INSIDER's Pop Quiz!

Q: 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. 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)].

The Insider’s July feature explains 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. And, perhaps most important, a well-written resident selection plan can reduce your risk of discrimination lawsuits.

For more information on how to write a resident selection plan, see “Nine Required Topics to Include in Your Resident Selection Plan,” available to subscribers here.