The Trainer — July 2014

June 16, 2014

Writing a Resident Selection Plan

In this month’s feature, we told you what to put in the written resident selection plan that HUD requires your site to have. Your plan must comply with HUD’s eligibility, admission, and screening requirements. If HUD becomes aware that your plan fails to comply with these requirements, the owner will have to modify the plan accordingly. A well-written plan, on the other hand, will help convince HUD that you’re managing the site effectively.

Writing a Resident Selection Plan

In this month’s feature, we told you what to put in the written resident selection plan that HUD requires your site to have. Your plan must comply with HUD’s eligibility, admission, and screening requirements. If HUD becomes aware that your plan fails to comply with these requirements, the owner will have to modify the plan accordingly. A well-written plan, on the other hand, will help convince HUD that you’re managing the site effectively.

In addition, the plan can help you train staff and streamline the selection process. But perhaps most important, a well-written resident selection plan can reduce your risk of discrimination lawsuits.

QUESTION #1

In its section on eligibility requirements, your resident selection plan must specify the income limits that apply to your site—that is, the actual dollar income levels for each household size. True or false?

a. True.

b. False.

QUESTION #2

Although not one of the mandatory criteria you must use to screen applicants, HUD encourages owners to require applicants to undergo a physical exam. True or false?

a.   True.

b.   False.

QUESTION #3

Your resident selection plan must describe the circumstances under which you may reject an applicant for occupancy or assistance. But HUD allows the owner to establish a policy to consider extenuating circumstances. True or false?

a.   True.

b.   False.

QUESTION #4

All HUD-assisted sites’ resident selection plans must describe the protections available under the Violence Against Women Act (VAWA). True or false?

a.   True.

b.   False.

QUESTION #5

You don’t need HUD’s approval before adding any state or local preferences to your resident selection plan. True or false?

a.   True.

b.   False.

QUESTION #6

You don’t have to use HUD’s occupancy standards—you may set your own occupancy standards in your resident selection plan. True or false?

a.   True.

b.   False.

QUESTION #7

HUD says that your resident selection plan should state that you will allow households to transfer units only when there’s a change in household size or composition, or when the household needs an accessible unit. True or false?

a.   True.

b.   False.

 

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ANSWERS & EXPLANATIONS

QUESTION #1

Correct answer: b

False. While you must specify the income limits that apply to your site—that is, low, very low, and extremely low income—you don’t have to give the actual dollar income levels for each household size. But HUD says you must at least specify the applicable limits as a percentage of area median income (for example, for an applicant household to qualify as very low income, its annual income may not exceed 50 percent of area median income adjusted for household size) [HUD Handbook 4350.3, par. 4-4 (C)(2)].

QUESTION #2

Correct answer: b

False. While HUD permits owners to add screening criteria to their resident selection plans other than those HUD mandates, the Handbook includes a list of criteria you should consider using—and a list of criteria you can’t use—and you can’t require an applicant to undergo a physical exam [Handbook 4350.3, pars. 4-7 and 4-8].

QUESTION #3

Correct answer: a

True. The owner may establish a policy to consider extenuating circumstances in cases when applicants would normally be rejected but have circumstances that indicate the family might be an acceptable future tenant. Such a policy must be described in the resident selection plan [HUD Handbook 4350.3, par. 4-4 (C)(3)(e)].

QUESTION #4

Correct answer: b

False. Only sites participating in the Section 8 program must describe VAWA protections in their resident selection plans.

QUESTION #5

Correct answer: b

False. HUD says you must apply any state and local preferences to your applicant selection process, but you must get HUD approval first. Check with your attorney or local HUD office to see whether any state or local preferences apply to your site. If so, include them in your resident selection plan after getting HUD’s approval [HUD Handbook 4350.3, par. 4-4 (C)(3)(b)].

QUESTION #6

True. HUD says it’s up to you to define your own occupancy standards. Your resident selection plan should specify the occupancy standards for determining appropriate unit size (for example, no fewer than two and no more than five people in a two-bedroom), and the procedures to place families on the waiting lists for more than one unit size. You can get more information about developing these standards in paragraph 3-23 of the Handbook.

QUESTION #7

Correct answer: b

False. HUD says your resident selection plan should include the procedures for granting existing residents’ requests to transfer to another unit for any of the following reasons:

  • Changes in household size or composition;
  • Need for a deeper subsidy (Rent Supplement, RAP, or Section 8 assistance) covered by another unit;
  • Medical reason certified by a doctor; or
  • Need for an accessible unit [HUD Handbook 4350.3, par. 4-4(C)(5)].

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