NFMC grants may be used for costs associated with providing housing counseling services primarily in areas of the State with high rates of defaults and foreclosures, or in other areas, based on demonstrated need, to owner-occupants of single-family properties who are: Delinquent or are at risk of becoming delinquent on their mortgages; and At risk of default and foreclosure. HCFMF grants may be used for costs associated with providing housing counseling services to existing or prospective owner-occupants of single-family properties across the State who are: Delinquent or are at risk of becoming delinquent on their mortgages; At risk of default and foreclosure; or In need of homebuyer education, housing advice, or financial counseling. Eligible costs include: Staff salaries and benefits; A portion of general operating costs of the grantee reasonably associated with the approved activities of the grantee, including travel, administrative overhead, telephone, postage, office supplies, publications, and services; Costs directly associated with undertaking approved activities; and Other costs approved by the Department in its sole discretion. Ineligible Costs. No funds made available under NFMC or HCFMF may be provided directly to lenders, homeowners, or occupants to discharge outstanding mortgage balances or for any other direct debt reduction payments unless it is permitted by the source of the grant funds made available to the Department.