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3.2.13 Occupancy Preference

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States

A. Sponsoring nonprofit organizations such as labor unions, professional groups, religious organizations, and fraternal or civic organizations may give preference to their members, provided membership in the organization is open without regard to race, color, national origin, sex, sexual orientation, gender identity, marital status, familial status, age, disability, or religion. However, Sponsors cannot restrict occupancy

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solely to their members. Preferences may also be given to other groups such as veterans, homeless persons, victims of domestic violence, etc.

B. Residency preferences require HUD approval (24 CFR 5.655(c)(1)(iii) and may be used only under conditions specified in the Affirmative Fair Housing Marketing Plan instructions and 24 CFR 5.655(c)(1), so that they may not create a disparate impact in selection against protected classes. In no case may special preference be given to children of current residents since the demographics of housing markets and labor pools change. Similarly, projects (regardless of ownership) may target occupancy to various demographic groups (such as “workforce housing”) so long as there is sufficient and sustainable market and Affirmative Fair Housing Marketing Plans and other management plan exhibits demonstrate the property will not discriminate against any particular race, color, national origin , religion, sex, disability, familial status, sexual orientation and gender identity and age. Additionally, if an owner adopts a preference for working families, an applicant shall be given the benefit of the working family preference if the head and spouse, or sole member, is age 62 or older, or is a person with disabilities. See 24 CFR 5.655 (c)(2).

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