The Department of Housing and Urban Development (“HUD”) recently issued a final rule that updates how participating housing counseling agencies may provide housing counseling services. Under HUD’s new regulations, participating agencies are no longer limited to only in-person housing counseling services.
The final rule allows housing counseling agencies to use alternative communication methods. Clients may now receive counseling at a facility or at an alternate location, in-person, via telephone, or through collaborative online software. HUD clarifies that no specific virtual meeting tool is required but any software tool that is utilized must offer real-time messaging, video conferencing, and the ability to share documents. All methods of communication must still meet HUD’s client confidentiality and privacy standards. If a participating housing counseling agency chooses to not provide in-person services, the agency is required to refer clients to local providers that provide in-person services if it is requested by a client.
Housing counseling agencies first utilized alternative methods to educate clients when in-person meetings were restricted by the COVID-19 pandemic. At that time, HUD issued a temporary partial waiver to allow virtual meetings. After the waiver period, HUD received feedback from agencies that the alternative methods for counseling clients were more practical and cost-effective than in-person meetings. In October 2023, HUD issued a proposed rule, “Modernizing the Delivery of Housing Counseling Services”, which has now been adopted as of October 16, 2024, without change.
HUD states that the final rule is intended to reflect advances in technology and align with client engagement preferences while still preserving consumer protections. Participating agencies may still offer in-person counseling, but clients will now have more options.
