U S Dept of HUD Office of Housing

U. S. Dept. of HUD Office of Housing Counseling Housing Counselor Certification Presented by Suzanne Isaacs Housing Program Specialist January 30, COUNSELING 2020 OFFICE OF HOUSING 1

Why Are We Here? • If your grantees or sub-recipients provide housing counseling services or your program requires housing counseling, your grantees may be covered under HUD’s Final Rule on Housing Counselor Certification. • We need your help to ensure all covered stakeholders are aware of this requirement and planning steps for compliance. OFFICE OF HOUSING COUNSELING 2

HUD Certified Housing Counselor Professional Milestone Benefits Broader knowledge = better counseling Create professional recognition for housing counselors Elevate the value of the program for consumers Consumers avoid scammers and con artists A credential for counselors Consumers benefit from HUD approved agencies Housing counseling offered in connection with HUD programs meets OHC standards Programs and counselors eligible for grants and scholarships Increased visibility and awareness of housing counseling OFFICE OF HOUSING COUNSELING 3

Final Rule Housing Counselor Certification The final rule standardizes the definition of housing counseling and requires: • Any housing counseling, as defined in 24 CFR 5. 100 required under or provided in connection with any program administered by HUD shall be provided only by organizations and counselors certified by the Secretary under 24 CFR part 214 to provide housing counseling, consistent with 12 U. S. C 1701 x. • Housing Counselor certification effective August 1, 2020. OFFICE OF HOUSING COUNSELING 4

Covered Programs Required under or provided in connection with any program administered by HUD means: 1. Housing Counseling is required by HUD 2. Housing Counseling that is funded under a HUD program. 3. Housing Counseling that is required by a grantee or sub-grantee of a HUD program as a condition of receiving assistance 4. Client served by a HUD program is referred to housing counseling OFFICE OF HOUSING COUNSELING 5

HUD Certified Housing Counselor A HUD Certified Housing Counselor is a housing counselor who has passed the HUD certification examination and works for a HUD-approved housing counseling agency. Counselors must demonstrate competency in: • Financial management • Property maintenance • Responsibilities of homeownership and tenancy • Fair housing laws and requirements • Housing affordability • Avoidance of, and response to, rental or mortgage delinquency and avoidance of eviction or mortgage default OFFICE OF HOUSING COUNSELING 6

Covered CPD Programs OFFICE OF HOUSING COUNSELING 7

Community Planning and Development (CPD) Covered Programs CPD Programs covered include: • HOME • Community Development Block Grant Program including Disaster Recovery • Housing Trust Fund • Housing Opportunities for Persons With AIDS* • Emergency Solutions Grant* • Continuum of Care program* *If clients are referred for housing counseling the agency referred to must be a HUD approved housing counseling agency and employ HUD certified housing counselors OFFICE OF HOUSING COUNSELING 8

What is Housing Counseling? • Housing Counseling is independent, expert advice customized to the need of the consumer to address the consumer’s housing barriers and to help achieve their housing goals. Housing counseling elements must include: • Intake • Client Budget • Financial and housing affordability analysis • An action plan, except for reverse mortgage counseling • Reasonable effort to follow-up with client OFFICE OF HOUSING COUNSELING 9

Group Education ≠ Housing Counseling • Housing counseling is individualized assistance that is customized to the consumer. • Group education including Homebuyer Education is not housing counseling. • On-line education classes by themselves do not meet HUD programmatic requirements for housing counseling. OFFICE OF HOUSING COUNSELING 10

Case Management ≠ Housing Counseling • Housing services provided to eligible persons (including persons undergoing relocation, homelessness or risk of homelessness) that are incidental to a larger set of holistic case management services are not housing counseling OFFICE OF HOUSING COUNSELING 11

Group Education • Provided for one or more people (classroom, online, conference call or other delivery method) • Major differences from Housing Counseling are: • Not customized for individual needs • Does not offer individual financial analysis or a client action plan • HUD participating Housing Counseling Agencies must offer counseling on the same topics as group education • Other stakeholders that only provide homebuyer education are not covered by the final rule. OFFICE OF HOUSING COUNSELING 12

Example – HOME Funds • The HOME regulations at § 92. 254(a)(3) require that all homebuyers who receive HOME assistance or purchase units developed with HOME funds must receive housing counseling. • Homebuyers must receive housing counseling. • On August 1, 2020 the provider of the counseling must be a HUD certified housing counselor that works for a HUD approved housing counseling agency. OFFICE OF HOUSING COUNSELING 13

Example - HOME funded grantee • CPD HOME grantee assists clients to achieve homeownership. • Homeownership counseling is required by the rule (not solely education) • Homeownership counseling must be provided by a HUD certified housing counselor that works for an agency that is approved to participate in the HUD Housing Counseling Program. • If grantee is not an approved agency, HOME grantee can partner with an approved HUD Housing Counseling Agency to provide the required counseling. OFFICE OF HOUSING COUNSELING 14

What Other Services are Not Housing Counseling? • Services that provide only housing information, or placement or referral services • Routine administrative activities (e. g. , program eligibility determinations, intake, case management) • Case management that provides housing services as incidental to a larger case management (HOPWA, ESG, COC) and does not fund housing counseling • Fair housing advice and advocacy (e. g. processing complaints and filing claims) • Group education without individualized services OFFICE OF HOUSING COUNSELING 15

How Do Agencies Covered by the Final Rule Comply? OFFICE OF HOUSING COUNSELING 16

Options for Compliance • Apply to participate in HUD’s Housing Counseling Program • Partner with an existing HUD Approved Housing Counseling Agency to deliver housing counseling • Modify covered programs in order to become compliant • Stop delivering housing counseling services before the Final Compliance Date of August 1, 2020 OFFICE OF HOUSING COUNSELING 17

Pass-Through Agencies / Agency Managers • Staff of entities whose roles are limited to funding, overseeing or administering a housing counseling program or other HUD program that requires housing counseling, and who do not provide housing counseling services directly to clients are not required to become HUD certified housing counselors and the agency is not required to become HUD-approved housing counseling agency. OFFICE OF HOUSING COUNSELING 18

How to Become HUD Approved Qualifying Criteria • Non Profit status or state or local government • 1 year experience providing housing counseling • 1 year of operation in proposed geographic service community • Sufficient counseling resources • Email housing. counseling@hud. gov to schedule an appointment • www. hudexchange. info/programs/housingcounseling/agency-application/ OFFICE OF HOUSING COUNSELING 19

Housing Counseling Agency Eligibility Tool Online tool for prospective housing counseling agencies: • Walks potential agencies through the required criteria for HUD-approval • Includes educational materials on becoming HUDApproved • Provides an agency with a user report to follow up on next steps https: //www. hudexchange. info/programs/housing-counseling/housingcounseling-agency-eligibility-tool/ OFFICE OF HOUSING COUNSELING 20

Meeting the Housing Counselor Certification Deadline States with 20% or less agencies with HUD certified counselors: • Connecticut: 19% • Kansas, Louisiana, and Mississippi: 14% • New Mexico: 13% • Hawaii: 11% • Nevada: 10% • North Dakota Data current as of January 1, 2020 OFFICE OF HOUSING COUNSELING 21

hudexchange resources for certification https: //www. hudexchange. info/programs/housing-counseling/certification/ OFFICE OF HOUSING COUNSELING 22

Find a HUD-Approved Counseling Agency By Phone Contact counseling agencies by HUD’s interactive voice system by calling (800) 569 -4287 to search by zip code Online www. hud. gov/findacounselor OFFICE OF HOUSING COUNSELING 23

Search for HUD Certified Housing Counselor https: //entp. hud. gov/idapp/html/hecm_agency_look. cfm OFFICE OF HOUSING COUNSELING 24

Office of Housing Counseling Find us at: www. hudexchange. info/counseling www. hud. gov/housingcounseling Counselor Training and Testing website: www. hudhousingcounselors. com Certification FAQs: www. hudexchange. info/housing-counseling/faqs/ Certification Resource Page https: //www. hudexchange. info/programs/housingcounseling/certification/ Email us at: Housing. counseling@hud. gov OFFICE OF HOUSING COUNSELING 25