With much fanfare, U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan made a stop in Massachusetts recently touting the latest and greatest plan to “help” Americans by putting us all in deeper debt.

Donovan and the Obama administration’s latest plan to help alleviate the crushing foreclosure problem involves disbursing $1 billion in loans to struggling homeowners hoping to avoid foreclosure.

Massachusetts is one of 32 states and Puerto Rico slated to receive the funds, with our share totaling $61 million.

The funds were announced as part of the Emergency Homeowner Loan Program (EHLP). The program involves low-cost (excuse us, no cost) loans, up to $50,000, intended to provide assistance – for up to 24 months – to homeowners at-risk of foreclosure who have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition.

Potential borrowers must meet several eligibility requirements for the low-cost loans. They must be at least three months delinquent on their mortgage and have a reasonable likelihood of being able to resume repayment within two years. Their property must be their principle residence, and eligible borrowers may not own a second home. Lastly, the borrower must have suffered at least a 15 percent reduction in income and have been able to afford their mortgage payments prior to the event that triggered the lost income.

OK. So far, so good. The eligibility requirements seem to strike a manageable balance between being broad enough to help a broad cross-section of borrowers, while still being strict enough to help only those who really need it.

In return, EHLP will offer a forgivable, deferred payment bridge loan – a non-recourse, subordinate bridge loan offered at zero percent interest, no less.

Now this is where it starts to get a little too touchy-feely. While we don’t, and can’t, argue with the idea that many homeowners are struggling through no fault of their own and do probably merit some assistance, we also can’t condone what is essentially a $50,000 handout.

Let’s read between the lines here.

Joe Homeowner can’t make his mortgage payments because he was laid off or hurt. OK. So the government steps in with 50 large to help him out with his mortgage payments until he gets back on his feet again. OK again.

But where it gets tricky is if he ever gets his job back – a big if. If he doesn’t, he’s on the hook for another 50 grand in loans from the government, on top of what he owes on his mortgage, if our interpretation is correct.

Even if he does get his job back, he’s now making his mortgage payments on his own, AND expected to pay back $50,000? Even at no interest, that could take a while.

So while Boston Mayor Thomas Menino, Congressman Barney Frank and other dignitaries lauded the new funds as the much-sought-after foreclosure prevention cure-all that will keep our “neighborhoods vibrant” and “cities strong,” we can’t help but shake our heads at their apparent gullibility – or worse, complicity.

By offering such significant “loans” at such generous terms, we find it hard to believe that Uncle Sam even believes his own rhetoric. And if that’s the case, don’t play us for fools. Call these handouts by their true name – “grant” is a nice, philanthropic term.

Adding insult to injury, the feds didn’t even get the program’s name right. Switching “Emergency Homeowners Loan Program” to “Homeowners’ Emergency Loan Program” begets the convenient acronym HELP – which is what we need to swallow this bloated excuse for a “solution.”