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2025 Chapter 206 Grant Application

Deadline for submission of the application is 5:00 pm on January 17, 2025. If you have questions regarding the completion of the application, please email Chapter206Grants@mass.gov. If you have questions pertaining to the RFP, these must be submitted via CommBuys and the deadline for these questions is 5:00 pm on January 6, 2025.

Pursuant to Chapter 206 of the Acts of 2007, An Act Protecting and Preserving Homeownership, the Massachusetts Legislature approved the appropriation of funds for grants in support of first-time homeownership counseling programs and for Regional Foreclosure Education Centers.

Funding is possible through administrative fees associated with the licensure of loan originators according to chapter 255F of the Massachusetts General Laws. The Commissioner of Banks has the discretion to adjust the total dollar amount available for distribution depending on actual revenues collected from loan originators’ license renewals for the 2024 calendar year; the Division notes that per the legislative appropriation, not more than $1,550,000 from the revenue received from administrative fees associated with the licensure fees and from civil administrative penalties collected under said chapter 255 shall be expended for this grant program. If needed, some additional supplemental funding may be sourced from the Division of Banks’ Mortgage Settlement Trust. Grants shall be awarded through a competitive application process under criteria determined by the Division of Banks (Division).

Applicable Procurement Law: Grants - MGL c. 7A, § 7; St. 1986 c. 206, § 17; 815 CMR 2.00

Table of Contents

Eligibility Requirements

The Division will accept funding proposals from entities meeting the following eligibility requirements:

  • Registered with the Commonwealth’s procurement system prior to submitting a grant proposal (see www.commbuys.com for registration instructions).
  • Previously awarded Chapter 206 Regional Foreclosure Education Centers and First-Time Homeownership/Foreclosure Prevention Grants in the prior five (5) years. This includes organizations that have received Chapter 206 funding as a sub-grantee of a Regional Foreclosure Education Center.

OR,

  • Alternatively, an organization may be eligible as a new applicant if certified as a Community Development Corporation (CDC) by the Commonwealth’s Department of Housing and Community Development (DHCD), or a recipient of the Collaborative Seal of Approval by the Massachusetts Homeownership Collaborative, administered by CHAPA.[1]   
  • If the applicant is a prior Chapter 206 grantee, it must have a satisfactory record of completion of all stipulated grantee requirements from prior Chapter 206 grant agreement(s), including the submission of program evaluation reports to the Division.
  • Self-identification as either a Regional Foreclosure Education Center or Consumer Counseling Agency with a focus on foreclosure prevention counseling and/or first-time homeownership education programs (this may include financial literacy workshops/programs and/or financial education workshops for first-time homeowners or homeownership counseling).
  • Providers of programming/activities encompassing one or a combination of the following services:

       a.   Foreclosure prevention counseling services, including modification assistance.

       b.   First-time homeownership education or counseling and/or financial literacy or financial education workshops.

       c.   Counseling for non-traditional or high-cost loans (aka sub-prime products).

Funding for item c will be available to grantees upon submission of receipts and signed certifications of counseling services provided to a first-time homebuyer considering a high cost or sub-prime loan product. Cost verifications and receipt for services rendered will be submitted via mail and e-mail to the Division of Banks, Attn: Chapter 206 Grants, 1000 Washington Street, 10th Floor, Boston, MA 02118; e-mail chapter206grants@mass.gov.

[1] Subject to annual review of funding availability.

Regional Foreclosure Education Center Eligibility

Additional eligibility requirements are necessary for Regional Foreclosure Education Centers. The Division will accept funding proposals from Regional Foreclosure Education Centers meeting the following eligibility requirements:

  1. Provider of outreach activities beyond its own locality actively serving more than three neighborhoods, communities, or cities with foreclosure prevention services.
  2. Employer of at least two (2) staff members assigned to foreclosure prevention programs.
  3. Recipient of additional funding from state, federal, or other funders for foreclosure-related programs.

Agencies/organizations identified as sub-grantees under a Regional Foreclosure Education Center’s grant proposal may not apply for duplicative funding under a separate grant application. If applying for additional funding, sub-grantees must ensure proposed services are distinctive from those provided under the auspices of the Regional Foreclosure Education Center’s application by servicing either a different target population, and/or rendering a new activity, such as first-time homeownership educational services.

Requirements for Completion of Application

The Division’s review groups will examine the applicants’ past performance, organization staffing, and program related accomplishments. The Grant Experience/Accomplishments section of the application proposal must include:

  • Introduction and overview of your organization, including a mission statement and summary of current programs available to the community.
  • List of personnel involved with the proposed work-plan, along with their position titles. List and job descriptions for any vacant positions that will be filled using Chapter 206  funding. Disclosure of any licensed loan originators.
  • Details of program-related accomplishments including a narrative of achievements specifying how your organization will build on those accomplishments to address program deficiencies or future outreach constraints.  How many clients were served and outcomes in 2024 using Chapter 206 grant funds or, if not a prior year grant recipient, how many foreclosure prevention and/or first time homebuyers were counseled, on average, annually for the past five (5) years and the outcomes.
  • Describe your organization’s experience negotiating with lenders or with first-time homeownership classes and/or foreclosure counseling including managing complex loan modification cases.

The Division’s review groups will examine organizations’ detailed outreach, implementation, and evaluation processes to demonstrate the use and application of funds, expected outcomes, and program reporting/monitoring practices. The Outreach, Work-plan, and Outcomes Section of the application proposal must:

  • Identify your organization’s target population and provide community or regional data to support the need for funding.
  • Provide a detailed outreach and work-plan, including timelines, expected attendance, expected client outcomes, and proposed efforts to reach desired outcomes and provide timeframes for expected outcomes.
  • Explain the progress of prior efforts and whether target populations (particularly low-and- moderate income individuals or families) have been helped or assisted through previous outreach.
  • If applicable, include ideal best practices to solve foreclosure loan modification constraints.
  • If applicable, include a list of foreclosure prevention or first-time homeownership outreach events in collaboration with the Division, the Office of Consumer Affairs and Business Regulation, or other state organizations involved in foreclosure prevention or first-time homeownership efforts that were held during the previously funded Chapter 206 grant period.

The program budget must include 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. The Program Budget Section of the application proposal must include:

  • Narrative detailing other funding your organization is currently applying, with dates for award decisions. Include in the narrative an explanation of funding which your organization has already been awarded.
  • Specific line items for all items using Chapter 206 funding. Do not merge all activities into one line item under “Chapter 206” program.
  • If budget includes “fringe” or “indirect costs,” specify the activities/costs included in those general categories within the budget narrative. Fringe/indirect costs must not exceed twenty-five percent (25%) of the Chapter 206 program budget.
  • If your organization is a Regional Foreclosure Education Center, the budget should include the amount of funding being allocated for sub-grantee/affiliate organizations, along with subcontract amounts. The budget narrative must reflect how third-party organizations will utilize the funding.

The Division’s review groups will examine organizations’ grant reporting requirement response, client tracking, and reporting processes. The Performance Tracking and Evaluation section of the application proposal must include:

  • List of all program evaluation reports submitted to the Division during the previous funding period, along with actual submission dates for each report. The grant review team reserves the right to examine reports previously filed with the Division as part of the review and scoring process.
  • List of outreach events done independently or in collaboration with other organizations involved in foreclosure prevention or first-time homeownership efforts during the previously awarded grant period.
  • Explanation of how staff will track new client intakes and monitor client progress and outcomes. Please note, if a database or other software to maintain client information and services rendered is being utilized.
  • Description of the use of previously collected program data for the implementation of current services and the development of programs.

You will be asked to upload a cover letter, a copy of your organization's 501(c)3 certificate, and a copy of your organization's W-9 form if you are a new applicant or it has been updated.  If your organization does not have EFT information on file with the Division, or you need to update it, you must email chapter206grants@mass.gov so we can have one sent for completion. 

Request for Proposal (RFP)

Application Questions

2025 Chapter 206 Grant Application

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