Rule2024-20946
Modernizing the Delivery of Housing Counseling Services
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 16, 2024
Effective
October 16, 2024
Issuing agencies
Housing and Urban Development Department
Abstract
The Department of Housing and Urban Development (HUD) is issuing this final rule to update HUD's regulations that require participating agencies to provide in-person counseling to clients that prefer this format to reflect advances in technology, align with client engagement preferences, and preserve consumer protections. The final rule amends HUD's regulations to allow housing counseling agencies to use alternative communication methods, including virtual meeting tools, in lieu of providing in-person services. Participating agencies that choose not to provide in-person services are required to refer clients to local providers that provide such services, when requested. After considering public comments received in response to the proposed rule HUD published on October 25, 2023, this final rule adopts the proposed rule without change.
Full Text
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<title>Federal Register, Volume 89 Issue 179 (Monday, September 16, 2024)</title>
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[Federal Register Volume 89, Number 179 (Monday, September 16, 2024)]
[Rules and Regulations]
[Pages 75497-75502]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-20946]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 214
[Docket No. FR-6388-F-02]
RIN 2502-AJ70
Modernizing the Delivery of Housing Counseling Services
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Final rule.
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SUMMARY: The Department of Housing and Urban Development (HUD) is
issuing this final rule to update HUD's regulations that require
participating agencies to provide in-person counseling to clients that
prefer this format to reflect advances in technology, align with client
engagement preferences, and preserve consumer protections. The final
rule amends HUD's regulations to allow housing counseling agencies to
use alternative communication methods, including virtual meeting tools,
in lieu of providing in-person services. Participating agencies that
choose not to provide in-person services are required to refer clients
to local providers that provide such services, when requested. After
considering public comments received in response to the proposed rule
HUD published on October 25, 2023, this final rule adopts the proposed
rule without change.
DATES: Effective October 16, 2024.
FOR FURTHER INFORMATION CONTACT: David Valdez, Senior Housing Program
Specialist, Department of Housing and Urban Development, 1331 Lamar St.
Suite 550, Houston, TX 77002, telephone 713-718-3178 (this is not a
toll-free number). HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as individuals
with speech or communication disabilities. To learn more about how to
make an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
Section 106 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x) (Section 106) authorizes HUD's Housing Counseling program
(see Sections 106(a)(1)(iii) and 106(a)(2)). On October 25, 2023, HUD
published the ``Modernizing the Delivery of Housing Counseling
Services'' proposed rule (``the proposed rule'') in the Federal
Register, at 88 FR 73298, to revise the current regulations governing
HUD's Housing Counseling program to align with client engagement
preferences, and to preserve consumer protections, while leaving in
place existing guardrails that ensure participating agencies
demonstrate knowledge and a connection to the community they serve,
whether they choose to do so by providing virtual, in-person, or hybrid
services.
As described in the proposed rule, on September 28, 2007, HUD
published a final rule titled, ``Housing Counseling Program,'' at 72 FR
55637, which established regulations for HUD's Housing Counseling
program (see 24 CFR 214.103(l) and 24 CFR 214.300, in particular).
These regulations had not been amended since they were established.
Section 214.300(a)(3) required agencies that provide housing counseling
services to provide in-person counseling services at one of the
agency's facilities or an alternate location to clients that preferred
that format. When this requirement was adopted, housing counseling and
education were primarily conducted in-person and the conventional
wisdom was that in-person service was the most effective service
delivery method. However, alternatives to in-person service have also
proven to be effective.
In 2020, due to ongoing public health concerns around the spread of
Coronavirus Disease 2019 (COVID-19), HUD issued a Temporary Partial
Waiver of 24 CFR 214.300(a)(3), In-Person Housing Counseling
Requirement, that allowed housing counseling agencies to utilize
alternative methods to conduct housing counseling and education with
clients in lieu of meeting in-person. Feedback received regarding this
waiver indicated that these alternative methods were more practical,
cost-effective, and accessible, and did not lead to adverse compliance
issues or negative financial impacts. This feedback, increased consumer
preference for virtual service delivery, and reduced burdens and costs
for participating agencies, all weigh in favor of modernizing the
current regulations.
HUD's proposed rule, then, proposed amending the regulations such
that participating agencies must maintain at least one facility and may
provide remote housing counseling. Additional details about the
proposed rule may be found at 88 FR 73298 (October 25, 2023).
II. Final Rule
This final rule adopts the proposed rule without change. This rule
will help reduce the costs of providing housing counseling by allowing
participating agencies to provide housing counseling services at a
facility or at an alternate location, via telephone, or via
collaborative online software. All facilities must have an identified,
private space available for the provision of counseling services,
whether those services are in-person or virtual, and housing counseling
agencies that do not provide in-person counseling services must refer
clients to agencies that provide in-person counseling services upon a
client's request. This rule does not change the requirements that every
housing counseling agency must continue to meet for HUD approval as a
counseling agency, regardless of the setting or format of housing
counseling services, including having functioned for at least one year
in the geographical area(s) the agency identified in its housing
counseling work plan, having sufficient resources to implement that
proposed work plan, and being able to demonstrate knowledge of local
housing markets and community resources.
III. The Public Comments
HUD received 33 public comments on the proposed rule from various
interested parties, including housing finance companies, housing
counseling service agencies (including HUD-approved agencies), housing
counselors, state housing agency associations, community development
and other nonprofit organizations, and other individuals and entities.
Support for the Rule
Most commenters supported HUD's proposal and supported providing
individuals with options for different formats and types of housing
counseling services, including telephonic and online services. Some
commenters cited general benefits such as increased
[[Page 75498]]
flexibility and convenience, and reduced costs, for clients, consumers,
those providing services such as housing counseling agencies and social
workers, and landlords.
Some commenters focused on benefits that the shift to virtual and
other housing counseling service formats has already provided. Some
commenters stated that, as shown during the COVID-19 pandemic, the
temporary partial waiver (TPW) of in-person housing counseling
requirements and the use of virtual services was not only implementable
but resulted in benefits such as an increase in the area served and
number of clients served, more effective use of agency funding, a
reduction in transportation and scheduling burdens, and the prevention
of the spread of disease and illnesses. One commenter said that
reducing costs would permit more Americans to access housing counseling
services, and that the proposed rule took these costs and benefits into
account. Another commenter noted that the move to virtual options has
especially benefited those clients living at or below 80% of the area's
median income by reducing childcare and transportation needs and costs.
Some commenters also emphasized that their organizations have been able
to provide more and more accessible services to rural communities and
to those with disabilities.
Some commenters focused on benefits that the rule's changes, if
implemented, would provide in the future. Some commenters stated that
HUD's proposed changes would continue to help individuals in rural,
suburban, and remote areas, particularly those who do not drive or own
a vehicle. Other commenters stated that other barriers would be
eliminated, such as social anxiety concerns associated with in-person
counseling and long lines or wait times.
Some commenters said that the use of virtual and alternative
housing counseling methods and a referral system for in-person services
during the period of the TPW did not create adverse compliance or
financial impacts. One commenter also stated that there would not be
future adverse impacts.
One commenter encouraged HUD to promote access to all types of
modern resources that assist housing counseling service providers.
Another commenter stated that the government should respond to consumer
preferences as communicated through research studies, including
preferences for more telephonic options.
One commenter stated that most consumers in the commenter's
community prefer virtual services and do not want to return to, and do
not often request, in-person formats. This commenter also explained
that electronic communication better facilitates good recordkeeping
practices such as date- and time-stamping client files and documents.
One commenter agreed with HUD's proposal to leave other
requirements of the housing counseling program (those not discussed in
the proposed rule) unchanged.
HUD Response: HUD appreciates the commenters' support and feedback.
This final rule aims to modernize the delivery of housing counseling by
allowing the use of alternative communication methods to reflect
advances in technology and shifting client engagement preferences. HUD
agrees with the commenters that virtual or telephonic housing
counseling increases flexibility, promotes convenience and access,
responds to consumer preferences, and reduces cost barriers for clients
and participating agencies. HUD believes that the housing counseling
service formats provided for in this rulemaking, including telephonic,
virtual, and collaborative online software, will sufficiently modernize
a participating agency's delivery of housing counseling services and
related recordkeeping practices.
HUD also agrees with commenters who state that this final rule
creates the opportunity to broaden the reach of housing counseling. HUD
recognizes that difficulties for many groups may include the distance
and cost of travel to the nearest housing counseling agency, a lack of
available transportation, or scheduling issues. Allowing for
alternative methods of housing counseling will increase access to
services for those groups of individuals mentioned by the commenters,
including individuals with disabilities that may experience difficulty
traveling, and those residing in rural areas that may face similar
difficulties.
HUD agrees with the commenters that state there are already proven
benefits to this change and continued positive outcomes are likely. As
some commenters indicated, HUD allowed for a temporary partial waiver
of the in-person housing counseling requirement during the COVID-19
pandemic. During the pandemic, agencies adapted to alternative methods
of service delivery that HUD determined were more practical, cost-
effective, accessible, and without adverse compliance issues or
negative financial impacts.
Opposition to the Rule
One commenter opposed HUD's proposal. This commenter stated that
persons seeking housing counseling are more likely than others to not
have the ability to negotiate financing and real estate on their own,
and online or remote interactions may increase barriers for those most
at risk and in the most need.
HUD Response: HUD believes that barriers to housing counseling
should be eliminated and HUD will continue to review options that
reduce barriers to housing counseling. Research shows that the impact
of in-person services is no different from the impact of remote
services.\1\ HUD continues to support in-person services to address
each client's unique situation. Increasing access to alternative
methods of counseling does not diminish the importance of in-person
counseling. Rather, it promotes choice in how a client meets their
housing goal or addresses their housing problem. HUD's revised
regulations promote choice between virtual and in-person services by
allowing all participating agencies to offer virtual and remote
services, but this does not preclude participating agencies from
offering in-person services. Additionally, any client seeking in-person
housing counseling may express this preference at any time, and, if the
participating agency does not provide in-person services, it must help
ensure that that client's preference is fulfilled by referring the
client to a participating agency that does provide in-person services.
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\1\ <a href="https://www.huduser.gov/portal//portal/sites/default/files/pdf/Long-Term-Impact-Report-HUD-First-Time-Homebuyer-Education-Counseling-Demonstration.pdf">https://www.huduser.gov/portal//portal/sites/default/files/pdf/Long-Term-Impact-Report-HUD-First-Time-Homebuyer-Education-Counseling-Demonstration.pdf</a> at pgs. 64-65. This report was
conducted by Abt Associates in partnership with participating
lenders and housing counseling agencies.
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Comments About ``Guardrails To Mitigate Risks''
Some commenters supported HUD's proposal to include ``safeguards''
or ``guardrails'' such as requiring participating agencies to have at
least one year of experience in their chosen geographic area and
ensuring that housing counselors understand local housing programs. A
commenter stated that, regardless of the form or mode through which
housing counseling services are provided, these safeguards are
essential to ensure that such services continue to be efficient.
One commenter requested clarification of the requirement for
housing counselors to have functioned for at least a year in the
geographical area set forth in the work plan. The
[[Page 75499]]
commenter suggested that virtual work should count toward this
requirement and that this not be limited to having maintained a
facility within the geographical area. Specifically, the commenter
suggested that virtual work as provided under a contract with a housing
market participant, such as a state agency or national non-profit
working within the geographic area, should be evidence of such a
working relationship.
One commenter said that, as drafted, the proposed rule's guardrails
may pose barriers to a housing counseling agency's ability to hire
qualified staff who may not be from the area. The commenter suggested
that HUD change its regulatory requirements to capture the following:
``Housing Counselors must possess knowledge, or be able to attain
knowledge, of the local housing market, establish working relationships
with private and public community resources, demonstrating that the
agency maintains a sufficient community base.''
HUD Response: HUD agrees with the commenters that support the
guardrails in place. The regulations will continue to require
participating agencies to have functioned for at least a year in the
geographic area set forth in their work plan (see 24 CFR 214.103(d)),
and housing counseling staff to possess a working knowledge of HUD's
housing and single-family mortgage insurance programs, other state and
local housing programs available in the community, consolidated plans,
and the local housing market (see 24 CFR 214.103(h)). This experience
and knowledge may be acquired through virtual or in-person work in the
geographic area. These provisions ensure that participating agencies
demonstrate knowledge and a connection to the community they serve,
whether they choose to do so by providing virtual, in-person, or hybrid
services.
HUD recognizes that hiring qualified housing counseling staff may
be challenging at times; however, HUD does not believe that the
guardrails contribute to this challenge. Instead, promoting the choice
to deliver counseling services via alternative methods may expand
hiring opportunities by eliminating the barrier that physical presence
in a geographical area may pose. Housing Counseling Agencies may also
gain experience and knowledge of community resources via the use of
software that connects counselors with local resources and aids in
connecting clients to social service providers or programs in their
area.
Comments Requesting Clarification of ``Collaborative Online Software''
One commenter requested that HUD clarify the meaning of
``collaborative online software,'' as the meaning was not clear in the
proposed rule, and that HUD provide examples of which online software
is sufficient and has the necessary security in place.
HUD Response: HUD appreciates the opportunity to further clarify
the term ``collaborative online software'' as mentioned in the proposed
rule. This term encompasses a range of virtual meeting tools designed
to support collaboration and communication between the counselor and
client. Specifically, these tools offer functions such as real-time
messaging (chat), video conferencing, and the ability to share and
collaborate on documents. Examples of such software include platforms
like Zoom, Microsoft Teams, and Google Workspace.
Regardless of the collaborative online software chosen, program
participants must continue to follow HUD's client confidentiality and
privacy standards. HUD's regulations at 24 CFR 214.315 require that all
information remains secure and private, no matter the method of service
delivery. HUD encourages all participating agencies to conduct thorough
due diligence when selecting any software to ensure it complies with
all applicable security requirements and privacy laws, thereby
safeguarding the integrity of client information and interactions.
Comments Expressing Concern That The Rule Will Result in the
Unavailability of In-Person Housing Counseling for Clients Who Need or
Prefer That Format of Service Provision
Some commenters emphasized that HUD's regulations still need to be
inclusive of those who need or would prefer in-person services. Some
commenters stated that this flexibility is particularly important for
the elderly, disabled persons, persons living on Native Lands, those
who cannot access or use technology, and those who do not want to
discuss the required information in a distanced, virtual format.
Some commenters stated that the proposed rule already attempts to
address these concerns by requiring participating agencies that choose
not to provide in-person services to refer clients to local providers
that do provide such services, when requested. One commenter stated
that, even with this provision, there must be mechanisms in place to
ensure there are enough providers who provide in-person housing
counseling to meet any demand or need. Additionally, the commenter
stated that participating housing counseling agencies should provide
information about in-person and virtual housing counseling service
options before any such services have commenced, in addition to when
in-person services are requested, to provide consumers with more
control in how they receive housing counseling services.
One commenter asserted that HUD's proposal lacks any requirements
meant to address those with accessibility needs and older adults, which
may result in additional barriers for these vulnerable populations when
they seek out housing counseling services and ultimately prevent them
from benefitting from proposed changes.
HUD Response: HUD's housing counseling program recognizes the
importance of continuing to serve those clients who need or prefer in-
person services, including individuals who belong to the groups
identified by commenters and others who lack sufficient access to the
necessary technology. The updated regulations do not preclude
participating agencies from continuing to maintain a physical presence
in the communities they serve and, if an agency is unable to serve the
client in the format the client prefers or requires, the agency must,
upon the client's request, refer the client to another participating
agency.
The proposed rule amended the text of 24 CFR 214.300 to remind
participating agencies that telephonic and collaborative online
software, and any other form of counseling, must be accessible for
persons with disabilities in accordance with section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), 24 CFR parts 8 and 9, and
the Americans with Disabilities Act (42 U.S.C. 12101 et seq.).
Additionally, under HUD's existing regulations at 24 CFR 214.103(l)(3),
which HUD is not substantively changing through this rulemaking, all
housing counseling facilities of the HUD-approved agency and its
branches, affiliates, and subgrantees must provide accessibility
features or make alternate accommodations for persons with
disabilities, in accordance with section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 794), 24 CFR parts 8 and 9, and the Americans with
Disabilities Act (42 U.S.C. 12101 et seq.). 24 CFR 214.103(l)(3). This
includes the requirement that a participating agency must ensure
effective communication with individuals with disabilities, including
through the provision of appropriate auxiliary aids and services,
[[Page 75500]]
regardless of whether it provides in-person or alternative format
counseling services.
Comments About HUD Grants for Technology and Program Purchases
One commenter strongly urged HUD to consider allowing the use of
HUD grants for technology and program purchases to further assist
housing counseling agencies. This may include, but is not limited to,
purchases of internet hotspots and/or devices to enhance access to
areas without reliable internet and/or cellphone coverage.
HUD Response: The commenter's point is beyond the scope of this
rulemaking; however, HUD's housing counseling program recognizes the
importance of technology and internet access in an increasingly hybrid
and virtual office environment. Pursuant to the annual Grant Agreement
and Uniform Guidance, HUD already allows reimbursement for technology
purchases.
Comments About Online Services To Locate Housing Counseling Facilities
One commenter stated that the online services at <a href="http://hud.gov">hud.gov</a> that
assist users in locating nearby housing counseling facilities did not
work.
HUD Response: HUD publishes information about its housing
counseling program and how to locate a housing counseling agency in an
individual's locale on the HUD website <a href="https://www.hud.gov/counseling">https://www.hud.gov/counseling</a>
and the Consumer Financial Protection Bureau's website <a href="https://www.consumerfinance.gov/find-a-housing-counselor/">https://www.consumerfinance.gov/find-a-housing-counselor/</a>. If telephonic
communication is preferred, please call 800-569-4287 (202-708-1455
TTY).
Comments Requesting New Requirements To Address Limited English
Proficiency Concerns
One commenter emphasized the need to ensure that HUD's proposed
changes do not inadvertently create barriers for low- and moderate-
income Asian American, Native Hawaiian, and Pacific Islander
individuals with limited English proficiency (LEP). The commenter
recommended that HUD incorporate new provisions through this rulemaking
that would help reduce language barriers. For example, the commenter
suggested that HUD require that alternative communication meeting tools
and methods be equipped with multilingual capabilities; that HUD ensure
that housing counseling agencies are adequately resourced to hire and
train linguistically capable and culturally competent housing
counselors; that HUD ensure that compensation structures account for
the added workload in LEP cases; and that HUD ensure the establishment
of robust referral mechanisms that would account for LEP needs in the
referral process.
This commenter also urged HUD to consider how to collect
disaggregated race and ethnicity data to help service providers reach
certain populations. The commenter suggested using the data collection
standards recently proposed by the Office of Management and Budget
(OMB),\2\ but with additional disaggregation whenever possible.
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\2\ 88 FR 5375, <a href="https://www.federalregister.gov/documents/2023/01/27/2023-01635/initial-proposals-for-updating-ombs-race-and-ethnicity-statistical-standards">https://www.federalregister.gov/documents/2023/01/27/2023-01635/initial-proposals-for-updating-ombs-race-and-ethnicity-statistical-standards</a>.
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HUD Response: HUD agrees with the commenter and recognizes the
importance of serving clients with limited English proficiency
including Asian Americans, Native Hawaiians, and Pacific Islanders.
However, many of the commenter's proposed changes are outside the scope
of this rulemaking, and HUD's existing regulations account for the
commenter's concerns. HUD Housing Counseling Program regulations
currently require all participating agencies to maintain ``housing
counselor(s) who are fluent in the language of the clients they serve,
or use the services of an interpreter, or must refer the client to an
agency that can meet their client's needs.'' See 24 CFR 214.103(g)(3).
HUD is not proposing to amend this regulation through this rulemaking;
this is an existing requirement. However, HUD is, in this rulemaking,
emphasizing in new 24 CFR 214.300(a)(4) that regardless of setting or
format all participating agencies must continue to meet the
requirements of 24 CFR 214.103(g), as well as 214.103(d) and
214.103(h). Additionally, Title VI of the Civil Rights Act of 1964
requires recipients of federal financial assistance to take reasonable
steps to ensure meaningful access to their programs, services, and
activities by individuals with LEP. This and other civil rights
requirements apply to the Housing Counseling program. See 24 CFR
214.503 and 5.105.
HUD agrees with the suggestion of using the data collection
standards recently proposed by the Office of Management and Budget and
already follows OMB's Statistical Policy Directive No. 15: Standards
for Maintaining, Collecting, and Presenting Federal Data on Race and
Ethnicity (89 FR 22182).
Comments Suggesting Structural Changes for Housing Counseling Services
One commenter suggested that HUD set up counseling service
locations and counselors for first-time and low-income homebuyers that
would assist these buyers before closing, to help reduce the complexity
of issues and the need for housing counselors later in the process. The
commenter suggested that this counseling include basic home
maintenance, improvement, and energy management, which would reduce
costs for new homeowners and reduce the chances of default and
foreclosure. The commenter also urged HUD to help educate new
homeowners about how to recognize when they should seek housing
counseling.
HUD Response: HUD agrees with the commenter that pre-purchase
clients benefit from understanding the obligations of homeownership
after purchase, including basic home maintenance, improvement, and
energy management. These topics are outside the scope of this
rulemaking but are approved housing counseling, education, and outreach
topics that participating agencies may provide to and discuss with
clients under HUD regulations at 24 CFR 214.300(e) and the HUD Housing
Counseling Handbook 7610.1--REV 6, under the section titled, ``Approved
Housing Counseling, Education, and Outreach Topics.''
HUD also agrees with the commenter that homeowners could benefit
from resolving or preventing mortgage delinquency and, though this
topic is also outside the scope of this rulemaking, this topic is an
approved housing counseling, education, and outreach topic that
participating agencies may provide to and discuss with clients under
HUD regulations at 24 CFR 214.300(e) and the HUD Housing Counseling
Handbook 7610.1--REV 6, under the sections titled ``Non-Delinquency
Post-Purchase Counseling'' and ``Resolving or Preventing Forward or
Reverse Mortgage Delinquency or Default.''
Comments Requesting Information About the Housing Counseling Program
One commenter requested more information about HUD's Housing
Counseling program.
HUD Response: HUD publishes information about its housing
counseling program and how to locate a housing counseling agency in an
individual's locale on the HUD website <a href="https://www.hud.gov/counseling">https://www.hud.gov/counseling</a>.
If telephonic communication is preferred,
[[Page 75501]]
please call 800-569-4287 (202-708-1455 TTY).
Comments About HECM Counseling
One commenter suggested that HUD pursue modernization efforts for
HECM counseling.
HUD Response: HECM counseling is outside the scope of this
rulemaking, but HUD recently clarified, in its HUD Housing Counseling
Handbook 7610.1 REV.6, that agencies are allowed to provide HECM
counseling using virtual meeting tools designed to support
collaboration and communication between the counselor and client.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866, 13563, and 14094
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the Order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned. Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. Executive Order 14094, entitled ``Modernizing
Regulatory Review'' (hereinafter referred to as the ``Modernizing
E.O.''), amends section 3(f) of Executive Order 12866 (Regulatory
Planning and Review), among other things.
The final rule allows counseling agencies to provide services
through virtual methods of service delivery and to refer clients who
prefer in-person counseling to other agencies that offer that service.
HUD is not changing other requirements, for example the requirement
that a participating agency demonstrate knowledge of and a connection
to the community they serve, and the requirement that a participating
agency comply with state and local laws in each geographic area in
which the participating agency operates. The final rule was not subject
to OMB review. The final rule is not a ``significant regulatory
action'' as defined in Section 3(f) of Executive Order 12866 and is not
an economically significant regulatory action.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
The changes described in this final rule will modernize the regulations
governing HUD's Housing Counseling Program to allow housing counseling
agencies to use alternative communication methods, including virtual
meeting tools, in lieu of providing in-person services. Participating
agencies that do not provide in-person services will be required to
refer clients to local providers that provide such services, when
requested. The final rule will help reduce the costs of maintaining
multiple physical locations, shifting the emphasis to demonstrating
knowledge of the local housing market and community resources and
whether a housing counseling agency has established a sufficient
community base to operate in the area covered by its work plan. These
revisions do not impose a significant economic impact on a substantial
number of small entities. Therefore, the undersigned certifies that
this rule will not have a significant impact on a substantial number of
small entities.
Environmental Impact
This final rule does not direct, provide for assistance or loan and
mortgage insurance for, or otherwise govern or regulate real property
acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction; or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this
final rule is categorically excluded from environmental review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either: (i) imposes substantial direct compliance costs on State and
local governments and is not required by statute, or (ii) preempts
State law, unless the agency meets the consultation and funding
requirements of section 6 of the Executive Order. This final rule does
not have federalism implications and does not impose substantial direct
compliance costs on State and local governments or preempt State law
within the meaning of the Executive Order.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) establishes requirements for Federal agencies to
assess the effects of their regulatory actions on State, local, and
Tribal governments, and on the private sector. This final rule does not
impose any Federal mandates on any State, local, or Tribal governments,
or on the private sector, within the meaning of the UMRA.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3520), an agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information, unless the
collection displays a currently valid Office of Management and Budget
(OMB) control number. The information collection requirements contained
in this final rule have been approved by OMB under the Paperwork
Reduction Act and assigned OMB control numbers 2502-0574 and 2502-0614.
List of Subjects in 24 CFR Part 214
Administrative practice and procedure; Grant programs--housing and
community development; Loan programs--housing and community
development; Organization and functions (government agencies);
Reporting and recordkeeping requirements.
Accordingly, for the reasons stated in the preamble above, HUD
amends 24 CFR part 214 as follows:
PART 214--HOUSING COUNSELING PROGRAM
0
1. The authority citation for part 214 continues to read as follows:
Authority: 12 U.S.C. 1701x, 1701x-1; 42 U.S.C. 3535(d).
0
2. Revise Sec. 214.103(l) to read as follows:
Sec. 214.103 Approval Criteria.
* * * * *
(l) Facilities. All participating agencies must maintain at least
one facility. All facilities must meet the following criteria:
(1) Have a clearly identified space available for the provision of
housing counseling services;
[[Page 75502]]
(2) Provide privacy for counseling services and confidentiality of
client records; and
(3) Provide accessibility features or make alternative
accommodations for persons with disabilities, in accordance with
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), 24 CFR
parts 8 and 9, and the Americans with Disabilities Act (42 U.S.C. 12101
et seq.).
* * * * *
0
3. In Sec. 214.300:
0
a. Revise paragraph (a)(3);
0
b. Redesignate paragraphs (a)(4) through (9) as paragraphs (5) through
(10) respectively; and
0
c. Add new paragraph (a)(4).
The revision and addition read as follows:
Sec. 214.300 Counseling Services.
(a) * * *
(3) Counseling may take place at the housing counseling agency
facility or at an alternate location, and may be conducted by
telephone, or via collaborative online software. Agencies must ensure
that any telephonic or collaborative online software, or any form of
counseling, is accessible for persons with disabilities, in accordance
with section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), 24
CFR parts 8 and 9, and the Americans with Disabilities Act (42 U.S.C.
12101 et seq.). All agencies participating in HUD's Housing Counseling
program must, upon a client's request, refer clients to participating
agencies that provide in-person counseling services in accordance with
Sec. 214.303(e).
(4) Regardless of setting or format, all participating agencies
must continue to meet the requirements of Sec. 214.103(d), 214.103(g),
and 214.103(h).
* * * * *
Julia R. Gordon,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2024-20946 Filed 9-13-24; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on September 16, 2024.
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