HUD Handbook 4350.3 § 4-17

A.       An owner must not skip over a family that has reached the top of the list and has
                 indicated a need for certain unit accommodations because of a disability. If
                 separate waiting lists are used for persons with disabilities, they must also be
                 placed on the general waiting list and given the option of the next available unit if
                 they come to the top of the list.

        B.       The family must be given the opportunity to benefit from the program and decide
                 for itself, in compliance with Section 504, whether a unit meets the needs of the
                 family, based on size, location, or facilities. This means that the owner must
                 notify the household whenever any unit becomes available, without regard to unit
                 accessibility.

        C.       The applicant may decide to accept a standard unit, particularly when units
                 meeting the household’s needs are in short supply. The family may accept the
                 unit and request some modification to the unit as a reasonable accommodation.
                 (See further discussion of Section 504 requirements in Chapter 2, Section 3,
                 Subsections 4 and 5.)

        D.       Families who have a member who needs the accessibility feature of the unit take
                 priority to occupy accessible units over families with no disabled family members.

                 NOTE: See paragraph 2-32 for additional information on assigning accessible
                 units.