Project Based Section 8 – Tenant Selection Plans

One of the best documents a property owner can have to limit liability, ensure fair and equal treatment of applicants, and communicate compliance to its tenants is a strong Tenant Selection Plan (TSP). While the U.S. Department of Housing and Urban Development (HUD) doesn’t approve TSPs, HUD does require property owners to create (and make public) a compliant one. This is to ensure applicants are selected for occupancy in accordance with HUD guidelines and established management policies. Keep in mind, guidelines change over the years and a TSP must be updated to ensure compliance.

The following is a brief list of the required topics to include in your Tenant Selection Plan. You may also find more detailed information outlined in the HUD Occupancy Handbook, Chapter 4: Waiting List and Tenant Selection.

• Project eligibility requirements – This includes Population Served (e.g. Elderly or Families), Citizenship and Social Security Number requirements. Assisted tenants are required to meet the singular Residence Requirement. Also required is a description of utilizing the Enterprise Income Verification (EIV) system and the use of the EIV Existing Tenant Search.   

• Income limits – An explanation of how the property will meet the 40% income targeting requirements. A property may choose to alternate between the Extremely Low Income and Low Income families on its Waiting List to ensure compliance.

• Accepting Applications and Selecting from the Waiting List – Consists of mandatory and Owner/Agent adopted preferences, screening criteria, and rejection procedures. 

• Occupancy Standards and Unit Transfer Policies – To include the selection of in-place residents and Violence Against Women Act requests, versus applicants from the Waiting List when vacancies occur.

• Disabilities and the Fair Housing Act – A description of policies complying to Section 504 of the Rehabilitation Act of 1973, the Fair Housing Act, and other relevant civil rights laws and statutes.

• Policies for opening and closing the waiting list – Outlined with enough details to include an announcement in at least one publication that is likely to be read by potential applicants.

• Eligibility of students – This requirement has experienced updates in the last year, as HUD recently aligned itself with the Department of Education with respect to the definition of Independent Student.

• Violence Against Women Act (VAWA) – Describe these areas by the required and recommended forms that are used in the implementation/application of VAWA. 

• Streamlining and Retention – Should an Owner/Agent decide to adopt policies for Streamlining Administrative Regulations for Multifamily Housing Programs and Implementing Family Income Reviews under the Fixing Americas Surface Transportation (FAST) Act, they must be outlined. 

If any of the required topics above sound unfamiliar or are not in your TSP, or if you would like a review of your TSP, please contact any member of the APHA Team at 602-771-1000.

Housing Matters | Spring 2019