By the Division of Banks

Funding Application
For
Chapter 206 2011 Regional Foreclosure Education Centers and Foreclosure Prevention/First-Time Homebuyer Counseling Programs


Funding Overview:

Pursuant to Chapter 206 of the Acts of 2007, An Act Protecting and Preserving Homeownership, the Massachusetts Legislature has appropriated an amount not to exceed $2 million for costs incurred by the Division of Banks related to the operation of a pilot program for best lending practices; grants for first-time homeowner counseling for non-traditional loans; and funding for 10 or more foreclosure education centers.

These grants will be funded by administrative fees associated with the licensure of loan originators according to chapter 255F of the Massachusetts General Laws. As such, the Commissioner of Banks has the discretion to adjust the total award amount available for funding depending on actual revenues collected from Loan Originators' license renewals for the 2011 calendar year. Grants shall be awarded through a competitive application process under a criteria developed by the Division.

Eligibility Requirements:

Applicants: Due to a significant decrease in licensing revenues, the Division will only accept funding proposals from entities which have previously implemented a prior C. 206 Regional Foreclosure Education Center and First-Time Homebuyer/Foreclosure Prevention Grant. All applicants must have submitted all requested 2010 program evaluation reports.

Requested Work-plan: All activities proposed must encompass one or a combination of the following services: 1) foreclosure prevention counseling services; 2) first-time homeownership counseling and/or workshops; and 3) counseling for non-traditional or high-cost loans (aka subprime products). Funding for item 3 will be available to 2011 grantees upon submission of receipts and signed certifications of counseling services provided to a first-time homebuyer considering a high-cost or subprime loan product. Cost verifications, and receipt for services rendered will be submitted to the Division of Banks, Mayte Rivera, Deputy Commissioner, 1000 Washington Street, Boston, MA 02118.

Funding considerations:

  • Funding is intended for the 2011 Calendar Year. Grant awards will be processed by February 2011.

  • Progress Tracking Requirement: All grantees will be expected to provide a semi-annual evaluation report, which should include a narrative on program activities, outcomes and challenges limiting the implementation of proposed objectives, if any.

  • Funding may be denied in cases where previous grantees have failed to meet reporting deadlines; or for failure to submit accurate reports as instructed by the Division; and/or for limited program capacity, based on prior funding history.

  • Funding may also be denied if the Division of Banks determines a prior grantee, or a new applicant, has not provided foreclosure prevention or first-time homeownership services in a manner whereby consumers are protected from predatory lending practices, financial fraud and/or unfair or deceptive practices. We require the disclosure of any licensed loan originator who is also a paid by the applicant for activities to be funded under this application.

  • Outreach: Funding recipients will be required to participate in foreclosure workshops scheduled by the Office of Consumer Affairs and the Division of Banks in the recipient's service area during the funding period.

Award Criteria:

All Applications will be reviewed and scored through a peer-review process. Each peer-review group will be comprised of staff members from the Division of Banks and MassHousing. The maximum score allowed per applicant is 100 points. Applications will need a minimum of 80 points to remain under funding consideration.

The scoring factors reflect the quality of the work-plan, comprehensive budget, evaluation/tracking method, and previous experience as well as impact with 2010 Chapter 206 programs.

The work plan should delineate a detailed outreach, implementation and evaluation focus to demonstrate the use and application of funds, and, if applicable, ideal best practices to solve foreclosure loan modification constraints. Additional information describing expected outcomes, and program reporting/monitoring practices is required.

Scoring Requirements

(Please Follow the Same Format with Funding Application)

Grant Experience/Accomplishment/s: Max. 30 Points

  • Applications should include an introduction and overview of the organization, including mission statement, and a summary of current programs available to the community.

  • A list of personnel involved with the proposed work-plan, along with position titles should be provided (Note: Please state if individual is a licensed loan originator as required under "Funding Considerations"). You may also submit job descriptions for those positions which are currently vacant but will be filled with C. 206 funding.

  • Applicants should include a narrative statement describing program-related accomplishments with the 2010 Chapter 206 grant. The statement must specify how the organization will build on those accomplishments to address program deficiencies or future outreach constraints.

  • Previously foreclosure prevention grant recipients should respond to the following questions:

  • How many clients were counseled using Chapter 206 funding during 2010?
  • How many clients were able to avoid foreclosure? What solution was employed to prevent foreclosure, and what role did the applicant play in the resolution?
  • How many clients vacated their homes due to foreclosure, and what subsequent housing alternative was pursued by clients?

  • All Applicants should describe their experience negotiating with lenders or with first-time homeownership classes and/or counseling.

  • For foreclosure prevention grants, applicants should describe their approach to managing complex loan modification cases.

Applicant's Outreach, Work-plan and Outcomes: Max. 30 Points

  • Applicants will identify their target population along with community or regional data to support the need for funding.

  • A detailed outreach and work-plan, along with timelines and expected outcomes, is strongly recommended.

  • Applicants should inform reviewers about the progress of these efforts during prior years and/or during the previously funded period and whether vulnerable populations, particularly low and moderate income individuals or families have been helped or assisted through previous outreach extended by the applicant.

  • Applicants should specify expected client outcomes post homeownership counseling/workshops or post foreclosure counseling services. This section should detail the work the grantees will undertake to reach those outcomes, and provide realistic timelines for desired outcomes.

Program Budget: Max. 10 Points

A 2010 program budget covering all Chapter 206 program activities is required.

The budget should reflect other direct revenues raised for the program in order to leverage Chapter 206 funding, as well as in-kind services or contributions to support the longevity of the program. Additional items to be reflected on the proposed budget:

  • A narrative statement detailing other foreclosure prevention funding for which the grantee is currently applying, with dates for award decisions.

  • Include specific line items for outreach and program-related activities. DO NOT MERGE ALL ACTIVITIES INTO ONE LINE ITEM UNDER "CHAPTER 206" PROGRAM.

  • If the grantee is a Regional Foreclosure Education Center, the budget should include the amount of funding being allocated for partner organizations, and subcontract amounts. The budget narrative should reflect how third-party organizations will utilize the funding.

Performance Tracking and Evaluation: Max 30 Points

  • Grant applicants must submit a list of all program reports submitted to the Division during the previous funding period, along with actual submission dates for each document. The grant review panel will look at tracking/evaluation reports filed with the Division as part of the award consideration process.

  • Prior recipients should also include a list of 2010 foreclosure prevention outreach events in collaboration with the Division of Banks, and the Office of Consumer Affairs or other state organizations involved in foreclosure prevention or first-time homeownership efforts.

  • A detailed program evaluation and reporting process is required under the application. This section should explain how staff will track new client-intakes, and monitor client progress as well as outcomes. If applicant is using a database or other software to maintain client information and services rendered, it should be noted. Applicant should also describe how it has used previously collected program data for the implementation of current services and the development of new programs.

Submission Instructions:

Applications should be returned by the close of business on December 10, 2010. Funding decisions will be announced by the close of business on January 31, 2011.

Applications should be submitted electronically to: Mayte Rivera at the Division of Banks. Email address: Chapter206grants@state.ma.us. Documents should be in PDF format, and the narrative should not exceed more than 10 pages.

Applications will not be accepted if the following items are not included:

  • Cover letter stating the type of funding request, e.g. applying for Regional Foreclosure Education Center funding; First-time Homeownership Counseling funding; and/or applying as an individual foreclosure prevention counseling agency for related services. The applicant should also reference if funding will be used for a combination of services: foreclosure prevention counseling and first-time homeownership programs. Additionally, applicant should include the name of the contact person, title, email address, and telephone number. The letter should be signed by an agency official or person of authority within the organization.
  • IRS 501 c.3 tax-exempt certification is required for all applicants.
  • Program budget with other funding-match.

If you have questions, please submit them by email to Chapter206grants@state.ma.us before December 1, 2010. We will also add a section for Frequently Asked Questions to our website: www.mass.gov/dob.