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Exhibit 3-14: Section 236 With Benefit of Additional Assistance – Special Instructions for Determining Prorated Assistance Payment and Prorated Total Tenant Payment/Tenant Rent for Families Subject to Proration Procedures Regarding the Restriction on Assistance to Noncitizens

4-6 Preferences

HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States

Assigning preferences to applicants who meet certain criteria is a method intended to provide housing opportunities to applicants based upon household circumstances.

  • A. Key Requirements

    1. Applicants with preferences are selected from the waiting list and receive an opportunity for an available unit earlier than those who do not have a preference. Preferences affect only the order of applicants on the waiting list. They do not make anyone eligible who was not otherwise eligible,

HUD Occupancy Handbook Chapter 4: Waiting List and Tenant Selection

6/07

4-12

Section 1: Tenant Selection Plan and they do not change an owner’s right to adopt and enforce tenant screening criteria.

  1. Owners must inform all applicants about available preferences and give all applicants an opportunity to show that they qualify for available preferences.

  2. If a property receives more than one type of subsidy, (e.g., insurance and assistance payments), the preference requirements of each program, if any, are applicable to the property.

Example – Properties That Receive More Than One Type of Subsidy

The owner of a 221(d)(3) BMIR property with Property Disposition Set-Aside must apply the statutory preference for displacement and has the option to apply owner-adopted preferences.

In a 236 property with a Loan Management Set-Aside contract, the owner must apply the HUD regulatory preferences and has the option to apply owner-adopted preferences.

  1. Figure 4-3 below summarizes the preference requirements described in subparagraphs B through D below.
  • B.

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▸Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs

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