to the [Secretary](/usc/12/1715z–22a.md?p=4), not to exceed $3,000,000 for fiscal years 2009, 2010, and 2011, for the development, implementation, and conduct of national public service multimedia campaigns under this paragraph.
    - (D) **Foreclosure rescue education programs—**
      - (i) **In general—** Ten percent of any funds appropriated pursuant to the authorization under [subparagraph (C)](#g-4-C) shall be used by the [Director](/usc/12/5481.md?p=10) of Housing Counseling to conduct an education program in areas that have a high density of foreclosure. Such program shall involve direct mailings to [persons](/usc/12/5481.md?p=19) living in such areas describing—
        - (I) tips on avoiding foreclosure rescue scams;
        - (II) tips on avoiding predatory lending [mortgage](/usc/12/1707.md?p=a) agreements;
        - (III) tips on avoiding for-profit foreclosure counseling services; and
        - (IV) local counseling resources that are approved by the Department of Housing and Urban Development.
      - (ii) **Program emphasis—** In conducting the education program described under [clause (i)](#g-4-D-i), the [Director](/usc/12/5481.md?p=10) of Housing Counseling shall also place an emphasis on serving communities that have a high percentage of retirement communities or a high percentage of low-income minority communities.
      - (iii) **Terms defined—** For purposes of this subparagraph:
        - (I) **High density of foreclosures—** An area has a “high density of foreclosures” if such area is one of the metropolitan statistical areas (as that term is defined by the [Director](/usc/12/5481.md?p=10) of the Office of Management and Budget) with the highest home foreclosure rates.
        - (II) **High percentage of retirement communities—** An area has a “high percentage of retirement communities” if such area is one of the metropolitan statistical areas (as that term is defined by the [Director](/usc/12/5481.md?p=10) of the Office of Management and Budget) with the highest percentage of residents aged 65 or older.
        - (III) **High percentage of low-income minority communities—** An area has a “high percentage of low-income minority communities” if such area contains a higher-than-normal percentage of residents who are both minorities and low-income, as defined by the [Director](/usc/12/5481.md?p=10) of Housing Counseling.
  - (5) **Education programs—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall provide advice and technical assistance to [States](/usc/12/1707.md?p=d), units of general local government, and nonprofit organizations regarding the establishment and operation of, including assistance with the development of content and materials for, educational programs to inform and educate [consumers](/usc/12/5481.md?p=4), particularly those most vulnerable with respect to residential [mortgage](/usc/12/1707.md?p=a) loans (such as elderly [persons](/usc/12/5481.md?p=19), [persons](/usc/12/5481.md?p=19) facing language barriers, low-income [persons](/usc/12/5481.md?p=19), minorities, and other potentially vulnerable [consumers](/usc/12/5481.md?p=4)), regarding home [mortgages](/usc/12/1707.md?p=a), [mortgage](/usc/12/1707.md?p=a) refinancing, home equity loans, home repair loans, and where appropriate by region, any requirements and costs associated with obtaining flood or other disaster-specific insurance coverage.
- (h) **Definitions—** For purposes of this section:
  - (1) **Nonprofit organization—** The term “nonprofit organization” has the meaning given such term in [section 12704(5) of title 42](/usc/42/12704.md?p=5), except that [subparagraph (D)](/usc/42/12704.md?p=5-D) of such section shall not apply for purposes of this section.
  - (2) **State—** The term “[State](/usc/12/1707.md?p=d)” means each of the several [States](/usc/12/1707.md?p=d), the Commonwealth of Puerto Rico, the District of Columbia, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territories of the Pacific, or any other possession of the United States.
  - (3) **Unit of general local government—** The term “unit of general local government” means any city, county, parish, town, township, borough, village, or other general purpose political subdivision of a [State](/usc/12/1707.md?p=d).
  - (4) **HUD-approved counseling agency—** The term “HUD-approved counseling agency” means a private or public nonprofit organization that is—
    - (A) exempt from taxation under [section 501(c) of title 26](/usc/26/501.md?p=c); and
    - (B) certified by the [Secretary](/usc/12/1715z–22a.md?p=4) to provide housing counseling services.
  - (5) **State housing finance agency—** The term “[State](/usc/12/1707.md?p=d) housing finance agency” means any public body, agency, or instrumentality specifically created under [State](/usc/12/1707.md?p=d) statute that is authorised to finance activities designed to provide housing and related facilities throughout an entire [State](/usc/12/1707.md?p=d) through land acquisition, construction, or rehabilitation.
- (i) **Accountability for recipients of covered assistance—**
  - (1) **Tracking of funds—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall—
    - (A) develop and maintain a system to ensure that any organization or entity that receives any covered assistance uses all amounts of covered assistance in accordance with this section, the regulations issued under this section, and any requirements or conditions under which such amounts were provided; and
    - (B) require any organization or entity, as a condition of receipt of any covered assistance, to agree to comply with such requirements regarding covered assistance as the [Secretary](/usc/12/1715z–22a.md?p=4) shall establish, which shall include—
      - (i) appropriate periodic financial and grant activity reporting, record retention, and audit requirements for the duration of the covered assistance to the organization or entity to ensure compliance with the limitations and requirements of this section, the regulations under this section, and any requirements or conditions under which such amounts were provided; and
      - (ii) any other requirements that the [Secretary](/usc/12/1715z–22a.md?p=4) determines are necessary to ensure appropriate administration and compliance.
  - (2) **Misuse of funds—** If any organization or entity that receives any covered assistance is determined by the [Secretary](/usc/12/1715z–22a.md?p=4) to have used any covered assistance in a manner that is materially in violation of this section, the regulations issued under this section, or any requirements or conditions under which such assistance was provided—
    - (A) the [Secretary](/usc/12/1715z–22a.md?p=4) shall require that, within 12 months after the determination of such misuse, the organization or entity shall reimburse the [Secretary](/usc/12/1715z–22a.md?p=4) for such misused amounts and return to the [Secretary](/usc/12/1715z–22a.md?p=4) any such amounts that remain unused or uncommitted for use; and
    - (B) such organization or entity shall be ineligible, at any time after such determination, to apply for or receive any further covered assistance.

    The remedies under this paragraph are in addition to any other remedies that may be available under law.

  - (3) **Termination of assistance—**
    - (A) **In general—** The [Secretary](/usc/12/1715z–22a.md?p=4) may deny renewal of covered assistance to an organization or entity receiving covered assistance if the [Secretary](/usc/12/1715z–22a.md?p=4) determines that the organization or entity, or the individual through which the organization or entity provides counseling, is not in compliance with program requirements—
      - (i) based on the performance review described in [subsection (e)(6)](#e-6); and
      - (ii) in accordance with regulations issued by the [Secretary](/usc/12/1715z–22a.md?p=4).
    - (B) **Notice—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall give an organization or entity receiving covered assistance not less than 60 days prior written notice of any denial of renewal under this paragraph, and the determination of renewal shall not be finalized until the end of that notice period.
    - (C) **Informal conference—** If requested in writing by the organization or entity within the notice period described in [subparagraph (B)](#i-3-B), the organization or entity shall be entitled to an informal conference with the Deputy Assistant [Secretary](/usc/12/1715z–22a.md?p=4) of Housing Counseling on behalf of the [Secretary](/usc/12/1715z–22a.md?p=4) at which the organization or entity may present for consideration specific factors that the organization or entity believes were beyond the control of the organization or entity and that caused the failure to comply with program requirements, such as a lack of lender or servicer coordination or communication with housing counseling agencies and individual counselors.
  - (4) **Covered assistance—** For purposes of this subsection, the term “covered assistance” means any grant or other financial assistance provided under this section.
- (j) **Offering foreclosure mitigation counseling—**
  - (1) **Covered mortgage loan defined—** In this subsection, the term “covered [mortgage](/usc/12/1707.md?p=a) loan” means any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and housing cooperatives) or stock or membership in a cooperative ownership housing corporation designed principally for the occupancy of between 1 and 4 families that is—
    - (A) insured by the Federal Housing Administration under title II of the National Housing Act ([12 U.S.C. 1707](/usc/12/1707.md) et seq.);
    - (B) guaranteed under section [1715z–13a](/usc/12/1715z–13a.md) or [1715z–13b](/usc/12/1715z–13b.md) of this title;
    - (C) made, guaranteed, or insured by the Department of Veterans Affairs; or
    - (D) made, guaranteed, or insured by the Department of Agriculture.
  - (2) **Opportunity for borrowers—** A borrower with respect to a covered [mortgage](/usc/12/1707.md?p=a) loan who is 30 days or more delinquent on payments for the covered [mortgage](/usc/12/1707.md?p=a) loan shall be given an opportunity to participate in available housing counseling.
  - (3) **Cost—** If the requirements of sections 202(a)(3) and 205(f) of the National Housing Act ([12 U.S.C. 1708(a)(3)](/usc/12/1708.md?p=a-3), 1711(f)) are met, the fair market rate cost of counseling for delinquent borrowers described in [paragraph (2)](#j-2) with respect to a covered [mortgage](/usc/12/1707.md?p=a) loan described in [paragraph (1)(A)](#j-1-A) shall be paid for by the Mutual [Mortgage](/usc/12/1707.md?p=a) Insurance Fund, as authorized under section 203(r)(4) of the National Housing Act ([12 U.S.C. 1709(r)(4)](/usc/12/1709.md?p=r-4)).

## Footnotes

[^1]: See References in Text note below.
[^2]: So in original.

## Source credit

(Pub. L. 90–448, title I, § 106, Aug. 1, 1968, 82 Stat. 490; Pub. L. 91–609, title IX, § 903(a), (b), Dec. 31, 1970, 84 Stat. 1808; Pub. L. 93–383, title VIII, § 811, Aug. 22, 1974, 88 Stat. 735; Pub. L. 95–128, title IX, § 903, Oct. 12, 1977, 91 Stat. 1149; Pub. L. 97–35, title III, § 339A, Aug. 13, 1981, 95 Stat. 417; Pub. L. 98–181, title I [title IV, § 465], Nov. 30, 1983, 97 Stat. 1236; Pub. L. 98–479, title II, § 204(f), Oct. 17, 1984, 98 Stat. 2233; Pub. L. 100–242, title I, § 169, Feb. 5, 1988, 101 Stat. 1865; Pub. L. 100–628, title X, § 1009, Nov. 7, 1988, 102 Stat. 3266; Pub. L. 101–137, § 8, Nov. 3, 1989, 103 Stat. 826; Pub. L. 101–625, title V, § 577, title VII, § 706(c), Nov. 28, 1990, 104 Stat. 4238, 4286; Pub. L. 102–550, title I, § 162(a)–(d), Oct. 28, 1992, 106 Stat. 3719–3721; Pub. L. 104–316, title I, § 106(a), Oct. 19, 1996, 110 Stat. 3830; Pub. L. 105–276, title V, § 594(a), (b), Oct. 21, 1998, 112 Stat. 2655; Pub. L. 107–73, title II, § 205, Nov. 26, 2001, 115 Stat. 674; Pub. L. 109–163, div. A, title VI, § 688(a), Jan. 6, 2006, 119 Stat. 3336; Pub. L. 110–289, div. B, title I, § 2127, July 30, 2008, 122 Stat. 2841; Pub. L. 111–203, title XIV, §§ 1443–1445, 1448, 1449, July 21, 2010, 124 Stat. 2165–2171, 2173, 2174; Pub. L. 119–101, title I, § 101, July 11, 2026, 140 Stat. 847.)

## Notes

### Editorial Notes

### References in Text

The Housing and Community Development Act of 1974, referred to in subsec. (a)(1)(iv), is Pub. L. 93–383, Aug. 22, 1974, 88 Stat. 633. Title I of the Housing and Community Development Act of 1974 is classified principally to chapter 69 (§ 5301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of Title 42 and Tables.

The National Housing Act, referred to in subsecs. (a)(2), (d)(9)(K), (e)(7)(A)(i), (g)(1)(B)(x), and (j)(1)(A), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified generally to subchapter II (§ 1707 et seq.) of this chapter. Section 237 of the Act, which was formerly classified to section 1715z–2 of this title, was repealed by Pub. L. 110–289, div. B, title I, § 2120(a)(6), July 30, 2008, 122 Stat. 2835. For complete classification of this Act to the Code, see section 1701 of this title and Tables.

Section 152 of the Housing and Community Development Act of 1992, referred to in subsec. (a)(3), is section 152 of Pub. L. 102–550, which was set out as a note under section 1437f of Title 42, The Public Health and Welfare, prior to repeal by Pub. L. 105–276, title V, § 550(f), Oct. 21, 1998, 112 Stat. 2610.

The Housing Act of 1949, referred to in subsec. (c)(4)(B), is act July 15, 1949, ch. 338, 63 Stat. 413. Title V of the Housing Act of 1949 is classified generally to subchapter III (§ 1471 et seq.) of chapter 8A of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1441 of Title 42, The Public Health and Welfare, and Tables.

The Servicemembers Civil Relief Act, referred to in subsec. (c)(5)(A)(ii)(IV), is act Oct. 17, 1940, ch. 888, 54 Stat. 1178, which was classified to section 501 et seq. of the former Appendix to Title 50, War and National Defense, prior to editorial reclassification and renumbering as chapter 50 (§ 3901 et seq.) of Title 50. For complete classification of this Act to the Code, see Tables.

The United States Housing Act of 1937, referred to in subsec. (g)(1)(B)(ii), (C)(ii), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653, which is classified generally to chapter 8 (§ 1437 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1437 of Title 42 and Tables.

Section 302(a)(4) of the American Homeownership and Economic Opportunity Act of 2000, referred to in subsec. (g)(1)(B)(iii), is section 302(a)(4) of Pub. L. 106–569, title III, Dec. 27, 2000, 114 Stat. 2953, which was formerly set out as a note under section 1437f of Title 42, The Public Health and Welfare.

Section 11408(b)(1)(F)(iii) of this title, referred to in subsec. (g)(1)(B)(viii), (C)(vi), was redesignated section 11408(b)(1)(J)(iii) of this title by Pub. L. 111–22, div. B., title IV, § 1401(2)(C)(i), May 20, 2009, 123 Stat. 1697.

Sections 202(3) and 810(b)(2)(A) of the Native American Housing and Self-Determination Act of 1996, referred to in subsec. (g)(1)(B)(ix), (C)(vii), probably means sections 202(3) and 810(b)(2)(A) of Pub. L. 104–330, known as the Native American Housing Assistance and Self-Determination Act of 1996, which are classified to sections 4132(3) and 4229(b)(2)(A), respectively, of Title 25, Indians.

Section 23(c)(4) of the United States Housing Act of 1937, referred to in subsec. (g)(1)(B)(ii)(IV), (C)(ii)(III), was classified to section 1437u(c)(4) of Title 42, The Public Health and Welfare, and was redesignated as section 23(d)(4) of that Act and then amended generally by Pub. L. 115–174, title III, § 306(a)(4), (6)(D), May 24, 2018, 132 Stat. 1340, 1341. As amended, section 1437u(d)(4) of Title 42 still relates to an employment requirement but no longer contains a provision for counseling.

Subsection (g)(4) of the Department of Housing and Urban Development Act, referred to in subsec. (g)(2), probably means section 4(g)(4) of Pub. L. 89–174, known as the Department of Housing and Urban Development Act, which is classified to section 3533(g)(4) of Title 42, The Public Health and Welfare.

### Codification

Section was enacted as part of the Housing and Urban Development Act of 1968, and not as part of the National Housing Act which comprises this chapter.

### Amendments

2026—Subsec. (a)(4)(C). Pub. L. 119–101, § 101(1), substituted “that the recipients are geographically diverse and include organizations that serve urban or rural areas” for “adequate distribution of amounts for rural areas having traditionally low levels of access to such counseling services, including areas with insufficient access to the Internet. In distributing such assistance, the Secretary may give priority consideration to entities serving areas with the highest home foreclosure rates”.

Subsec. (e)(6) to (8). Pub. L. 119–101, § 101(2), added pars. (6) to (8).

Subsec. (i)(3), (4). Pub. L. 119–101, § 101(3), added par. (3) and redesignated former par. (3) as (4).

Subsec. (j). Pub. L. 119–101, § 101(4), added subsec. (j).

2010—Subsec. (a)(4). Pub. L. 111–203, § 1444, added par. (4).

Subsec. (c)(5)(A)(ii)(V). Pub. L. 111–203, § 1443(b), added subcl. (V).

Subsec. (e)(1). Pub. L. 111–203, § 1445(1), added par. (1) and struck out former subpar. (1). Prior to amendment, text read as follows: “An organization may not receive assistance for counseling activities under subsection (a)(1)(iii), (a)(2), (c), or (d) of this section, unless the organization provides such counseling, to the extent practicable, by individuals who have been certified by the Secretary under this subsection as competent to provide such counseling.”

Subsec. (e)(2). Pub. L. 111–203, § 1445(2), in introductory provisions, inserted “and for certifying organizations” before period at end of first sentence and substituted “, for certification of an organization, that each individual through which the organization provides counseling shall demonstrate, and, for certification of an individual,” for “for certification”.

Subsec. (e)(3). Pub. L. 111–203, § 1445(5), added par. (3). Former par. (3) redesignated (5).

Pub. L. 111–203, § 1445(3), inserted “organizations and” before “individuals”.

Subsec. (e)(4), (5). Pub. L. 111–203, § 1445(4), (5), added par. (4) and redesignated former par. (3) as (5).

Subsec. (g). Pub. L. 111–203, § 1443(a), added subsec. (g).

Subsec. (h). Pub. L. 111–203, § 1448, added subsec. (h).

Subsec. (i). Pub. L. 111–203, § 1449, added subsec. (i).

2008—Subsec. (c)(4). Pub. L. 110–289, § 2127(2), struck out concluding provisions which read as follows: “An applicant for a mortgage shall be eligible for homeownership counseling under this subsection if the applicant is a first-time homebuyer who meets the requirements of section 12852(b)(1) of title 42 and the mortgage involves a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) in excess of 97 percent of the appraised value of the property and is to be insured pursuant to section 203 of the National Housing Act.”

Subsec. (c)(4)(C)(iii), (iv). Pub. L. 110–289, § 2127(1), added cls. (iii) and (iv).

Subsec. (c)(4)(D). Pub. L. 110–289, § 2127(3), added subpar. (D).

2006—Subsec. (c)(5)(A)(ii)(IV). Pub. L. 109–163 added subcl. (IV).

2001—Subsec. (c)(9). Pub. L. 107–73 struck out heading and text of par. (9). Text read as follows: “The provisions of this subsection shall not be effective after September 30, 2000.”

1998—Subsec. (c)(5)(C). Pub. L. 105–276, § 594(b), amended heading and text of subpar. (C) generally. Prior to amendment, text read as follows: “Notification under subparagraph (A) shall not be required with respect to any loan—

“(i) insured or guaranteed under chapter 37 of title 38; or

“(ii) for which the eligible homeowner pays the amount overdue before the expiration of the 45-day period under subparagraph (B)(ii).”

Subsec. (c)(9). Pub. L. 105–276, § 594(a), substituted “2000” for “1994”.

1996—Subsec. (d)(5)(A). Pub. L. 104–316, § 106(a)(2), substituted “(9)” for “(10)(K)” in introductory provisions.

Subsec. (d)(8). Pub. L. 104–316, § 106(a)(3), struck out “(for purposes of the study and report under paragraph (9))” before “may require”.

Subsec. (d)(9) to (13). Pub. L. 104–316, § 106(a)(1), (4), redesignated pars. (10) to (13) as (9) to (12), respectively, and struck out former par. (9) which related to GAO study and report on demonstration program.

1992—Subsec. (a)(3). Pub. L. 102–550, § 162(a), substituted “except that for such purposes there are authorized to be appropriated $6,025,000 for fiscal year 1993 and $6,278,050 for fiscal year 1994. Of the amounts appropriated for each of fiscal years 1993 and 1994, up to $500,000 shall be available for use for counseling and other activities in connection with the demonstration program under section 152 of the Housing and Community Development Act of 1992.” for “except that for such purposes there are authorized to be appropriated $3,600,000 for fiscal year 1991 and $3,700,000 for fiscal year 1992.”

Subsec. (c)(3)(A)(iii). Pub. L. 102–550, § 162(b)(3), added cl. (iii).

Subsec. (c)(4). Pub. L. 102–550, § 162(b)(4), inserted flush sentence at end.

Subsec. (c)(5)(A). Pub. L. 102–550, § 162(b)(5), added subpar. (A) and struck out former subpar. (A) which read as follows: “(A) In general.—Except as provided in subparagraph (C), if any eligible homeowner fails to pay any amount by the date the amount is due under a home loan, the creditor of the loan shall notify the homeowner of the availability of any homeownership counseling offered by the creditor and, as a supplement to counseling provided by the creditor, shall notify the homeowner of 1 of the following:

“(i) The availability of homeownership counseling provided by nonprofit organizations approved by the Secretary and experienced in the provision of homeownership counseling.

“(ii) The toll-free telephone number described in subparagraph (D)(i).”

Subsec. (c)(5)(D)(i). Pub. L. 102–550, § 162(b)(6), inserted “, which shall be updated annually,” after “organizations”.

Subsec. (c)(8). Pub. L. 102–550, § 162(b)(1), amended first sentence generally. Prior to amendment, first sentence read as follows: “There is authorized to be appropriated to carry out this section $6,700,000 for fiscal year 1991 and $7,000,000 for fiscal year 1992, of which amounts $2,000,000 shall be available in each such fiscal year to carry out paragraph (5)(D).”

Subsec. (c)(9). Pub. L. 102–550, § 162(b)(2), substituted “1994” for “1992”.

Subsec. (d)(12). Pub. L. 102–550, § 162(c), amended par. (12) generally. Prior to amendment, par. (12) read as follows: “There are authorized to be appropriated to carry out this subsection $350,000 for fiscal year 1991 and $365,000 for fiscal year 1992.”

Subsecs. (e), (f). Pub. L. 102–550, § 162(d), added subsecs. (e) and (f).

1990—Subsec. (a)(2)(A) to (C). Pub. L. 101–625, § 706(c), designated portions of existing text as cls. (A) and (C), and added cl. (B).

Subsec. (a)(3). Pub. L. 101–625, § 577(a), substituted provisions authorizing appropriations of $3,600,000 for fiscal year 1991 and $3,700,000 for fiscal year 1992, for provisions authorizing appropriations of $3,500,000 for each of the fiscal years 1988 and 1989.

Subsec. (c)(5). Pub. L. 101–625, § 577(b)(3), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “The creditor of a delinquent home loan shall notify an eligible homeowner of the availability of any homeownership counseling offered by the creditor. As a supplement to the counseling provided by the creditor, the creditor shall notify the homeowner of the availability of 1 of the following:

“(A) Homeownership counseling provided by nonprofit organizations approved by the Secretary and experienced in the provision of homeownership counseling.

“(B) A list of the nonprofit organizations, approved by the Secretary and experienced in the provision of homeownership counseling, that can be obtained by calling a toll-free telephone number at the Department of Housing and Urban Development.

“(C) Homeownership counseling provided by the Administrator of Veterans’ Affairs for loans insured or guaranteed under chapter 37 of title 38.”

Subsec. (c)(8). Pub. L. 101–625, § 577(b)(1), amended first sentence generally. Prior to amendment, first sentence read as follows: “There are authorized to be appropriated to carry out this subsection $3,500,000 for each of the fiscal years 1988 and 1989.”

Subsec. (c)(9). Pub. L. 101–625, § 577(b)(2), substituted “September 30, 1992” for “September 30, 1990”.

Subsec. (d). Pub. L. 101–625, § 577(c), added subsec. (d).

1989—Subsec. (c)(9). Pub. L. 101–137 substituted “September 30, 1990” for “September 30, 1989”.

1988—Subsec. (a)(2). Pub. L. 100–628 inserted before period at end of first sentence “or guaranteed or insured under chapter 37 of title 38”.

Subsec. (a)(3). Pub. L. 100–242, § 169(a), substituted “except that for each of the fiscal years 1988 and 1989 there are authorized to be appropriated $3,500,000 for such purposes” for “except that for the fiscal year 1984, there are authorized to be appropriated not to exceed $3,500,000 for such purposes”.

Subsec. (c). Pub. L. 100–242, § 169(b), added subsec. (c).

1984—Subsec. (b)(1). Pub. L. 98–479 substituted “architectural” for “architechtual”.

1983—Subsec. (a)(3). Pub. L. 98–181 substituted “1984” for “1982”, and “$3,500,000” for “$4,000,000”.

1981—Subsec. (a)(3). Pub. L. 97–35 inserted provisions authorizing appropriations for fiscal year 1982.

1977—Subsec. (a)(2). Pub. L. 95–128 authorized the Secretary to provide the services for other owners of single family dwelling units insured under subchapter II of this chapter.

1974—Subsec. (a)(1). Pub. L. 93–383, § 811(b)(1), (c), in cl. (iii) substituted provisions authorizing counseling and advice to tenants and homeowners with respect to property maintenance, etc., for provisions authorizing counseling on household management, self-help, etc., for families receiving assistance under this chapter or the United States Housing Act of 1937, and added cl. (iv).

Subsec. (a)(2). Pub. L. 93–383, § 811(b)(2), added par. (2). Former par. (2) redesignated (3).

Subsec. (a)(3). Pub. L. 93–383, § 811(b)(2), (d), redesignated former par. (2) as (3) and substituted “such sums as may be necessary” for “not to exceed $5,000,000”.

Subsec. (b)(1), (2). Pub. L. 93–383, § 811(e), (f), inserted reference to public housing agencies.

1970—Subsec. (a). Pub. L. 91–609, § 903(a), designated existing provisions as par. (1), inserted provision respecting specific authorities without limitation to such authorities, redesignated former par. (1) as cl. (i), struck out introductory text relating to assistance with respect to construction, rehabilitation, and operation by nonprofit organizations of housing for low or moderate income families now incorporated in cl. (i), redesignated former par. (2) as cl. (ii), inserting therein provision for assistance to public bodies or to nonprofit or cooperative organizations, including assistance with respect to self-help and mutual self-help programs, and added cl. (iii) and par. (2).

Subsec. (b)(1). Pub. L. 91–609, § 903(b), substituted “section 1715z of this title or any other federally assisted program” for “any federally assisted program” in first sentence.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the date on which final regulations implementing that amendment take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as a note under section 1601 of Title 15, Commerce and Trade.

### Effective Date of 2006 Amendment

Pub. L. 109–163, div. A, title VI, § 688(d), Jan. 6, 2006, 119 Stat. 3337, provided that: “The amendments made under subsection (a) [amending this section] shall take effect 150 days after the date of the enactment of this Act [Jan. 6, 2006].”

### Effective Date of 1998 Amendment

Pub. L. 105–276, title V, § 594(c), Oct. 21, 1998, 112 Stat. 2656, provided that: “The amendments made by this section [amending this section] are made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].”

### Effective Date of 1981 Amendment

Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an Effective Date note under section 3701 of this title.

### Regulations

Pub. L. 102–550, title I, § 162(e), Oct. 28, 1992, 106 Stat. 3722, provided that: “The Secretary of Housing and Urban Development shall issue any regulations necessary to carry out the amendments made by subsection (d) [amending this section], not later than the expiration of the 6-month period beginning on the date of the enactment of this Act [Oct. 28, 1992].”

### Construction of Amendments by Pub. L. 109–163

Pub. L. 109–163, div. A, title VI, § 688(b), Jan. 6, 2006, 119 Stat. 3337, provided that: “Nothing in this section [amending this section and enacting provisions set out as notes under this section] shall relieve any person of any obligation imposed by any other Federal, State, or local law.”

### Financial Education and Counseling

Pub. L. 110–289, div. A, title I, § 1132, July 30, 2008, 122 Stat. 2727, as amended by Pub. L. 111–203, title X, § 1072(a), July 21, 2010, 124 Stat. 2059, provided that: Goals.—Financial education and counseling under this section shall have the goal of— increasing the financial knowledge and decision making capabilities of prospective homebuyers or economically vulnerable individuals and families; assisting prospective homebuyers or economically vulnerable individuals and families to develop monthly budgets, build personal savings, finance or plan for major purchases, reduce their debt, improve their financial stability, and set and reach their financial goals; helping prospective homebuyers or economically vulnerable individuals and families to improve their credit scores by understanding the relationship between their credit histories and their credit scores; and educating prospective homebuyers or economically vulnerable individuals and families about the options available to build savings for short- and long-term goals.Grants.— In general.—The Secretary of the Treasury (in this section referred to as the ‘Secretary’) shall make grants to eligible organizations to enable such organizations to provide a range of financial education and counseling services to prospective homebuyers or economically vulnerable individuals and families. Selection.—The Secretary shall select eligible organizations to receive assistance under this section based on their experience and ability to provide financial education and counseling services that result in documented positive behavioral changes.Eligible Organizations.— In general.—For purposes of this section, the term ‘eligible organization’ means an organization that is— certified in accordance with section 106(e)(1) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)[1]); certified by the Office of Financial Education of the Department of the Treasury for purposes of this section, in accordance with paragraph (2); or a nonprofit corporation that— is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 [26 U.S.C. 501(c)(3)]; and specializes or has expertise in working with economically vulnerable individuals and families, but whose primary purpose is not provision of credit counseling services. OFE certification.—To be certified by the Office of Financial Education for purposes of this section, an eligible organization shall be— a housing counseling agency certified by the Secretary of Housing and Urban Development under section 106(e) of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701x(e)]; a State, local, or tribal government agency; a community development financial institution (as defined in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(5)) or a credit union; or any collaborative effort of entities described in any of subparagraphs (A) through (C).Authority for Pilot Projects.— In general.—The Secretary of the Treasury shall authorize pilot project grants to eligible organizations under subsection (c) in order to— carry out the services under this section; and provide such other services that will improve the financial stability and economic condition of low- and moderate-income and low-wealth individuals. Goal.—The goal of the pilot project grants under this subsection is to— identify successful methods resulting in positive behavioral change for financial empowerment; and establish program models for organizations to carry out effective counseling services. Authorization of Appropriations.—There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section and for the provision of additional financial educational services.Study and Report on Effectiveness and Impact.— In general.—The Comptroller General of the United States shall conduct a study on the effectiveness and impact of the grant program established under this section. Not later than 3 years after the date of enactment of this Act [July 30, 2008], the Comptroller General shall submit a report on the results of such study to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. Content of study.—The study required under paragraph (1) shall include an evaluation of the following: The effectiveness of the grant program established under this section in improving the financial situation of homeowners and prospective homebuyers served by the grant program. The extent to which financial education and counseling services have resulted in positive behavioral changes. The effectiveness and quality of the eligible organizations providing financial education and counseling services under the grant program. Regulations.—The Secretary is authorized to promulgate such regulations as may be necessary to implement and administer the grant program authorized by this section.”

[Pub. L. 111–203, title X, § 1072(b), July 21, 2010, 124 Stat. 2060, provided that: “Amendments made by subsection (a) [amending section 1132 of Pub. L. 110–289, set out above] shall not apply to programs authorized by section 1132 of the Housing and Economic Recovery Act of 2008 [Pub. L. 110–289] (12 U.S.C. 1701x note) that are funded with appropriations prior to fiscal year 2011.” ]

### Pre-Purchase Homeownership Counseling Demonstration

Pub. L. 110–289, div. B, title I, § 2128, July 30, 2008, 122 Stat. 2841, provided that: Establishment of Program.—For the period beginning on the date of enactment of this title [July 30, 2008] and ending on the date that is 3 years after such date of enactment, the Secretary of Housing and Urban Development shall establish and conduct a demonstration program to test the effectiveness of alternative forms of pre-purchase homeownership counseling for eligible homebuyers. Forms of Counseling.—The Secretary of Housing and Urban Development shall provide to eligible homebuyers pre-purchase homeownership counseling under this section in the form of— telephone counseling; individualized in-person counseling; web-based counseling; counseling classes; or any other form or type of counseling that the Secretary may, in his discretion, determine appropriate. Size of Program.—The Secretary shall make available the pre-purchase homeownership counseling described in subsection (b) to not more than 3,000 eligible homebuyers in any given year. Incentive To Participate.—The Secretary of Housing and Urban Development may provide incentives to eligible homebuyers to participate in the demonstration program established under subsection (a). Such incentives may include the reduction of any insurance premium charges owed by the eligible homebuyer to the Secretary. Eligible Homebuyer Defined.—For purposes of this section an ‘eligible homebuyer’ means a first-time homebuyer who has been approved for a home loan with a loan-to-value ratio between 97 percent and 98.5 percent. Report to Congress.—The Secretary of Housing and Urban Development shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representative—[sic] on an annual basis, on the progress and results of the demonstration program established under subsection (a); and for the period beginning on the date of enactment of this title [July 30, 2008] and ending on the date that is 5 years after such date of enactment, on the payment history and delinquency rates of eligible homebuyers who participated in the demonstration program.”

### Disclosure Form

Pub. L. 109–163, div. A, title VI, § 688(c), Jan. 6, 2006, 119 Stat. 3337, provided that: “Not later than 150 days after the date of the enactment of this Act [Jan. 6, 2006], the Secretary of Housing and Urban Development shall issue a final disclosure form to fulfill the requirement of subclause (IV) of section 106(c)(5)(A)(ii) of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701x(c)(5)(A)(ii)(IV)], as added by subsection (a).”