Housing Counseling Program

The Comprehensive Housing Counseling Program provides a full range of services, advice and assistance to housing consumers by assisting them in improving their housing conditions, and advising them on their leasing/homeownership rights and responsibilities. A housing consumer client is defined in the National Housing Act of 1968, Section 106.

The types of counseling provided include advice, information and assistance to HUD and Non-HUD clients. These services include, but are not limited to, the following components as required by the Grant Document: pre-occupancy, pre-purchase, first-time homebuyers counseling, pre-rental, rental delinquencies, mortgage default, post-occupancy, home improvements, rehabilitation, energy conservation, housing consumer education, home equity conversion mortgage (HECM), and predatory lending counseling. The components and their definitions are as follows:

Pre-Occupancy: Counseling to assist the potential homebuyers and renters of HUD insured and HUD assisted housing. Pre-housing provides general information, advice and assistance in purchase and rental procedures. General information for both pre-purchase and pre-rental include: housing selection, fair housing laws, money management, household management, participation in neighborhood associations, referrals to other resources, certification for HUD subsidies, housing care and management.

Pre-Purchase: Applicable counseling includes: rights and responsibilities of homeowners, HUD mortgage programs; application procedures for mortgage insurance or assistance; real estate terminology; fair housing laws; financing; refinancing for lower interest rates; refinancing under the reverse equity mortgage program; purchase procedure; shared housing under Nehemiah Assistance loans provided by HUD; and homebuyers under HUD’s Homestead Program.

Pre-Rental: Counseling includes: rights and responsibilities of tenants; HUD’s rent subsidy programs; application procedures for rent subsidy; lease legislation; rental procedures; grievance procedures; share housing; and fair housing laws.

Rental Delinquencies and Mortgage Default: This component in counseling deals with circumstances of the HUD and Non-HUD consumer that are having difficulty in making monthly housing payments, and are experiencing delinquency or default. Counseling provides general information, advice and assistance that allow the consumer to resolve the mortgage default or rental delinquency. The Counselor assists the mortgagors or renters with the following: assessment of problem causes, desire and ability to reinstate: money management; referral to other resources; arrangements of reinstatement, and assistance in obtaining alternative housing.

Rental Delinquency: The following are only applicable to rental delinquency: counseling on rights and responsibilities of tenants; rent relief; landlord/tenant laws; fund deposits, and eviction procedures.  

Mortgage Default: These sections of counseling only apply to mortgage default: rights and responsibilities of homeowners; shared housing; HUD mortgage relief provisions; loss mitigation; escrow funds; disposition of property; foreclosure; and deed in-lieu of foreclosure.

Post-Occupancy: Counseling includes assisting homeowners and renters living in HUD assisted housing or in Non-HUD housing to stabilize the management of their homes; follow-up; landlord/mortgage problems, etc. 

Home Improvements/Rehabilitation: Counselor assists homeowners and renters living in HUD insured and HUD assisted housing who may need information, advice and assistance in housing maintenance, home improvement or housing rehabilitation.

Energy Conservation:  Counselor assists individuals, homeowners, and renters who may need help in reducing energy waste; developing an energy conservation lifestyle; or physically improving the energy efficiency of their homes or apartment.

Housing Consumer Education: Training and instruction to enhance home management skills for homeowners and renters living in HUD insured and HUD assisted housing who are threatened with displacement due to rising property values. The components include money management; use of credit; home maintenance and repair; comparative shopping; major purchases; guide to community resources; equity loans; second mortgage; reverse mortgage for senior citizens (HECM); shared housing; and homestead programs.

Home Equity Conversion Mortgage (HECM): In compliance with Federal Code Regulations (24 CFR Part 206, Home Equity Conversion Mortgage Insurance, Paragraph 206.24), counseling must provide the following services: option, social services, health and financial services and that are available to the mortgagors; provide HECM mortgagors with a certificate after completion of the counseling session.

Predatory Lending Counseling: Involves training and instruction to make consumers aware of common predatory lending practices and how to avoid them. Consumers can learn how to recognize a predatory loan, how to avoid predatory lenders and how to get help if they are in a predatory lending situation.