[Federal Register Volume 88, Number 17 (Thursday, January 26, 2023)]
[Proposed Rules]
[Pages 4923-4928]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01345]


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 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 214, 1000, and 1003

[Docket No. FR-6322-P-01]
RIN 2502-AJ64


Certification of Tribal Housing Counselors

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, Department of Housing and Urban Development (HUD); Office 
of the Assistant Secretary for Public and Indian Housing, HUD.

ACTION: Proposed rule.

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SUMMARY: HUD's Housing Counseling Program provides, through HUD-
approved counseling agencies and State housing finance agencies, 
counseling to individuals seeking information about financing, 
maintaining, renting, or owning a home. The Dodd-Frank Wall Street 
Reform and Consumer Protection Act amended the Housing and Urban 
Development Act of 1968 to improve the effectiveness of the housing 
counseling program by, among other things, requiring that entities and 
individual counselors be certified by HUD as competent to provide such 
counseling services. In 2016, HUD implemented these requirements for 
most HUD programs but agreed to conduct consultation with Tribes before 
implementing the new housing counselor certification requirement for 
Tribes. After consulting with Tribes, HUD proposes a housing counselor 
certification option for employees of Tribes, Tribally Designated 
Housing Entities (TDHE), and other Tribal entities conducting housing 
counseling required or provided in connection with the Indian Housing 
Block Grant (IHBG) and the Indian Community Development Block Grant 
(ICDBG) programs. The proposed rule provides an alternative regulatory 
standard for compliance with the Dodd-Frank Act's counselor 
certification requirement that recognizes Tribal sovereignty and self-
determination, and accounts for the

[[Page 4924]]

unique status of Tribal land and housing programs in Indian Country.

DATES: Comment due date: March 27, 2023.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street 
SW, Room 10276, Washington, DC 20410-0500. Communications must refer to 
the above docket number and title. There are two methods for submitting 
public comments. All submissions must refer to the above docket number 
and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov website can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.
    Note: To receive consideration as public comments, comments must be 
submitted through one of the two methods specified above. Again, all 
submissions must refer to the docket number and title of this proposed 
rule.
    No Facsimile Comments. Facsimile (FAX) comments are not acceptable. 
Public
    3. Inspection of Public Comments. All properly submitted comments 
and communications submitted to HUD will be available for public 
inspection and copying between 8 a.m. and 5 p.m., weekdays, at the 
above address. Due to security measures at the HUD Headquarters 
building, an appointment to review the public comments must be 
scheduled in advance by calling the Regulations Division at 202-708-
3055 (this is not a toll-free number). HUD welcomes and is prepared to 
receive calls from individuals who are deaf or hard of hearing, as well 
as individuals with speech or communication disabilities. To learn more 
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
    Copies of all comments submitted are available for inspection and 
downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: David Valdez, Office of Housing 
Counseling, Office of Housing, Department of Housing and Urban 
Development, 1331 Lamar St. Suite 550, Houston, TX 77002; telephone 
number 713-718-3178 (this is not a toll-free number). HUD welcomes and 
is prepared to receive calls from individuals who are deaf or hard of 
hearing, as well as individuals with speech or communication 
disabilities. To learn more about how to make an accessible telephone 
call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION:

I. Background

    In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Pub. L. 111-203, 124 Stat. 1376, approved July 21, 2010) amended 
section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701x), hereinafter referred to as section 106, established the Office 
of Housing Counseling (OHC) and directed HUD to issue regulations 
necessary to carry out the testing and certification of housing 
counselors in HUD programs. 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 (HUD 
certified housing counselors) (12 U.S.C. 1701x(e)).

A. HUD's Current Certification Requirement

    On December 14, 2016, HUD published a final rule implementing the 
section 106 certification requirements, including the requirement that, 
as explained in the rule preamble, ```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] that are approved to provide such housing 
counseling by HUD's Office of Housing Counseling.'' See 81 FR 90632. 
However, the certification final rule stated that the application of 
section 106 to HUD's Native American Housing Programs would undergo 
consultation prior to implementation, pursuant to HUD's Government-to-
Government Tribal Consultation Policy. As a result, the counselor 
certification requirement currently applies to all HUD programs except 
the IHBG and ICDBG programs.
    HUD-approved housing counseling agencies must be (1) nonprofit 
organizations as described under section 501(c) of the Internal Revenue 
Code of 1986 (IRC) that are exempt from taxation under section 501(a) 
of the IRC; and (2) approved by HUD, in accordance with 24 CFR part 214 
and section 106(e) of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x(e)), to provide housing counseling services to clients 
directly, or through their affiliates or branches. To become a 
certified housing counselor, one must be employed by a participating 
agency, including a HUD-approved housing counseling agency or a unit of 
State or local government, and pass a standardized, written housing 
counseling certification examination to demonstrate competency in the 
following areas: (1) Financial management; (2) property maintenance; 
(3) responsibilities of homeownership and tenancy; (4) fair housing 
laws and requirements; (5) housing affordability; and (6) avoidance of, 
and response to, rental or mortgage delinquency and avoidance of 
eviction or mortgage default. 24 CFR 214.103(n).
    Today, only a small number of Tribal entities participate in HUD's 
housing counseling program. These Tribal entities have been recognized 
as unit of local, county, or state government or have formed a tax-
exempt non-profit organization and applied to be a HUD-approved housing 
counseling agency and employ housing counselors directly to provide the 
counseling required under HUD programs. Most Tribes, TDHEs, and Tribal 
entities, however, remain ineligible to become HUD-approved housing 
counseling agencies. As such, Tribes are generally not eligible to 
receive HUD housing counseling grants.

B. Tribal Consultation

    In 2021, HUD hosted two virtual Tribal consultations and six 
listening sessions to obtain feedback on the implementation of the 
counselor certification requirements as it applies to the IHBG and 
ICDGB programs. During HUD consultation sessions, Tribes raised 
concerns regarding a perceived lack of consideration for Tribal 
sovereignty and expressed concerns with applying the HUD housing 
counselor certification requirements to Tribes. Tribes also

[[Page 4925]]

described the unique housing services needed in their communities and 
their need to self-determine their housing priorities based on local 
needs.
    Another area of concern raised by the Tribes was the irrelevancy of 
some questions and lack of important content in the current counselor 
certification exam. For example, counseling on Tribal land requires 
knowledge of unique property and administrative requirements that apply 
to trust land and other restricted Tribal lands held in trust by the 
Department of the Interior. Similarly, civil rights laws pursuant to 
statutes like the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.) (NAHASDA), which 
authorizes the IHBG program and the Housing and Community Development 
Act of 1974 (42 U.S.C. 5301 et seq.) (HCDA), which authorizes the ICDBG 
program, do not apply to Tribes in the manner in which they do for 
other HUD program participants, and current test requirements do not 
reflect the unique way that civil rights requirements apply to Tribes 
and other Tribal grantees under HUD programs.
    To account for these issues, Tribes suggested HUD allow them to use 
another organization's Native American counseling training and exam 
certification (e.g., Pathways, NeighborWorks, etc.) or, in the 
alternative, for HUD to create a tailored Tribal counselor 
certification exam. Tribes also raised concerns with having to meet the 
requirements of the housing counseling program. Importantly, Tribes 
anticipated difficulty meeting threshold eligibility criteria such as 
being a tax-exempt nonprofit organization as described in IRC 501(c), 
and other requirements such as minimum number of clients served, 
maintaining facilities, work plan and geographic scope descriptions, 
professional experience, and recordkeeping and reporting. Tribes cited 
the unique nature of conducting Tribal counseling with limited 
financial and human capital resources that often lack adequate 
communication and physical infrastructure and the lack of availability 
of housing counselors in remote areas. To address these concerns, HUD 
was asked to exempt Tribes, TDHEs, and Tribal entities from compulsory 
participation in the existing housing counseling program unless the 
entities also provide housing counseling under, or in connection with, 
other HUD programs (programs other than IHBG and ICDBG).

II. This Proposed Rule

    As required by the Dodd-Frank Act and after consultation with 
Tribes, HUD proposes to implement the certification requirements for 
Tribes, TDHEs, and other Tribal entities conducting housing counseling 
required or provided in connection with the IHBG and ICDBG programs. 
Housing Counseling is independent, expert advice customized to the need 
of the consumer to address the consumer's housing barriers and to help 
achieve their housing goals and must include the following processes: 
intake; financial and housing affordability analysis; an action plan, 
except for reverse mortgage counseling; and a reasonable effort to have 
follow-up communication with the client when possible. HUD believes 
this proposed rule implements counselor certification for IHBG and 
ICDBG, two Native American programs, in a way that considers the 
substantial Tribal feedback provided by Tribes during consultation 
while also still complying with the requirement in the Dodd-Frank Act 
that counseling conducted under the IHBG and ICDBG programs be carried 
out by HUD-certified counselors.

A. Tribal Housing Counseling Certification

    This proposed rule would amend 24 CFR part 214 by adding a new 
subpart F to establish certification requirements that apply only for 
the IHBG and ICDBG programs. Specifically, for counseling ``required by 
or in connection with'' the IHBG and ICDBG programs, an individual may 
become a ``HUD-certified housing counselor'' by working for a 
participating agency and meeting all requirements of part 214, 
including passing a housing counseling certification examination under 
Sec.  214.103(n), or, by working for an Indian tribe, TDHE, or other 
Tribal entity, and passing a housing counseling certification 
examination under paragraph (c) of the new Sec.  214.6 (subpart F). The 
housing counseling certification examination under Sec.  214.6(c) will 
be the housing counseling certification examination under Sec.  
214.103(n) with adjustments to certain exam components for tribes in a 
manner that comports with section 106(e)(2). Under Sec.  214.6(d), if 
an individual working for an Indian tribe, TDHE, or other Tribal entity 
provides housing counseling for other HUD programs, however, that 
individual would still need to comply with the existing housing 
counseling certification requirement of 24 CFR 214.103(n) (e.g., pass 
the examination and work for a HUD-approved housing counseling agency).
    With respect to any housing counselor that is providing housing 
counseling required by or in connection with the IHBG and ICDBG 
programs and qualifies to do so based on the criterion in proposed 24 
CFR 214.600(b)(1), HUD strongly recommends additional training. Such 
training should help the counselor become knowledgeable of Federal 
Indian law, the unique status of trust land, the role of the Bureau of 
Indian Affairs in mortgage and realty-related transactions and matters, 
the role played by Indian tribes to grant leases on trust land, and 
more.
    Section 106 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x) in relevant part requires that the housing counselor 
demonstrate competence through a written examination showing competency 
in ``fair housing laws and requirements.'' 12 U.S.C. 1701x(e)(2)(D). 
Section 201(b)(6) of NAHASDA states that Title VI of the Civil Rights 
Act of 1964, and the Fair Housing Act ``shall not apply to actions by 
federally recognized tribes and the tribally designated housing 
entities of those tribes under this Act.'' The regulations at 24 CFR 
1000.12 and 1003.601 state which nondiscrimination requirements apply 
to the IHBG and ICDBG programs, respectively. The housing counseling 
examination required under the new subpart F will account for this 
distinction of fair housing laws pertaining to Tribes. The examination 
will also be appropriately tailored to reflect the unique status of 
trust land.
    HUD recognizes that costs will be incurred as a result of the 
written examination requirement. In the past, HUD has been able to 
present the examination in the most cost-efficient way feasible and 
offered both on-line and in-person examinations at a low cost. In 
addition, HUD has offered free study materials for individuals to use 
in preparation for the examination. HUD will seek to modify these 
materials to account for any tailored exam components that it develops 
to implement this rule.

B. New Definitions in Sec.  214.3 and a New Sec.  214.600

    To conform to the change in the new subpart F, this proposed rule 
would amend the definition of ``HUD certified housing counselor'' at 
Sec.  214.3. Under the current definition, certification requires 
passing the HUD Certification exam and working for a participating 
housing counseling agency. Given the proposal to expand a certified 
counselor to include one who is certified by HUD as competent to 
provide housing counseling services pursuant to the new Sec.  214.600, 
this definition would include that additional process for becoming a 
certified housing counselor. This

[[Page 4926]]

proposed rule would also add a definition of ``tribally designated 
housing entity'' at Sec.  214.3 to codify the statutory definition at 
25 U.S.C. 4103 in HUD's housing counseling regulations.

C. IHBG Housing Counseling Requires HUD Certification

    This proposed rule would amend IHBG program regulations by adding 
Sec.  1000.66 to require that housing counseling, as defined in 24 CFR 
5.100, that is funded with or provided in connection with IHBG funds 
must be carried out in accordance with 24 CFR 5.111. In addition, this 
paragraph would provide that housing counseling conducted in connection 
with the IHBG program may only be conducted by individuals who are HUD-
certified in accordance with 24 CFR part 214, including the new 
requirements promulgated by this proposed rule at Sec.  214.3 and the 
new Sec.  214.600.

D. ICDBG Housing Counseling Requires HUD Certification

    This proposed rule would amend ICDBG program regulations by adding 
Sec.  1003.609 to require that housing counseling, as defined in 24 CFR 
5.100, that is funded with or provided in connection with ICDBG funds 
must be carried out in accordance with 24 CFR 5.111. In addition, this 
paragraph would provide that housing counseling conducted in connection 
with the ICDBG program may only be conducted by individuals who are 
HUD-certified in accordance with 24 CFR part 214, including the new 
requirements promulgated by this proposed rule at Sec.  214.3 and the 
new Sec.  214.600.

III. 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.
    HUD's Housing Counseling Program provides, through HUD-approved 
counseling agencies and state housing finance agencies, counseling to 
individuals seeking information about financing, maintaining, renting, 
or owning a home. In 2010, the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, Public Law 111-203 (``Dodd-Frank Act''), 
amended section 106 of the Housing and Urban Development Act of 1968, 
12 U.S.C. 1701x, to improve the effectiveness of the housing counseling 
program by, among other things, requiring that entities and individual 
counselors be certified by HUD as competent to provide such counseling 
services. In 2016, HUD published a final rule implementing these 
requirements for most HUD programs but agreed to conduct consultation 
with Tribes before applying the new housing counselor certification 
requirement to HUD's Native American Housing Programs, pursuant to 
HUD's Government-to-Government Tribal Consultation Policy. As a result, 
the counselor certification requirement currently applies to all HUD 
programs except the Indian Housing Block Grant (IHBG) and Indian 
Community Development Block Grant (ICDBG) programs.
    HUD consulted with Tribes in 2021 in accordance with HUD's 
Government-to-Government Tribal Consultation Policy and the January 26, 
2021, Presidential Memorandum on Tribal Consultation and Strengthening 
Nation-to-Nation Relationships. As a result of this Tribal 
consultation, HUD is proposing a more streamlined housing counselor 
certification option for employees of Tribes, Tribally Designated 
Housing Entities (TDHE), and other Tribal entities conducting housing 
counseling required or provided in connection with the IHBG and ICDBG 
programs. The proposed rule would amend HUD's existing Housing 
Counseling Program regulations at 24 CFR part 214 to allow the 
relatively small number of 435 IHBG and ICDBG grantees in total to 
either use an existing HUD-approved housing counseling agency or to 
have an employee complete the housing counseling certification 
examination that is currently required of all counselors at HUD-
approved housing counseling agencies. The proposed rule would similarly 
amend the IHBG and ICDBG program regulations at Sec. Sec.  1000.66 and 
1003.609 to require that housing counseling that is funded with or 
provided in connection with IHBG or ICDBG funds be carried out in 
accordance with existing Sec.  5.111, and that housing counseling for 
these programs may only be conducted by individuals certified in 
accordance with 24 CFR part 214.
    This proposed rule brings HUD's IHBG and ICDBG Programs into 
compliance with the section 106 statutory requirements, which were 
added by the Dodd-Frank Act and have applied to other HUD programs 
since 2016. This proposed rule would provide a streamlined compliance 
option consistent with the statutory requirement and responsive to 
tribal consultation. This rule was not subject to OMB review. This rule 
is not a ``significant regulatory action'' as defined in section 3(f) 
of Executive Order 12866, and is not an economically significant 
regulatory action.

Regulatory Flexibility Act

    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 proposed rule would revise the regulations governing HUD's Housing 
Counseling Program to reflect changes to the program made by the Dodd-
Frank Act, primarily the requirement that housing counseling required 
under or provided in connection with all HUD programs, including the 
IHBG and ICDBG programs, be carried out by certified housing 
counselors.
    As discussed in this preamble, to date, HUD's Housing Counseling 
Program, under 24 CFR part 214, has not approved certification criteria 
for Tribes, TDHEs, and Tribal entities conducting housing counseling 
exclusively funded under or in connection with the IHBG and ICDBG 
programs. The key change made to the Housing Counseling Program by this 
proposed rule is the requirement to certify counselors providing 
counseling funded under or in connection with these two programs.
    HUD has determined that the requirement for individual counselors 
to be certified, as proposed to be implemented by this proposed rule, 
will not have a significant economic impact on small entities. The rule 
provides a three-year transition period after the effective date of the 
final rule for individual counselors to be certified. This three-year 
period provides ample notice of the need to be skilled in the required 
areas. Notwithstanding HUD's determination that this proposed rule will 
not have a significant economic

[[Page 4927]]

impact on a substantial number of small entities, HUD specifically 
invites comments regarding less burdensome alternatives to this 
proposed rule, that will meet HUD's objectives as described in this 
proposed rule.

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 proposed rule would not have 
federalism implications and would not impose substantial direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive order.

Paperwork Reduction Act

    The information collection requirements contained in this proposed 
rule have been submitted to the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). In 
accordance with the Paperwork Reduction Act, an agency may not conduct 
or sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a currently valid OMB 
control number.
    The burden of the information collections in this proposed rule is 
estimated as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                   Estimated
                                                 Number of        Number of       average time      Estimated
              Section reference                 respondents     responses per   for requirement   annual burden
                                                                  respondent       (in hours)       (in hours)
----------------------------------------------------------------------------------------------------------------
24 CFR 214.600..............................              99              2.5              .25           61.875
----------------------------------------------------------------------------------------------------------------

Reporting and Recordkeeping Burden

    In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments 
from members of the public and affected agencies concerning this 
collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond; including through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses.
    Interested persons are invited to submit comments regarding the 
information collection requirements in this rule. Comments must refer 
to the proposal by name and docket number (FR-6322-P-01) and must be 
sent to:

HUD Desk Officer, Office of Management and Budget, New Executive Office 
Building, Washington, DC 20503, Fax number: (202) 395-6947
and
Colette Pollard, Reports Management Officer, Department of Housing and 
Urban Development, 451 Seventh Street SW, Washington, DC 20410

Environmental Impact

    This proposed rule does not 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 establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
proposed rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4; approved March 22, 1995) (UMRA) establishes requirements for Federal 
agencies to assess the effects of their regulatory actions on State, 
local, and Tribal governments, and on the private sector. This proposed 
rule does not impose any Federal mandates on any State, local, or 
Tribal government, or on the private sector, within the meaning of the 
UMRA.

List of Subjects

24 CFR Part 214

    Administrative practice and procedure, Loan program--housing and 
community development, Organization and functions (government 
agencies), Reporting and record-keeping requirements.

24 CFR Part 1000

    Aged, Community development block grants, Grant programs--housing 
and community development, Grant programs--Indians, Indians, 
Individuals with disabilities, Low and moderate income housing, Public 
housing, Reporting and recordkeeping.

24 CFR Part 1003

    Alaska, Community development block grants, Grant programs--housing 
and community development, Indians, Reporting and recordkeeping 
requirements.

    Accordingly, for the reasons stated above, HUD proposes to amend 24 
CFR parts 214, 1000, and 1003 as follows:

PART 214--HOUSING COUNSELING PROGRAM

0
1. The authority citation for part 214 continues to read as follows:

    Authority:  12 U.S.C. 1701x, 1701x-1; 42 U.S.C. 3535(d).

0
2. In Sec.  214.3, revise the definition of ``HUD certified housing 
counselor'' and add the definition of ``Tribally designated housing 
entity'' in alphabetical order to read as follows:


Sec.  214.3  Definitions.

* * * * *
    HUD certified housing counselor. A housing counselor who has passed 
the HUD Certification examination:
    (1) Works for a participating agency and is certified by HUD as 
competent to provide housing counseling services pursuant to this part; 
or
    (2) Works for an Indian tribe, tribally designated housing entity 
(TDHE), or other tribal entity and is certified by HUD as competent to 
provide housing counseling services pursuant to Sec.  214.600.
* * * * *
    Tribally designated housing entity. See definition at 25 U.S.C. 
4103.
* * * * *
0
3. Add subpart F to read as follows:

[[Page 4928]]

Subpart F--Certification of Tribal Housing Counselors


Sec.  214.600  Tribal housing counseling certification.

    (a) This subpart applies only to housing counseling required under 
or provided in connection with the Indian Housing Block Grant (IHBG) 
program or the Indian Community Development Block Grant (ICDBG) 
program. Indian tribes, tribally designated housing entities (TDHEs), 
and other tribal entities funding housing counseling required under or 
provided in connection with IHBG or ICDBG programs shall not be subject 
to the requirements of this part, except as otherwise provided in this 
section.
    (b) Housing counseling required under or provided in connection 
with IHBG or ICDBG programs must be provided by a HUD-certified housing 
counselor. A HUD-certified housing counselor must be certified either:
    (1) By working for a participating agency and complying with all 
the requirements of this part to include passing a housing counseling 
certification examination under Sec.  214.103(n); or
    (2) By working for an Indian Tribe, TDHE, or other tribal entity 
and passing a housing counseling certification examination under 
paragraph (c) of this section.
    (c) HUD will certify an individual housing counselor to provide 
housing counseling required under or provided in connection with IHBG 
or ICDBG programs upon verification that the person:
    (1) Passes a standardized written examination to demonstrate 
competency in each of the following areas:
    (i) Financial management;
    (ii) Property maintenance;
    (iii) Responsibilities of homeownership and tenancy;
    (iv) Fair housing laws and requirements;
    (v) Housing affordability; and
    (vi) Avoidance of, and response to, rental or mortgage delinquency 
and avoidance of eviction or mortgage default; and
    (2) Works for an Indian tribe, TDHE, or other tribal entity.
    (d) To provide housing counseling required under or provided in 
connection with HUD programs other than the IHBG and ICDBG programs, an 
individual working for an Indian tribe, TDHE, or other tribal entity 
must meet the housing counseling certification requirement under Sec.  
214.103(n) (e.g., pass the examination and work for a HUD-approved 
housing counseling agency).

PART 1000--NATIVE AMERICAN HOUSING ACTIVITIES

0
4. The authority citation for part 1000 continues to read as follows:

    Authority:  25 U.S.C. 4101 et seq.; 42 U.S.C. 3535(d).

0
5. Add Sec.  1000.66 to read as follows:


Sec.  1000.66  Housing counseling.

    Housing counseling, as defined in 24 CFR 5.100, that is required 
under or provided in connection with IHBG funds must be carried out in 
accordance with 24 CFR 5.111. Housing counseling conducted in 
connection with the IHBG program may only be conducted by individuals 
who are HUD-certified in accordance with 24 CFR part 214.

PART 1003--COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND 
ALASKA NATIVE VILLAGES

0
6. The authority citation for part 1003 continues to read as follows:

    Authority: 42 U.S.C. 3535(d) and 5301 et seq.

0
7. Add Sec.  1003.609 to read as follows:


Sec.  1003.609  Housing counseling.

    Housing counseling, as defined in 24 CFR 5.100, that is funded with 
or provided in connection with ICDBG funds must be carried out in 
accordance with 24 CFR 5.111. Housing counseling conducted in 
connection with the ICDBG program may only be conducted by individuals 
who are HUD-certified in accordance with 24 CFR part 214.

Julia Gordon,
Office of the Assistant Secretary for Housing--Federal Housing 
Administration Commissioner.
Dominique Blom,
General Deputy Assistant Secretary, Office of Public and Indian 
Housing.
[FR Doc. 2023-01345 Filed 1-25-23; 8:45 am]
BILLING CODE 4210-67-P