The Neighbor Project HUD

Counselor Shadowing & Training Manual

Purpose of This Manual

1

Required File Documentation

6

Table of Contents

Role of the HUD Housing Counselor

2

Counselor Note & Time Expectations

7

Quality Control & Compliance Expectations

11

When the HUD Counselor Role Begins

3

Follow-Up & Case Management Expectations

8

Professional Standards & Counselor Conduct

12

Core HUD Counseling Service Lines

4

File Termination Guidelines

9

Counselor Readiness Checklist

13

Standard HUD Counseling Workflow

5

Shadowing Expectations for New Counselors

10

Shadowing Sign-Off Form

14

1.Purpose of this Manual

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This manual guides new and transitioning staff through the HUD Housing Counselor role at TNP.

Its purpose is to ensure that all HUD counseling staff are trained consistently in:


  • The approved scope of housing counseling services 

  • The standard workflow for one-on-one counseling 

  • Required documentation and file management 

  • Counselor responsibilities during client sessions 

  • Expectations for shadowing and case management 

  • Alignment with The Neighbor Project’s approved Housing Counseling Work Plan 

This manual is intended to support:

  • Newly hired HUD counselors 

  • Existing staff transitioning into HUD counseling responsibilities

  • Staff shadowing counseling sessions for training purposes

Important Note:
This manual is intended to cover the HUD counselor role only.
It does not cover intake, front desk workflow, or broader onboarding procedures outside of the formal counselor

2.Role of the HUD Housing Counselor

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HUD Housing Counselors provide client-centered, goal-oriented housing counseling services that promote long-term housing stability and financial readiness. Counselors are responsible for assessment, education, action planning, documentation, and follow-up.


HUD counselors are responsible for helping clients:

  • Understand their housing situation 

  • Identify barriers to housing stability or homeownership 

  • Develop a realistic and personalized Action Plan 

  • Improve budgeting, credit, debt management, and financial readiness 

  • Understand housing options, responsibilities, and risks 

  • Navigate the next steps toward their housing goal 

Counselors are expected to provide services in a way that is:

  • Professional 

  • Nonjudgmental 

  • Accurate 

  • Culturally responsive 

  • Compliant with HUD requirements 

  • Properly documented

3. When the HUD Counselor Role Begins

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The role begin after intake is completed and the client is formally assigned for one-on-one counseling. From that point forward, counselors are responsible for case management through resolution or termination.

Before Counseling Begins

Prior to assignment to a counselor, the following may already be completed by the Program Assistant / Intake Specialist:

  • Online intake or paper intake packet

  • Collection of required documents

  • Review of basic file completeness

  • Scheduling of workshop and/or counseling appointment

  • Delivery of required pre-counseling materials where applicable

Counselor Start Point

The counselor becomes responsible for the file once the client is assigned for one-on-one counseling.

From that point forward, the counselor is responsible for:

  • Reviewing the file

  • Conducting the counseling session

  • Creating and updating the Action Plan

  • Documenting counseling activity

  • Following up with the client

  • Managing the case through completion or termination

Reminder

Intake support and document collection may happen before a counseling session, but the formal HUD counselor workflow begin at the point of assignment and counseling engagement

4. Core HUD Counseling Service Lines

The Neighbor Project currently provides or is expanding to provide the following HUD-aligned counseling services:

A. Pre-Purchase / Homebuying Counseling

Supports clients preparing to purchase a home through education, budgeting, credit review, and mortgage readiness planning.

Typical counseling topics include:

 Budget review

 Credit review

 Mortgage readiness

 Debt-to-income ratio

 Savings preparation

 Loan product education

 Homeownership readiness

 Fair housing and fair lending education

 Closing process education

 Down payment assistance awareness

 Scam prevention

B. Non-Delinquency Post-Purchase Counseling

This service supports current homeowners who are not currently delinquent, but need guidance on maintaining successful homeownership.

Typical counseling topics include:

 Home affordability

 Budgeting for maintenance and repairs

 Home repair or rehab planning

 Avoiding scams or predatory contractors

 Insurance and ownership costs

 Homeownership sustainability

C. Mortgage Delinquency / Default Prevention

This service supports homeowners who are behind on their mortgage or at risk of falling behind.

Typical counseling topics include:

 Home affordability

 Budgeting for maintenance and repairs

 Home repair or rehab planning

 Avoiding scams or predatory contractors

 Insurance and ownership costs

 Homeownership sustainability

D. Rental Counseling

Supports renters or prospective renters seeking stable housing and rental education.

Typical counseling topics include:

 Budgeting for rent and housing costs

 Rental readiness

 Lease understanding

 Tenant rights and responsibilities

 Landlord responsibilities

 Fair housing protections

 Avoiding rental scams

 Rental stability planning

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5. Standard HUD Counseling Workflow

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This section outlines the standard workflow counselors are expected to follow once a client is assigned for one-on-one counseling.

Step 1: Review Assigned File

Before meeting with the client, the counselor should review the assigned file and confirm that the following are available, when applicable:

  • Intake/application packet

  • Contact information

  • Supporting financial documents

  • Relevant housing documents

  • Workshop completion status

  • Any pre-collected disclosures or forms

  • Notes or communications relevant to the counseling session

The counselor should also identify:

  • Missing documents

  • immediate client concerns

  • And the likely purpose of counseling.

Step 2: Conduct Initial Counseling Session

The first one-on-one counseling session is used to understand the client’s housing situation, assess readiness or risk, and begin building a path forward.

During the first session, the counselor should:

 Review the client’s goals

 Clarify current housing concerns

 Review household income and expenses

 Review debt and liabilities

 Review current barriers or immediate needs

 Begin financial analysis

 Discuss realistic next steps

 Answer questions and provide education relevant to the service line

The first session should be focused, practical, and tailored to the client’s actual situation.

Step 3: Complete Financial Analysis

Financial analysis is a required part of the counseling process and should be completed as appropriate to the client’s service type.

Financial analysis may include:

  • Income verification

  • Review of monthly obligations

  • Budget assessment

  • Review of debt load

  • Review of savings habits

  • Identification of affordability issues

  • Housing cost sustainability

  • Financial strengths and barriers

The counselor should help the client understand:

 what is realistic,

 what may need to improve,

 and what next steps are most important.

Step 4: Create the Client Action Plan

An Action Plan must be developed during the counseling process and should be customized to the client’s housing goals and financial situation.

Every Action Plan should include:

 The client’s stated goal(s)

 Barriers or issues that must be addressed

 Steps needed to move forward

 Who is responsible for each step

 A reasonable timeframe for completion

Examples of Action Plan items:

 Pay down collections

 Build emergency savings

 Complete required workshop

 Submit hardship documents

 Contact lender

 Gather updated income verification

 Review lease terms

 Improve debt-to-income ratio

 Schedule follow-up session

Step 5: Provide Required Education & Resources

Counselors are responsible for making sure clients receive education and resources relevant to their service type.

This may include:

 Home inspection materials

 Lead safety information

 Fair housing education

 Scam prevention education

 Budgeting education

 Credit education

 Maintenance or ownership education

 Referral resources

 Program-specific or community-based resources

Where applicable, counselors should reinforce educational topics already introduced in workshops or intake materials.

Step 6: Document the Session

After each session, the counselor must document the counseling activity thoroughly and accurately in the agency’s client management system.

Documentation should reflect:

 What occurred

 What was reviewed

 What guidance was provided

 What next steps were assigned

 What follow-up is needed

If the session included significant review, analysis, or case preparation, documentation should reflect the full scope of work completed.

6.  Required File Documentation

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Each HUD counseling file should be maintained in a complete, accurate, and organized manner.

According to The Neighbor Project Work Plan, individual client file documentation includes the following:

Required File Elements:

 File number

 Date activity occurred

 Start and end time of session

 Name of housing counselor

 Client name, address, and phone number

 FHA case number (if applicable)

 HUD client number (if applicable)

 Client Action Plan

 Screening/interview information

 Financial analysis

 Disclosure / conflict of interest statements

 Alternatives discussed

 Log of activities performed on behalf of the client

 Required data elements entered in system

 Copies of pertinent records and correspondence

 Statement of how the person qualifies as a client

 Follow-up activities

 Termination date and reason for file closure

Counselor Responsibility

Counselors are responsible for making sure their assigned files reflect:

 the actual work performed,

 the progression of the case,

 and a clear path from assignment to resolution or closure.

7. Counselor Note & Time Expectations

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Counselor notes should clearly reflect the work completed on behalf of the client and must be entered in a timely and professional manner.

Each note should include:

 Date of activity

 Start and end time (or total time spent, depending on system setup)

 Purpose of the session or activity

 Summary of counseling provided

 Key client concerns discussed

 Documents reviewed

 Action Plan updates

 Next steps / follow-up needed

General Best Practices

 Write notes objectively and professionally

 Avoid vague statements

 Make sure the note explains the value of the counseling interaction

 Include enough detail that another staff member or reviewer could understand what occurred

 Ensure the documented time reasonably reflects the work completed

Notes should reflect:

 direct client contact,

 case review,

 financial analysis,

 preparation,

 follow-up,

 and related counseling activity as appropriate.

8. Follow-Up & Case Management Expectations

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Housing counseling does not end after the first session. Counselors are expected to make reasonable efforts to follow up with clients and help them continue progressing toward their housing goals.

Follow-Up Expectations

Counselors should:

 monitor progress on Action Plan items

 check in regarding outstanding tasks

 provide continued support and clarification

 help update the Action Plan if circumstances change

 determine whether the client needs continued services or closure

 ensure to send out counseling survey after the 1st session for Homebuying, and last session for FC and Rental Counseling

When a client becomes inactive:

If a client stops responding or loses momentum, counselors should make reasonable attempts to re-engage them.

Per the work plan:

 verbal follow-up should be attempted within the first 60 days of no client contact

 if verbal follow-up is unsuccessful after two attempts, written follow-up should be sent

 the client may be terminated if no continued engagement occurs

9. File Termination Guidelines

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Client files should not remain open indefinitely. Files should be closed when counseling is complete, no longer needed, or no longer appropriate.

A file may be terminated when:

 The client’s issue has been resolved

 The client has met their stated housing goal

 The agency determines further counseling will not meet the client’s need

 The client withdraws from counseling

 The client does not follow the housing counseling plan

 The client loses contact with the agency

At time of termination, counselors should document:

 Final case status

 Reason for closure

 Relevant outcomes achieved

 Any final recommendations or referrals

10. Shadowing Expectations for New Counselors

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Shadowing is intended to help new counselors observe how housing counseling is delivered in practice and how case management is handled in alignment with the work plan.

Purpose of Shadowing

Shadowing allows new counselors to learn:

 how sessions are structured,

 how client needs are assessed,

 how information is explained,

 how Action Plans are developed,

 and how notes and follow-up are handled.

What New Counselors Should Observe During Shadowing

New counselors should focus on observing:

A. Session Flow

 How the counselor opens the conversation

 How rapport is built

 How goals are identified

 How the counselor keeps the session focused

B. Financial Review

 How income and debt are reviewed

 How affordability concerns are explained

 How realistic next steps are identified

C. Education & Guidance

 How the counselor explains housing concepts

 How the counselor adjusts to the client’s understanding level

 How referrals or resources are introduced

D. Action Planning

 How the Action Plan is created

 How priorities are determined

 How counselor/client responsibilities are assigned

E. Documentation

Important Shadowing Reminder

Shadowing should reflect the HUD counselor role only.

Shadowing should not be used to train staff on:

 intake packet collection

 front desk procedures

 scheduling workflow

 general admin processes

 unrelated system tasks outside of the counseling role

Those topics should be covered separately in general onboarding and operations training.

11.  Quality Control & Compliance Expectations

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HUD counselors are expected to maintain files and provide services in a way that supports The Neighbor Project’s quality control standards.

Per the work plan, senior management will:

 Review counselor activity reports monthly

 Monitor counselor workload and pipeline

 Review a percentage of counselor files monthly

 Identify deficiencies

 Supervise corrective action when needed

Counselor responsibility

Counselors are expected to:

 maintain complete and timely files

 respond to feedback and corrections

 follow agency standards consistently

 participate in supervision and review processes

12.  Professional Standards & Counselor Conduct

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All HUD counselors at The Neighbor Project are expected to uphold professional and ethical standards when working with clients.

Counselors should:

 Maintain confidentiality

 Protect sensitive client information

 Avoid conflicts of interest

 Provide accurate, unbiased information

 Respect client choice and autonomy

 Avoid making promises or guarantees

 Communicate professionally and clearly

 Maintain appropriate boundaries

Counselors should also understand that:

 clients may come in overwhelmed, confused, or in crisis,

 and counseling should always remain supportive, structured, and client-centered.

13. Counselor Readiness Checklist

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A new counselor should be considered ready to begin independent counseling once they are able to demonstrate understanding of the following:

Counselor Readiness Checklist

☐ Understands the purpose of HUD housing counseling

☐ Understands when the counselor role begins

☐ Can identify the four main service lines

☐ Understands required file documentation

☐ Can explain the purpose of the Action Plan

☐ Understands session note expectations

☐ Understands follow-up expectations

☐ Understands file termination guidelines

☐ Has reviewed at least one example file

☐ Has shadowed live or recorded counseling sessions

☐ Understands quality control expectations

☐ Understands confidentiality and professional conduct standards

14. Shadowing Sign-Off Form

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HUD Counselor Shadowing Record

New Counselor Name: ______________________________________

Trainer / Counselor Observed: _______________________________

Date of Shadowing: ________________________________________

Service Type Observed:

☐ Pre-Purchase

☐ Rental

☐ Non-Delinquency Post-Purchase

☐ Mortgage Delinquency / Default Prevention

Session Type:

☐ Initial Counseling Session

☐ Follow-Up Session

☐ Action Plan Review

☐ Case Management / Follow-Up

Key Concepts Observed

☐ Session flow

☐ Financial analysis

☐ Client education

☐ Action Plan development

☐ Documentation expectations

☐ Follow-up discussion

New Counselor Reflection / Notes:

Trainer Comments:

Trainer Signature: _________________________ Date: ___________

New Counselor Signature: __________________________ Date: ___________

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