VOLUME 07, ISSUE 09 MAY/JUNE 2019

THE OFFICE OF HOUSING COUNSELING NEWSLETTER

TRANSFORMING OUR PROGRAM

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INSIDE THE ISSUE

Letter from the Deputy Assistant Secretary …………………………………………………… Tips for Passing the Certification Exam on the First Try ………………………………….. HECM Housing Counseling Update: FIT No Longer Available ………………………….. From Affordable Housing Tenant to Homeowner ………………………………………….. Pulling Together to Preserve Homeownership ……………………………………………….. Oversight Priorities: Fiscal Year 2019 …………………………………………………………….. Working Together to Protect Housing Counseling Funds …………..………………….. Virginia Housing Development Authority’s Certification Challenge ………………… From the Field: A Rural Agency’s Approach to Certification …………..………………. Building the Vision for the Next 50 Years ……………………………………………………….. New Communications Tools on the Way ……………………………………………………….. FAQs: Inquiring Minds Want to Know …………………………………………………………….. Editorial Correction ………………………………………………………………………………………… Training Digest…………………………………………………………………………………………………

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FROM THE DEPUTY ASSISTANT SECRETARY

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"People don't like change." "You can't teach an old dog new tricks." "If you want to make enemies, try to change something." I LOVE change and love transforming myself through learning, listening, and taking a chance. I also grow by learning from others, especially those who are brave and wise enough to show me a better path than the one I'm taking. Housing counselors are in the change business. They transform clients from being poor credit risks to having good credit habits, from feeling powerless to feeling in some control, from poorly housed to better housed. It takes a strong partnership with the client and a willingness to try different techniques. It takes patience. There are a lot of variables that affect people's ability to obtain, sustain, and retain their housing – and a lot of variables that affect our ability to support them. But the one thing that doesn’t vary is our commitment to transforming the Housing Counseling Program to help change lives.

While we continue to support the industry as it exists now, know that we’re also building a vision for the next 50 years of housing counseling, setting priorities to ensure we effectively advance that vision, and continuing to deliver tools and resources that help counselors and industry professionals implement that vision. This continued evolution allows us to better meet the needs of housing counseling agencies, which, in turn, allows these agencies to deliver the highest quality of housing counseling. In this issue of The Bridge, we explore some of the ways that the Office of Housing Counseling and its participating agencies are already engaged in transformative work. In particular, the articles discuss:

• Priorities for ensuring that agencies meet program standards, demonstrate good stewardship of federal funds, and provide quality counseling to consumers;

• Success stories from housing counseling professionals that are changing lives;

• Agency approaches to motivating and supporting counselors through the certification process;

• Tools and resources to strengthen communications efforts with diverse clients and consumers; and

• Efforts to build a vision for the next 50 years of housing counseling. By building a program that better serves participating agencies and their staff, we’re building the capacity to better serve clients. As you join us on this journey, embrace the opportunity to make transformations that will help your agency make an even stronger impact in the community. We have the opportunity to change lives through housing; let’s make the most of it!

Cheers,

Sarah Gerecke Deputy Assistant Secretary Office of Housing Counseling

Sarah

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TIPS FOR

PASSING THE

CERTIFICATION

EXAM ON THE

FIRST TRY Since 1994, Catholic Charities of Chemung/Schuyler, based in Elmira, New York, has provided quality housing counseling services in the rural Southern Tier Region of New York State. Read on to learn how two of this agency’s housing counselors, Jane Sokolowski and Amy Bell, passed the HUD Housing Counselor Certification exam on November 1, 2018 and lived to tell about it!

KEYS TO PASSING

THE EXAM

Preparing, studying, and taking lots of pre-tests were key to passing the exam on the first try. All the studying came together when five days were spent with peers completing two NeighborWorks courses: HO200 Ready, Set, Prep and HO210 Practice, Study, Success. These two courses simplified the information so counselors could navigate through the 90 exam questions and confidently use their knowledge and expertise to come up with the best answers.

The examination allows up to two hours to complete the 90 questions. One helpful strategy is to “know what you know.” Go through the exam, answering all the questions you can without worrying about the ones you cannot answer immediately. If you are unable to answer a question within one to two minutes, mark it “save for later” and move on. Don’t get hung up on a single question – sometimes later in the exam that answer might be evident in another question.

Is it challenging to be tested on areas that you don’t typically counsel in? Yes, it is. But studying, taking practice tests, and reviewing the material really broaden your knowledge so you can demonstrate competency in all counseling areas: financial management; property management; responsibilities of homeownership and tenancy; fair housing laws and requirements; housing affordability; and avoidance of, and responses to, rental and

Pictured from left: HUD-certified Housing Counselors Amy Bell and Jane Solokowski of Catholic Charities of Chemung/Schuyler.

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mortgage delinquency and avoidance of eviction and mortgage default. One final valuable tip learned at the NeighborWorks training is to go into the exam with the mindset that you are going to take it twice, and the first time is a trial run. This takes a tremendous amount of pressure off and allows you to relax and think. Does it cost another registration fee if you don’t pass the first time? Yes, it does. It’s worth it to have the mindset that it’s okay to take it twice, especially since HUD will reimburse the fee as an eligible expense if the agency is a grantee and budgets its grant funds for this purpose. You may be surprised and thrilled to pass it on the first try, but having that mindset really helps. After passing the certification exam, a counselor transfers the results to FHA Connection, which alerts their agency’s Application Coordinator to validate their employment through FHA Connection.

A housing counselor will not be officially placed in the certified counselor database until their agency’s FHA Connection Application Coordinator successfully validates counselor employment in the system. Finally, once your counselors, pass the exam, spread the word! Use social media, the press, newsletters – educate your community of the valuable resource they have.

IMPROVING

SERVICE THROUGH

CERTIFICATION The HUD certification examination unites housing counselors and their agencies in a commitment to provide quality, informative, effective housing counseling.

For over 25 years, housing counselors at Catholic Charities of Chemung/Schuyler have provided high quality, up-to- date counseling by sharpening skills and knowledge through continuing education and certification offered by

National Training Institutes such as NeighborWorks, UnidosUS, HUD Exchange, and others. In complying with the HUD Final Rule to certify housing counselors, the agency and its staff are raising the bar on professional competency and agency credibility and inspiring confidence in local consumers. As a HUD-certified housing counseling agency with professionally certified housing counselors, Catholic Charities of Chemung/Schuyler is more prepared than ever to help consumers beat the odds by achieving better credit, more savings, fewer foreclosures, and sustainable, stable homeownership – and you and your agency can be, too.

Don’t wait until August 2020! Visit HUD Exchange for more information on the exam, and prepare and register at HUDHousingCounselors.com. Good luck and remember we are in this together.

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HECM HOUSING

COUNSELING UPDATE –

FIT TOOL NO LONGER

AVAILABLE National Counsel on Aging’s Financial Interview Tool (FIT) is no longer available to assist Home Equity Conversion Mortgage (HECM) Roster Counselors. HECM counselors are now prohibited from accessing FIT for purposes of providing HUD HECM counseling. HUD’s Office of Housing Counseling issued a waiver on February 28, 2019 for the policies below that require use of the tool:

• Housing Counseling Program Handbook 7610.1 REV-5, Appendix 4, section III.C, Step 2

• HECM Counseling Protocol Handbook 7610.0 o Chapter 3.1.b (HECM Counselor Checklist) o Chapter 7-B-12 (Using Financial Interview Tool),

attachment B-12 FIT helped counselors determine a borrower’s financial status when the borrower was seeking counseling on the FHA HECM Program. However, HECM Roster Counselors must continue to determine the borrower’s financial status as part of HUD’s HECM program requirements and protocol. HECM client files must contain documentation demonstrating a budgetary analysis was conducted. Specifically, client files should contain, at a minimum, documentation that demonstrates the following topics were covered during the counseling session:

• Household budgeting • Property condition • Current health status and medical needs • Household composition, such as other occupants of the

property • Marital status, such as widowhood, remarriage, or divorce

The IBIS Software Solutions Reverse Mortgage Analyst online tool for analyzing loan product comparisons, financial assessment analysis, and 10-question tracking is still operational and required for all HECM

counseling clients. Additionally, the publicly accessible, downloadable, and printable version of the BenefitsCheckUp remains available and should be utilized as appropriate under current HUD policies. HECM Roster Counselors must continue to meet all other statutory and regulatory counseling requirements and policies as stated in the HUD Handbooks. HUD will continue to monitor compliance with these requirements during the agency performance reviews conducted as part of ongoing oversight activities. Effective oversight in combination with the existing HECM Financial Assessment required from lenders will allow HUD to maintain strong consumer protections. Please refer questions to your HUD Point of Contact or email housing.counseling@hud.gov.

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SJHP GOES THE DISTANCE FOR A COUNSELING CLIENT

In 2014, Ricardo Torres was an

affordable housing tenant of St.

Johns Housing Partnership (SJHP)

in St. Johns County, Florida,

working hard to pay his rent. But

he had a dream that he was

willing to work just as hard to

achieve. His first step was to avail

himself of the free credit

counseling available to him at

SJHP. “I asked him what his goals

were in counseling,” said DeAnna

O’Flaherty, Community Outreach

Manager and Housing Counselor

at SJHP. “His goal was to move

out of his rental and purchase his

own home.”

In formulating a plan to achieve

that goal, O’Flaherty knew that

her client faced two primary

hurdles. “One of the biggest

obstacles was that he was a single

man and has one income. So, his

initial focus was to try to improve

his income and savings over

time.” The second challenge, she

said, was more formidable. “It’s

very expensive to live in St. Johns

County. We work in a market

where someone may qualify for a

mortgage—we’re excited for

them, they’re saving and

following the budget, their credit

is great—but there may be

nothing that they can afford. It is

heartbreaking to see someone

work that hard for

homeownership and then not be

able to buy something.”

There was an answer, and

O’Flaherty knew Torres’ credit

was sufficient to qualify for it:

Habitat for Humanity.

HAMMERING OUT A SOLUTION

“Habitat for Humanity, St. Johns

County was the best fit to lead

him toward homeownership,”

O’Flaherty shared. In April 2017,

Torres applied. “They did a needs

assessment. He was then given

the opportunity to do some good-

faith hours volunteering prior to

being selected, so he would know

how hard the work would be. He

passed those steps with flying

colors, and that July he was

accepted. He worked with [U.S.

Department of Agriculture] to

purchase a lot in the city of

FROM AFFORDABLE HOUSING TENANT TO HOMEOWNER

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Hastings, and then he began

building his property.” Once

again, Torres found SJHP going

the extra mile in a way no one

could have expected. Kelsey

Wainwright, SJHP Loan

Processor, had also been selected

for a Habitat home. Torres soon

found her, hard hat and all,

putting in volunteer hours on his

home on weekends. Then, on

Habitat’s annual Women’s Build

Day, the entire office staff

showed up to join in. “When they

say sweat equity, they mean it,”

said O’Flaherty. “It was a hot day.

We feel so blessed that we could

physically put our hands on the

tools, the walls, the floor of the

house being built for our tenant

and housing client who was now

going through this amazing

affordable housing option.

Ricardo was very humble during

the entire process, putting a lot

of extra time into his build. He

really does exemplify what hard

work and stick-to-itiveness can

do to improve someone’s

housing situation.”

“AN AMAZING TRIUMPH” Ricardo Torres closed on his home in March 2018, nearly four years

after he began the counseling process as a renter. He had surpassed the

Habitat St. Johns sweat equity minimum of 250 hours by 100—

coincidentally equal to the increase in points in his credit score. At the

celebratory ribbon-cutting ceremony, Torres tearfully thanked family,

friends, and volunteers who helped him build his dream and then cut

the red ribbon with gold scissors. “That was an amazing triumph,” said

O’Flaherty, “and we felt such ownership. Ricardo was our tenant. It was

a long process, and he had worked so hard.”

It’s a triumph, O’Flaherty said, that illustrates the importance of a

cooperative effort between agencies, resources, and the client to

create a successful outcome. “Housing counselors have to be willing to

engage across a lot of different programs to make homeownership a

reality for clients,” she added. “That’s one of the biggest hurdles that

any homeownership program faces. We really need to be familiar with

the many banks, lenders, and community programs that are out there.

If I had not been aware of the requirements of Habitat for Humanity

and the time frames in which he would need to apply, I would not have

been able to find Ricardo a resource. He wouldn’t have qualified for

enough mortgage to buy something in our area.”

Ricardo Torres is just one example of the power of perseverance in the

housing counseling process. In O’Flaherty’s words, “If housing

counseling was easy, I don’t think anyone would like it. We see its

value because it is hard. I think the takeaway from Ricardo’s story is

that when a client is working toward homeownership, it can take longer

than you want it to, and it can take a lot more organizations or

programs being involved. But in the end, they win a mortgage for 20 to

30 years – a huge commitment – and that’s no small thing. So, being

able to be excited for the client and with the client, even if it takes a lot

longer than you thought it would, is worth it. It really is. I don’t think

people know how rewarding housing counseling can be.”

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PULLING TOGETHER TO PRESERVE HOMEOWNERSHIP

THE HOPE NOW ALLIANCE

For homeowners, crisis comes in many forms—an economic downturn, the forces of nature, an abundance of uncontrollable personal circumstances. For more than a decade, HOPE NOW has been a port in the storm for homeowners facing the loss of their homes. HOPE NOW is a nonprofit alliance of housing counseling agencies, mortgage companies, investors, and other mortgage market participants committed to working to keep people in their homes. “HOPE NOW was created in collaboration with HUD and the U.S. Treasury,” says Eric Selk, Executive Director, “the idea being that collaboration between the nonprofit industry and the mortgage industry would be beneficial to borrowers out in the field. We are a very unique nonprofit in that our membership is the mortgage servicing industry.” Housing counseling agencies play a significant role in the organization’s home preservation initiative, partnering to provide borrowers with debt management, credit counseling, and foreclosure prevention services. “We work with them on the local level as well as the federal level,” adds Selk. “Sometimes we'll work with an intermediary office on activities. It varies by the project that we're doing and the goals we're trying to accomplish.”

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DEALING WITH DISASTERS

Nothing is more devastating to homeownership than a natural disaster. Housing counseling agencies are well positioned to help homeowners and renters after a disaster. When they occur, HOPE NOW is quick to live up to its name. The impact of a natural disaster is not only the immediate aftermath but also the very long recovery timeline that follows. “Usually in that early disaster recovery period, there are specific programs on the ground,” says Selk. “The main players are the Red Cross, the United Way, and the Small Business Administration. You can take out a loan from the Small Business Administration, and that's what families need sometimes, just a quick infusion of cash. HOPE NOW uses housing as a catalyst to bring the available resources together and get the mortgage servicing community to promote them and connect their homeowners with them. We also work to get the nonprofits to play a role.” The organization quickly galvanizes industry players. Educational flyers go out to the community. Available resources are convened into face-to-face assistance events where homeowners discuss their issues and learn their options and opportunities. “We really try to be sensitive to the market and what the resources are, bring them together, put out a broad message into the community that people can get help, and then do the best work we can for that time on the ground. We were in North Carolina two days for face-to-face assistance,” Selk recounts. “After Hurricane Harvey, we brought together a two-week event that

served over 500 families. We were in Puerto Rico for six weeks in coordination with FEMA and their disaster assistance centers.” In addition to connecting renters and homeowners with organizations that provide disaster recovery support services, housing counseling agencies play a critical role in helping clients manage their post-disaster financial situation and navigate the complexities of disaster recovery assistance programs.

AWARENESS AND SYNERGY

One challenge is that consumers are not aware of the help that is available to them. Housing counselors fill that knowledge gap by helping clients access resources that will help them obtain rental, mortgage and tax relief; find temporary housing; and apply for government recovery programs.

“The majority of people have no idea of all the free resources that are out there,” Selk added. “The last disaster-relief event we did was in Beaumont, Texas. The majority of people we served were low-to-moderate income. Out of the 192 families we met that day, it's safe to say that 50 percent of them had no

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idea that Habitat for Humanity was a resource in their own community. There were other free builders who were being funded through various disaster charitable dollars. Those families had expended their insurance, and they needed to know what to do. They were beyond thrilled.” Serving homeowners in disaster areas, he explains, is vitally dependent on pulling together all available resources. For example, Habit for Humanity and Catholic Charities can provide rebuilding and temporary housing, and there could be specialty builders with a relationship to the city or state. “They vary market to market. We had a call with the Mennonites. It was amazing, and the mortgage services were blown away. They had no idea that resource even existed.” Another example of that, he suggests, is getting FEMA on site. “We had a FEMA assistance table in Texas. People were coming through the door saying they had been turned down for FEMA assistance. We said, ‘Did you know you could reapply?’ Most did not. They were able to go over to the FEMA table and do just that. People get very emotional in disaster situations. They really just need guidance and education to help them understand what is available to them.”

“The thing is,” says Selk, “disaster coalesces a group of people. The disaster is the activating agent to get everybody together, to get everybody in the same room. If not for a disaster, they may or may not be socializing those programs with each other.”

GETTING AS MUCH AS YOU GIVE

Like anyone who works with people in crisis, Selk finds that being in the field brings eye-opening perspective. “We had three different free options for the families in Beaumont. Those tables were busy all day. I told myself, ‘Eric, you take so much for granted.’ Because as director, I'm in the middle of it—I'm collecting these lists, I'm doing market research, I'm always trying to be the problem solver. When I go on the ground and I'm able to help people connect locally with something that's in their own community, that's very gratifying for me. That's community building.”

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OVERSIGHT PRIORITIES: FISCAL YEAR 2019

The Office of Housing Counseling is

committed to ensuring that HUD-approved

housing counseling agencies meet program

standards, demonstrate good stewardship of

federal funds, and provide quality counseling

to consumers. In 2019, the Office of Housing

Counseling is focusing on the following areas

to strengthen the program, improve

oversight, and reduce risk.

• Ensure all local HUD-approved

agencies receive a performance

review within their three-year

approval period. Agencies that apply

to HUD’s Housing Counseling Program and meet approval criteria can be approved for up to three

years. At the end of the approval period, the Office of Housing Counseling utilizes performance reviews

as a part of its assessment to determine whether an agency will be reapproved. In the past, a small

percentage of performance reviews were not completed prior to the expiration of the approval period.

In FY 2019, we intend to conduct either on-site or remote performance reviews for local HUD-

approved housing counseling agencies that have not received a performance review within the last

three years. These reviews will be in addition to the performance reviews that are on track to be

conducted for agencies that have their approval period expiring during FY 2019. In addition, the Office

of Housing Counseling will continue our practice of conducting performance reviews of 10 percent of

an intermediary or state housing finance agency’s affiliate network. We also expect HUD-approved

intermediaries to regularly review their affiliates for compliance with HUD’s approval criteria.

• Review and clarify required documentation for submitting a voucher request to HUD for payment

under a housing counseling grant award. In FY 2019, the Office of Housing Counseling will review

Federal and Departmental regulatory and HUD Housing Counseling Handbook 7610.1 requirements

regarding this issue. We will revise program guidance, update training materials, and provide training

opportunities to program participants. We welcome your input as we work to make the voucher

payment process smoother for HUD and for the grantees.

• Clarify documentation required during a performance review to demonstrate funds were used for

eligible costs. During a performance review, an agency’s Point of Contact reviews source

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documentation related to grants management. In FY 2019, we will clarify and update requirements

related to documentation of grant expenses and provide training to agencies.

• Clarify procedures for agency withdrawal or termination from the Housing Counseling Program. The

Office of Housing Counseling will work on clarifying program guidance to program participants

regarding agency withdrawal and termination policies and procedures.

• Implement the new Housing Counseling Agency Management System (HCAMS). HCAMS is a new

online platform that will provide HUD with the ability to adequately oversee the work of its staff and

track important housing counseling agency milestones. In FY 2019, the Office of Housing Counseling

will implement the first module of HCAMS: an automated, streamlined performance review process.

The first version will be for internal HUD use, but the Office of Housing Counseling’s goal is for HCAMS

to be accessible eventually to program participants as well.

• Revise and update standard operating procedures, handbook, and regulations. The Office of Housing

Counseling is already in the process of updating its HUD Housing Counseling Handbook 7610.1. In FY

2019, we will continue this effort and develop and deliver training to agencies related to changes in

procedures and policies. All handbook and regulatory changes will be published for formal notice and

comment before the changes are effective.

We look forward to updating you on these efforts this year. Please feel free to reach out at

housing.counseling@hud.gov if you have any questions.

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WORKING TOGETHER

TO PROTECT HOUSING

COUNSELING FUNDS

The Office of Housing Counseling has many responsibilities related

to supporting counseling agencies. We design a fair competition for

funding through Notices of Funding Availability (NOFAs); monitor

agencies’ spending of grant awards; and provide technical

assistance to ensure that grantees are aware of and in compliance

with the various regulations and requirements associated with the

grants.

But we also have a responsibility to protect housing counseling

funding. In addition to helping agencies set up fiscal policies and

procedures that protect from accounting and bookkeeping errors that

could result in either inappropriate use of grant funds or the

appearance of inappropriate use of grant funds, we also respond to

any possibility of intentional actions that result in the misuse of grant

funds. Although it is an infrequent occurrence, there have been several

incidents over the last six years where unscrupulous individuals have

engaged in schemes for personal gain.

HOW ARE WE ALERTED?

There are several sources the Office of Housing Counseling depends

upon for leads to dishonest behavior. The majority of individuals who

work in housing counseling are dedicated to the program and those it

serves. We encourage everyone to follow the principle “if you see

something, say something.” This is applicable to anyone who is not

employed in the industry (i.e., clients), and suspects wrongdoing. They

can contact us at housing.counseling@hud.gov.

Occasionally, the press will pick up on cases of alleged misuse and

contact HUD officials. During our performance review process, we will

google an agency to see if there have been reports that should be

reviewed.

Other times, a party may feel

that an action is sufficiently

egregious and will report it to

the Office of the Inspector

General (OIG), who may alert

us to their investigation.

HOW DOES THE

OFFICE OF

HOUSING

COUNSELING

INVESTIGATE?

The Housing Counseling

Program New Certification

Requirements Final Rule,

effective January 2017,

specifically addresses the issue

of material violations. A

material violation can be

described as a misuse of funds

that is not the result of a lack of

recordkeeping or other

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inadvertent action. The penalty for a material violation is severe and

can include return of grants funds and permanent disbarment from the

counseling program for the agency.

Since the program penalties are so drastic, the Office of Housing

Counseling must be very careful in its review of any allegations or

suspicions. After some preliminary steps, we refer the alleged issue to

and work with OIG at their direction. The Office of Housing Counseling

has cooperated with OIG in more than seven cases. The OIG process is

long and thorough, and often the results are not shared with the Office

of Housing Counseling. However, we are aware of two successful

prosecutions that resulted in both jail time and recovery of funds.

The Office of Housing Counseling and OIG remain committed to

pursuing any wrongdoing that reduces the funds available to clients. It

is important that we hear about any suspected inappropriate or unfair

actions that affect our

counseling agencies and their

clients. The Office of Housing

Counseling has assigned a

program manager, Phyllis Ford,

to address issues and

complaints. She is available to

those employed in the industry,

as well as to clients and

industry stakeholders. Phyllis

can be reached via email at

phyllis.h.ford@hud.gov or by

phone at (202) 815-1484.

Other times, a party may feel

that an action is sufficiently

egregious and will report it to

OIG, who may alert us to their

investigation. The OIG website

provides instructions for

contacting them at their direct

email, hotline@hudoig.gov, or

toll-free at 1-800-347-3735.

Written communication can be

sent to: HUD Inspector General

Hotline (GFI), 451 7th Street,

SW, Washington, DC 20410,

Attention: Mike Powell.

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VIRGINIA HOUSING DEVELOPMENT

AUTHORITY’S CERTIFICATION CHALLENGE

Virginia Housing Development Authority (VHDA) has challenged its HUD Housing Counseling network to get certified by July 15, 2019. As part of this effort, they are offering a virtual study group for support and an incentive to counselors who get certified by February 15, 2019 or by July 15, 2019. Individuals who provide counseling services at an agency that receives an FY 2018 HUD grant from VHDA are eligible to participate in the challenge. Participants in the challenge receive gift cards with varied amounts depending on the date they become certified.

Starting in November 2018, VHDA began the virtual study group. It meets twice a month and covers HUD’s certification study guide. The study group specifically covers HUD resources, knowledge checks, and sample questions. VHDA also invites counselors that have passed the exam to offer study tips and encouragement. VHDA is partnering with NeighborWorks to offer a place-based training in April for additional support. VHDA has

already seen counselors successfully pass the exam and become certified by February 15, 2019 for the gift card incentives. They will be starting the study group again for those counselors that are going for the July 15, 2019 date. VHDA’s goal is to make sure that each agency in their network has at least one counselor certified by the July date. They have a network of 33 agencies and about 100 counselors; so far, they have 20 counselors certified, representing 20 individual agencies!

For more information, or if you are interested in starting your own study group, contact VHDA at vhdagrants@vhda.com and they will be happy to share their resources.

“We’ve seen an increase in certified counselors and we’re only half way to July!” – Kelly Gill-Gordon, VHDA

Get Certified!

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FROM THE FIELD: A RURAL

AGENCY’S APPROACH TO

CERTIFICATION Established in 1985, NeighborImpact represents and serves economically disadvantaged residents in Oregon. With just four housing counselors on staff, the agency’s housing counseling program – HomeSource of NeighborImpact – serves Deschutes, Crook, and Jefferson counties and the Confederated Tribes of Warm Springs. Over the last year, the agency has been working to prepare its housing counselors for HUD’s Housing Counseling Certification Exam. So far, two have passed! But as anyone who has taken or started studying for the exam can confirm, certification can feel like a journey in which the path forward isn’t always clear. In fact, when the counselors at HomeSource learned how comprehensive the exam is, they were a bit overwhelmed. “The number of topics that the exam covers was a concern at first,” recalled Sonia Capece, HomeSource Director. “We don’t provide counseling in

all of the areas, so there were some pieces – like rentals and eviction prevention – that we just weren’t familiar with,” she said. To encourage studying and preparation, HomeSource incorporated certification into counselors’ professional development plans and identified the end of FY 2019 as an agency deadline. With that end date in mind, each person developed their own timeline for passing the exam. “Even though these were just internal deadlines, it was important to set a goal for them to work towards,” said Capece. The counselors started their preparation by first taking a pretest to help identify what they did and didn’t know. Then, it was time to get studying. HomeSource dedicated paid time to support counselors’ preparation, allowing them to periodically block off a couple hours on their calendars for exam review. To ensure that the counselors were making progress, Capece used recurring check-ins to discuss how the studying was coming. The counselors initially relied heavily on preparing via virtual courses. “A few things really worked well for me,” said Jeffrey Belzer, a Financial Coaching Specialist at

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HomeSource. “I studied all of the online modules and then took the practice exam, which provided information about what I needed to study further. I then focused on those modules, creating flash cards for all of the terms and important ideas in those modules.” But studying virtually wasn’t

working for everyone. For Senior HomeSource Specialist Victoria Vale, online learning just wasn’t the right method. Fortunately, HomeSource is a NeighborWorks member organization that frequently attends the NeighborWorks Training Institutes (NTI). Vale was able to participate in an in-person preparation course at one of these events and greatly preferred her learning experience. “NeighborImpact paid for and I attended the NTI workshop on how to prepare for the exam,” said Vale. “I received helpful tips about how to study, along with test-taking strategies.” The lesson, says Capece, is that, “Some people are better suited for online training and studying alone, while others might need face-to-face engagement. It’s important to understand how your staff learn best.” As the first exam date approached, the agency had to prepare their office space. HomeSource is located in rural Oregon and having the exam proctored online was the best option. The agency was glad they would save money by not having to send counselors to a distant testing site, but ensuring the testing environment met requirements was somewhat intimidating. “We had to buy a webcam, install the special equipment, and do multiple trial runs to make sure everything worked,” Capece noted. Ironically enough, they still experienced some technical difficulties on the day of the exam. The issues were resolved, but they learned a valuable lesson. When it was time for the next counselor to take their exam, an IT person was alerted and on-call to provide support in the event of technical issues.

Like many things, the road to certification isn’t easy, but it is rewarding. “At the end of the exam, I immediately learned that I had passed. I literally did a dance of joy!” Vale shared. And while certification is a major milestone for the counselor, it also holds great value for the industry and, most importantly, the client.

“Certification creates quality standards for the industry and strengthens the credibility of housing counselors, who have to demonstrate significant knowledge to pass the exam,” Capece notes. “No matter where in the country a client is located, they can walk into a HUD-approved housing counseling agency and know they’ll receive quality services.”

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Pictured R: HomeSource Financial Coaching Specialist, Jeffrey Belzer

Pictured R: Senior HomeSource Specialist, Victoria Vale

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BUILDING THE VISION FOR

THE NEXT 50 YEARS The Office of Housing Counseling is concluding a yearlong celebration of its milestone 50th anniversary with an exciting event on June 26, 2019, focusing on the future of the housing counseling industry. Building Tomorrow Together will include a keynote speech by Housing and Urban Development Secretary Ben Carson and remarks by Deputy Assistant Secretary of the Office of Housing Counseling, Sarah Gerecke.

The event, which runs from 9:00 a.m. to 12:00 p.m. EST in the auditorium of the U.S. Department of Housing and Urban Development building in Washington, D.C., will feature three panels with industry leaders, influencers, and stakeholders engaging in candid, compelling conversations about the future of housing counseling.

Since 1968, the HUD Housing Counseling Program has been committed to serving the needs of homebuying consumers and a legion of stakeholders. It provides a comprehensive array of invaluable information, education, and resources, including but not limited to the following:

• Resources and information to consumers and stakeholders at every stage of the housing process

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• Do-it-yourself workshops and classes to help maintain and improve homeowners’ biggest investment

• Guidance to help homebuyers avoid default and foreclosure

• Training, tools, and promotional materials designed to assist HUD-approved housing counseling agencies provide vital services

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NEW COMMUNICATIONS TOOLS ARE ON THE WAY The Office of Housing Counseling is dedicated to providing support to HUD-approved housing counseling agencies across the country. One effective way is by creating comprehensive and engaging collateral materials specifically designed for consumers at varying stages of the housing counseling process. In early May 2019, we completed another nationwide mailing to all of our 1,779 HUD-approved housing counseling agencies and 65 field offices. Each agency received 25 copies of the Renter’s Guide Brochure Suite, Dealing with Default, Facing Foreclosure, and the Beat the Odds 2.0 poster in English and Spanish.

NEW MATERIALS FOR EVERYONE

HOUSING COUNSELING AT A GLANCE What better way to convey the power of housing counseling than with an eye-catching poster! The Beat the Odds 2.0 poster quantifies the reach of housing counseling with several astounding facts. For example, housing counselors have helped prevent an estimated 200,000 foreclosures and improved more than half a million consumer budgets. The poster, designed to hang in the offices and lobbies of HUD-approved housing counseling agencies, will no doubt instill confidence in the minds of visiting consumers. Agencies will receive the poster in both English and Spanish.

• Beat the Odds (ID #10755)

RENTER’S GUIDE BROCHURE SUITE Purchasing a home isn’t always the right choice for every consumer, so it is important to offer informational materials on other housing options. The Renter's Guide brochure illustrates to potential renters the value of receiving guidance from HUD-approved housing counseling agencies about navigating through the rental process, avoiding common mistakes, understanding the rights and responsibilities of tenancy, and much more.

• Renter's Guide: The Bottom Line (ID #10753)

• Renter's Guide: Renting 101 (ID #10754)

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DEFAULT AND FORECLOSURE BROCHURES Even meticulous planning cannot account for the unforeseen changes in a person’s finances. Homeowners need to know that there are options if they are facing default or foreclosure. The Dealing with Default and Facing Foreclosure brochures position housing counseling agencies as the go-to resource for helpful options facing homeowners struggling to pay their mortgages.

• Homeowners' Guide: Dealing with Default (ID #10750)

• Homeowners' Guide: Facing Foreclosure (ID #10751)

EXISTING HOMEOWNERS Homeownership is a marathon, not a sprint. Purchasing a home is as much about maintaining and growing your investment as it is nurturing and sheltering your family. The Homeowners: Keys to Successful Homeownership brochure provides tips and resources for saving, resources for workshops, energy-saving tips, and more.

• Homeowners' Keys to Successful Ownership (ID #10752)

REQUESTING ADDITIONAL RESOURCES If you need more of these materials, they are also available from the HUD Direct Distribution Center. Requests are accepted by telephone. You can contact the Direct Distribution Center Monday through Friday at (800) 767-7468 from 8:00 a.m. to 4:30 p.m. EST. When ordering, provide the item ID# and the quantity requested. These materials can also be found at www.hudexchange.info/outreachmaterial for digital download. You can also e-mail renee.m.davis@hud.gov to order printed materials that can be sent to you or to request electronic versions. When ordering, provide the ID number (ID #00000) shown above next to the material and the amount of each. Please note that you can order a maximum of 25 copies of each item. The new materials will also be available in Spanish in the very near future! If you have any questions or would like additional information, feel free to contact the Office of Housing Counseling at housing.counseling@hud.gov and put “Communications Materials” on the subject line of your e-mail.

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FAQs:

INQUIRING

MINDS WANT

TO KNOW

How can I assure that my agency is able to access the eLOCCS system as soon as possible once we sign the Comprehensive Housing Counseling Grant Agreement? Agencies often experience difficulties accessing the electronic Line of Credit Control System (eLOCCS) as a result of Approving Officials and Users not accessing the system regularly. Please note that if either an Approving Official or User does not access these systems every 90 days, their access will be suspended. It is highly recommended that Approving Officials and Users log in to Secure Systems and access eLOCCS every month to ensure that they are not terminated due to inactivity. The instructions to reinstate these users can be found in the eLOCCS Access Guidelines for Grantees. During the period between a grantee’s last draw under a previous grant, and before signing a new grant agreement, the agency should assure that

both Approving Officials and Users access the system at least every 90 days. The agency’s business partner information should be reviewed to ensure that it remains current. This includes:

• Opening the ‘General’ tab and checking that the agency address, Tax ID, and contact information are correctly reflected

• Opening the ‘eLOCCS Users’ tab and confirming that the Approving Official and all other users are accurately reflected and active in both Secure Systems and eLOCCS

• Opening the ‘Banking’ tab to assure that the correct account information is reflected

If any of this information needs to be updated, please review the following eLOCCS guidance documents:

• eLOCCS Quick Reference Guide

• eLOCCS Access Guidelines for Grantees

• eLOCCS Getting Started Guide

• eLOCCS Registration Guide If you have any specific questions, please reach out to your agency’s Point of Contact (POC) at the Office of Housing Counseling (OHC).

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Our agency, an SHFA, was not awarded a HUD Comprehensive Housing Counseling grant. Must we still perform oversight activities over our network of agencies? Yes, a State Housing Finance Agency (SHFA) participating in HUD's Housing Counseling Program must perform oversight activities over its network of affiliates. Even if an agency does not receive HUD funding in a particular grant year, any agency participating in the Housing Counseling Program is subject to HUD requirements. According to HUD Housing Counseling Handbook 7610.1 REV-5, it is the responsibility of the intermediary entity to evaluate initial and ongoing eligibility and ensure compliance of branches and affiliates in its network. When billing for reimbursement of qualified time/activity, can grantees bill HUD a combined hourly rate that consists of both base salary and fringe, or does the agency need to itemize (i.e., break down) the expenses? According to the FY 2018 Grant Agreement, grantees must identify each counselor or other employee whose time/activity is being billed to

the grant; the individual’s title and the hourly billing rate used to calculate the reimbursement from HUD or an intermediary organization for that individual’s time/activity; or, in the event of fixed-priced reimbursement, document actual expenses (which must be reasonable and do not exceed actual cost). The agency must explain the method used for calculating hourly rates, e.g., whether benefits are included in the rate. When documenting actual costs, the grantee must submit a detailed, comprehensive, itemized accounting of actual costs, listing expenses for each distinct quarter and the grant period to date under the grant. At a minimum, the accounting must include the following (if applicable): salaries, fringe and other benefits, training, marketing, outreach, and indirect costs. The accounting must itemize the expenditure of each dollar being billed to the grant. The itemized accounting of actual expenses may be submitted on form HUD-424 CB, or in a format of the grantee’s choosing if the form HUD-424 CB does not provide enough detail. Any deviation between the itemized accounting of actual costs and the budget submitted at the time of grant execution must be explained in detail and approved by the agency’s Point of Contact (POC). In this year’s grant application, I indicated that my agency would provide default counseling to reverse mortgage/HECM clients. How do I report this information? HUD collects grant reports throughout the period of performance. When submitting your progress report and requesting drawdowns, agencies providing reverse mortgage and Home Equity Conversion Mortgage (HECM) default counseling should include a short narrative indicating: (1) the name of counselors providing such services, (2) the title and duration of any reverse mortgage trainings taken during the three years prior to the end of the period of performance, and (3) the total number of HECM default clients who have received counseling during the period of performance. Currently, HUD-9902 Section 9 does not have a separate category for HECM default clients, so agencies providing HECM default counseling will need to report such clients under item 9f (Resolving or Preventing Mortgage Delinquency or Default). Additionally, such agencies must provide the information outlined above to their HUD POC during grant quarterly reporting.

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If funded for default counseling in FY 2018, agencies are reminded that they must counsel a minimum of ten HECM Default clients per year, starting October 1, 2018 to September 30, 2019, to remain eligible for the award bonus. Can an intermediary/SHFA advance actual costs to its subgrantees (upon receipt of required activity documentation) and then reimburse itself with HUD draw down? Yes, intermediaries and State Housing Finance Agencies (SHFAs) may be reimbursed for actual costs incurred when they advance funds to subgrantees for eligible grant expenses. The agencies should consult their grant agreements, the HUD Housing Counseling Handbook 7610.1 REV-5, and the Housing Counseling Program regulations to ensure that they are only covering eligible expenses (i.e.,

for approved housing counseling services) and are requesting the appropriate supporting documentation (including, but not limited to, timesheets, personnel activity reports, receipts, etc.). Agencies should also outline this arrangement in their subgrantee agreements and reference the aforementioned documents. If the agency seeks reimbursement from HUD for ineligible costs, those costs will not be reimbursed. For more information regarding eligible expenses, please review the October 30, 2018 Preparing a Budget Training or contact your Point of Contact (POC) at the Office of Housing Counseling (OHC). Are costs associated with an agency’s housing counseling Client Management System eligible to be billed to the FY 2018 Comprehensive Housing Counseling Grant? Yes, costs related to your agency’s housing counseling Client Management System (CMS) are billable as a direct cost to the FY 2018 Comprehensive Housing Counseling Grant, as the use of a CMS is a necessary part to oversight, compliance, and quality control. Please see FAQ 3447 regarding reimbursable costs for the FY 2018 Comprehensive Housing Counseling Grant. Are sub-grantee housing counseling agencies subject to the same FY 2018 eligible costs policies as their parent agency? Yes, grantees and sub-grantees will be reimbursed only for the applicable activities outlined in the FY 2018 Comprehensive Housing Counseling NOFA and the grant agreement, and that grantees shall ensure that all sub-grantees comply with the provisions of cost reimbursement. Please see FAQ 3447 regarding reimbursable costs for the FY 2018 Comprehensive Housing Counseling Grant.

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EDITORIAL CORRECTION:

MARCH/APRIL ISSUE

OFTHE BRIDGE

The March/April issue of The Bridge contained an error in our featured article, “Champion of Service: Cora Fulmore.” The article referred to Fulmore’s agency as The Counselor’s Corner; the correct new name is Diversified Resource Network. We apologize for the error.

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The Office of Housing Counseling Training Digest is your "one-stop shop" for all available training activities. This digest will be updated on a weekly basis. Housing counselors and other interested parties are encouraged to bookmark and share the training digest, as well as link to it in their websites and in email communications.

EDITORIAL BOARD

Editor-in-Chief Emelda Johnson Kennerly

Assistant Editor Suzanne Isaacs

Featured Writers Beth Eilers, Phyllis Elam, Lorraine Griscavage-Frisbee,

Kevin Meirose, Nathaniel Mitchell, Melissa Noe, Adrenace “Shae” Williams

For additional information about an article, or to submit features of interest, general information, testimonials, or announcements, contact thebridge@hud.gov.

VISIT THE OFFICE OF HOUSING COUNSELING TRAINING DIGEST