Providing Housing Counseling and Direct Services forHomeowners Transitioning from Homeownership to RentalHousing
PROVIDING HOUSING COUNSELING AND DIRECTSERVICES TO HOMEOWNERS TRANSITIONING TORENTAL HOUSING          Cheryl Cassell      ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingPresentation Title HereAGENDA...
Providing Housing Counseling And Direct Services To Homeowners Transitioning To Rental HousingHousing LandscapeNational Fi...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingState Findings Working house...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingState Findings 2008 and 2009...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingHousing Affordability Trends...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingHousing Affordability Trends...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingShift in Demand for Homeowner...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRecovery of Rental Demand Th...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRecovery of Rental Demand Th...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdd Presentation Title HereFA...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdd Presentation Title HereFa...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdd Presentation Title HereFa...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdd Presentation Title HereFa...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingFair Housing ActWays an indiv...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housingdd Presentation Title HereHou...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDiscrimination in housing bas...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housingd Presentation Title HereDisc...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDiscrimination in Housing bas...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDiscrimination in Housing bas...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingHousing Discrimination based ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDiscrimination in housing bas...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingEqual Credit Opportunity ActT...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingHereEqual Credit Opportunity ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingEqual Credit Opportunity ActT...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal Regulators Oth...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal Regulators The...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal Regulators Con...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal Regulators Off...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal RegulatorsFede...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal RegulatorsNati...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingServicemembers Civil Relief A...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingLandlord/Tenant RightsLandlor...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingLandlord/Tenant ObligationsRe...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingLandlord Tenant Disputes Rep...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRenter’s Insurance Landlord ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRenter’s Insurance Coverage ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Affordability Client Quali...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRENTAL PHASE Complete Applic...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingPOST RENTAL PHASE• Review and...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingTHE RENTAL COUNSELING PROCESS...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing   Perform intake   Conduct...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Intake - gather baseline in...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Develop a household budget...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingImportant Traits of a Rental ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingImportant Traits of a Rental ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingImportant Traits of a Rental ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingGeneral Intake Action –How to...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRecord KeepingHUD requires ce...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBudget Analysis One of the m...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBudget Analysis Typical docu...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingIncome CalculationsHourly Emp...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingIncome CalculationsSalaried E...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingIncome CalculationsSelf-Emplo...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingSavingsA good rule of thumb –...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingExpenses ActivityCheck the bo...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBudget Budgets help to creat...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBudget Activity Assume your ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDetermining AffordabilityFact...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDetermining AffordabilityMaxi...
Providing Housing Counseling And Direct Services To Homeowners Transitioning To Rental HousingRequired Cash1. Application ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingCredit Issues1. Avoid a Credi...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingCredit Issues6. Pay More Mone...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAction PlanThe counselor comp...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAction Plan Template:• Discus...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingLEASE AGREEMENTS A lease is ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing The landlord agrees to prov...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing When you apply to rent a ho...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing When you apply to rent a ho...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBefore Signing A Lease Revie...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAfter Signing A Lease The la...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing   Breaking A Lease     Your...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing   Homeownership Benefits    ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing   Monthly Expenses     Rent...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingPresentation Title HereTransi...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingTransitioning From Homeowners...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingTransitioning from Homeowners...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRenting Versus Owning  The r...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBuying Versus Renting After ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdvantages of Buying         ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingConsiderations of Buying:  R...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingConsiderations of Renting:   ...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingThe Neighborhood Stabilizatio...
Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingThe Neighborhood Stabilizatio...
Providing Housing Counseling And Direct Services To Homeowners Transitioning To Rental HousingReal Estate Owned (REO) Prop...
THANK YOU!To follow up with the speakers:Cheryl CassellDirector-Housing Counseling Network202-383-7702ccassell@ncrc.orgDr....
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Cheryl Cassell | HCT Training

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  • The Housing and Civil Enforcement department works to protect some of the most fundamental rights of individuals, including the right to access housing free from discrimination, the right to access credit on an equal basis, the right to patronize places of business that provide public accommodations and the right to practice one’s faith free from discrimination. Today we sill focus on the Housing and Civil Enforcement authority to enforce The Fair Housing Act and The Equal Credit Opportunity Act
  • Criminal Proceedings-where force or threat of force is used to deny or interfere with fair housing rights
  • Individuals who believe that they have been victims of an illegal housing practice. DOJ brings suits on behalf of individuals based on referrals from HUD.
  • Congress passed the Fair Housing Act in 1968 to prohibit race discrimination in sales and rental of housing. Now more than 30 years later race discrimination continues to be a problem. Oftentimes housing providers try to disguise discrimination DOJ seeks to uncover this kind of hidden discrimination and hold those responsible accountable.
  • Less overt action include zoning ordinances
  • Women who are poor with limited housing options often have little recourse but to tolerate the humiliation and degradation of sexual harassment or risk having their families and themselves removed from their homes. The Department’s enforcement program is aimed at landlords who create an untenable living environment by demanding sexual favors from tenants or by creating a sexually hostile environment for them. The Department has also seen pricing discrimination in mortgage lending may adversely affect women, particularly minority women.
  • Census data indicate the Hispanic population is the fastest growing segment of our nation’s population. DOJ has sued lenders under both FHA and ECOA when they imposed more stringent underwriting standards on home loans or made loans less favorable terms for Hispanic borrowers.
  • For example, landlords may not locate families with children in any single portion of a complex, place an unreasonable restriction on the total number of persons who may reside in a dwelling, or limit their access to recreational services provided to other tenants
  • Mental or Physical impairment, blindness, hearing impairment, mobility impairment, HIV infection, mental retardation, alcoholics, drug addition, chronic fatigue, learning disability, head injury, mental illness Major Life activity-seeing, hearing, walking, breathing, performing manual task, caring for ones self. Learning, speaking or working
  • The department can file under both FHA and ECOA. Individuals who believe that they have been the victims of any unfair credit transaction involving residential property may file a complaint with HUD or file their own lawsuit.
  • It covers issues such as rental agreements, security deposits, prepaid rent, eviction, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosure, civil judicial proceedings, automobile leases, life insurance, health insurance and income tax payments.
  • Cheryl Cassell | HCT Training

    1. 1. Providing Housing Counseling and Direct Services forHomeowners Transitioning from Homeownership to RentalHousing
    2. 2. PROVIDING HOUSING COUNSELING AND DIRECTSERVICES TO HOMEOWNERS TRANSITIONING TORENTAL HOUSING Cheryl Cassell Director-Housing Counseling Network Dr. Jade K. Brightly Founder- Global SoulutionsApril 18, 2012
    3. 3. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingPresentation Title HereAGENDA Housing Landscape Fair Housing Act Landlord Tenant Rights Rental Process Important Documents Transitioning from Homeownership to Rental Renting versus Owning Neighborhood Stabilization and Real Estate Owned Properties
    4. 4. Providing Housing Counseling And Direct Services To Homeowners Transitioning To Rental HousingHousing LandscapeNational Findings  The United States grew by 0.5 million households from 2008 to 2009.  Renter households grew (+0.9 million).  The number of homeowners fell (-0.4 million).  According to Fannie Mae, renters believe that buying a home is a safe investment while 75% of renters still agree that owning a home makes more financial sense than renting. Source: National Realtors Association
    5. 5. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingState Findings Working households, with a severe housing cost burden, increased significantly in 25 states across the nation while no states significantly decreased. 2009, housing cost represented a severe burden for at least one in 10 households in every state in the US and exceeded 30% in a handful. Housing cost burdens worsened significantly in four states Oklahoma, Missouri, Minnesota, and Indiana.Source: National Realtors Association
    6. 6. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingState Findings 2008 and 2009, Arizona, California, Florida, New Jersey, and New York share of cost-burdened working households exceeded the national average and experienced a statistically significant increase. The share of working households with a severe housing cost burden in Florida and California (33 percent) is nearly three times the rate observed in North Dakota and Iowa (12 percent). The share of working households with a severe housing cost burden in Florida and California (33 percent) is nearly three times the rate observed in North Dakota and Iowa (12 percent).Source: National Realtors Association
    7. 7. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingHousing Affordability Trends Higher income earners are experiencing affordability problems. Earners between $45,000 and $60,000 pay more than 30% their incomes on housing 46.2 million households spends 50% on housing costsSource: Harvard Joint Center for Housing Studies
    8. 8. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingHousing Affordability Trends 25% of working renters have housing cost burden. Housing affordability has worsened for renters than for owners. Four out of five working households, with extremely low incomes, had a severe housing cost burden in 2009.Source: Harvard Joint Center for Housing Studies
    9. 9. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingShift in Demand for Homeownership In 2008, homeownership rates decreased from 66.6% to 65.9% due to:  Foreclosure crises  High unemployment  Government downsizing  Tight lending standards  Stringent credit challengesSource: Harvard Joint Center for Housing Studies
    10. 10. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRecovery of Rental Demand The number of owner households fell by 201,000 annually. Two trends underlie this shift:  The rising number of renters who have deferred home buying, and  the rising number of owners who have switched back to renting.Source: Harvard Joint Center for Housing Studies
    11. 11. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRecovery of Rental Demand The Housing Vacancy Survey indicates that the number of renters swelled by 3.9 million from 2004 to 2010. The rental market has gained strength over the past year. By 2020, minorities are expected to make up a third of all U.S. households. Hispanics alone will contrib-ute nearly 40% of the increase.Source: Harvard Joint Center for Housing Studies
    12. 12. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdd Presentation Title HereFAIR HOUSING ACTThe Fair Housing Act, 42 U.S.C. 3601 et seq.,Prohibits discrimination by direct providers of housing,Such as landlords and real estate companies as well asother entities, such as municipalities, banks or other lendinginstitutionsand homeowners insurance companies whosediscriminatory practices make housing unavailable
    13. 13. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdd Presentation Title HereFair Housing Act The Act is applicable to: Race or color Religion Sex National Origin Familial Status Disability
    14. 14. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdd Presentation Title HereFair Housing ActThe Department of Justice can bring a lawsuit:•In cases involving discrimination in mortgage loans or homeimprovement loans,•May file suit under both the:•Fair Housing Act and•The Equal Credit Opportunity Act.
    15. 15. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdd Presentation Title HereFair Housing Act• Under the Fair Housing Act, the Department of Justice may bring lawsuits:• where there is reason to believe that a person or• entity is engaged in a "pattern or practice" of discrimination or• where a denial of rights to a group of persons raises an issue of general public importance.
    16. 16. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingFair Housing ActWays an individual can file a discrimination complaint:Department Of Housing and Urban Development (HUD)Federal CourtState Court
    17. 17. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housingdd Presentation Title HereHousing Discrimination Based on Color• The majority of DOJ’s pattern or practice cases involve claims of race discrimination.• False information about availability of housing.• Steering home seekers to certain areas based on race.• Fair Housing Testing Program• Most mortgage lending cases brought by Department of Justice are under Fair Housing Act and Equal Credit Opportunity Act (which will be discussed later) have alleged discrimination based on race or color.
    18. 18. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDiscrimination in housing based on Religion Overt discrimination against members of a particular region. Zoning ordinance designed to limit use of private homes as a place of worship. The number of cases filed in 1968 alleging religious discrimination is small in comparison to other prohibited bases, such as race or national origin.
    19. 19. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housingd Presentation Title HereDiscrimination in Housing based upon Sex, including SexualHarassment Humiliation to women who are poor. Degradation of sexual harassment Pricing discrimination
    20. 20. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDiscrimination in Housing based on National Origin The Fair Housing Act prohibits discrimination based upon national origin. Such discrimination can be based either upon the country of an individuals birth or where his or her ancestors originated. The Justice Department has taken enforcement action against municipal governments that have tried to reduce or limit the number of Hispanic families that may live in their communities. The Department has also sued lenders for discrimination against Native Americans.
    21. 21. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDiscrimination in Housing based on Familial StatusThe Fair Housing Act, with some exceptions, prohibits discrimination inhousing against families with children under the age of 18.In addition to prohibiting an outright denial of housing to families withchildren, the Act also prevents housing providers from imposing anyspecial requirements or conditions on tenants with custody of children.
    22. 22. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingHousing Discrimination based on Familial Status In most instances, the amended Fair Housing Act prohibits a housing provider from refusing to rent or sell to families with children. However, some facilities may be designated as Housing for Older Persons (55 years of age). This type of housing, which meets the standards set forth in the Housing for Older Persons Act of 1995, may operate as "senior" housing. The Department of Housing and Urban Development (HUD) has published regulations and additional guidance detailing these statutory requirements.
    23. 23. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDiscrimination in housing based on DisabilityThe Fair Housing Act prohibits discrimination on the basisof disability in all housing transactions.Disability Defined-An individual with mental or physicalimpairment that substantially limits one or more major lifeactivity.
    24. 24. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingEqual Credit Opportunity ActThe ECOA prohibits discrimination in credit on the basis of:RaceColorReligionNational OriginSex
    25. 25. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingHereEqual Credit Opportunity ActMarital StatusAge (provided the applicant has the capacity to contract)Because an applicant receives income from a publicassistance program orBecause an applicant has in good faith exercised any rightunder the Consumer Credit Protection Act
    26. 26. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingEqual Credit Opportunity ActThe Department of Justice may file a lawsuit under ECOAwhere there is:A pattern or practice of discriminationCases involving discrimination in home mortgage loans orhome improvement loansFair Housing Act and Equal Credit Opportunity Act
    27. 27. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal Regulators Other federal agencies have general regulatory authority over certain types of lenders. The regulators monitor creditors for their compliance with ECOA. Referrals are made when there is a reason to believe that a creditor is engaged in a pattern or practice of discrimination with violates ECOA.
    28. 28. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal Regulators The Consumer Financial Protection Bureau has issued regulations under ECOA. These regulations, known as Regulation B, provide the substantive and procedural framework for fair lending. The agencies and the types of creditors that they regulate for purposes of compliance with ECOA are as follows:
    29. 29. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal Regulators Consumer Financial Protection Bureau (CFPB): Banks, savings associations, and credit unions with total assets of over $10 billion and their affiliates. Also shares enforcement authority with the Federal Trade Commission over mortgage brokers, mortgage originators, mortgage servicers, lenders offering private educational loans, and payday lenders regardless of size.
    30. 30. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal Regulators Office of Thrift Supervision (OTS)-Savings associations and federally chartered savings bank (the word “Federal” or the initials “F.S.B.” appear in the federal institution’s name. Comptroller of Currency (OCC)-National banks and federal branches/agencies of foreign banks (the word “National” or the initials “N.A.” appear in or after the bank’s name).
    31. 31. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal RegulatorsFederal Reserve Board (FRB)-Financial institutions thatare members of the Federal Reserve System, exceptnational banks and federal branches/agencies of foreignbanks.Federal Deposit Insurance Corporation (FDIC)-Statechartered banks that are not members of the FederalReserve System.
    32. 32. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingOther Federal RegulatorsNational Credit Union Association (NCUA)-Federal creditunions (the words “Federal credit unions” appear in theinstitution’s name).Federal Trade Commission-Retailers, finance companies,creditors (including most mortgage companies) that are notassigned to another agency.
    33. 33. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingServicemembers Civil Relief Act SCRA provides for the temporary suspension of judicial and administrative proceedings and civil protections in areas such as housing, credit and taxes for military personnel while they are on active duty. The Servicemembers Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act (SSCRA), is a federal law that provides protections for military members as they enter active duty.
    34. 34. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingLandlord/Tenant RightsLandlord/Tenant ObligationsResponsibilities of the Landlord:Unit must be in habitable and livable conditionUnit and Complex must be safeDuty to Make repairs
    35. 35. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingLandlord/Tenant ObligationsResponsibilities of the Tenant:RentRepairsBe a Good Neighbor
    36. 36. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingLandlord Tenant Disputes Repairs Eviction
    37. 37. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRenter’s Insurance Landlord insurance only covers their personal liability and the premises and common areas, as well as the physical building. It is important to note that the landlord’s insurance does not cover tenant property, nor does it cover tenant’s liability to people injured in their home. Rental insurance is highly encouraged. The monthly cost is low (around $10). Provides good coverage in the event of a fire, robbery, or other mishap. Some rental units even require residents to purchase renter’s insurance.
    38. 38. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRenter’s Insurance Coverage Typical Renter’s Coverage Types of Coverage
    39. 39. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Affordability Client Qualification Locating the Right Rental Housing Options Property Management or Privately Owned
    40. 40. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRENTAL PHASE Complete Application Provide a Security Deposit Review and Sign Lease
    41. 41. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingPOST RENTAL PHASE• Review and Sign Lease• Insurance• Protect and/or Surveillance the Unit
    42. 42. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingTHE RENTAL COUNSELING PROCESS Provide rental counselors with comprehensive guidance and counseling services to clients seeking to move into a rental unit. GOAL – To assist clients with moving into a comfortable, affordable rental home.
    43. 43. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Perform intake Conduct needs analysis Create an action plan Discuss income and expenses Develop a budget and spending plan Affordability Review credit report Rental housing options; how to locate right unit Conduct a rental unit needs-versus-wants analysis Discuss the post-rental phase, including lease and move Make necessary referrals
    44. 44. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Intake - gather baseline information from client Conduct accurate needs assessment Document the household income and expenses Determine household debt level Review clients credit report Identify credit challenges Determine and document household savings
    45. 45. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Develop a household budget Analyze budget and recommend modification Conduct affordability analysis based on income and debt Develop a written action plan with follow up Make referrals for additional services Provide client information on delinquency/foreclosure servicesSource: www.homeownershipstandards.orgGuideline and Code of Ethics Reference Guide
    46. 46. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingImportant Traits of a Rental Housing Counselor Educate – Provide a complete picture of the rental housing landscape and thorughly discuss each step in the rental process. Inform - Set appropriate expectations when guiding the rental home search. Listen – Be open to hearing what the clients truly want/need and make sure the clients know they are being heard.
    47. 47. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingImportant Traits of a Rental Housing Counselor Be Empathetic – Clients, transitioning from one home to another, may be undergoing serious life changes. Be sensitive and work to establish trust. Support – Be a source of secure informaiton and guidance, backing up clients’ decisions as much as possible. Provide Options – Let clients make decisions for themselves in order to encourage a more sustainable housing situaiton and greater security. Analyze – Determine the needs of each individual client and help to match these needs with the best housing options.
    48. 48. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingImportant Traits of a Rental Housing Counselor Make Recommendations- Use your professional expertise to recommend the best options for your client. Collaborate - Work in partnership with the client to arrive at outcomes and make decisions. Work with other agencies to provide referrals and other assistance the client may need. Be Available – Rental counseling can be complicated and lengthy. A counselor needs to provide support through the entire rental process.
    49. 49. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingGeneral Intake Action –How to Conduct an Intake Session:  1. Counselor gives an overview of the rental process  2. Counselor gathers information regarding the client’s current situation  Financial Information  Housing situation  Credit information  3. A physical file must be created for the above information and it must be entered into a client management system.
    50. 50. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRecord KeepingHUD requires certain specific record keeping protocol:Client files must be maintained properlyAll agencies are required to use a client managementsystem (CMS).Privacy- all client information must be kept strictlyconfidential.File Retention Requirements- client files must be kept aminimum of 3 years.Minimum client file requirements are on page 7 of manual.Source – www.hud.gov- Housing Counseling Handbook
    51. 51. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBudget Analysis One of the most important considerations when choosing a rental unit is based on a clients income and expenses. Selecting a rental unit that is affordable in the long-term encourages greater security and housing sustainability. To conduct an accurate analysis, the client should be able to accurately present past, present, and future earnings. Landlords want to have valid documentation to determine if the tenant can pay the rent each month. The budget analysis helps to secure the desired rental.
    52. 52. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBudget Analysis Typical documentation needed to calculate income are:  Past 2 years of tax returns  Past 2 years of W-2’s  3 months of consecutive, current paystubs.
    53. 53. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingIncome CalculationsHourly Employee Formula:Year-to-date income: $___/Number of pay periods to date____ =Average income pay period: $___ x Number of pay periods per year:___=Subtotal $___ + any other income: $___ =Gross annual income: $___/12 = Gross monthly income: $___
    54. 54. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingIncome CalculationsSalaried Employee Formula:Weekly pay (or bi-weekly, semi-monthly, or monthly pay): $____ xNumber of pay periods remaining in the year: ____ = Subtotal: $ ____+ Any other income: $_____ + Year-to-date income total: $ ____Gross annual income: $____/12 = Gross monthly income: $____
    55. 55. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingIncome CalculationsSelf-Employed Formula:From IRS Schedule C, Line 31: $____+ From IRS Schedule C, Part II, Line 12 (Depletion): $ ___+ From IRS Schedule C, Part II, Line 13 (Depletion): $ ___Total: ____/ Total months business operation for the year: $ ___ =Average monthly income per year: $____Complete the above formula for multiple years and then average thegross monthly income.Determine the gross annual income by multiplying by 12.
    56. 56. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingSavingsA good rule of thumb –Put at least 10% of net income into a savings account.This builds a cash reserve and will earn interest.A cash reserve can also be used for emergencies.There are various types of savings accounts:Traditional Savings AccountOnline Savings AccountMoney Market AccountCeertificate of Deposit (CD)Home Savings
    57. 57. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingExpenses ActivityCheck the box indicating if an expense is fixed or flexible Fixed Flexible  vacation  student loans  school supplies  utilities  health insurance  car payment  haircut  clothing  credit card payment
    58. 58. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBudget Budgets help to create realistic spending and savings goals. Budgets allow clients to see where money is going. Budgets encourag the forming of new spending habits to create a secure financial life. Clients must decide on a method to track their income and expenses. (www.mint.com is a free money management site) Clients should select a method which is most comfortable .  Notebook receipts binder  Worksheets  Quicken software  Online
    59. 59. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBudget Activity Assume your client has the income and expenses listed in the budge below. Where would you propose the client cut expenses to make their budge more affordable? Make these changes in the chart below. Scenario-  Mary works at the US Post Office and earns $45,000  Her husband, Joe works as an independent contractor  His average grossly monthly income is $3,200  Their child attends daycare  They have credit card debt/minimum payment of $75/month  Additional expenses listed Where would you recommend the client make changes?
    60. 60. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDetermining AffordabilityFactors to consider:Prospective buyersNumber of childrenOccupations  Husband - Mechanic at a car dealership for 7 years  Wife – full time teacher’s aid  Combined Gross Monthly Income  Savings  Debts
    61. 61. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingDetermining AffordabilityMaximum Affordable Rent- no momer than 31% of grossincome should go toward rent.Factors to consider:Prospective buyersNumber of childrenOccupations  Husband - Mechanic at a car dealership for 7 years  Wife – full time teacher’s aid  Combined Gross Monthly Income  Savings  Debts
    62. 62. Providing Housing Counseling And Direct Services To Homeowners Transitioning To Rental HousingRequired Cash1. Application Fee2. Security Deposit3. First/Last Month’s Rent4. Moving Costs5. Utilities
    63. 63. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingCredit Issues1. Avoid a Credit Check2. Submit a Letter of Explanation3. Get a Letter of Recommendation4. Pay Off Creditors5. Get a Co-Signer
    64. 64. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingCredit Issues6. Pay More Money Up-Front2. Rent from an Owner3. Get a Referral from a Current Tenant4. Sublet a Rental Unit
    65. 65. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAction PlanThe counselor completes the action plan after the initial clientinterview and all financial information is collected anddiscussed.•The action plan contains the goals of the counselingprocess as well as the steps necessary to achieve thosegoals.•Each action plan is unique because it addresses the clientsneeds.•HUD requires a copy of the action be included in the file.•A copy of the action plan must be provided to the client.
    66. 66. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAction Plan Template:• Discuss and list major obstacles to obtaining rental housing.• Determine and list the best strategies for addressing the obstacles.• Give the client specific actions to take before the next meeting or before proceeding with the next step in the rental process.• List the ultimate outcome of the rental counseling.• Have the client sign and date the action plan after discussing all items.
    67. 67. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingLEASE AGREEMENTS A lease is a legally-binding document between a landlord and a tenant. It is important that tenants read the lease carefully and understand all terms before they sign. Leases can occassionally be "oral" or unwritten but usually in writing. Oral leases are harder to prove. It’s best to get the lease in writing. Along these same lines, sometimes at the signing of the lease, the landlord will make oral promises or ask the tenant to agree to something. These should also be written onto the lease and initialed. This will help to discourage disputes later.
    68. 68. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing The landlord agrees to provide a clean, sanitary, vacant apartment and to make repairs. You agree to pay the rent, keep your apartment or house clean, undamaged, and follow the rules of your lease.
    69. 69. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing When you apply to rent a house or apartment, you apply to qualify for a lease. The landlord requires you to fill out an application form and pay an application fee before you sign the lease. The application requests information on:  employment history  credit references and  often becomes part of the lease.
    70. 70. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing When you apply to rent a house or apartment, you apply to qualify for a lease. The landlord requires you to fill out an application form and pay an application fee before you sign the lease. The application requests information on: employment history credit references and often becomes part of the lease.
    71. 71. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBefore Signing A Lease Review the lease. Get help for explanations. Make sure the terms of the security deposit are clearly spelled out. Get all promises for repairs in writing. Initial changes to lease. Ask your landlord to sign his or her initials next to each change.
    72. 72. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAfter Signing A Lease The landlord must give you an exact, legible, and signed copy of the lease and application within 7 days. Always keep your lease, application, and other documents concerning your apartment or house in a safe place.
    73. 73. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Breaking A Lease  Your lease is a binding contract .  Breaking the lease is a breach of contract and you could be penalized.  There are exceptions:  Natural disaster  Crime  Military duty  Suffered health problems
    74. 74. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Homeownership Benefits  Renting can be about the same or less as paying a mortgage.  Home ownership offers tax benefits.  Tax benefits offer savings.
    75. 75. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental Housing Monthly Expenses  Rental company’s cover certain housing expenses.  Homeowners pay housing expenses:  Property Taxes and Special Assessments  Home/Hazard Insurance  Utilities  Maintenance  Home Owner Association (HOA) Fee  Membership Fee
    76. 76. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingPresentation Title HereTransitioning from Rental to Homeownership Transitioning from homeownership to renting can be extremely difficult. Housing counselors are essential in assisting homeowners who become delinquent on their mortgage and are facing foreclosure. Housing counselors can assist a homeowner explore all options. The earlier in the process that a homeowner works with a housing counselor, the more options and potential outcomes are available.
    77. 77. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingTransitioning From Homeownership to Rental Loan Modifications and Foreclosure Alternatives Making Home Affordable Options Transition Options Real Estate-Owned Properties
    78. 78. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingTransitioning from Homeownership to Rental Deficiency Judgment Tax Implications of Short Sales, Deeds-in-Lieu and Foreclosures Credit Implications of Short Sales, Deeds-in-Lieu and Foreclosures Helping Clients Rebuild Credit after a Transition
    79. 79. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingRenting Versus Owning  The renter starts out paying $800 per month with annual increases of 5%.  The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000.
    80. 80. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingBuying Versus Renting After 6 years, the homeowners payment is lower than the renters monthly payment . With the tax savings of homeownership, the homeowners payment is less than the rental payment after 3 years
    81. 81. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingAdvantages of Buying  Property builds equity.  Sense of community, community, stability and security.  Free to change landscaping and décor.  Not dependent on landlord to maintain property.
    82. 82. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingConsiderations of Buying:  Responsible for maintenance  Responsible for property taxes  Possibility of foreclosure or loss of equity  Less mobility than rentingAdvantages of Renting:  Little or no responsibility for maintenance  Easier to move
    83. 83. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingConsiderations of Renting:  No tax benefits  No equity is built up  No control over rent increases  Possibility of eviction
    84. 84. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingThe Neighborhood Stabilization and real Estate OwnedPropertiesThe Neighborhood Stabilization Program (NSP)  Provides grants to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.  The NSP program is authorized under Title III of the Housing and Economic Recovery Act of 2008. Source: www.hud.gov
    85. 85. Providing Housing Counseling And Direct Services To HomeownersTransitioning To Rental HousingThe Neighborhood Stabilization Program (NSP)  The REO Portal supports more efficient disposition of REO properties to support the stabilization of neighborhoods and recovery of local housing markets by enabling a neighborhood-focused, strategic approach to acquisition. Source: www.hud.gov
    86. 86. Providing Housing Counseling And Direct Services To Homeowners Transitioning To Rental HousingReal Estate Owned (REO) Properties These foreclosed homes collectively account for nearly half of all real estate- owned or REO properties in the U.S. HUD’s REO gives a comprehensive view of housing opportunities. The REO listing includes properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA).Source: www.hud.gov
    87. 87. THANK YOU!To follow up with the speakers:Cheryl CassellDirector-Housing Counseling Network202-383-7702ccassell@ncrc.orgDr. Jade K. Brightly202-756-1838brightlyjk@globalsoulutions.bizwww.GlobalSoulutions.bizPresentations will be available at www.ncrc.org/conferencebyApril 30, 2012

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