In these programs, the private owners select the tenants. The tenant’s income eligibility is basically the same as for the upper limit of public housing and tenant-based Section 8. The owner is responsible for developing reasonable selection criteria and may consider housekeeping habits, credit history, demonstrated ability to pay rent, and prior landlord references. Tenant screening criteria must comply with the Fair Housing Act.1 Some federally assisted properties may be designated specifically for seniors or people with disabilities; this designation does not violate the Fair Housing Act if the designation was done properly.
An applicant has the right to respond to a rejection in writing and to request a meeting within 14 days.2 The person holding the meeting cannot have participated in the decision to reject the applicant. The most common reasons for rejection include poor credit history, prior criminal history, or negative rental history.
As with other federally subsidized housing programs, tenants may be entitled to additional protections if they have a disability or have been affected by domestic violence or if the housing provider receives Low-Income Housing Tax Credits.
- 1See generally U.S. Dep’t of Hous. & Urb. Dev., Handbook 4350.3 Chapter 2: Civil Rights and Nondiscrimination Requirements, Occupancy Requirements of Subsidized Multifamily Housing Programs (2013).
- 2 U.S. Dep’t of Hous. & Urb. Dev., Handbook 4350.3 Chapter 4: Waiting List and Tenant Selection, Occupancy Requirements of Subsidized Multifamily Housing Programs, at p. 4-27/28 (2013).