diff --git a/CHANGELOG.md b/CHANGELOG.md
index 69b9f437feb..82f7f149d59 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,2 +1,3 @@
+- Check that billing is enabled and move App Hosting next to Hosting in init list (#7871).
 - Fix rollouts:create to handle backend regionality & other fixes. (#7862)
 - Fixed Next.js issue with PPR routes not rendering correctly. (#7625)
diff --git a/src/commands/init.ts b/src/commands/init.ts
index 8e58bbc8661..050fab4d3a1 100644
--- a/src/commands/init.ts
+++ b/src/commands/init.ts
@@ -45,6 +45,12 @@ let choices: {
     name: "Functions: Configure a Cloud Functions directory and its files",
     checked: false,
   },
+  {
+    value: "apphosting",
+    name: "App Hosting: Configure an apphosting.yaml file for App Hosting",
+    checked: false,
+    hidden: false,
+  },
   {
     value: "hosting",
     name: "Hosting: Configure files for Firebase Hosting and (optionally) set up GitHub Action deploys",
@@ -87,12 +93,6 @@ let choices: {
     checked: false,
     hidden: true,
   },
-  {
-    value: "apphosting",
-    name: "App Hosting: Configure an apphosting.yaml file for App Hosting",
-    checked: false,
-    hidden: false,
-  },
 ];
 
 if (isEnabled("genkit")) {
diff --git a/src/init/features/apphosting.ts b/src/init/features/apphosting.ts
index 9a39962f656..39ab29a11e8 100644
--- a/src/init/features/apphosting.ts
+++ b/src/init/features/apphosting.ts
@@ -2,6 +2,7 @@ import * as clc from "colorette";
 import * as utils from "../../utils";
 import { Config } from "../../config";
 import { readTemplateSync } from "../../templates";
+import { checkBillingEnabled } from "../../gcp/cloudbilling";
 
 const APPHOSTING_YAML_TEMPLATE = readTemplateSync("init/apphosting/apphosting.yaml");
 
@@ -9,6 +10,8 @@ const APPHOSTING_YAML_TEMPLATE = readTemplateSync("init/apphosting/apphosting.ya
  * Set up an apphosting.yaml file for a new App Hosting project.
  */
 export async function doSetup(setup: any, config: Config): Promise<void> {
+  await checkBillingEnabled(setup.projectId);
   utils.logBullet("Writing default settings to " + clc.bold("apphosting.yaml") + "...");
   await config.askWriteProjectFile("apphosting.yaml", APPHOSTING_YAML_TEMPLATE);
+  utils.logSuccess("Create a new App Hosting backend with `firebase apphosting:backends:create`");
 }