HUD Certification Process
HUD sponsors housing counseling agencies throughout the country to provide free or low cost advice. In order to be an approved HUD housing counseling agency, the agency must meet certain criteria. Below are a few of the more important criteria:
- Nonprofit Status. The applicant must function as private or public nonprofit organization. The agency must submit evidence of nonprofit status as demonstrated by Section 501 (c) of the Internal Revenue Code.
- Experience. The applicant must have successfully administered a housing counseling program for at least one year.
- Community Base. The applicant must have functioned for at least one year in the geographical area that the applicant proposes to serve.
- Counseling Resources. The applicant must have sufficient resources to implement its proposed counseling plan no later than the date of HUD approval.
After reviewing the qualifying criteria and if the agency is approved they will listed as a HUD approved agency. The approval is good for 2 years and periodic audits are performed by HUD to determine if the agency is still compliant with HUD requirements. Continued approval is based on remaining compliant with the HUD requirements.