09/30/2026
PRESS RELEASE
PAINESVILLE, OHIO - Fair Housing Resource Center, Inc. (FHRC) has joined nine other nonprofit housing organizations from across the country in a federal lawsuit challenging the U.S. Department of Housing and Urban Development’s cancellation of approximately $56 million in congressionally appropriated housing counseling funding.
The lawsuit was filed September 29, 2026, by Democracy Defenders Fund and Jacobson Lawyers Group on behalf of 10 nonprofit organizations, including FHRC. The complaint challenges HUD’s cancellation of grant funding that housing counseling organizations had expected to receive following months of delays and uncertainty.
FHRC is a HUD-approved housing counseling agency serving residents of Lake, Geauga and Ashtabula Counties in Northeast Ohio. Through its housing programs, FHRC assists local residents navigating housing instability and other housing-related challenges.
For organizations like FHRC, federal housing counseling funding supports the local infrastructure that helps residents understand their housing options and make informed decisions when facing some of the most significant financial challenges of their lives.
“In 2026, this is exactly the wrong time to make it harder for homeowners in distress to get help. We must restore access to trusted, local housing counseling without further delay. Families facing the loss of their homes cannot put their crises on hold while funding remains unresolved.” - Patricia Kidd, Executive Director, Fair Housing Resource Center.
According to the complaint, the funding cancellation violates federal law and the Administrative Procedure Act and infringes First Amendment protections. The plaintiffs are asking the federal court to address the withholding of funds and the policy changes challenged in the lawsuit.
The national organizations involved in the case warn that the loss of these funds could reduce access to homebuyer education, foreclosure-prevention counseling, rental counseling and other housing services at a time when households continue to face significant housing affordability pressures.
For FHRC, the case is ultimately about maintaining access to housing counseling services for Northeast Ohio residents.
“These are not simply numbers in a federal budget. These funds represent real people in our communities who need somewhere to turn when they are facing foreclosure, struggling to understand their housing options, or working toward successful homeownership. It has been heartbreaking for our organization to turn away individuals and families seeking services because the resources we have historically relied upon to assist them are no longer available. We see firsthand the fear and uncertainty people experience when their housing is at risk, and having to tell someone that we cannot provide the help they need is devastating. FHRC joined this action because the residents of our communities deserve continued access to trusted, local housing counseling services when they need them most.”
Fair Housing Resource Center is one of 10 plaintiffs participating in the lawsuit, alongside national, state and local housing organizations from across the country.
About Fair Housing Resource.
Fair Housing Resource Center, Inc. is a nonprofit organization based in Painesville, Ohio, providing housing programs and services benefiting residents of Lake, Geauga and Ashtabula Counties.
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