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HUD Programs Covered by the Housing Counseling: New Certification Requirements Final Rule
The Final Rule implements the requirement that as of August 1, 2020, the final compliance date, all housing counseling required under or provided in connection with HUD programs, as defined in CFR § 5.111 (b), must be provided by HUD certified housing counselors that must work for agencies approved to participate in HUD’s Housing Counseling Program.
There are many benefits to HUD’s Housing Counseling Program. Research consistently shows that counseled consumers have better outcomes (improving credit scores, avoiding foreclosure, increasing monthly savings) compared to similar consumers who are not counseled.
Looking for more background information about the Final Rule, resources for passing the certification exam, and how to begin the certification process? View Everything You Need to Know about Certification.
Is your organization providing housing counseling?
Many HUD-funded organizations are delivering housing counseling around the country. Organizations need to determine which of the services being delivered are considered housing counseling, and which are not.
What is housing counseling (CFR § 5.100)? Housing Counseling is independent, expert advice customized to the needs of the consumer to address the consumer’s housing barriers and to help achieve their housing goals. It must include the following elements: intake, client budget, financial and housing affordability analysis, a client action plan, and a reasonable effort to follow-up with client.
What is 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 and does not fund housing counseling
- Fair housing advice and advocacy (e.g. processing complaints and filing claims)
- Group education without individualized housing counseling services
NOTE: Some organizations may have staff that do not deliver housing counseling directly, and as a result do not need to be HUD certified. However, if these organizations oversee a group education class, a HUD certified housing counselor must approve the curriculum and the materials provided to the clients, and must monitor the delivery of the education.
Is my program covered?
Read the following sections in order to find out:
Which HUD Programs are covered by the Housing Counseling Final Rule?
If you are a grantee or sub-grantee of a HUD program covered by the final rule, you must comply by the Final Compliance Date, August 1, 2020, or choose one of the alternative options shown at the bottom of this page.
The resources below provide a high-level overview of which programs may be covered by the final rule and how they could be affected.
Flow Chart: CPD and PIH Programs Covered by the Certification Final Rule
Click to view the flow chart on how CPD and PIH programs may be covered by the Certification Final Rule.
Program Applicability Chart of Programs Covered by the Certification Final Rule
Click to view an at-a-glance chart that includes which programs are covered by the Housing Counselor Certification Rule, both in terms of meeting HUD’s Housing Counseling program requirements as well as who needs to be certified.
|
HUD Program1 |
Housing Counseling2 Required by Specific HUD Program |
Housing Counseling if Funded by grantee |
Housing Counseling if Provided by grantee or subgrantee |
Housing Counseling if Referred by grantee or subgrantee |
|---|---|---|---|---|
|
Community Planning and Development (CPD) Programs |
||||
|
Community Development Block Grant (CDBG), including CDBG-Disaster Recovery |
|
Yes |
Yes |
|
|
Continuum of Care (Shelter Plus Care, Supportive Housing Program), Emergency Solutions Grant (ESG) |
|
Yes |
Yes |
|
|
HOME Investment Partnerships |
Yes (homebuyer only) |
Yes |
Yes |
|
|
Housing Opportunities for Persons with AIDS (HOPWA) |
|
Yes |
Yes |
|
|
Neighborhood Stabilization (NSP) |
Yes (homebuyer) |
Yes |
Yes |
|
|
Housing Trust Fund |
Yes (homeownership only) |
Yes |
Yes |
|
|
Rural Housing Stability Assistance |
|
Yes |
|
|
|
Public and Indian Housing (PIH) Programs |
||||
|
Conversion of Distressed Public Housing to Tenant-Based Assistance |
|
Yes |
|
|
|
Displacement Due to Demolition and Disposition of Public Housing |
|
Yes |
|
|
|
Housing Choice Voucher |
|
|
Yes |
|
|
Housing Choice Voucher Homeownership Option |
Yes |
|
|
|
|
Family Self Sufficiency (FSS) |
|
|
|
Yes |
|
Multifamily Housing Service Coordinators |
|
|
|
Yes |
|
Native Hawaiian Housing Block Grant (NHHBG) |
|
Yes |
|
|
|
Resident Opportunities and Self Sufficiency (ROSS) |
|
|
|
Yes |
|
Public Housing Homeownership |
Optional |
|
|
|
|
Public Housing Operating Fund |
|
|
Yes |
|
|
Indian Housing Block Grant (IHBG) |
|
Yes |
Yes |
|
|
Indian Community Development Block Grant Program |
|
Yes |
Yes |
|
1 If homeownership financial assistance provided through FHA Single Family Mortgage Insurance Program (for situations where housing counseling is required in connection with a specific FHA product, such as the Back to Work Extenuating Circumstances Initiative) or Home Equity Conversion Mortgage (HECM), the Certification Rule requirements are triggered.
2 Housing Counseling is defined in 24 CFR Part 5.100 – “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 and must include the following processes: intake; financial and housing affordability analysis; an action plan, except for reverse mortgage counseling; and a reasonable effort to have follow-up communication with the client when possible. The content and process of housing counseling must meet the standards outlined in 24 CFR part 214. Homeownership counseling and rental counseling are types of Housing Counseling.”
Click on the green buttons below to understand how each HUD program may be affected by the Certification Final Rule.
Please Note: This page only includes active programs. Programs that are not included (e.g., Back to Work) may be added in the future if they become re-authorized.
Office of Community Planning and Development (CPD) Programs
Housing counseling is an eligible activity and may be funded under several different categories of activities in the CDBG program.
Depending on the program design and the intended beneficiaries, housing counseling may be an eligible activity:
- As a public service, subject to a cap unless waived,
- As part of a CDBG homeownership assistance activity, or
- As a housing service in support of a HOME homebuyer program.
Scenarios – How might this program be covered?
- Scenario 1: A community development corporation is awarded CDBG to fund a housing counseling program and includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
- Scenario 2: A unit of local government has elected to require consumers to obtain housing counseling as a condition of eligibility for its down payment program funded by CDBG funds.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
- Scenario 3: A city funds Fair Housing Workshops. These workshops do not provide individualized housing counseling services to clients. As a result, this activity does not meet the definition of housing counseling. The agency providing the Fair Housing Workshop does not have to become approved to participate in HUD’s Housing Counseling program, and its staff do not have to become HUD certified housing counselors.
For more information view the CDBG FAQs on Housing Counseling Certification.
Housing counseling is an eligible activity and may be funded under several different categories of activities in the CDBG-DR program. In addition, in the aftermath of 2017 disasters, the Federal Register notices cover the requirement that CDBG-DR grantees must coordinate with HUD approved housing counseling agencies.
Depending on the program design and the intended beneficiaries, housing counseling may be an eligible activity:
- As a public service, subject to a cap unless waived,
- As part of a CDBG homeownership assistance activity, or
- As a housing service in support of a HOME homebuyer program.
Scenarios – How might this program be covered?
- Scenario 1: A state is awarded CDBG-DR and a housing counseling program is included in its action plan. The program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
- Scenario 2: A social service nonprofit receives CDBG-DR funds for a homebuyer buyout program in the aftermath of a disaster. The CDBG-DR grantee has elected to require consumers to obtain housing counseling as a condition of participation in this program.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
- Scenario 3: A city funds case management referral which does not include individualized housing counseling services to clients. As a result, this activity does not meet the definition of housing counseling. The agency providing the case management does not have to become approved to participate in HUD’s Housing Counseling program, and its staff do not have to become HUD certified housing counselors.
For more information view the CDBG-DR FAQs on Housing Counseling Certification.
Housing counseling is an eligible supportive service and may be funded under the CoC program.
Scenarios – How might this program be covered?
- Scenario 1: A county funds rental housing counseling services with CoC Program funds. The rental housing counseling includes all the required elements that meet the definition of housing counseling. Some of the CoC’s recipients have a memorandum of understanding (MOU) with the agency running the rental housing counseling program that enables the grantee to send program participants for housing counseling services.
- Action item: The rental housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
- Scenario 2: If a nonprofit agency provides case management, then the agency providing the services does not have to become approved to participate in HUD’s Housing Counseling program, and its staff do not have to become HUD certified housing counselors.
For more information view the CoC FAQs on Housing Counseling Certification.
Housing counseling is an eligible activity and may be funded under the ESG program.
Scenarios – How might this program be covered?
- Scenario 1: An emergency shelter funds homeless housing counseling. The homeless housing counseling includes all the required elements that meet the definition of housing counseling.
- Action item: The homeless housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
- Scenario 2: If a nonprofit agency provides case management for persons experiencing homelessness or at risk of homelessness, then the agency providing the services does not have to become approved to participate in HUD’s Housing Counseling program, and its staff do not have to become HUD certified housing counselors.
For more information view the ESG FAQs on Housing Counseling Certification.
Housing counseling is a requirement for HOME-assisted homebuyer activities including homebuyers receiving HOME-funded direct homebuyer assistance (i.e., down payment assistance) and homebuyers purchasing units developed with HOME funds. Housing counseling may also be funded as a part of a HOME homebuyer program. Finally, other types of housing counseling such as rental counseling for HOME-assisted tenants are eligible HOME-funded costs.
Scenarios – How might this program be covered?
- Scenario 1: A community housing development organization (CHDO) was awarded HOME funds for its homebuyer new construction activity. HOME homebuyer programs require housing counseling.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
- Scenario 2: A city chooses to fund housing information out of HOME administration funds for clients who reside in rental housing projects in the community. The agency providing this housing information does not have to become approved to participate in HUD’s Housing Counseling program, and its staff do not have to become HUD certified housing counselors.
Notice CPD-18-09: Requirements for HOME Homebuyer Program Policies and Procedures provides guidance on housing counseling requirements for HOME-assisted homebuyer, including the use of HUD-approved counselors and housing counseling agencies.
For more information view the HOME FAQs on Housing Counseling Certification.
Housing counseling is an eligible activity and may be funded under the HOPWA program.
Scenarios – How might this program be covered?
- Scenario 1: A HOPWA recipient chooses to fund rental housing counseling activities under its HOPWA program. The rental housing counseling program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the HOPWA FAQs on Housing Counseling Certification.
Housing counseling is a requirement for HTF-assisted homebuyer activities including homebuyers receiving HTF-funded direct homebuyer assistance (i.e., down payment assistance) and homebuyers purchasing units developed with HTF funds. Housing counseling may also be funded as a part of an HTF homebuyer program. Finally, other types of housing counseling such as rental counseling for HTF-assisted tenants are eligible HTF-funded costs. While HTF funds cannot be used to fund stand-alone housing counseling programs, housing counseling is an eligible administrative cost as part of services to potential HTF-assisted owners, homeowners, and tenants.
Scenarios – How might this program be covered?
- Scenario 1: A nonprofit developer was awarded HTF funds for its homebuyer new construction activity. HTF homebuyer programs require housing counseling.
- Action item: The housing counseling associated with this activity must be provided by a HUD-certified counselor working for a HUD-approved agency.
- Scenario 2: A state chooses to fund housing information out of its program administration. This housing information program is to help provide linkages between those residing in communities across the state who need rental housing. The agency providing this housing information does not have to become approved to participate in HUD’s Housing Counseling program, and its staff do not have to become HUD certified housing counselors.
For more information view the HTF FAQs on Housing Counseling Certification.
Housing counseling is a requirement for NSP-assisted homebuyer activities including homebuyers receiving NSP-funded direct homebuyer assistance (i.e., down payment assistance) and homebuyers purchasing units developed with NSP funds. Housing counseling may also be funded as a part of a NSP homebuyer program.
Scenarios – How might this program be covered?
- Scenario 1: A community development corporation was awarded NSP funds for its homebuyer new construction activity. NSP homebuyer programs require at least 8 hours of housing counseling by a HUD-approved housing counseling agency.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the FAQs on Housing Counseling Certification.
Housing counseling is an eligible activity and may be funded as a project cost in the Rural Housing Stability Assistance Program.
Scenarios – How might this program be covered?
- Scenario 1: A nonprofit organization provides housing counseling as a part of its rental housing assistance program, through which recipients receive up to 12 months of rent and utility assistance. The rental housing counseling program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling associated with this activity must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the Rural Housing Stability Assistance Program FAQs on Housing Counseling Certification.
FHA Single Family Mortgage Insurance Program
Housing counseling is a requirement for the Federal Housing Administration (FHA) Home Equity Conversion Mortgage Program (HECM).
Scenarios – How might this program be covered?
- Scenario 1: A nonprofit lender provides an FHA-insured HECM mortgage to an eligible purchaser. As a condition of receiving this type of mortgage, housing counseling must be provided to the purchaser.
- Action item: All Housing Counseling performed under this program must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the HECM FAQs on Housing Counseling Certification.
Public and Indian Housing (PIH) Programs
Housing counseling is an eligible activity and may be a project cost requirement for the Conversion of Distressed Public Housing to Tenant-Based Assistance program.
Scenarios – How might this program be covered?
- Scenario 1: A public housing authority (PHA) is converting some of its housing project portfolio into tenant-based rental assistance. The PHA chooses to fund rental housing counseling to help households participating in this program. The rental housing counseling program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the Conversion of Distressed Public Housing to Tenant-Based Assistance FAQs on Housing Counseling Certification.
Housing counseling is an eligible activity and may be a project cost for the Displacement Due to Demolition and Disposition of Public Housing program.
Scenarios – How might this program be covered?
- Scenario 1: A public housing authority (PHA) is currently demolishing part of its housing project portfolio and tenants are displaced. The PHA chooses to fund rental counseling activities to help households displaced through this program find suitable housing. The rental housing counseling program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling funded by the program must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the Displacement Due to Demolition and Disposition of Public Housing FAQs on Housing Counseling Certification.
Housing counseling is an eligible activity and may be funded, and/or housing counseling referrals may be provided to residents under the Family Self Sufficiency (FSS) program. HUD’s Notice of Funding Availability (NOFA) allows FSS Coordinators to provide homeownership counseling.
Scenarios – How might this program be covered?
- Scenario 1: An FSS Coordinator working for a public housing authority (PHA) provides homeownership counseling services that are paid for with FSS funds. The program includes all the required elements to meet the definition of housing counseling.
- Action item: The FSS Coordinator must be a HUD-certified counselor working for a HUD-approved agency.
- Scenario 2: An FSS coordinator refers a participant to housing counseling (e.g., rental housing counseling to help participants move to market-rate rental housing, or homeownership counseling for a participant whose goal is to become a homeowner).
- Action item: The coordinator must refer the participant to and entity on the List of HUD Approved Housing Counseling Agencies.
For more information view the FSS FAQs on Housing Counseling Certification.
Housing counseling is required by the Section 8 Housing Choice Voucher Homeownership Option program. However, Housing Choice Voucher program services that only provide housing information, or placement or referral services, (for example, mobility-related services), do not constitute housing counseling.
Scenarios – How might this program be covered?
- Scenario 1: A public housing authority (PHA) provides homeownership counseling under the Section 8 Housing Choice Voucher Housing Option Program by staff who work for the PHA. The rental housing counseling program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the Housing Choice Voucher and Housing Choice Voucher Homeownership Option FAQs on Housing Counseling Certification.
Housing counseling referrals may be provided under the Multifamily Housing Service Coordinators Program.
Scenarios – How might this program be covered?
- Scenario 1: A public housing authority (PHA) makes a housing counseling referral (e.g., rental housing counseling to help participants move to market-rate rental housing, or homeownership counseling for a participant whose goal is to become a homeowner) to a family assisted under a HUD program.
- Action item: The PHA must make the referral to an agency approved to participate in HUD’s Housing Counseling program and a HUD-certified housing counselor.
For more information view the Multifamily Housing Service Coordinators Program FAQs on Housing Counseling Certification.
Housing counseling is an eligible activity and may be funded under the Native Hawaiian Housing Block Grant (NHHBG) program.
Scenarios – How might this program be covered?
- Scenario 1: The NHHBG grantee chooses to fund housing counseling activities under its NHHBG program. The housing counseling program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling must be provided by a HUD certified counselor working for a an agency approved to participate in HUD’s Housing Counseling program.
For more information view the Native Hawaiian Housing Block Grant Program FAQs on Housing Counseling Certification.
Housing counseling is an eligible funding activity and may be a project cost under the Public Housing Operating Fund. Public Housing Authorities (PHAs) are allowed to use their Public Housing Operating Funds to provide housing counseling to Public Housing residents, but PHAs are not required to provide housing counseling to Public Housing residents. Please note that routine administrative activities of the Public Housing Program (e.g., program eligibility determinations, intake, case management, property management, collection of rent) are not housing counseling.
Scenarios – How might this program be covered?
- Scenario 1: A public housing authority (PHA) funds rental housing counseling. The rental housing counseling program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling funded by the program must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the Public Housing Operating Fund Program FAQs on Housing Counseling Certification.
Housing counseling may be a requirement for the Public Housing Resident Homeownership Program. Public Housing Agencies may elect to require residents involved in the program to participate in housing counseling.
Scenarios – How might this program be covered?
- Scenario 1: A public housing authority (PHA) requires homeownership housing counseling as a condition of a family participating in their Resident Homeownership Program. The housing counseling program includes all the required elements to meet the definition of housing counseling.
- Action item: The housing counseling must be provided by a HUD-certified counselor working for a HUD-approved agency.
For more information view the Public Housing Resident Homeownership Program FAQs on Housing Counseling Certification.
Housing counseling referrals may be provided under the Resident Opportunity and Self-Sufficiency (ROSS) Program. HUD’s Notice of Funding Availability (NOFA), does not cover housing counseling activities provided by ROSS service coordinators.
Scenarios – How might this program be covered?
- Scenario 1: A public housing authority (PHA) makes a housing counseling referral (e.g., rental housing counseling to help participants move to market-rate rental housing, or homeownership counseling for a participant whose goal is to become a homeowner) to a family assisted under the HUD program.
- Action item: The PHA must make the referral to an agency approved to participate in HUD’s Housing Counseling program and a HUD-certified housing counselor.
For more information view the Resident Opportunity and Self-Sufficiency Program FAQs on Housing Counseling Certification.
Indian CDBG and Indian Housing Block Grant (IHBG) Programs
Please note that the certification requirement will undergo tribal consultation before applying to these programs. OHC will update this page once the final rule has gone into effect for these programs.
My program is affected by the final rule. What do I do?
Entities participating in covered HUD programs that are not currently part of HUD’s Housing Counseling program may choose to either:
- Partner with existing Housing Counseling Agencies (HCAs) to deliver services and/or modify their programs to comply with this rule. To partner with an existing HCA, search for HCAs in your area. Examples of how to comply with the rule are included under the specific programs listed on this page.
- Become a HUD-approved HCA through HUD’s Housing Counseling Program. The Housing Counseling Agency Eligibility Tool can help you learn the eligibility requirements and whether or not you meet them. There are two ways to participate in HUD's Housing Counseling Program:
- Apply directly to HUD as one of the following: a Local Housing Counseling Agency (LHCA), an Intermediary (regional or national), a multi-state organization (MSO), or as a state housing finance agency (SHFA).
- Apply through a HUD-approved Intermediary or SHFA. Intermediaries and SHFAs provide LHCAs with critical supportive services, including training, tools and templates, pass-through funding, and technical assistance. They also monitor their networks to ensure services meet program standards and effectively meet the needs of their clients.
More Information and Resources
- Familiarize yourself with HUD's housing counseling program by taking the Intro to Housing Counseling course.
- Review the guidance in the Other HUD Programs Covered under HUD's Final Rule for Housing Counseling Certification document.
- Get to know the information and resources on the Everything You Need to Know about Certification page.
- Browse the Housing Counseling FAQ database, especially the Requirements on Other Specific HUD Programs topic.