[Federal Register Volume 85, Number 234 (Friday, December 4, 2020)]
[Rules and Regulations]
[Pages 78230-78232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26194]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 214

[Docket No. FR-6215-I-02]
RIN 2502-ZA34


Housing Counseling Program: Revision of the Certification 
Timeline

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule follows HUD's interim final rule (the interim 
rule) published on August 5, 2020. The interim rule extended the 
deadline by which participating agencies and counselors must comply 
with certification requirements in HUD's Housing Counseling Program 
from August 1, 2020 to August 1, 2021. The reason for the extension is 
that due to the COVID-19 national emergency, a large number of housing 
counselors would have been unable to get certified by the end of the 
grace period, resulting in a loss of Federal funding for some HUD-
approved housing counseling agencies and loss of the ability to provide 
counseling that is required or provided in numerous HUD programs. HUD 
considered public comment on the interim rule. This rule makes the 
interim rule a final rule, without change.

[[Page 78231]]


DATES: Effective date: The August interim rule (85 FR 47300) extending 
the August 1, 2020 counseling certification deadline is confirmed as 
final on December 4, 2020.

FOR FURTHER INFORMATION CONTACT: Lorraine Griscavage-Frisbee at Office 
of Housing Counseling, Office of Housing, Department of Housing and 
Urban Development, 302 Carson Street, Las Vegas, Nevada 89101, 
telephone number 702-366-2160 (this is not a toll-free number). Persons 
with hearing or speech challenges may access this number through TTY by 
calling the toll-free Federal Relay Service at 800-877-8339. Questions 
can also be addressed to Lorraine Griscavage-Frisbee, Office of Housing 
Counseling, at [email protected]. Please include ``Housing 
Counseling Program: Date Housing Counseling Agencies Must Comply with 
Certification Requirements'' in the subject line of the email.

I. Background

    Section 106 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x) (Section 106) was amended by Subtitle D of title XIV of 
the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 
111-203, 124 Stat. 1376, approved July 21, 2010) to strengthen and 
improve the effectiveness of housing counseling that is required under 
or provided in connection with HUD programs (Section 106 amendments). 
The Section 106 amendments require that individuals providing housing 
counseling required under or provided in connection with HUD programs 
be certified by taking and passing an examination administered by HUD's 
Office of Housing Counseling (12 U.S.C. 1701x(e)). On December 14, 
2016, HUD published a final rule implementing the Section 106 
certification requirements, including the requirement that housing 
counseling that is required by or in connection with HUD programs may 
only be provided by HUD certified housing counselors working for HUD-
approved housing counseling agencies (HCAs) that are approved to 
provide such housing counseling by HUD's Office of Housing Counseling. 
See 81 FR 90632. The 2016 final rule codified the grace period at 24 
CFR 214.103(n)(4), which provides that ``[p]articipating agencies and 
housing counselors must be in compliance with requirements of paragraph 
(n) of this section by 36 months after HUD commences the administration 
of the certification examination by publication in the Federal 
Register.'' On May 31, 2017, HUD published a notice announcing the 
availability of the certification examination beginning August 1, 2017, 
and providing the deadline of August 1, 2020, within which all housing 
counselors and HCAs must satisfy the certification requirements in the 
final rule. See 82 FR 24988.
    On March 13, 2020, the President declared the Coronavirus Disease 
2019 (COVID-19) outbreak a national emergency, effective March 1, 2020. 
HUD housing counselor certification testing centers started to close in 
mid-March 2020, and by mid-April 2020, all 462 testing centers had 
closed. In addition, all 35 HUD in-person place-based housing counselor 
certification trainings originally scheduled were cancelled, severely 
impacting the ability of all counselors and counseling agencies to be 
certified by the deadline. Accordingly, on August 5, 2020, HUD 
published an interim rule amending 24 CFR 214.103(n)(4) to announce the 
new compliance date as August 1, 2021 (See 85 FR 47300).

II. The Public Comments

    The public comment period for the interim rule closed on September 
4, 2021. HUD received one comment. This comment was generally 
supportive of the rule and stated that HUD should consider offering 
resources and testing beyond English and Spanish. Specifically, the 
comment read: ``Housing Counselors who speak and serve populations who 
speak a language other than English or Spanish are finding it difficult 
to achieve certification without appropriate materials. As such, many 
culturally specific organizations could end up without a certified 
Counselor.''
    HUD Response. The interim rule amended only 24 CFR 214.103(n)(4), 
leaving the remainder of the rule in place. The rule currently 
provides, at Sec.  214.103(g)(3), that counseling agencies ``must have 
housing counselor(s) who are fluent in the language of the clients they 
serve, or the housing counseling agency must use the services of an 
interpreter, or the agency must refer the client to another agency that 
can meet the client's needs.'' While HUD agrees that counseling 
agencies should serve clients who may speak languages other than 
English or Spanish, HUD finds that the current regulation is adequate 
in this regard. Furthermore, the interim rule concerned a specific 
issue regarding a date by which counselors would have to be certified, 
and other aspects of the housing counseling regulations are outside the 
scope of the interim rule. Therefore, HUD is not making a change 
regarding its language policy.

III. This Final Rule

    This final rule adopts the interim rule, published at 85 FR 47300 
(August 5, 2020), without change.

IV. Findings and Certifications

Regulatory Review--Executive Orders 12866 and 13563

    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. This final rule was not determined to be a 
``significant regulatory action'' as defined in section 3(f) of the 
Executive order, and is not expected to impose any burdens or costs, 
for the reasons stated in the interim rule at 85 FR 47303 (August 5, 
2020).

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
establishes requirements for federal agencies to assess the effects of 
their regulatory actions on state, local, and tribal governments and 
the private sector. This final rule will not impose any federal 
mandates on any state, local, or tribal governments or the private 
sector within the meaning of UMRA.

Environmental Review

    This final rule does not (i) 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 (ii) 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).

[[Page 78232]]

Impact on Small Entities

    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. 
This final rule allows housing counseling agencies to continue to 
operate as they currently do during the COVID-19 emergency. Therefore, 
the undersigned certifies that this final rule will not have a 
significant impact on a substantial number of small entities.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule 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 nor preempt state law 
within the meaning of the Executive order.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance (CFDA) Program number 
for the Housing Counseling Program is 14.169.

List of Subjects in 24 CFR Part 214

    Administrative practice and procedure; Loan program-housing and 
community development; Organization and functions (government 
agencies); Reporting and recordkeeping requirements.

PART 214--HOUSING COUNSELING PROGRAM

0
Accordingly, for the reasons stated in the preamble, the interim rule 
amending 24 CFR part 214 that was published at 85 FR 47300 (August 5, 
2020) is adopted without change.

Dana T. Wade,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2020-26194 Filed 12-3-20; 8:45 am]
BILLING CODE 4210-67-P