HUD Handbook 4350.3 § 4-16

Creating and Maintaining Waiting Lists (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)

HUD guidance — not codified law
In Force
Verified 9/24/2026 · Next check 10/1/2026
effective 9/24/2026FederalSection 8 HCV

Operative Text

HUD Handbook 4350.3 § 4-16
A.       Key Requirements

                 1.       Receiving and recording the application. Upon receipt of an application
                          for tenancy or assistance, the owner must indicate on the application the
                          date and time received. This may be accomplished by either using a date
                          and time stamp or by writing and initialing the date and time received. The
                          owner must then either process the applicant for admission, place the
                          applicant on the waiting list or, based on a preliminary eligibility
                          determination, reject the applicant. Examples of applicants who might be
                          rejected based upon a preliminary eligibility determination include a 35-
                          year old individual applying for a unit in a Section 202 PRAC property, a
                          household of eight applying to a property with only efficiency and one-
                          bedroom units, and an applicant with income that is $7,000 over the
                          income limit.

                 2.       Preferences. Owners must collect information about the preferences for
                          which the applicant qualifies so that they are able to select applicants
                          from the waiting list in accordance with preferences established for the
                          property. (See paragraph 4-6 for additional information about
                          preferences.)

                 3.       Providing notice. The owner must provide notice of closing of the
                          waiting list.

B.       Opening and Closing the Waiting List

                 Owners should monitor the vacancies in their properties and their waiting lists
                 regularly to ensure that there are enough applicants to fill the vacancies.
                 Furthermore, owners should monitor their waiting list to make sure that they do
                 not become so long that the wait for a unit becomes excessive.

                 1.       Closing waiting lists.

                          a.       The waiting list may be closed for one or more unit sizes when the
                                   average wait is excessive (e.g., one year or more).

                          b.       When the owner closes the list, the owner must advise potential
                                   applicants that the waiting list is closed and refuse to take
                                   additional applications.

                          c.       When the owner decides to no longer accept applications, the
                                   owner must also publish a notice to that effect in a publication
                                   likely to be read by potential applicants. The notice must state the
                                   reasons for the owner’s refusal to accept additional applications.

                 2.       Opening waiting lists.

                          a.       When the owner agrees to accept applications again, the notice of
                                   this action must be announced in a publication likely to be read by
                                   potential applicants in the same manner (if possible, in the same
                                   publications) as the notification that the waiting list was closed.
                                   The notifications should be extensive, and the rules for applying
                                   and the order in which applications will be processed should be
                                   stated.

                          b.       Advertisements should include where and when to apply and
                                   should conform to the advertising and outreach activities
                                   described in the Affirmative Fair Housing Marketing Plan.

        C.       Determining an Applicant’s Preliminary Eligibility

                 1.       Owners should make a preliminary eligibility determination before putting
                          a household on the waiting list.

                          a.       The owner reviews the application to ensure that there are no
                                   obvious factors that would make the applicant ineligible.

                          b.       If a preliminary screening indicates that a family is eligible for
                                   tenancy, but units of appropriate size are not vacant, the owner
                                   must place the family on the waiting list for the property and notify
                                   the family when a suitable unit becomes available. A final
                                   eligibility determination is made at the time the unit is available.
                                   (See discussion of unit size determinations in paragraph 3-23.)

c.       Using this system, the owner avoids performing the eligibility
                                   determination twice before admitting the applicant to the property,
                                   but the result may be that applicants placed on the waiting list may
                                   ultimately be found to be ineligible.

                 2.       *If the preliminary screening indicates that a family is eligible for tenancy
                          but SSNs have not been disclosed and verification of the SSN provided
                          for the applicant and all of the applicant’s household members, the owner
                          must place the family on the waiting list and notify the family when a
                          suitable unit becomes available. However, the applicant must disclose
                          and provide verification of a SSN for all household members before they
                          can be admitted. See Chapter 3, Paragraph 3-9 for more information on
                          disclosing and verifying SSNs.*

                 3.       Alternatively, owners may choose to place applicants on the waiting list
                          after making a more in-depth eligibility determination. If a property’s
                          waiting list is short, this approach can be a good practice to help place
                          applicants quickly when they reach the top of the waiting list. However, if
                          an applicant remains on the waiting list for an extended period of time, the
                          owner will need to complete another full determination once the applicant
                          reaches the top of the list.

                 4.       If an applicant is otherwise eligible for tenancy but no appropriate size unit
                          exists in the property, the owner must reject the application. (See
                          paragraph 4-9 for more information about rejecting applicants.)

                 5.       Applicants who are obviously not eligible for tenancy must be rejected.
                          (See paragraph 4-9.)

        D.       Creating Waiting Lists

                 To ensure that applicants are appropriately and fairly selected for the next
                 available unit, it is essential for owners to maintain waiting lists with appropriate
                 information taken from the application for tenancy.

                 1.       Plan of list maintenance. In order to ensure that all applicants are treated
                          fairly, the tenant selection plan must describe how the waiting list is
                          maintained.

                 2.       Updates of waiting list. Keeping the waiting list as up-to-date as possible
                          will help reduce errors and minimize the administrative resources
                          expended on processing information regarding applicants who are
                          ineligible or no longer interested in residing in the property.

                          a.       Owners may periodically update their waiting lists.

                          b.       Owners may require applicants to contact the property every six
                                   months in order to stay on the waiting lists.

                 3.       Data included on the waiting list. The waiting list must include the
                          following data taken from the application:

a.       Date and time the applicant submitted an application;

                          b.       Name of head of household;

                          c.       Annual income level (used to estimate levels for income-targeting,
                                   i.e., extremely low-income, very low-income, and low-income)
                                   (See discussion of income limits in paragraph 3-6);

                          d.       Identification of the need for an accessible unit, including the need
                                   for accessible features;

                          e.       Preference status; and

                          f.       Unit size.

                          NOTE: See Figure 4-5 for a sample waiting list format.

                 4.       Excluding data from the waiting list. While additional information, such as
                          race/ethnicity, gender, and family size is collected on pre-applications and
                          applications and retained in property files, it is good practice to avoid
                          including these types of data on the property waiting list. This information

                          is not directly relevant to tenant selection and might result in
                          discrimination against some applicants.

                 5.       Applicant presence on multiple waiting lists. An applicant may be on
                          multiple waiting lists (or waiting for more than one unit size). Based upon
                          the application dates and times and qualification for preferences (if used),
                          placement on these multiple lists may vary.

                                 Figure 4-5: Sample Waiting List Format

                                                    Need for   Com- Removed/
                                         Income                              Move-in Preference
           Time of Head of                         Accessible ment/ Rejected
  Date of Applica- House-          Unit   Level                               Date      Type
                                                      Unit    Contact Date
  Applica-                         Size
             tion   hold                ELI VLI LI  Y      N
    tion
            10:30 AM                                                                    Working
                                                                                          family
                          Mary
                                    2    X                 X                           preference;
 12/3/01                  Tate
                                                                                         Elderly
                                                                                       preference
             1:00 PM

                        Hiroshi
                                    2          X    X
 12/4/01                Kihara
Source: Legislative text reproduced verbatim

Effective Timeline

Current
Sep 24, 2026
Click on timeline segments to view historical versions.

References Out

No outbound references recorded yet for this provision.

References In

No inbound references recorded yet for this provision.

Related Rules

§ 888.113
§ 888.113 Fair market rents for existing housing: Methodology.
§ 888.115
§ 888.115 Fair market rents for existing housing: Manner of publication.
§ 5.512
§ 5.512 Verification of eligible immigration status.

Source Information

Snapshot SHA:
Fetched:Sep 24, 2026, 08:34 PM UTC