Front Door Homeownership Education Center

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Executive Summary

Front Door Homeownership Education Center is a nonprofit in Colorado that teaches first-time homebuyers how to buy a home wisely, step by step, in plain language and in the language they speak. Our HUD-approved homebuyer education program gives people the knowledge, the confidence and the certificate they need to move forward. Every participant who wants it can also meet one-on-one with a certified housing counselor to look at their own credit, budget and savings and make a personal plan, even if the plan is to wait.

For most families, buying a home is the biggest financial decision they will ever make, and most have never been taught how to do it. Many people believe they cannot qualify when they actually could, or believe they are ready when they are not. Some are misled by pushy salespeople, confusing loan terms and scams. Others give up because they do not know where to start or who to trust. Education is the front door to homeownership: people who understand credit, budgets, loans, down payment programs, inspections and closing costs make better choices, and so do the lenders and agents who work with them.

With this grant we will teach about 400 households in Year 1 through live classes in English and Spanish, evening and Saturday sessions and an online option. About 180 households will meet one-on-one with a housing counselor. About 45 households will buy a home within a year of counseling, and we will help about 40 buyers pay for a home inspection. We also offer a short post-purchase class on maintenance, budgeting and what to do if a payment becomes hard, because staying in a home matters as much as getting into it. We never sell loans or real estate, and we never take referral fees.

Our Year 1 budget is about $276,000, growing to about $449,000 by Year 5 as we add counselors and educators. Each year's budget is planned to balance, with a small surplus each year. We have 4 paid staff in Year 1 and 7 by Year 5. Client fees, housing counseling contracts and local donors add steady support, so grants fall from about 71% of our income in Year 1 to about 48% in Year 5.

We are asking the Rocky Mountain Housing Foundation for $75,000 for one Housing Counselor, a home inspection assistance fund, interpretation and translation, and workshop space and materials. Fees, contracts, other grants and donors cover the rest, so this grant is one part of a shared funding plan.

I am Rosa Delgado, a HUD-certified housing counselor and the Executive Director. The numbers in this proposal are estimates based on the assumptions listed at the end, not promises.

Company Description

Front Door Homeownership Education Center is a nonprofit organization in Colorado. We are a 501(c)(3) public charity (or a program of one, through a fiscal sponsor), governed by a volunteer board of directors. We will provide our IRS determination letter, board list and most recent financial statements with this proposal.

Our mission. To open the door to homeownership for working families through honest education, personal guidance and a community of support.

What we believe. Homeownership can build stability and wealth, and it is not right for every person at every time. A good decision is an informed one, and "not yet" or "not this home" can be the right answer. Education should respect people's time, culture and language. People learn best from people who look like them and from others who have just done it. Counselors work for the family, not for a lender, a realtor or a seller.

How we started. Front Door began when a credit union loan officer and a bilingual housing counselor started teaching evening homebuyer classes in a church basement. Classes filled in a week and then had waiting lists. Many participants told us they had been told by a lender they were not ready, or had been turned down, and nobody explained why. Others had been steered toward loans with high costs. More than 300 people attended in the first two years, and 61 of them bought a home. A state housing agency and several lenders asked whether we could offer classes regularly and in Spanish. This proposal asks for support to turn that volunteer effort into a staffed, HUD-approved education center.

What we offer:
- Homebuyer education workshops. An 8-hour course, taught in two evenings or one Saturday, in English and Spanish, covering the whole process: deciding if you are ready, budgets, credit, saving, how much house you can afford, loan types, down payment assistance programs, working with lenders and agents, inspections, closing and avoiding scams. Participants receive a certificate that many lenders and down payment assistance programs require.
- Online homebuyer education. A self-paced online course for people who cannot attend in person, with a live phone or video call with a counselor.
- One-on-one housing counseling. A HUD-certified housing counselor reviews each household's credit report, income, debt and savings, writes a written action plan, and meets again as often as needed until the household is ready to buy, or decides to wait.
- A home inspection assistance fund. A modest fund that pays a licensed home inspector directly for households with limited income who are under contract to buy, because an inspection protects the buyer from costly hidden problems.
- Homebuyer Ambassadors. Graduates who have bought a home volunteer to answer questions, share their stories and host neighborhood meetings.
- Post-purchase education. A short class on home maintenance, budgeting, property taxes, insurance and what to do if a payment becomes hard, with early help and referrals to foreclosure prevention counseling.
- Lender and agent networking. Informational sessions where participants meet lenders and real estate agents who have agreed to our code of conduct, with no pressure and no endorsement.

What we do not do. We do not sell loans, real estate or insurance. We do not receive referral fees from lenders, real estate agents or any other party. We are not a credit repair organization and we do not charge for fixing credit. We do not promise that any household will qualify for a loan or buy a home.

How we are run. A seven-member volunteer board of directors oversees the organization and approves the budget each year. The board includes a credit union executive, a housing attorney, a real estate agent, a recent first-time homebuyer, a city housing official, a bilingual community leader and a certified public accountant. The Executive Director manages the organization and counsels households, the counselors and educators work with participants and an outside accountant reviews our books every year.

Where things stand today. We have letters of support from two credit unions, the city's housing office, the state housing finance agency's regional representative and a Latino community organization. We have applied for approval as a HUD-approved housing counseling agency through a national intermediary, and we have a letter of intent for a small storefront office and classroom on a bus line. Before we begin, an attorney will review our lease, our privacy policies and our code of conduct for lenders and agents.

Problem & Opportunity

Why this program is needed.

Owning a home is a goal for many families, and it is out of reach for many more. Prices and interest rates have risen, and down payments and closing costs can take years to save. But cost is only part of the problem. Many families who could buy a home, or who could get ready to buy one within a year or two, do not, because they lack information. Others buy a home too soon or too expensive, or with a loan that is not right for them, and some lose it.

The gaps we see:
1. Not knowing where to start. Many first-time buyers do not know how credit works, how to build a budget for a home or how much house they can afford. They do not know what questions to ask a lender.
2. Myths that hold people back. Many people think they need a 20 percent down payment or perfect credit. In fact, many loan programs allow smaller down payments, and some state and local programs offer down payment help. But the programs have rules and deadlines, and few people know about them.
3. Confusing loans and terms. Fixed or adjustable rate, FHA, VA, USDA or conventional, points, mortgage insurance, escrow: these words confuse even careful buyers. People who do not understand the terms may agree to costs they cannot afford.
4. Scams and pushy sellers. People who are new to buying can be targeted by scams, such as fake down payment assistance offers, paid credit repair that does nothing and loans with hidden fees.
5. Language and culture. Many families prefer to learn in Spanish or another language and in a setting that feels welcoming. Many immigrant families are not sure which lenders will work with them and what documents they need.
6. Hidden costs of buying. Inspection, appraisal, taxes, insurance and repairs add up. A family that stretches to buy and has no cushion can fall behind.
7. After the closing. New homeowners face their first major repair, a rise in taxes or insurance or a job change. Without a plan, a hard month can turn into a crisis.
8. Unequal access. People of color, immigrants, single parents and families with limited incomes have historically had less access to fair credit and homeownership, and the effects continue. Good education and counseling, combined with fair lending, can help.

How we know people want this. Our volunteer classes filled within a week and had waiting lists, more than 300 people attended in two years and 61 bought a home. Lenders and real estate agents told us that their clients arrive without the basics, and that a certificate and a prepared buyer make everyone's work easier.

How we will show the need. Before we submit this proposal, we will add the homeownership rate and the share of renters who spend more than 30 percent of their income on rent in our area from the U.S. Census Bureau's American Community Survey, the median home price from local real estate data, the income needed to buy a median-priced home, the number of first-time buyers who used down payment assistance in our area from the state housing finance agency, and the number of people on our waiting list. We will add the homeownership gap between groups in our area, if the data are available.

Who benefits first. Renters and families in our area who want to buy a first home, especially households with low to moderate income, households who speak Spanish or other languages at home, single parents, essential workers, first-generation buyers and households who have been turned down for a loan or are unsure whether they can qualify.

Products & Services

What the grant will pay for and what we will do.

1. Teach homebuyer education workshops. We teach an 8-hour course that meets the National Industry Standards for Homeownership Education and Counseling and the requirements of HUD and the state housing finance agency, taught by trained, certified instructors. Sessions are offered in English and Spanish on weekday evenings and Saturdays, at our classroom and at partner sites such as libraries and credit unions. Class sizes are about 20 households. The course covers:
- Is homeownership right for me? Costs and benefits of owning and renting.
- Building a household budget and setting a savings goal.
- Understanding credit: what is in a credit report, how scores work and how to build good credit, including how to get a free credit report and dispute errors.
- Finding out how much you can afford and what a lender will look at.
- Loan types and terms, including FHA, VA, USDA, conventional loans and loans for people with an Individual Taxpayer Identification Number, where available, and how to compare offers.
- Down payment and closing cost assistance programs, and their rules.
- Working with real estate agents and lenders, and asking good questions.
- Inspections, appraisals, insurance and the closing process.
- Fraud and scams, fair lending rights and where to get help.
- Life after closing: maintenance, taxes, insurance and what to do if you fall behind.
Participants receive a certificate when they finish. About 400 households complete education in Year 1, including about 150 in the online course.

2. Provide one-on-one counseling. A HUD-certified housing counselor meets with each household that wants help, reviews credit, income, debts and savings with the household's permission and writes a clear action plan: what to do, by when and who will help. The counselor meets again as often as needed. Some households are ready to buy in a few months. Some need a year or two. Some decide to keep renting. Each outcome is a good outcome if it is an informed one. About 180 households receive counseling in Year 1.

3. Help with a home inspection. A fund pays a licensed home inspector directly for households with limited income who have completed our program and are under contract to buy. About 40 households receive help in Year 1. The fund pays the inspector, never the household.

4. Connect to down payment assistance and fair lenders. Counselors explain programs offered by the state housing finance agency, the city and lenders, help households check whether they qualify and refer them to lenders and real estate agents who follow our code of conduct, never to just one, and never for a fee.

5. Build a community. Homebuyer Ambassadors, volunteer graduates who have bought a home, share their stories and answer questions. Quarterly neighborhood meetings give participants a place to ask questions and get support.

6. Support new homeowners. A 2-hour post-purchase class on maintenance, budgeting, taxes and insurance, with a 6-month check-in call. Homeowners who fall behind are referred right away to foreclosure prevention counseling.

How we will measure results. For every household we record the class and counseling they received, their credit and savings at the start and at each meeting, and whether they bought a home, with the household's permission. We follow households for 12 months after counseling and 12 months after purchase. We track the average time from first counseling to purchase, the average change in credit score and savings, the share of buyers who use a fixed-rate loan, and homeowners who are current on their mortgage after 12 months. We ask every participant for feedback.

Our Year 1 goals:
- About 400 households complete homebuyer education, with at least 90% saying they understand the process better.
- About 180 households receive one-on-one counseling.
- At least 70% of counseled households have a written action plan and a savings goal.
- About 45 households buy a home within a year of counseling.
- About 40 households receive home inspection assistance.
- At least 90% of homeowners we follow are current on their mortgage after 12 months.
- At least 90% of participants say they were treated with respect.
These are goals, and we will report our real results to the Foundation, including where we fall short. We do not promise that any household will qualify for a loan or buy a home.

Market Analysis

Who we serve and how many.

The people. Renters and families in our service area who want to buy a first home or who have not owned a home in the past three years, or who are not sure whether they can. We welcome everyone, whatever their income, and we reach out especially to households with low to moderate income, households who speak Spanish or other languages at home, single parents, essential workers such as nurses, teachers, drivers and service workers, first-generation buyers, immigrant families, veterans, and households who have been turned down for a loan.

Where we work. Our office and classroom are in a storefront on a bus line. We also teach at libraries, credit unions, churches and workplaces, and online. In Year 3 we add classes at a second site in an outlying town.

How many we will reach:
- Year 1: about 400 households complete education, about 180 receive counseling, about 45 buy a home and about 40 receive inspection help.
- Year 2: about 640 households complete education, about 280 receive counseling, about 70 buy a home and about 44 receive inspection help.
- Year 3: about 930 households complete education, about 360 receive counseling, about 95 buy a home and about 48 receive inspection help, with a second Education and Outreach Specialist.
- Year 4: about 1,230 households complete education, about 400 receive counseling, about 110 buy a home and about 53 receive inspection help.
- Year 5: about 1,470 households complete education, about 560 receive counseling with a third Housing Counselor, about 150 buy a home and about 58 receive inspection help.
Over five years we expect about 4,700 households to complete education, about 1,800 to receive counseling and about 470 to buy a home. Some households return for a second round of counseling.

Who else benefits:
- Lenders and real estate agents. They work with buyers who are prepared, which saves everyone time and builds trust.
- Sellers and neighborhoods. Prepared buyers are more likely to close and keep up their homes.
- Cities and housing agencies. They see more successful use of their down payment assistance and fewer buyers who fall behind.
- Employers. Workers who own homes are more likely to stay in the community.
- Children. Stable housing helps children stay in the same schools and communities.

How we will size the need before we submit. We will add the number of renter households in our area, the share who are cost-burdened, the median home price and the income needed to buy it, the number of homebuyers who used down payment assistance in the past year and the number of households on our waiting list. These come from the U.S. Census Bureau, the state housing finance agency, the city housing office and local real estate data.

Competitive Landscape

Other places first-time buyers can turn, and how we fit.

- Lenders and loan officers. Many are helpful, and they are essential to the process. But a lender's job is to sell a loan. A homebuyer education program and a housing counselor work for the buyer. We work with lenders who follow our code of conduct, and we do not endorse any one lender.
- Real estate agents. Many provide valuable guidance in finding a home. We invite agents to speak and refer buyers to agents who follow our code of conduct. We never take referral fees.
- Other HUD-approved housing counseling agencies. Some agencies in our region offer homebuyer education and counseling, usually in English, in business hours and at a single site. We coordinate with them, and we offer evening, Saturday, Spanish-language and online options.
- The state housing finance agency and the city. They offer down payment assistance and require homebuyer education for many programs. We provide the education and counseling their buyers need, and we help with applications.
- Online courses and videos. Some are HUD-approved and good, and we offer one ourselves. Many buyers want to talk to a real person about their own situation, and that is what our counselors do.
- Free information from banks and websites. It can help, but is often general and may favor a product. Our counseling is independent and personal.
- Credit repair companies. Many charge high fees and promise results they cannot guarantee. We teach how credit works and how to dispute errors on your own, and we are not a credit repair organization.

The gap we fill. In our service area, no other program offers a HUD-approved homebuyer course in English and Spanish in the evening, on Saturday and online, with one-on-one counseling, an inspection assistance fund, graduate ambassadors and post-purchase support, with an independent code of conduct.

Our partners:
- Two credit unions, which host classes, speak at sessions and provide fair lending.
- The state housing finance agency and the city housing office, which provide down payment assistance and referrals.
- A Latino community organization and two churches, which help reach families and host classes.
- A local association of real estate agents, whose members follow our code of conduct.
- A housing attorney and a foreclosure prevention counseling agency, which accept referrals.
- A national intermediary for housing counseling agencies, which supports our HUD approval and reporting.

Marketing & Sales Strategy

How participants, partners and supporters will find us and how we keep them engaged.

Reaching participants:
- Employers and workplaces. Hospitals, schools, city departments and large employers tell their workers about our classes and host lunchtime sessions.
- Credit unions, banks and housing agencies. Their staff refer people who are not ready yet or who need education to qualify for a program.
- Community partners. Churches, community centers, libraries and cultural organizations share flyers and host classes, in English and Spanish.
- Word of mouth. Graduates who bought homes tell their friends and family and often bring them to class.
- A simple website and a text number in English and Spanish, with a calendar of classes and an easy way to sign up.
- Social media, local radio and community newspapers in English and Spanish.
- Events. Our annual Homebuyer Fair brings together housing counselors, lenders and housing agencies in one place, with free information for everyone.

Making it easy to join:
- Classes are on weekday evenings and Saturdays, with childcare and a light meal at in-person sessions.
- Every class is available in English and Spanish, and interpretation is offered for other languages.
- The fee is modest, and it is waived for any household that cannot pay.
- Participants can attend alone or with a partner, parent or friend.
- No participant is required to apply for a loan or to meet with a lender.

Keeping participants engaged:
- Each participant gets a personal plan, and a counselor checks in at regular intervals.
- Text reminders, with permission, for class dates, deadlines and savings goals.
- Ambassadors and neighborhood meetings give participants peers to talk to.
- We celebrate milestones: a certificate, a first savings goal and, when it happens, a closing day.

Reaching supporters. Credit unions, banks, employers and real estate agents are invited to sponsor a class, a Homebuyer Fair or the inspection assistance fund. All sponsors agree to our code of conduct and receive no referrals in return. We share results twice a year with funders and partners as totals.

Outreach budget. Outreach, marketing and community events are about $7,000 a year in Year 1, growing about 4% a year. Interpretation and translation are about $5,000. The sign, bilingual brochures and website are paid for once from startup money ($2,500).

Operations Plan

How the program will be carried out.

Timeline for Year 1:
- Months 1 to 3: Attorney review of the lease, privacy policies and code of conduct, sign the lease, prepare the classroom and counseling room, hire the Housing Counselor and the Homebuyer Education and Outreach Specialist, set up the secure counseling software and complete HUD approval steps.
- Month 4: Staff training on the course, counseling standards, fair lending, privacy and scams. Instructors complete certification. First classes announced.
- Months 5 to 8: Classes begin in English and Spanish, and online. Counseling begins. First lender and agent information sessions.
- Months 9 to 12: First homebuyers close. Home inspection assistance begins. First Homebuyer Fair. Review of results and feedback, a year-end report to funders and planning for Year 2.

Space. A leased storefront on a bus line with a classroom for 24 people, a private counseling room, a small office and an accessible restroom. Office rent and utilities are about $18,000 a year in Year 1. Paint, flooring and an accessible workshop and counseling space are a one-time cost of $4,500, with a deposit and first month of rent of $4,000. Workshop space and materials, including partner site costs, are about $9,000 a year.

Equipment. We buy about $11,500 of equipment once at the start: six laptops with secure counseling software access and a portable projector ($6,000), classroom tables, chairs and a screen ($3,000), private counseling room furniture and a white noise machine ($1,500), and locking file cabinets for confidential records and a secure printer ($1,000). After Year 1, we set aside about $2,000 to $2,500 a year to replace and add equipment.

Staffing. In Year 1: an Executive Director who is also a HUD-certified counselor, one Housing Counselor, one Homebuyer Education and Outreach Specialist and a part-time Program Coordinator. A second Housing Counselor joins in Year 2, a second Education and Outreach Specialist in Year 3 and a third Housing Counselor in Year 5.

Standards and training. Counselors pass the HUD housing counselor certification exam, which is required for counselors in HUD-funded agencies, and complete ongoing training. Our curriculum follows the National Industry Standards for Homeownership Education and Counseling. We report to HUD through our intermediary using the required system. Counselor training and certification cost about $4,000 a year in Year 1, and credit reports, counseling software and HUD reporting cost about $8,000.

Independence and fair practice. We follow a written conflict-of-interest and code-of-conduct policy. We do not receive referral fees from lenders, real estate agents or any other party, and we do not accept payment from any party for steering a household. We follow the Real Estate Settlement Procedures Act (RESPA), which prohibits kickbacks and referral fees, and the Equal Credit Opportunity Act and fair housing laws, which prohibit discrimination. We refer buyers to several lenders and agents, not just one. Payments we receive from housing agencies or lenders are for our education and counseling services under written agreements, not for referrals, and an attorney reviews each agreement.

Credit and credit repair. With each household's written permission, our counselors review credit reports, which are free to the household from the official source, and teach households how to understand and dispute errors on their own. We are not a credit repair organization, we do not charge for credit repair and we do not promise to change anyone's score. A housing attorney confirms how federal and state credit repair laws apply to a nonprofit like ours.

Privacy and security. Households' financial information is confidential. It is kept in a locked cabinet and a secure, password-protected counseling system, shared only with the household's written permission, except where the law requires it, and used only for counseling. We follow federal privacy rules for financial information. We report results to funders and HUD only as totals or as required without names. Staff never ask a household to send sensitive information by email or text.

Scam protection. Every class includes a lesson on common scams. Staff teach households to never pay an up-front fee to someone who promises to fix credit, to guarantee a loan or to save a home from foreclosure, and to report suspected fraud.

Inspection fund controls. The fund pays a licensed home inspector directly, never the household. A household must complete our education, have a signed contract to buy and meet the income requirement. Each payment is approved by the Executive Director and recorded, and the board reviews a list each quarter. The fund is about $20,000 a year in Year 1, which pays for about 40 inspections at about $500 each.

Insurance and records. We carry general liability, professional liability, cyber liability and property insurance, and workers' compensation once we hire. Insurance is about $5,000 a year in Year 1. Grant money is tracked separately so we can show each funder how their money was spent, and an outside accountant reviews our books every year.

Management & Organization

Who leads the organization.

Rosa Delgado, Executive Director. Rosa leads the organization, raises money, manages grants and partnerships, supervises staff, counsels households and reports to the board. She is a HUD-certified housing counselor who spent 8 years as a credit union loan officer and 5 years as a homebuyer educator, and she co-founded our volunteer classes. Planned salary: $58,000 a year.

Housing Counselor (HUD-certified). Provides one-on-one counseling, reviews credit and budgets, writes action plans, teaches workshops and follows up with households. Must hold or earn the HUD housing counselor certification and complete a background check. Bilingual in English and Spanish is a strong plus. One in Year 1, two in Years 2 to 4 and three in Year 5, at a planned salary of $52,000 each. The Rocky Mountain Housing Foundation grant would support the first Housing Counselor.

Homebuyer Education and Outreach Specialist. Teaches workshops, runs the online course, organizes the Homebuyer Fair and neighborhood meetings, supports Ambassadors and builds relationships with partners. One in Years 1 and 2 and two from Year 3, at a planned salary of $44,000 each.

Program Coordinator (part-time). Handles scheduling, registration, reminders, records and reports, about 25 hours a week. Planned pay: $24,000 a year.

Pay figures include payroll taxes and workers' compensation insurance.

Staff in each year: 4 paid staff in Year 1 (three full-time and one part-time), 5 in Year 2, 6 in Years 3 and 4 and 7 in Year 5.

Volunteers. About 30 trained volunteers in Year 1, including Homebuyer Ambassadors, who help at classes, fairs and meetings. Volunteers do not handle confidential records.

The board. A seven-member volunteer board approves the budget, reviews results twice a year and helps raise money. Board members serve three-year terms. The board's certified public accountant chairs the finance committee. The board's housing attorney reviews our code of conduct each year.

People who help us. An outside accountant who reviews our books every year, a housing attorney who reviews our lease, privacy policies and partner agreements, an insurance agent who understands housing counseling, and an advisory group of recent buyers, lenders and a city housing official who meet each semester to tell us what is working.

Training. All staff and volunteers complete training in fair lending, privacy, scams, cultural humility and our code of conduct before starting, and again each year.

Money management. Grant money is tracked separately for each funder. The Executive Director and a board member must both approve any payment over $2,500.

Milestones Narrative

Our goals for each year and how we will measure them.

- Year 1: Open the center, teach about 400 households, counsel about 180, help about 45 households buy a home and provide inspection help to about 40. A balanced budget of about $276,000, with a small surplus of about $7,700. 4 paid staff.
- Year 2: Add a second Housing Counselor, teaching about 640 households and counseling about 280, with about 70 homes purchased. A balanced budget of about $334,000, with a small surplus of about $8,400. 5 paid staff.
- Year 3: Add a second Education and Outreach Specialist and a second site, teaching about 930 households and counseling about 360, with about 95 homes purchased. A balanced budget of about $384,000, with a small surplus of about $8,600. 6 paid staff.
- Year 4: Teach about 1,230 households and counsel about 400, with about 110 homes purchased, and begin a 12-month review of homeowners' mortgages. A balanced budget of about $390,000, with a small surplus of about $8,600. 6 paid staff.
- Year 5: Add a third Housing Counselor, teaching about 1,470 households and counseling about 560, with about 150 homes purchased, and client fees, partner payments and contracts covering about 43% of our budget. A balanced budget of about $449,000, with a small surplus of about $9,100. 7 paid staff.

What we measure:
- Households who complete education, counseling and post-purchase classes.
- Written action plans and savings goals set and met.
- Changes in credit scores and savings, shown as averages.
- Households who buy a home, loan types and time from counseling to purchase.
- Inspections funded.
- Homeowners current on their mortgage after 12 months.
- Participant satisfaction and whether participants felt respected.

How we review results. The Executive Director and counselors review caseloads and outcomes every month. Each semester, staff, the advisory group and our partners review results together, and we change what is not working. Twice a year, the board reviews results and we share them with funders as totals. Every number in this plan is a goal, and we will report what really happens.

Funding Request

What we are asking for, and how the money will be used. Our request: $75,000 from the Rocky Mountain Housing Foundation for one Housing Counselor, a home inspection assistance fund, interpretation and translation, and workshop space and materials, for July 2027 through June 2028.

The request is spread across these budget lines:
- Personnel: Housing Counselor salary, $52,000.
- Other: Home inspection assistance fund (paid directly to licensed inspectors), $15,000 (other funds add $5,000).
- Other: Interpretation and translation, $5,000.
- Other: Workshop space and materials, $3,000 (other funds add $6,000).

Other money in the program. Client fees, housing counseling contracts, other grants and local donors pay the other $11,000 of those lines, plus the Executive Director's salary ($58,000), the Homebuyer Education and Outreach Specialist ($44,000), the part-time Program Coordinator ($24,000), credit reports, counseling software and HUD reporting ($8,000), outreach, marketing and community events ($7,000), office rent and utilities ($18,000), insurance ($5,000), counselor training and certification ($4,000) and evaluation, accounting and administration ($12,000).

Year 1 budget: about $276,000, planned to balance with a small surplus (about $7,700 after the yearly wear on equipment). Year 1 money coming in: grants $196,000 (this request plus other grants we are applying for), client fees and partner payments $30,000 (about 400 households at about $75), housing counseling contracts $35,000 and donations and local sponsors $15,000. Year 1 costs: Executive Director $58,000; Housing Counselor $52,000; Homebuyer Education and Outreach Specialist $44,000; Program Coordinator $24,000; home inspection assistance fund about $20,000; workshop space and materials about $9,000; credit reports, counseling software and HUD reporting about $8,000; outreach, marketing and community events about $7,000; interpretation and translation about $5,000; office rent and utilities about $18,000; insurance about $5,000; counselor training and certification about $4,000; evaluation, accounting and administration about $12,000; and about $4,100 a year for the wear on equipment.

About fees and contracts. We charge a modest fee for the homebuyer course and certificate, about $60 per household, waived for any household that cannot pay. Housing agencies and lenders may also pay for education or counseling services for their clients under written agreements, which are payments for services and never for referrals. We plan to apply for HUD housing counseling funds and state and local contracts, which are competitive and change from year to year. The amounts in this plan are planning estimates, not promises. We plan for grants and donors to cover the gap if they do.

One-time startup costs. Startup costs of $35,500 are paid once from startup money, not from the yearly budget: $11,500 of equipment (laptops and projector, classroom furniture, counseling room furniture and locking cabinets), $4,500 for paint, flooring and an accessible workshop and counseling space, $4,000 for the lease deposit and first month of rent, $2,500 for the opening supply of workbooks and guides, $1,500 for housing counseling agency approval and affiliation fees and the business license, $6,000 for an attorney's review of the lease, privacy and conflict-of-interest policies and for accounting setup, $2,500 for the sign, bilingual brochures and website, and $3,000 for background checks, counselor certification exam fees and the first insurance payment.

How we got our startup number. The Funding Need Calculator in this plan adds the startup costs ($35,500), the cash we need to cover the wait for the first payments (about $6,600) and a cash cushion of about $66,500, which is about three months of Year 1 costs. That comes to $109,000. We start with $20,000 of our own savings and $95,000 in startup support from a community foundation, two credit unions and our board, $115,000 in all, which covers that amount with room to spare.

The next five years. Our budget grows from about $276,000 in Year 1 to about $449,000 in Year 5. Grants are planned at $196,000, $216,000, $226,000, $194,000 and $215,000 in Years 1 to 5. Client fees and partner payments grow from $30,000 to $110,000, housing counseling contracts grow from $35,000 to $84,000 and donations and local sponsors grow from $15,000 to $40,000. We add a second Housing Counselor in Year 2, a second Education and Outreach Specialist in Year 3 and a third Housing Counselor in Year 5. Grants fall from about 71% of our income in Year 1 to about 48% in Year 5.

Savings. We plan to keep several months of costs in savings. The lowest year-end balance in the plan is about $96,900, at the end of Year 1. Contract payments often arrive after we bill, so we plan for about $16,560 owed to us at the end of Year 1.

After the grant. Our plan is that fees, partner payments and contracts carry a growing share of the cost each year, since we are paid for the education and counseling we provide. We will invite credit unions, banks, employers and real estate agents to sponsor classes, under our code of conduct, and grow individual donors, including families who bought homes.

Risks and how we will handle them:
- HUD approval takes longer than planned. We apply early, use our intermediary's support and begin with classes that meet partner requirements while approval is pending.
- Interest rates or prices rise. We teach how to plan and wait, help households who are not ready build a plan and do not push anyone to buy.
- A household is scammed. Every class teaches about scams, and counselors help with reporting and referrals.
- A conflict of interest or a complaint about a partner. We follow a written code of conduct, review it each year and act quickly on any concern.
- Counselors are hard to hire. We start recruiting early, support staff to earn certification and the Executive Director can counsel more households for a time.
- A grant or contract ends. We keep savings, grow fees and donors and keep our costs per household low.

If you are just starting. A new organization can begin before it has its own 501(c)(3) status through a fiscal sponsor: an established nonprofit that receives grants for you and passes them to your program, usually for a fee (commonly around 5% to 10% of the grant, sometimes more; ask before you agree). Another way is to start smaller: a monthly homebuyer class taught by a volunteer certified counselor in a donated library or credit union room, tracked carefully, while you complete HUD approval through a national intermediary. Strong results from a small start make larger grants easier to win.

Appendix Notes

Documents to attach with this proposal:

- Your IRS 501(c)(3) determination letter, or your fiscal sponsor agreement.
- Your most recent financial statements and your current year budget.
- A list of your board members and what each one does.
- Counselor certification and resumes for your Executive Director and Housing Counselor.
- Your homebuyer education course outline and how it meets the National Industry Standards.
- Proof of HUD approval, or proof you have applied through an intermediary.
- Letters of support from credit unions, the state housing finance agency, the city and community organizations.
- The letter of intent for the lease, or a letter from the landlord.
- Your code of conduct, conflict-of-interest policy and privacy policy.
- Your inspection assistance fund rules.
- Results from your volunteer classes, shown as totals.
- Proof of liability insurance, or a quote.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Grant Revenue: $196,000 in Year 1, then $216,000, $226,000, $194,000 and $215,000.
- Client Fees and Partner Payments: about $75 per household completing education; $30,000 in Year 1 (about 400 households), then $48,000, $70,000, $92,000 and $110,000 (about 1,470 households in Year 5).
- Housing Counseling Contracts (HUD, State and Local): $35,000 in Year 1, growing to $84,000.
- Donations and Local Sponsors: $15,000 in Year 1, growing to $40,000.
- Pay (a full year, per person, including payroll taxes and workers' compensation): Executive Director $58,000, Housing Counselor $52,000 (one in Year 1, two in Years 2 to 4, three in Year 5), Homebuyer Education and Outreach Specialist $44,000 (one in Years 1 and 2, two from Year 3), Program Coordinator (part-time) $24,000.
- Other yearly costs in Year 1: Home Inspection Assistance Fund $20,000 (about 40 inspections at about $500), Workshop Space and Materials $9,000, Credit Reports, Counseling Software and HUD Reporting $8,000, Outreach, Marketing and Community Events $7,000, Interpretation and Translation $5,000, Office Rent and Utilities $18,000, Insurance $5,000, Counselor Training and Certification $4,000, Evaluation, Accounting and Administration $12,000. These grow between 4% and 10% a year.
- Equipment: $11,500 at the start, then $2,000 to $2,500 a year.
- Startup costs: $35,500, paid once from $115,000 in startup money.
- About 6% of each year's income is still owed to us at year end.
- Tax: none, as a nonprofit.
- Every dollar amount is an estimate. Replace them with your own quotes and real budget.

Startup Costs