C. Owner-Adopted Preferences

Owners are permitted to establish other preferences for assisted properties as long as they are subordinate to any program-specific preferences discussed in subparagraph B above, and comply with applicable fair housing and civil rights statutes. Some of these owner-adopted preferences require prior HUD approval (as noted below) and some do not. The types of preferences that may be implemented by owners to serve unique groups of needy applicants include:

1. Residency preferences. A residency preference provides applicants who live in a specific geographic area at the time of application a priority over nonresidents.

   • a. Owners must never adopt a residency requirement (meaning the owner will not lease to any applicant who does not live in the defined jurisdiction or municipality).

HUD Occupancy Handbook Chapter 4: Waiting List and Tenant Selection

6/07

4-15

Section 1: Tenant Selection Plan

4350.3 REV-1

• b. A residency preference must be developed, implemented, and executed in accordance with the non-discrimination and equal opportunity requirements listed at 24 CFR 5.105(a).

• c. HUD must approve residency preferences prior to use by the owner. HUD will approve residency preferences only if the preference does not result in discrimination or violate equal opportunity requirements.

• d. When an owner adopts residency preferences, HUD requires that the owner consider the following as residents:

  • (1) Applicants who work in the jurisdiction;

  • (2) Applicants who have been hired to work in the jurisdiction; or

  • (3) Applicants who are expected to live in the jurisdiction as a result of planned employment.

NOTE: “Planned employment” means bona fide offer to work in a municipality.

• e. The owner may treat graduates of, or active participants in, education and training programs located in a residency preference area as residents of the area if the education or training program is designed to prepare individuals for the job market.

• f. For Section 8 properties, an owner’s residency preference must be approved by HUD through a modification to the Affirmative Fair Housing Marketing Plan, in accordance with 24 CFR 108.

• g. Owners may not base a residency preference on the length of time an applicant has lived or worked in the area.

• h. If there are no eligible residents on the waiting list, owners cannot hold units open because of a residency preference. In this situation, owners must admit the next household on the waiting list.

2. Working families. Owners may adopt a preference in selecting families from the waiting list for those families in which the head of household or spouse is employed. Even if the owner adopts such a preference, however, discrimination against persons unable to work is prohibited. Owners must not deny the preference to households in which the head or spouse is 62 or older, or to a person with disabilities.

HUD Occupancy Handbook Chapter 4: Waiting List and Tenant Selection

8/13

4-16

Section 1: Tenant Selection Plan

4350.3 REV-1

3. Disability. Owners may adopt a preference to select families that include a person with a disability. Owners may not create preferences for persons with a specific type of disability unless allowed in the controlling documents for the property. (See Chapter 3, Section 2.) Owners may not apply a preference for persons without disabilities.

4. Victims of Domestic Violence, Dating Violence or Stalking. Owners may adopt a preference for admission of families that include victims of domestic violence, dating violence or stalking.

5. Specific groups of single persons. Owners may adopt a preference for single persons who are elderly, displaced, homeless or persons with disabilities over other single persons.