Where: California
Problem: After the financial meltdown in 2008, California homeowners struggled to avoid foreclosure.
Solution: RCAC partnered with NeighborWorks America to increase the number of housing counseling agencies available to assist homeowners.

After the financial meltdown in 2008, Californians across the state faced the very real threat that they could lose their homes to foreclosure. Housing Counseling Agencies struggled to keep up as more and more homeowners sought help. In response, Congress allocated millions to NeighborWorks America for the National Foreclosure Mitigation Program to assist housing counseling agencies on the frontlines of the foreclosure crisis.

RCAC staff determined that the NFMC program would not be available unless the California Housing Finance Agency was the grant recipient. California Housing Finance Agency agreed to apply for funds, if RCAC would act as grant administrator. In the years since the program started, RCAC has partnered with CAlHFA to secure $21,542,400 in eight of the nine rounds to fund 30 housing counseling agencies. Agency staff provided counseling to 83,385 homeowners.

Through the program, counseling staff assess each client’s situation and determine a course of action; help to create a sustainable budget; help clients to obtain loan modifications; and help them to access alternative funding sources such as Keep Your Home California. In cases where homeowners can’t keep their homes, counseling staff help to develop an exit strategy.

RCAC is currently applying for funding through round 10.