The Trainer

Complying with Change 3, Tenant Selection Plan Requirements

In this issue we discussed the changes to the multifamily occupancy handbook, and discussed how to write an effective tenant selection plan.

Your tenant selection plan should set forth clearly your site's policy of nondiscrimination and equal housing opportunity. It should be clear enough to guide your staff and inform residents, applicants, potential applicants, and program administrators of your pre-occupancy policies. And it must closely follow the requirements in Chapter 4 of Handbook 4350.3.

Complying with Change 3, Tenant Selection Plan Requirements

In this issue we discussed the changes to the multifamily occupancy handbook, and discussed how to write an effective tenant selection plan.

Your tenant selection plan should set forth clearly your site's policy of nondiscrimination and equal housing opportunity. It should be clear enough to guide your staff and inform residents, applicants, potential applicants, and program administrators of your pre-occupancy policies. And it must closely follow the requirements in Chapter 4 of Handbook 4350.3.

A well-written tenant selection plan will give you a first defense against charges that you are acting arbitrarily, illegally, or unfairly.

 

TRAINER'S QUIZ

INSTRUCTIONS: Each of the questions below has only one correct answer. On a separate sheet of paper, write down the number of each question, followed by the answer you have chosen—for example, (1) b, (2) a, and so on. The correct answers (with explanations) follow the quiz. Good luck!

Question #1

HUD does not have to approve your tenant selection plan before it can become effective unless you are seeking to adopt state, local, or residency preferences. True or false?

  1. True.

  2. False.

Question #2

Fill in the blank: HUD __________ that your tenant selection plan address the eligibility of students.

  1. recommends

  2. requires

Question #3

When requested, you must make your tenant selection plan available to the public. True or false?

  1. True.

  2. False.

Question #4

Fill in the blank: HUD minimum rent and income-targeting rules apply __________.

  1. to all HUD project-based sites

  2. only to Section 8-assisted project-based sites

  3. only if I choose to apply them at my site

Question #5

You must use the Department of Homeland Security's Systematic Alien Verification Entitlements (SAVE) system to verify immigration status of all applicants and residents at your site. True or false?

  1. True.

  2. False.

Question #6

When there are gross rent changes, residents always need to sign and date the Form 50059-A. True or false?

  1. True.

  2. False.

Question #7

Fill in the blank: Under normal circumstances, a live-in aide __________ qualify for continued occupancy as a remaining family member.

  1. may

  2. may not

Question #8

Mr. Hayes's brother is probably income-eligible to live in the subsidized site that Mr. Hayes manages. Because his brother is a family member, can Mr. Hayes ignore the site's written tenant selection policies and let his brother have the next unit that opens up?

  1. Yes.

  2. No.

Question #9

Fill in the blank: Reviewing an applicant's credit history is an __________ screening criterion.

  1. acceptable

  2. unacceptable

Question #10

I haven't decided where to get criminal background information or how much it's going to cost. Can I write a tenant selection plan without this section?

  1. Yes.

  2. No.

Question #11

Do I have to put my site's security deposit amount in the tenant selection plan?

  1. Yes.

  2. No.

Question #12

The new Handbook 4350.3 requires all owners to set reasonable house rules covering residents who operate incidental businesses in their units. True or false?

  1. True.

  2. False.

 

ANSWERS & EXPLANATIONS

 

Question #1

Correct answer: a

True. You do not have to send your tenant selection plan to HUD for review and approval in every situation. However, you still have to follow the guidelines in Chapter 4 of Handbook 4350.3.

Question #2

Correct answer: b

To make the Handbook consistent with HUD policy on students, Change 3 includes the statement that the eligibility of students is a required item to include in tenant selection plans.

Question #3

Correct answer: a

True. You must make your tenant selection plan available to the public if someone asks to see it. You must also provide it to auditors and program compliance reviewers, for instance, in Management and Occupancy Reviews.

Question #4

Correct answer: b

Change 3 clarifies that minimum rent and income-targeting rules apply only to Section 8-assisted project-based sites.

Question #5

Correct answer: b

False. You need to get SAVE verification only for applicants and residents who declare they have eligible noncitizen status.

Question #6

Correct answer: b

False. When there is a gross rent change, the resident needs to sign and date the Form 50059-A only if the gross rent change results in a change in her rent or utility reimbursement.

Question #7

Correct answer: b

In Section 3-6.E.3, Change 3 provides more details on determining the eligibility of live-in aides.

Question #8

Correct answer: b

No. HUD does not allow you to make exceptions for family members to live at your site. They must go through the normal application and tenant selection process. Mr. Hayes cannot make an exception for his brother.

Question #9

Correct answer: a

As long as the credit screening criterion is established clearly in the tenant selection plan and is consistently and uniformly applied, it is acceptable. All screening criteria you use must relate to the ability of the applicant to pay rent or meet other requirements of the standard lease. Reviewing credit history is acceptable because it bears on the likelihood a resident will be able to pay the required rent.

Question #10

Correct answer: b

No. HUD requires that you put your criminal background checks and decision-making procedures in your plan. To protect yourself and give your staff a workable tenant selection plan, you need to decide what your criminal background check policies and procedures are, especially how far back you will go and what circumstances you will consider extenuating. You must make these decisions before putting a plan in place. Gaps in and pieces missing from a plan create confusion and invite challenges and lawsuits.

Question #11

Correct answer: b

No. HUD recommends putting your security deposit information in the plan, but you are not required to provide it.

Question #12

Correct answer: b

False. Writing house rules is optional. It is up to you. You can set reasonable house rules to cover incidental businesses, but you do not have to.

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