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Cheryl Cassell | HCT Training
1. Providing Housing Counseling and Direct Services for
Homeowners Transitioning from Homeownership to Rental
Housing
2. PROVIDING HOUSING COUNSELING AND DIRECT
SERVICES TO HOMEOWNERS TRANSITIONING TO
RENTAL HOUSING
Cheryl Cassell
Director-Housing Counseling Network
Dr. Jade K. Brightly
Founder- Global Soulutions
April 18, 2012
3. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Presentation Title Here
AGENDA
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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Housing Landscape
National 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
State 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
State 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Housing 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 costs
Source: Harvard Joint Center for Housing Studies
8. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Housing 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Shift 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 challenges
Source: Harvard Joint Center for Housing Studies
10. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Recovery 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Recovery 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Add Presentation Title Here
FAIR HOUSING ACT
The 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 as
other entities, such as municipalities, banks or other lending
institutions
and homeowners insurance companies whose
discriminatory practices make housing unavailable
13. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Add Presentation Title Here
Fair Housing Act
The Act is applicable to:
Race or color
Religion
Sex
National Origin
Familial Status
Disability
14. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Add Presentation Title Here
Fair Housing Act
The Department of Justice can bring a lawsuit:
•In cases involving discrimination in mortgage loans or home
improvement loans,
•May file suit under both the:
•Fair Housing Act and
•The Equal Credit Opportunity Act.
15. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Add Presentation Title Here
Fair 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Fair Housing Act
Ways an individual can file a discrimination complaint:
Department Of Housing and Urban Development (HUD)
Federal Court
State Court
17. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
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Housing 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Discrimination 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
d Presentation Title Here
Discrimination in Housing based upon Sex, including Sexual
Harassment
Humiliation to women who are poor.
Degradation of sexual harassment
Pricing discrimination
20. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Discrimination 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
individual's 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Discrimination in Housing based on Familial Status
The Fair Housing Act, with some exceptions, prohibits discrimination in
housing against families with children under the age of 18.
In addition to prohibiting an outright denial of housing to families with
children, the Act also prevents housing providers from imposing any
special requirements or conditions on tenants with custody of children.
22. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Housing 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Discrimination in housing based on Disability
The Fair Housing Act prohibits discrimination on the basis
of disability in all housing transactions.
Disability Defined-An individual with mental or physical
impairment that substantially limits one or more major life
activity.
24. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Equal Credit Opportunity Act
The ECOA prohibits discrimination in credit on the basis of:
Race
Color
Religion
National Origin
Sex
25. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Here
Equal Credit Opportunity Act
Marital Status
Age (provided the applicant has the capacity to contract)
Because an applicant receives income from a public
assistance program or
Because an applicant has in good faith exercised any right
under the Consumer Credit Protection Act
26. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Equal Credit Opportunity Act
The Department of Justice may file a lawsuit under ECOA
where there is:
A pattern or practice of discrimination
Cases involving discrimination in home mortgage loans or
home improvement loans
Fair Housing Act and Equal Credit Opportunity Act
27. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Other 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Other 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Other 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Other 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Other Federal Regulators
Federal Reserve Board (FRB)-Financial institutions that
are members of the Federal Reserve System, except
national banks and federal branches/agencies of foreign
banks.
Federal Deposit Insurance Corporation (FDIC)-State
chartered banks that are not members of the Federal
Reserve System.
32. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Other Federal Regulators
National Credit Union Association (NCUA)-Federal credit
unions (the words “Federal credit unions” appear in the
institution’s name).
Federal Trade Commission-Retailers, finance companies,
creditors (including most mortgage companies) that are not
assigned to another agency.
33. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Servicemembers 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Landlord/Tenant Rights
Landlord/Tenant Obligations
Responsibilities of the Landlord:
Unit must be in habitable and livable condition
Unit and Complex must be safe
Duty to Make repairs
35. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Landlord/Tenant Obligations
Responsibilities of the Tenant:
Rent
Repairs
Be a Good Neighbor
36. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Landlord Tenant Disputes
Repairs
Eviction
37. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Renter’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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Renter’s Insurance Coverage
Typical Renter’s Coverage
Types of Coverage
39. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Affordability
Client Qualification
Locating the Right Rental
Housing Options
Property Management or Privately Owned
40. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
RENTAL PHASE
Complete Application
Provide a Security Deposit
Review and Sign Lease
41. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
POST RENTAL PHASE
• Review and Sign Lease
• Insurance
• Protect and/or Surveillance the Unit
42. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
THE 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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
services
Source: www.homeownershipstandards.org
Guideline and Code of Ethics Reference Guide
46. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Important 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Important 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Important 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
General 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Record Keeping
HUD requires certain specific record keeping protocol:
Client files must be maintained properly
All agencies are required to use a client management
system (CMS).
Privacy- all client information must be kept strictly
confidential.
File Retention Requirements- client files must be kept a
minimum of 3 years.
Minimum client file requirements are on page 7 of manual.
Source – www.hud.gov- Housing Counseling Handbook
51. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Budget 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Budget 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Income Calculations
Hourly 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Income Calculations
Salaried Employee Formula:
Weekly pay (or bi-weekly, semi-monthly, or monthly pay): $____ x
Number of pay periods remaining in the year: ____ = Subtotal: $ ____
+ Any other income: $_____ + Year-to-date income total: $ ____
Gross annual income: $____/12 = Gross monthly income: $____
55. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Income Calculations
Self-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 the
gross monthly income.
Determine the gross annual income by multiplying by 12.
56. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Savings
A 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Expenses Activity
Check 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Budget
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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Budget 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Determining Affordability
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
61. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Determining Affordability
Maximum Affordable Rent- no momer than 31% of gross
income 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Required Cash
1. Application Fee
2. Security Deposit
3. First/Last Month’s Rent
4. Moving Costs
5. Utilities
63. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Credit Issues
1. Avoid a Credit Check
2. Submit a Letter of Explanation
3. Get a Letter of Recommendation
4. Pay Off Creditors
5. Get a Co-Signer
64. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Credit Issues
6. Pay More Money Up-Front
2. Rent from an Owner
3. Get a Referral from a Current Tenant
4. Sublet a Rental Unit
65. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Action Plan
The counselor completes the action plan after the initial client
interview and all financial information is collected and
discussed.
•The action plan contains the goals of the counseling
process as well as the steps necessary to achieve those
goals.
•Each action plan is unique because it addresses the clients
needs.
•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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Action 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
LEASE 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Before 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
After 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Presentation Title Here
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Transitioning From Homeownership to Rental
Loan Modifications and Foreclosure Alternatives
Making Home Affordable Options
Transition Options
Real Estate-Owned Properties
78. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Transitioning 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Renting 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Buying Versus Renting
After 6 years, the homeowner's payment is
lower than the renter's monthly payment .
With the tax savings of homeownership, the
homeowner's payment is less than the
rental payment after 3 years
81. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Advantages 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Considerations of Buying:
Responsible for maintenance
Responsible for property taxes
Possibility of foreclosure or loss of equity
Less mobility than renting
Advantages of Renting:
Little or no responsibility for maintenance
Easier to move
83. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Considerations of Renting:
No tax benefits
No equity is built up
No control over rent increases
Possibility of eviction
84. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
The Neighborhood Stabilization and real Estate Owned
Properties
The 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
The 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. Providing Housing Counseling And Direct Services To Homeowners
Transitioning To Rental Housing
Real 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. THANK YOU!
To follow up with the speakers:
Cheryl Cassell
Director-Housing Counseling Network
202-383-7702
ccassell@ncrc.org
Dr. Jade K. Brightly
202-756-1838
brightlyjk@globalsoulutions.biz
www.GlobalSoulutions.biz
Presentations will be available at www.ncrc.org/conference
by
April 30, 2012
Notes de l'éditeur
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.