Chapter 03. Foreclosure Prevention and Housing Counseling Grant Programs

Provide housing counseling assistance to owner-occupants of single-family properties, primarily in areas of the State with high rates of defaults and foreclosures; and

Provide housing counseling assistance in other areas when there is a demonstrated need for such assistance;

“Act” means Housing and Community Development Article, Annotated Code of Maryland.

“Department” means the Department of Housing and Community Development, a principal department of the State.

“Eligible entities” means professional nonprofit housing counseling agencies, legal service providers, United States Department of Housing and Urban Development (HUD) certified housing counseling agencies and other eligible entities appearing on the list of nonprofit and government agencies that provide housing counseling, which list is maintained by the Department pursuant to Commercial Law Article, §12-1303(b), Annotated Code of Maryland.

“Foreclosure mediation” means a conference at which the parties in a foreclosure action, their attorneys, additional representatives of the parties, or a combination of those persons appear before an impartial individual to discuss the positions of the parties in an attempt to reach agreement on a loss mitigation program for the mortgagor or grantor as set forth in the Real Property Act.

“Fund” means the Housing Counseling and Foreclosure Mediation Fund established under Housing and Community Development Article, §4-507, Annotated Code of Maryland.

“Housing counseling services” means professional pro bono housing counseling services, including foreclosure prevention assistance, foreclosure mediation assistance, legal counseling, post-mitigation and foreclosure counseling, loss mitigation and analysis assistance, credit repair, financial literacy counseling, homebuyer education, and prepurchase counseling provided to mortgagors or grantors by the Eligible Entities.

“Local government” means any municipal corporation subject to the provisions of the State Constitution, Article XI-E, or any one of the 23 counties of the State or Baltimore City.

“Loss mitigation analysis” means an evaluation of the facts and circumstances of a loan secured by owner-occupied single-family property to determine, as defined in the Real Property Act:

“Nonprofit organization” means a corporation, foundation, or other legal entity, no part of the net earnings of which inures to the benefit of any private shareholder or individual holding an interest in the entity.

“Operating assistance grants” means NMFC and HCFMF grants, or grants funded with other resources, made to eligible entities pursuant to this chapter.

“Programs” means the National Foreclosure Mitigation Program and the Housing Counseling and Foreclosure Mediation Fund Grant Programs, or other housing counseling grant programs implemented by the Department.

“Real Property Act” means Real Property Article, §7-105.1, Annotated Code of Maryland.

“Secretary” means the Secretary of Housing and Community Development.

“Single-family property” means residential property of four or fewer single-family dwelling units in which at least one unit is occupied by an individual who, as defined in the Real Property Act:

“State” means the State of Maryland.

Not have defaulted on a prior grant or loan from the Department; and

Not be currently barred or suspended from any of the Department's programs.

Delinquent or are at risk of becoming delinquent on their mortgages; and

At risk of default and foreclosure.

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.

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.

The amount of funds available in the fiscal year for grants shall be determined as of July 1 of each fiscal year.

Initial determinations may be adjusted if appropriated funds available for the Programs are increased or decreased after July 1 in any fiscal year.

The Department shall notify eligible entities of allocations, fund availability, and application cycles by advertisement posted on the Department’s website and other statewide housing partners’ websites, direct mailings, press releases, or other methods selected by the Department.

The need for services provided by the applicant in the applicant’s service area;

The geographic area and client base demographics served by the applicant;

The applicant’s experience and performance in carrying out existing housing counseling and foreclosure prevention activities;

The ability of the applicant to use the grant to improve the ability of the applicant to provide Programs services;

Whether the applicant’s proposed services have measurable outcomes;

The applicant’s staffing and capacity, including bilingual and technology capacity and client management software capacity;

The applicant’s other funding resources dedicated to carrying out the approved activities;

The level of activities, number of clients served, and anticipated outcomes that the applicant proposes to achieve; and

Other factors considered relevant by the Department.

Applications for grants shall be on forms approved by the Department.

The applications shall include the following information and supporting documentation:

Applications for grants shall be evaluated based on the criteria set forth in Regulation .06B of this chapter by the Department's Division of Neighborhood Revitalization, which shall make recommendations to the Secretary for awards of grants.

The Secretary or the Secretary’s designee may disapprove or approve a grant either on the terms recommended by the Division of Neighborhood Revitalization or on other terms and conditions as the Secretary considers appropriate.

Following approval by the Secretary, the Department shall enter into a grant agreement with each successful applicant.

Titles VI and VII of the Civil Rights Act of 1964;

Title VIII of the Civil Rights Act of 1968, as amended;

For nonresidential properties, the Americans with Disabilities Act of 1990; and

The Department's Minority Business Enterprise Program, as amended.

The waiver or variance is not inconsistent with the authorizing provisions of the Act or the Real Property Act;

In the written determination of the Secretary, the application of the regulations in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act or the Real Property Act; and

The Office of the Attorney General approves the waiver for form and legal sufficiency.