HUD Office of Housing Counseling 2021 Community Conference

August 9-12, 2021

Partnerships that Support Community Based Housing CounselingWednesday, August 11th, 20213:30-4:30 PM EDT

Questions?

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Web App Link: https://whova.com/portal/webapp/oohco_202108/Invitation Code: OHCConf2021

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Agenda

• Introductions• Speaker Presentations• Audience Q&A• Mentimeter Question• Resources• Closing

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PresentersFacilitator

• Karen Hoskins, Lead Housing Counseling Consultant, ICF, TA ProviderPresenters

• Terri Redmond, Director of Counseling, Pennsylvania Housing Finance Agency

• Bruce Dorpalen, Executive Director, National Housing Resource Center (NHRC)

• Matt Ribe, General Counsel, National Foundation for Credit Counseling (NFCC)

• Megan Wessels, Senior Director, Housing Stability Counseling Program, NeighborWorks America

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Terri RedmondDirector of CounselingPennsylvania Housing

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Topics for Discussion

• Importance of partnerships and collaborative efforts • Addressing Affirmatively Furthering Fair Housing (AFFH) • Structure of PHFA’s Mediation and Diversion Program• Results/Impact of the Partnership

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The Counseling Division

• The Counseling Division is the division of the PHFA that is the primary oversight of housing counselors and their agencies. The division provides funding to the counseling agencies and educates, trains and provides technical assistance to housing counselors and their administrators on a daily basis. We currently manage five initiatives, Financial Education and Coaching Initiative, Comprehensive Housing Counseling Initiative (CHCI), Anti-predatory Lending Initiative, the Meditation and Diversion Initiative, and the Housing and Urban Development Initiative (HUD).

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Network Highlights• 1983-Network was established support the HEMAP - 26 Housing Counseling Agencies (HCA)

• 1998-Partnered with a National Intermediary-Housing Opportunities Inc. 41 HCA’s

• 2004-Expansion of the Network - 46 HCA’s

• 2010-114 HCA’s; 2011- 85 HCA’s; 2021-71 HCA’s

Highlights/Results

• 2003-CHCI Serving 640 families annually

• 2010 –CHCI 25,000 families annually

• 2011-PHFA received $96 million from HUD to Support PHFA EHLP-Submitted over 7000 application resulting over 3,038 approvals

• 2012- 21 Mediation Courts grew to 24/25 Counties

• 2013-2018 –HUD Network Growth 8-48 agencies/Funding/$198,763 - $2,455,579

• 2021- Excluding Philadelphia 27 agencies can now provide M&D Counseling

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Importance of Partnerships and Collaborative EffortsTop 10 Benefits for Your Non-Profit

• Increase Funding• Expand donor base• Connect to new business partners• Attract in-kind donations• Provide professional development

for employees• Attract new volunteers, Board, pro

bono services• Increase brand recognition• Increase media coverage

• Connect leaders with the community thought leaders

• Develop earned income opportunities

Sources: Topnonprofits.com 10

Affirmatively Furthering Fair Housing• PHFA is the recipient of HUD funding which supplements the implementation

of the Comprehensive Housing Counseling Initiative (CHCI). • We require all grantees to identify barriers to fair housing choice in their

proposed target area. The Affirmatively Furtherly Fair Housing Rule (AFFH) is necessary to ensure all people throughout the country have access to housing, free from illegal discrimination and that residents of all neighborhoods are connected to the kinds of opportunities they need to flourish.

• PHFA uses the Mediation and Diversion Initiative (a special activity) as a way to adhere to the affirmatively furthering fair housing provisions by ensuring classes protected under the Fair Housing Act, have access to housing counseling and financial education.

• These activities are considered remedies to barriers of fair housing choice identified in the Consolidated Plan and Analysis of Impediments (AI).

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PHFA Statewide Mediation Initiative• PHFA formed a partnership with the National Real Estate Institute

(NREI) and the American Society of Certified Housing Executives (ASCHE) to work with selected PHFA-approved housing counseling agencies to provide comprehensive loss mitigation services to residents involved with the diversion court process in areas with high foreclosure rates throughout Pennsylvania.

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PHFA Statewide Mediation Initiative• The overall goals of the collaboration are designed to:

• Increase the number and capacity of housing counselors serving the various counties.

• Recommend changes in the current court processes and procedures, where applicable, to essential court personnel.

• Develop a strategy to reduce the backlog of cases in PA County Mortgage Diversion Court process where they exist.

• Provide training to participants in the relevant counties involved in the PA Diversion Program.

• Strategic Components: Focus on areas were there was limited participation of counseling agencies; unreasonable limits on the court imposed stay on foreclosure, or areas that provided no court intervention.

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Results/Impact of the Partnership• The National Real Estate Institute (NREI) from 2011

• Trained 1066 participants• Held 79 classroom sessions• Issued 191 nationally recognized Foreclosure Intervention Certifications• 321 court mediation certifications were issued• Trained 496 participants in court-related negotiation strategies, limited

representation, and referral of legal matters• Trained 80 counseling agency staff in monitoring and mentoring housing

counseling practices and practitioners• Issued a total of 642 certificates in various subject areas• Issued 12,657 nationally recognized continuing education credits• Issued over 358 continuing legal education credits to attorneys

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Results/Impact of the Partnership• ASCHE Accomplishments 2013

• Reviewed 22 Administrative Orders • Initiated and negotiated substantial changes in the Administrative Order• Researched and reviewed county statistics in all 23 Counties• Met with stakeholders, Sheriffs, Conciliators and/or President Judges in at least

19 Counties• Negotiated and secured the Judges’ participation in training sessions in

Allegheny, Beaver, and Lawrence Counties• Negotiated changes in hotline in Allegheny County• Made recommendations to improve the County Court Systems• Added 17 Counseling Agencies - (5) Monroe, (6) Delaware, (5) Berks, Lawrence

(1)

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Results/Impact of the Partnership

• Studies comparing foreclosures cases with and without Mediation also show mediations improves outcomes.

• Philadelphia’s Reinvestment Fund study found that 70% of eligible homeowners appeared at mandatory mediations conferences, and of those, 35% achieved a settlement to remain in their home.

• When comparing foreclosures before and after the mediation program implementation, the rate at which homes went to sale was cut in half. The results appeared to be lasting: 80% of homeowners with mediated agreements were still in their homes almost two years later.

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Results/Impact of the Partnership

PHFA Loan Data AnalysisThere were 100 accounts identified as having M&D counseling where PHFA was the mortgage servicer. Of those 100 accounts, 92 were in foreclosure at the time of their final counseling visit. To maintain relevant comparison between the two portfolios, the analysis focused on these 92 accounts. The loan performance, two years after the homeowner’s final counseling session, is reflected in the table below:

Loan Count

Loan Percentage Disposition

37 40% Foreclosed / (REO) / (Pre-Foreclosure Sale)

55 60% Not Foreclosed / Not REO

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Results/Impact of the PartnershipPHFA Loan Data AnalysisThere were 366 accounts identified as not having M&D counseling where PHFA was the mortgage servicer. Of these 366 accounts, all were in foreclosure at that time. The loan performance, two years after the initial timeframe, is reflected in the table below:

Loan Count

Loan Percentage Disposition

230 63% Foreclosed / (REO)

136 37% Not Foreclosed / Not REO

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Results/Impact of the Partnership

The analysis concludes that the availability of M&D counseling program can positively influence foreclosure avoidance by up to 23% over non-intervention. In other words, 37% of homeowners (who did NOT receive M&D counseling) avoided foreclosure for at least two years. Comparatively, 60% of homeowners (who did receive M&D counseling) avoided foreclosure for at least two years.

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Results/Impact of the Partnership• Since 2013, a total of 3,337 families or (*5,595 client events captures

under CHCI) have received direct counseling, technical assistance, foreclosure Intervention and/or default and delinquency counseling.

• 7-year period, spent a total of $449,800 (excludes Philadelphia). (98%) borrowers have been assisted (referred to other services, mortgage refinance/modification, foreclosure prevention, etc. (2%) either went to foreclosure, had to sell their home or file bankruptcy and/or withdrew from program.

• Since 2013, PHFA has spent approximately $109,573 on training counselors, lawyers, court administrators and approximately $72,477 conducting research on the counties and the court process, reviewing administrative orders, and working with the court personnel. To date this reflects total project cost of $182,050.

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Bruce DorpalenExecutive DirectorNational Housing Resource Center (NHRC)

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• Opportunities for legal assistance for clients, training, expertise sharing, and policy solutions

• National Housing Law Project

• National Association of Consumer Advocates

• National Housing Resource Center (Ellie Pepper, epepper@hsgcenter.org)

Counseling Agencies and Legal Services

National Housing Resource Center

National Housing Resource Center

Outreach to connect with the people who need our services

• Prepurchase Outreach

• Forbearance/Delinquency Outreach

• Renter Outreach

National Housing Resource Center

Disaster Recovery

• Disaster Recovery Plans

• Coordinated Strategy with local governments, federal government, case management, private business, mortgage servicers

National Housing Resource Center

Housing Counseling Career Development to Recruit and Certify Housing Counselors

• Pilot with Housing Action Illinois

• Recruit through HBCUs, Fannie Mae’s Future Housing Leaders, community colleges, and vocational schools

• Your Clients?

Matt RibeGeneral Counsel National Foundation for Credit Counseling (NFCC)

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The Challenge• The pandemic has exacerbated the financial insecurity of

many renters who have little savings to help them manage through a crisis.

• Rental Property Owners are also feeling the impact as missed rent revenue impacts their finances.

• Rental counseling is difficult to offer at scale due to disambiguated landlord network, variety of local renter protections.

• HPN and NFCC are bringing their networks together to develop a systemic approach to deliver counseling to at-risk renters.

Tom Brenner / Reuters file

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Building for Impact and Scale• Wells Fargo has provided a grant to pilot the Renter Advantage approach in seven states:

California, Florida, Minnesota, New York, North Carolina, Texas, and Washington. The goal is to serve 6500 renters through 2022.

• We are building a model, including partnerships, technology and solutions that can be scaled and replicated across the country, and looking for opportunities to:

• Support delivery of rental assistance;

• Engage other types of landlords, including smaller landlords; and

• Enable more families with low incomes to increase their financial security and economic mobility.

• We are partnering with the Terner Center and the NYU Furman Center to evaluate our program model and renter outcomes.

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Partnership Overview: NFCC• Who Is NFCC? National Foundation for Credit Counseling (NFCC) is a national non-profit and a HUD

Counseling intermediary. Organizations in their network provide homeownership and financial counseling, as well as credit counseling, including the development of Debt Management Plans to help consumers reduce and restructure unsecured debt such as credit card or medical.

• NFCC Member Agencies are 501(c)(3) non-profit counseling organizations, ranging in size from large, national organizations to local, community-based agencies.

• NFCC counselors are trained and certified to address each client’s complete financial situation, including unsecured debt, housing, and student loan challenges. The NFCC has over 1000 certified counselors in its member network, with capacity to expand to meet client and partner needs.

• The NFCC is using advanced technology through a partnership with a FinTech company, Creditly, which enables easy client engagement with a counselor and advanced data tracking and analysis.

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Partnership Overview: HPN• Who Is HPN? The Housing Partnership Network is a 501(c)(3) business collaborative of 100 of

the nation's leading affordable housing and community development nonprofits as well as an Aeris-rated CDFI and HUD-approved housing counseling intermediary.

• HPN Member Organizations: HPN members include affordable builders, operators, lenders (CDFIs), 35 housing counseling agencies, with a portfolio of almost 400,000 multifamily property units developed, owned and operated located across the U.S., who share best practices and advance business and policy innovation.

• Since our founding in 1992, HPN has collectively served over 11 million people; financed, developed, rehabilitated, and preserved over 1 million affordable homes; and launched a total of 14 social enterprises.

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Property Owner/Counselor Teams Highlight Team 1:• Eden Housing is a non-profit affordable housing developer and operator working in communities across

California.

• Navicore Solutions is a nonprofit credit and housing counseling organization with locations in New Jersey, California, Illinois, Massachusetts, Pennsylvania, Utah, Minnesota, Nevada, North Carolina, Texas and Connecticut.

Team 2:• MidPen Housing is a non-profit affordable housing developer and operator with 100 communities and

8,500 homes for low-income families, seniors and special needs individuals throughout Northern California.

• Credit.org is a non-profit counseling organization providing confidential and professional credit counseling, debt management services, bankruptcy education and housing counseling as well as online personal finance education and in-person seminars.

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Unique Characteristics of LMI Renters• Due to the scarcity of affordable housing, renters are often reluctant to seek out support for fear

that sharing information about their financial situation could put their housing at risk.

• Many renters are behind on their rent due to income loss. Others may be maintaining rent but sacrificing food or other critical costs, or accruing debt.

• Some financial characteristics of these renters we are seeing:

• High debt to income ratios

• Low or no credit scores

• Unbanked

• Digital barriers

• A counselor can help them navigate through this crisis, offering them a safe and confidential space to talk about openly about their finances.

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Counseling Services Model• Counselors provide each renter a comprehensive financial review including developing a budget

and providing financial education.

• Each session includes development of an Action Plan, including potential follow-on counseling services:

• Federal Rental Assistance application help

• Rent Repayment Plan application to repay back rent balances affordably

• Help with access financial services, including checking accounts

• Debt Management Plans to repay credit card debt sustainably

• Coaching with follow-up sessions to check progress towards Action Plan goals

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Renter Advantage App• Mobile technology to provide information on the program and facilitate

the collection of client data and connection to a counselor.

• App is available in English and Spanish

• Specific implementation of credit counseling technology to serve renters, owners, and counselors. The technology will:

• Facilitate the application and approval of Rent Repayment Plans.

• Provide separate interfaces to allow users to view data, dashboard reporting, manage individual cases for:

• Owners• Counselors• Renters

• Facilitate engagement with landlords via standardized Rent Repayment Plans and application assistance

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Megan WesselsSenior Director of the National Housing Counseling ProgramNeighborWorks America

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Housing Stability Counseling Program (HSCP) Overview• The American Rescue Plan Act of 2021 appropriated $100 million to the

Neighborhood Reinvestment Corporation• Minimum 40 percent of funds shall be provided to counseling organizations that

target housing counseling services to minority and low-income populations facing housing instability; OR provide housing counseling services in neighborhoods having high concentrations of minority and low-income populations.• Housing counseling provided directly to households facing housing instability, such as eviction,

default, foreclosure, loss of income, or homelessness; • Education, outreach, training, technology upgrades, and other program related support; and• Operational oversight funding for grantees and subgrantees.

• The performance period for HSCP is from the date of grant agreement issuance through February 28, 2023.

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HSCP Program Update

• The HSCP application closed on June 30th at 8:00PM EST.• HSCP received 144 applications that proposed over $338 million proposing to

serve 159,441 renters and 163,969 homeowners.

• Application scoring process - July-August • Grant Award Announcements – August-September

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HSCP Eligible Activities

• Counseling• Must be performed by a HUD-certified housing counselor or a counselor actively

pursuing HUD certification.

• Program-Related Support• Successful Applicants will receive a flat 30% of their counseling award for

Program-Related Support.

• Operational Oversight (HFAs and Intermediaries only)• Intermediaries and HFAs will receive 7% of their counseling award for first $2.5

million and 5% thereafter for Operational Oversight

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HSCP and Collaboration• HSCP places high value on collaboration and building partnerships that

support community-based housing counseling.• HSCP will further support collaboration through:

• Creating a Peer Sharing Platform to connect Grantees to share best practices, effective tools and information

• Provide subject matter experts throughout the grant performance period that will disseminate information surrounding common themes like counseling clients in crisis/pandemic, lender/servicer waterfalls, and new federal guidelines and regulations.

• Ensure that the HSCP website is current with clear and consistent information.

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HSCP and Collaboration Continued • HSCP will promote partnerships through:

• Encourage agencies to enhance their outreach and marketing plans for minority populations.

• Ex. Agencies should partner with Interpreters and Translators for populations for whom English is not their primary language, connect with counselors in areas that serve Native and rural communities with low-income and minority populations.

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Questions and Answers

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Polling

• Please respond to questions at www.menti.com using your computer or smart phone.

Time for Mentimeter!

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Resources

• COVID-19 Response and Relief Funding Chart for Housing Counselors: https://files.hudexchange.info/resources/documents/CARES-Act-Housing-Assistance-Funding-Chart.pdf

• National Housing Resource Center: https://www.hsgcenter.org/• Housing Stability Counseling Program (HSCP): www.stablecommunities.org

• The HSCP team can be reached at: counseling@nw.org

Today’s Sessions

Wednesday, August 11th, 202112:00-12:30 PM EDT Counselor Certification Update12:30-1:30 PM EDT A Conversation with the Office of Housing

Counseling Directors2:00-3:00 PM EDT Addressing the Unique Requirements of the

HECM Product3:30-4:30 PM EDT Partnerships that Support Community Based

Housing Counseling

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Tomorrow’s Sessions

Thursday, August 12th, 202112:00-1:00 PM EDT Emerging Innovations in Housing Counseling1:30-2:30 PM EDT Wrap Up QandA with the Office of Housing

Counseling Directors2:30-3:00 PM EDT Closing

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Office of Housing Counseling

• Event Webpage: www.hudexchange.info/programs/housing-counseling/2021-virtual-conference/

• Find us at: www.hudexchange.info/counseling

• Email us at: Housing.counseling@hud.gov

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HUD Office of Housing Counseling 2021 Community Conference

August 9-12, 2021

Thank You for Attending!