TDHCA Press Room

Federal grant to help Texas fight, prevent foreclosures

TDHCA and its partner agency – the Texas State Affordable Housing Corporation (TSAHC) – have secured a federal grant that will help further a joint effort to curb the number of home foreclosures and bring greater stability to families, neighborhoods, and local government finances.

The National Foreclosure Mitigation Counseling (NFMC) Program: Round 7 (NW.org) awarded Texas $327,088 which will help provide counseling to homeowners in 10 metro areas and rural communities across the state.

The state housing agency will jointly administer the grant with TSAHC, a nonprofit organization chartered by the Texas Legislature for the promotion of affordable housing.

Counseling agencies receiving these funds focus primarily on the Austin/Round Rock, Beaumont/Port Arthur, Dallas/Fort Worth/Arlington, El Paso, Houston, Longview, San Antonio/New Braunfels, Tyler, Wichita Falls, and Amarillo housing markets.

The NFMC Program provides federal foreclosure prevention funds, administered through the national nonprofit organization NeighborWorks America (NW.org), to state and local foreclosure prevention intervention and training programs.

Through NFMC, housing counselors (HUD.gov) approved by the U.S. Department of Housing and Urban Development provide direct foreclosure prevention counseling to homeowners in default or danger of default. (Note: Not all HUD-approved counseling agencies will be assisted with the NFMC grant).

The program was authorized by the Housing and Economic Recovery Act of 2008. This is the sixth NFMC grant Texas has received since the funds were first made available.

Previous grants helped provide foreclosure prevention counseling to 4,819 homeowners, only 92 of whom lost their home as the result of foreclosure.