DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 214, 1000, and 1003
[Docket No. FR-6322-F-02]
RIN 2502-AJ64
Certification of Tribal Housing Counselors
AGENCY: Office of the Assistant Secretary for Housing – Federal Housing Commissioner,
U.S. Department of Housing and Urban Development (HUD); Office of the Assistant Secretary
for Public and Indian Housing, HUD.
ACTION: Final rule.
SUMMARY: HUD’s Housing Counseling Program provides counseling to individuals seeking
information about financing, maintaining, renting, or owning a home. Established by the DoddFrank Wall Street Reform and Consumer Protection Act, entities and individual counselors that
participate in the Housing Counseling Program are required to be certified by HUD as competent
to provide counseling services. In 2016, HUD implemented such housing counselor certification
requirements for most HUD programs but agreed to conduct consultation with Tribes before
implementing them for Tribes. On January 26, 2023, HUD published a proposed rule that
provides an alternative regulatory standard for the counselor certification that accounts for the
unique status of Tribal land and housing programs in Indian country and recognizes the
importance of Tribal expertise. After consulting with Tribes and considering public comments
received in response to the proposed rule, this final rule adopts the proposed rule with minor
changes.
DATES: Effective [INSERT DATE 30 DAYS FROM DATE OF PUBLICATION IN THE
FEDERAL REGISTER].
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
Established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.
L. 111–203, 124 Stat. 1376, approved July 21, 2010) (Dodd-Frank), HUD's Office of Housing
Counseling (OHC) provides support to a nation-wide network of HUD-certified counseling
agencies and State Housing Finance Agencies that provide counseling to individuals seeking
information about financing, maintaining, renting, or owning a home. In addition to establishing
the OHC, Dodd-Frank directed HUD to issue regulations necessary to carry out the testing and
certification of housing counselors in HUD programs. On December 14, 2016, HUD published a
final rule implementing these requirements for most HUD programs (81 FR 90632). In
recognition of HUD’s government-to-government relationship with Tribal governments, and
HUD’s Tribal Consultation policy, HUD conducted Tribal consultation before implementing
requirements for Tribes, Tribally designated housing entities (TDHEs), and other Tribal entities.
On December 18, 2020, HUD published a Dear Tribal Leader Letter to inform Tribal leaders
about the Housing Counselor Certification Final Rule and that the Department would be
soliciting their feedback through Tribal consultation.1
Subsequently, HUD hosted two virtual Tribal consultation sessions and six listening
sessions to gather input on the potential implications of the Tribal Housing Certification
requirements. HUD then published a proposed rule implementing testing and certification
requirements for housing counselors for employees of Tribes, TDHEs, and other Tribal entities
conducting housing counseling required or provided in connection with the Indian Housing

Available at: https://www.hud.gov/sites/dfiles/PIH/documents/DTL12.17.20_Housing_Counseling.pdf.

Block Grant (IHBG) and Indian Community Development Block Grant (ICDBG) programs on
January 26, 2023 (88 FR 4923) (the proposed rule).
The proposed rule proposed codifying a housing counselor certification requirement by
adding a new subpart F to 24 CFR part 214 that would apply only for the IHBG and ICDBG
programs. To provide counseling for those programs, an individual could become a “HUDcertified housing counselor” by working for a participating agency and meeting all requirements
of part 214, including passing a housing counselor certification examination under § 214.103(n)
or by working for an Indian Tribe, TDHE, or other Tribal entity, and passing a housing counselor
certification exam under the new § 214.600(c). This new Tribal certification exam would
consider the unique status of Tribal trust land, mortgaging Tribal trust land, and account for the
distinct framework of nondiscrimination requirements as they apply to Tribes and Tribal
recipients of IHBG and ICDBG funds at 24 CFR 1000.12 and 1003.601.
II. This Final Rule
After considering comments received from the public through the Federal Register as
well as through consultation with Tribes during three consultation sessions and six listening
sessions, HUD promulgates this final rule. The final rule adopts the proposed rule with three
minor changes. First, instead of revising the definition of HUD certified housing counselor in 24
CFR 214.3, HUD is adding a definition for HUD-certified Tribal housing counselor. This change
is being made to clearly distinguish between the two types of counselors and does not alter the
substantive requirements for certification approval. Second, HUD is clarifying in 24 CFR
214.600(d) that an Indian Tribe, TDHE, or other Tribal entity must be a participating agency in
order for an individual working for one, who also meets the requirements under 24 CFR
214.103(n), to provide housing counseling in connection with programs other than IHBG and
ICDBG. Third, HUD is adding paragraph (e) to 24 CFR 214.600 to establish a 4-year transition
period to allow Tribal grantees sufficient time to ensure that housing counselors can be certified
while also establishing the alternative Tribal regulatory scheme previously outlined in the

proposed rule. HUD appreciates the public comments received in response to its January 26,
2023, proposed rule, thanks all Tribal stakeholders for their invaluable feedback during the
rulemaking process, and looks forward to engaging more as HUD works to develop a Tribal
certification exam.
III. Public Comments
HUD received 16 distinct comments from Tribes, individuals, housing counseling
providers, Indian Housing Authorities, and advocacy groups through the Federal Register as well
as additional comments through the third Tribal consultation. This section includes a summary of
the significant issues raised by the public comments that HUD received in response to its
proposed rule and through the third Tribal Consultation.
Support for the Proposed Rule
Several commenters provided general support for the proposed rule and noted that it
respected Tribal sovereignty and accounted for the unique nature of Tribes. One commenter
noted that housing is a significant need in Tribal communities and housing counseling is often
unavailable to Tribal members. Some commenters supported HUD for working with Tribal
officials and including their input. One commenter noted that they appreciated HUD’s approach
as Tribal consultation is a prerequisite for implementing any rules that affect Tribal programs or
communities.
Several commenters supported specific aspects of the proposed rule. One commenter
noted that the proposed rule simplified the eligibility and certification process. Another
commenter supported HUD’s proposal to allow TDHEs to participate in HUD’s Housing
Counseling Program. Commenters stated the proposed rule would make it more feasible for
TDHEs to comply with the requirements than those that apply more broadly in HUD’s
counseling regulations.
Several commenters in the third Tribal consultation suggested that HUD convene a Tribal
advisory committee to oversee the implementation of the rule.

HUD Response: HUD appreciates the commenters’ support and feedback. This final rule
provides an alternative regulatory standard that complies with the statutory requirements of
Dodd-Frank and recognizes the unique status of Tribal land and housing programs in Indian
country.
HUD agrees with the commenters that recommended working with a Tribal advisory
committee to advise HUD on the implementation of this final rule. In this case, HUD intends to
work with two existing federal advisory committees, HUD’s Tribal Intergovernmental Advisory
Committee and the Housing Counseling Federal Advisory Committee (HCFAC) in soliciting
advice regarding implementing this rule.
Opposition to the Proposed Rule
Several commenters stated that the proposed rule is not deferential to the Tribal right of
self-determination and does not recognize Tribal sovereignty and the unique challenges Tribes
face. Commenters stated that the proposed rule should allow Tribes to account for their differing
cultures, economic conditions, customs, resources, and geography. Some commenters also stated
that they did not feel the proposed rule was responsive enough to the feedback provided during
listening sessions and encouraged further consultation between HUD and Tribal communities to
ensure accessible, culturally-informed, and relevant housing counseling services. Commenters
recommended that HUD engage more with Tribes in designing a process and a program that
reimagines HUD’s current Housing Counseling Program to better recognize Tribal expertise and
acknowledge Tribal self-determination. One commenter stated that the Native American
Housing Assistance and Self-Determination Act of 1996, as amended (NAHASDA) (25 U.S.C.
4101), already allows IHBG grant funds to be used to pay for housing counseling services and
does not require an examination process. Another commenter noted that neither NAHASDA nor
the ICDBG program mandate housing counseling.
Commenters stated that the proposed rule may make it difficult for Tribal entities to run
housing programs and ultimately decrease access to housing counseling. A commenter said

Tribal housing counselors would have to take and pass a rigorous examination with content that
did not include questions related to Tribal housing issues. Another commenter stated that the
proposed rule would undermine the decades of work put in to improve Tribal counseling
organizations and essentially nullify the capacity that has been built. Some commenters stated
that the proposed rule would have the effect of diminishing the services provided to Tribal
members, as it could limit the ability of Tribes to use the IHBG program, or other programs that
have a counseling requirement. Commenters noted the proposed rule could be especially
burdensome for small and rural Tribal entities and reduce access to housing counseling in these
communities. One commenter noted the costs would be passed on to homebuyers. Another
commenter noted the proposed rule did not take into consideration ways to provide more housing
counseling services and only focused on additional regulatory compliance.
One commenter recommended an abbreviated version of the Housing Counseling Plan be
embedded in the NAHADSA Annual Indian Housing Plan. Another commenter suggested HUD
allow existing staff of Tribes, TDHEs and other Tribal entities to constitute a housing counseling
organization in § 214.600. One commenter noted that Tribes already have housing counseling
programs that better fit their needs.
HUD Response: HUD recognizes the unique challenges in Indian Country and
understands that commenters have concerns about how this new requirement will be
implemented. HUD is required to implement Dodd-Frank and the statutory requirement that
counseling provided under, or in connection with, IHBG and ICDBG be carried out by certified
counselors. However, in doing so, HUD is committed to implementing the counselor
certification for IHBG and ICDBG in a manner that respects Tribal sovereignty and the right of
self-determination and which addresses the substantial feedback provided by Tribes.
HUD, through a contractor, will develop the Tribal housing counselor certification
training, online study guide, and examination and to host the website. HUD will ensure the exam
content is appropriately tailored while considering and balancing compliance with statutory

requirements, the unique status of trust land, mortgaging tribal trust land, and respect for Tribal
sovereignty and self-determination. When developing the examination, HUD may seek to engage
with Tribes, TDHEs and other Tribal entities to gather their input in designing an exam that
recognizes Tribal expertise and acknowledges Tribal self-determination.
Through this rule, HUD addressed the concern that the rule could be especially
burdensome for small and rural Tribal entities. Specifically, HUD is establishing an alternative
regulatory standard for Tribes and will allow employees of Indian Tribes, TDHEs, and other
Tribal entities to become certified housing counselors if they pass the certification examination
under § 214.600(c) without the requirement that they also work for an approved housing
counseling agency. To further minimize burden for all Tribes, including small and rural Tribal
entities, HUD will also provide access to existing free study material and free study material that
accounts for any tailored exam components that it develops in collaboration with Tribes, TDHEs,
and other Tribal entities.
Finally, HUD is establishing a 4-year transition period to ensure that Tribes have enough
lead time to ensure staff are properly prepared to complete and pass the certification exam.
Through all these actions, it is HUD’s hope that the result will be the appropriate
implementation of Dodd-Frank in a manner that considers the unique status of Tribes and
ensures that Tribes are able to get all housing counselors certified in a timely manner.
Certification Exam
Several commenters proposed ways to make the proposed rule more deferential to Tribes’
unique needs. Commenters noted that Tribes, TDHEs and Community Development Funding
Institutions (CDFI) have already created housing counseling programs that fit the unique needs
of Tribes. Commenters suggested that HUD should recognize certifications from Native
American housing counselor certification curricula that many Tribal housing entities already use.
Some commenters suggested that HUD incorporate existing curricula or adopt certifications
from the National American Indian Housing Council (NAIHC), NeighborWorks, Oweesta, etc.

Several commenters suggested in the third Tribal consultation that HUD use existing curricula
and examinations, including Pathways Home: A Native Homeownership Guide, to satisfy the
statutory requirement for a certification examination that addresses the six core competency
areas.
Several commenters suggested HUD establish an advisory committee comprised of
representatives from Tribal entities and stakeholders who could advise HUD on how to devise
culturally relevant criteria and exam content for Tribal-specific HUD counselor certification
requirements. Some commenters expressed concern about applying the current housing
counselor standards to Tribal entities. Some commenters requested HUD allow Tribes to
determine the content for inclusion in the relevant exam curriculum. One commenter noted that
if HUD created a certification process rooted in Tribal expertise and Tribal self-determination,
HUD could expand this certification process for all HUD-funded Tribal programs.
Some commenters requested HUD change certification requirements because staff in
Tribal governments are often divided between ownership and rental programs and may have
difficulty passing the exam. Commenters also asked HUD to adjust the certification requirements
to align more closely with the rental counseling needs of TDHEs, Tribes, and Tribal CDFIs. One
commenter requested clarification about what the “fair housing laws and rules” competency
requirement at § 214.600(c)(1)(iv) will include in the certification exam based on the limited
application of certain Fair Housing requirements for Tribes and Tribal grantees. Another
commenter asked HUD what measures HUD is taking to ensure certification covers the unique
status of all Tribal communities. Commenters also asked whether the certification standards
would be the same for TDHEs as other HUD-approved housing counseling agencies.
One commenter proposed that the cost of certification should be less than $100 and
should be clearly disclosed by HUD.

One commenter in the third Tribal consultation expressed confusion over the need for the
§ 214.103(n) examination or the forthcoming certification examination under § 214.600(c) or
both exams to be certified to counsel within IHBG or ICDBG programs.
HUD Response: While commenters suggested HUD establish an advisory committee
comprised of representatives from Tribal entities and stakeholders to advise HUD regarding
designing culturally relevant criteria and exam content for Tribal-specific HUD counselor
certification, HUD has decided against establishing such an advisory committee. In reviewing
this comment, HUD recognized that requirements of the Federal Advisory Committee Act (5
U.S.C. Chapter 10) would limit its ability to fully engage Tribes in the development of the
certification examination. Additionally, it has typically not been the Department’s procedure to
establish an advisory committee for the purpose suggested by the commenter and the Department
has other means of soliciting public input. As discussed in this preamble, HUD is fully
committed to soliciting the advice and recommendation of Tribes in the development of the
examination.
HUD recognizes the certification exam codified at § 214.103(n) does not assess
knowledge of the unique property and administrative requirements that apply to trust land and
other restricted Tribal lands. For example, the housing counselor certification exam codified at §
214.103(n) does not reflect the unique way that civil rights requirements apply to Tribes and
other Tribal grantees under HUD’s IHBG and ICDBG programs under 24 CFR 1000.12 and
1003.601. While there are exemptions from certain fair housing and civil rights laws and
requirements for tribes and TDHEs when administering specific HUD funds, individuals and
families do have certain civil rights protections and continue to be able to assert fair housing and
nondiscrimination claims, including against other parties that may be involved such as lenders,
or private landlords. Identifying what civil rights protections can be asserted and against whom
they can asserted is a nuanced and fact-based analysis. Given this, HUD plans to develop a
Tribal certification exam that is appropriately tailored and that will ensure that housing

counselors can appropriately counsel families about their rights. HUD appreciates the comment
recommending that it incorporate existing curricula or adopt certifications from the NAIHC,
NeighborWorks, Oweesta, or Pathways Home to satisfy the statutory requirement for a
certification examination that addresses the six core competency areas. While HUD cannot
accept these alternate curricula to fulfill the certification requirements of Dodd-Frank, HUD has
reviewed this material and will use it to inform the development of the HUD examination. The
statute does not allow for these alternative curricula to substitute for an exam created by HUD
and its contractor.
To clarify the understanding of the commenter regarding whether a housing counselor
would need to be certified under § 214.103(n), § 214.600(c), or both exams to be certified to
counsel within IHBG or ICDBG programs, housing counseling provided under or in connection
with IHBG or ICDBG programs must be conducted by a HUD certified counselor who has
passed either the § 214.103(n) examination or the certification examination under § 214.600(c).
The counselor can choose to take one or both exams to meet the certification examination
requirement.
Training Material
Some commenters asked HUD to consider implementing Dodd-Frank-compliant,
culturally relevant training based on existing counseling programs that Tribal housing programs
have used and that would build skills and competency in staff. One commenter pointed out that
Tribes, TDHEs, and Tribal CDFIs have already spent resources on training. Another commenter
asked for organizations that manage Tribally focused counseling training to be updated on
examination and curricula requirements. One commenter asked HUD to include information
about Federal Indian Law in any trainings.
Commenters also requested that HUD increase access to training resources, including
making trainings available to TDHEs immediately, stating that training resources to prepare for
certification are only available to HUD-certified counselors.

HUD Response: HUD agrees with the commenters and will provide access to existing
free study material and free study material that accounts for any tailored exam components that it
develops in collaboration with Tribes, TDHEs, and other Tribal entities, to implement this final
rule. HUD may solicit Tribal input by providing drafts of study materials developed for the exam
prior to public release to consider feedback. The rule also provides a four-year transition period
after the effective date of this final rule or 30 days after HUD makes the Tribal certification
examination available, whichever is later for individual counselors to be certified. HUD will
publish a document in the Federal Register to announce the start of testing and the certification
requirement. HUD will use this time to make these resources available in addition to taking other
steps to ensure that Tribes can meet the certification requirements once they go into effect.
Funding and Resources
Several commenters asked whether funding would be provided for hiring Tribal housing
counselors, especially for small Tribes and TDHEs. One commenter asked whether TDHEs
would be eligible for HUD funding that is currently earmarked for HUD-approved housing
counseling agencies and whether this would lead to an increase in overall program funding.
Commenters requested that HUD make funding available to allow Tribes to hire the necessary
staff, or to give money to Tribes, TDHEs, Tribal entities, or Tribal CDFIs for housing counseling
activities, such as the certification examination. One commenter asked HUD to modify subpart F
of the proposed rule to allow grants to support Tribal housing counselors certified under subpart
F if statutory or regulatory barriers to Tribal eligibility are removed.
Some commenters expressed concerns that HUD’s proposed requirements would put a
strain on Tribal resources. Commenters noted that Tribal governments manage a variety of
programs, and adding additional requirements could add to their administrative burdens. One
commenter pointed out that Tribes, TDHEs, and Native CDFIs have already spent resources on
other similar trainings. Another commenter stated that HUD had understated the impacts of the
proposed rule, both regarding fiscal cost and time and capacity constraints.

Commenters noted the proposed rule could cause hiring and retention challenges for
Tribal entities. One commenter noted that counselor turnover, which is already a challenge in
non-Native American communities, would be a problem for many organizations. This
commenter emphasized the unique human capital challenges faced by small, geographically
dispersed communities. Another commenter noted requiring counselors to be certified at the time
of hiring could cause difficulties in recruiting staff and could limit the Tribal populations’
eligibility for employment. The commenter noted that they currently provide on-the-job training
for employees after they are onboarded and recommended that the proposed rule allow a grace
period of six months for new hires pursuing a counselor position.
Another commenter asked HUD to consider whether the HUD-certified counselor had to
be employed by a HUD-approved housing counseling agency, Tribe, TDHE, or other Tribal
entity, or whether a Tribal entity could be allowed to contract out counseling activities.
Commenters noted many Tribes hire consultants or seek virtual counseling services from other
providers.
Several commenters in the third Tribal consultation expressed concern over a lack of
technical assistance available to those that do choose to join HUD’s Housing Counseling
Program.
HUD Response: HUD does not have appropriated funding or authority under Section
106 to provide Indian Tribes with the direct grant assistance suggested by commenters. HUD
understands, however, that funding is currently available to qualified nonprofit
501(c)organizations and state and local governmental entities including Indian Housing
Authorities considered state or local housing agencies under State law.
HUD also recognizes that costs will be incurred by Tribes, TDHEs, and Tribal
organizations because of the written examination requirement. In the past, HUD presented the
examination in the most cost-efficient way feasible and offered both online 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 disagrees that it understated implementation costs in the proposed rule. HUD
examined and studied the costs related to the development of and preparation for a housing
counselor certification examination in connection with its 2016 final rule implementing
certification requirements for most HUD programs. HUD has drawn from these insights to
implement this final rule in a way that minimizes costs and burden.
To further minimize costs and support implementation of Tribal housing certification,
HUD will provide dedicated staff and training for this new requirement and will host a webpage
for Tribes, TDHEs, and Tribal organizations that includes free study materials, training
curriculum, and other resources to support the transition to this new requirement.
Reporting and Compliance
Commenters noted concerns that the proposed rule would increase reporting and
compliance costs for Tribal entities. One commenter stated that the proposed rule would require
significant additional resources and technical assistance to develop the required infrastructure for
reporting and compliance. Some commenters suggested changes to the proposed rule to mitigate
this increase in cost. A few commenters suggested that there be no penalty for TDHEs that do
not have certified HUD counselors on staff, but rather a TDHE should be able to explain how
they provide counseling services by referral or partnerships. One commenter suggested removing
some of the reporting and compliance aspects of the HUD Housing Counseling Program and
instead embedding reporting and compliance within the established NAHASDA Indian Housing
Plan and Annual Performance Report. The commenter suggested including the Quarterly HUD
9902 form as an attachment to that report and eliminating the HUD 9910 or consolidating it into
monitoring and counseling tracking in existing software if additional funding was provided to
adapt this software.

HUD Response: HUD agrees with commenters that the submission of HUD forms, when
applicable, should be consolidated to reduce existing reporting burdens. However, the final rule
imposes no new reporting burdens because Tribes, TDHEs and other Tribal entities conducting
housing counseling provided under or in connection solely with IHBG and/or ICDBG are not
subject to subparts A through E of 24 CFR part 214, including the requirement to counsel at least
30 clients within a 12-month period. Tribes, TDHEs and other Tribal entities remain subject to
the reporting requirements under IHBG and ICDBG and are exempt from compulsory
participation in HUD’s Housing Counseling Program unless the entities also provide counseling
under or in connection with certain other HUD programs.
Eligibility and Applicability
Commenters proposed changes to the proposed rule’s applicability in § 214.300(a)(8),
which contains counseling service requirements for rental housing programs. Specifically, the
commenters noted that many Tribes and TDHEs have separate rental and homebuyer programs,
or primarily deal with rental housing, so the certification should not apply to tenant services staff
and rental department staff. Commenters noted the proposed rule change applies to IHBG and
ICDBG and recommended that a counselor who is certified as working for a Tribe, TDHE or
other Tribal entity should be able to provide counseling to people outside of these programs. One
commenter requested clarification on whether a counselor that works for a Tribal entity will also
need to work for a HUD-approved housing counseling agency. Another commenter asked how a
TDHE could become a HUD-approved housing counseling agency and whether a TDHE could
partner with a national intermediary without 501(c)(3) status. One commenter in the third Tribal
consultation encouraged HUD to allow Tribes, TDHEs and other Tribal Entities to be deemed
HUD-approved upon partnering with a HUD-approved organization.
HUD Response: For those not participating in HUD’s Housing Counseling Program,
HUD encourages partnerships with other HUD-approved housing counseling agencies, Tribes,
TDHEs, and other Tribal entities (e.g., a HUD-approved Native CDFI) with a certified housing

counselor on staff to improve community access to housing counseling services. HUD
encourages partnerships that best meet the needs of Tribal communities, as determined by those
communities.
This final rule exempts Tribes, TDHEs, and other Tribal entities from compulsory
participation in HUD's Housing Counseling Program unless the entities also provide counseling
under or in connection with other HUD programs (programs other than IHBG and ICDBG). If an
individual working for an Indian tribe, TDHE, or other Tribal entity provides housing counseling
for HUD programs other than ICDBG and IHBG, that individual is required to comply with the
existing housing counselor certification requirement of 24 CFR 214.103(n) (i.e., pass the
examination and work for a HUD-approved housing counseling agency).
Timeline for Implementation
Some commenters expressed concern over how quickly Tribes would have to come into
compliance with the proposed rule. The commenters questioned whether a three-year transition
period, as proposed in the proposed rule, would be enough time to address planning and training
needs. One commenter noted that HUD-approved Housing Counseling Agencies were given four
years to comply with testing requirements and Tribal entities should be given at least the same
amount of time. One commenter stated that a counselor who is already certified should have the
same time frame to take any additional exams that are created out of this proposed rule as
someone who currently holds no certification.
HUD Response: HUD agrees and will provide for an additional 12 months to comply
with Tribal certification requirements, consistent with the time afforded to HUD-approved
housing counseling agencies and counselors complying with the requirements of 24 CFR
214.103(n). The Tribal certification examination is not yet available, but HUD will issue updates
in the Federal Register or other means regarding the Tribal certification exam release date as the
testing development phase progresses and the implementation date nears.
IV. Findings and Certifications

Regulatory Review – Executive Orders 12866, 13563, and 14094
Under E.O. 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. E.O. 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.” E.O. 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. E.O. 14094 (Modernizing Regulatory Review)
amends section 3(f) of E.O. 12866, among other things.
This final rule brings HUD’s IHBG and ICDBG Programs into compliance with
statutory requirements added by Dodd-Frank and required by other HUD programs since
2016. This final rule provides a streamlined compliance option consistent with the
statutory requirement and responsive to Tribal consultation. This rule was determined not
to be a “significant regulatory action” as defined in section 3(f) of Executive Order 12866
as amended by Executive Order 14094 and is not an economically significant regulatory
action and therefore was not subject to OMB review.
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 would not have a significant economic
impact on a substantial number of small entities.
HUD has determined that this rule will not have a significant economic impact on all
entities, including small entities. As discussed in the preamble, this final rule revises the Housing

Counseling Program to require that counselors providing counseling funded under or in
connection with IHBG or ICDBG be certified. Tribes, TDHEs and other Tribal entities
conducting housing counseling provided under or in connection solely with IHBG and/or
ICDBG are not subject to subparts A through E of 24 CFR part 214. By not being subject to
these subparts, these entities avoid the bulk of compliance costs, allowing them to allocate the
savings toward addressing the unique needs of their communities.
Further, the requirement for individual counselors to be certified provides a four-year
transition period after the effective date of this final rule. This four-year period provides ample
notice of the need to be skilled in the required areas. HUD will also provide access to existing
free study material that accounts for any tailored exam components that it develops, reducing
costs associated with training and compliance.
For these reasons, the undersigned certifies that this rule would not have a significant
economic impact on a substantial number of small entities.
Environmental Impact
This 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 rule is categorically excluded from environmental review under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321).
Executive Order 13132, Federalism
E.O. 13132 (entitled “Federalism”) prohibits an agency from publishing any rule that has
federalism implications if the rule either: (1) imposes substantial direct compliance costs on State
and local governments and is not required by statute, or (2) preempts State law, unless the
agency meets the consultation and funding requirements of section 6 of the Order. This rule does

not have federalism implications and would not impose substantial direct compliance costs on
State and local governments nor preempts State law within the meaning of the Order.
Paperwork Reduction Act
The information collection requirements contained in this final 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). 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 valid control number.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) (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 rule does not impose any
Federal mandates on any State, local, or Tribal governments, or on the private sector, within the
meaning of 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 in the preamble, HUD amends 24 CFR parts 214,
1000, and 1003 as follows:

PART 214—HOUSING COUNSELING PROGRAM
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).
2. In § 214.3, add the definitions for “HUD-certified tribal housing counselor” and
“Tribally designated housing entity” in alphabetical order to read as follows:
§ 214.3 Definitions.
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HUD-certified Tribal housing counselor. A housing counselor who has passed the HUD
Certification examination as described in subpart F of this part, 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 subpart F of this part.
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Tribally designated housing entity. See definition at 25 U.S.C. 4103.
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3. Add subpart F to read as follows:
Subpart F – Certification of Tribal Housing Counselors
Sec.
214.600 Tribal housing counselor certification.
214.601 [Reserved]
Subpart F – Certification of Tribal Housing Counselors
§ 214.600 Tribal housing counselor 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 subpart.
(b) Housing counseling required under or provided in connection with IHBG or ICDBG
programs must be provided by a HUD-certified housing counselor or a HUD-certified Tribal
housing counselor.
(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 §

214.103(n), including the standardized written examination required under § 214.103(n)(2), and
the Indian Tribe, TDHE, or other Tribal entity must be a participating agency).
(e) Entities and individuals providing housing counseling under this subpart must be
certified by the Office of Housing Counseling by 48 months from the effective date of this rule
or 30 days after HUD makes the Tribal certification examination available, whichever is later.
HUD will publish a document in the Federal Register to announce the start of the testing and
certification requirement.
§ 214.601 [Reserved]
PART 1000 - NATIVE AMERICAN HOUSING ACTIVITIES
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).
5. Add § 1000.66 to subpart A to read as follows:
§ 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, subpart F.
PART 1003 – COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN
TRIBES AND ALASKA NATIVE VILLAGES
6. The authority citation for part 1003 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 5301 et seq.
7. Add § 1003.609 to subpart G to read as follows:
§ 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, subpart F.


Julia Gordon
Federal Housing Commissioner, Office of the
Assistant Secretary for Housing

[BILLING CODE 4210-67]
[FR Doc. 2024-12777 Filed: 6/11/2024 8:45 am; Publication Date: 6/12/2024]