1 See References in Text note below.
of title 42;
2 So in original.
and that such homeownership counseling is available, including through programs sponsored by the Secretary of Housing and Urban Development.
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, as amended. 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), and (g)(1)(B)(x), is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended. 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 Section 237 of the Act, which was formerly classified to section 1715z–2 of this title, was repealed by Pub.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, as amended. 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.

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

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:

“(a)
Goals.—
Financial education and counseling under this section shall have the goal of—
“(1) increasing the financial knowledge and decision making capabilities of prospective homebuyers or economically vulnerable individuals and families;
“(2) 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;
“(3) 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
“(4) educating prospective homebuyers or economically vulnerable individuals and families about the options available to build savings for short- and long-term goals.
“(b)
Grants.—
“(1)
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.
“(2)
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.
“(c)
Eligible Organizations.—
“(1)
In general.—
For purposes of this section, the term ‘eligible organization’ means an organization that is—
“(A) certified in accordance with section 106(e)(1) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)[1]);
“(B) certified by the Office of Financial Education of the Department of the Treasury for purposes of this section, in accordance with paragraph (2); or
“(C)
a nonprofit corporation that—
“(i) is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 [26 U.S.C. 501(c)(3)]; and
“(ii) specializes or has expertise in working with economically vulnerable individuals and families, but whose primary purpose is not provision of credit counseling services.
“(2)
OFE certification.—
To be certified by the Office of Financial Education for purposes of this section, an eligible organization shall be—
“(A) 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)];
“(B) a State, local, or tribal government agency;
“(C) 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
“(D) any collaborative effort of entities described in any of subparagraphs (A) through (C).
“(d)
Authority for Pilot Projects.—
“(1)
In general.—
The Secretary of the Treasury shall authorize pilot project grants to eligible organizations under subsection (c) in order to—
“(A) carry out the services under this section; and
“(B) provide such other services that will improve the financial stability and economic condition of low- and moderate-income and low-wealth individuals.
“(2)
Goal.—
The goal of the pilot project grants under this subsection is to—
“(A) identify successful methods resulting in positive behavioral change for financial empowerment; and
“(B) establish program models for organizations to carry out effective counseling services.
“(e)
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.
“(f)
Study and Report on Effectiveness and Impact.—
“(1)
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.
“(2)
Content of study.—
The study required under paragraph (1) shall include an evaluation of the following:
“(A) 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.
“(B) The extent to which financial education and counseling services have resulted in positive behavioral changes.
“(C) The effectiveness and quality of the eligible organizations providing financial education and counseling services under the grant program.
“(g)
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:

“(a)
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.
“(b)
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—
“(1) telephone counseling;
“(2) individualized in-person counseling;
“(3) web-based counseling;
“(4) counseling classes; or
“(5) any other form or type of counseling that the Secretary may, in his discretion, determine appropriate.
“(c)
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.
“(d)
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.
“(e)
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.
“(f)
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]
“(1) on an annual basis, on the progress and results of the demonstration program established under subsection (a); and
“(2) 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).”