The U.S. Department of Housing and Urban Development (HUD) proposed a rule updating the agency’s regulations related to in-person counseling. HUD stated the updates consider advances in technology, align with client engagement preferences, and preserve consumer protections.
“The proposed rule would amend HUD’s regulations to allow housing counseling agencies to use alternative communication methods, including virtual meeting tools, in lieu of providing in-person services,” the agency stated in a release. “Participating agencies that choose not to provide in-person services would be required to refer clients to local providers that provide such services, when requested.”
The final rule being updated was published on Sept. 28, 2007. This regulation established the rules and guidelines for HUD’s Housing Counseling program and have not been updated since that time. The section in question, Section 214.300(a)(3), requires agencies that provide housing counseling services to offer in-person counseling at one of the agency’s facilities or an alternate location for clients that prefer that format.
At the time the rule was passed, most housing counseling and education were primarily conducted locally. When the pandemic hit, a temporary partial waiver of Section 214.300(a)(3) was offered, allowing for alternative methods to conduct housing counseling and education in lieu of meeting in person. Since the end of the pandemic, HUD determined these alternatives to be more practical, cost-effective, and accessible. Additionally, they have not led to adverse compliance issues or negative financial impacts.
The text of the rule can be found in the Federal Register - comments from interested parties are due Dec. 26.
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