HUD Handbook 4350.3 § 4-27

A.       Timing for Conducting Screening Reviews

                 All screening activities should occur prior to approval of tenancy. Screening
                 generally occurs at the same time as, or immediately following, the full eligibility
                 review but may occur earlier.

        B.       Screening for Credit History

                 1.       Owners may reject an applicant for a poor credit history, but owners must
                          not reject an applicant for lack of a credit history.

                 2.       There are two primary sources that owners use to determine credit
                          history.

                          a.       Previous landlords. It is good practice to contact the applicant’s
                                   previous landlords to determine if the applicant paid rent on time.

                          b.       Credit report companies. There are a number of private
                                   companies that can provide owners with a credit report on an
                                   applicant. These private companies charge a fee for this service.
                                   Owners may use such services but may not pass on these fees to
                                   the applicant. At an additional cost, some companies can provide
                                   additional information by searching public databases for criminal
                                   records. Owners must be consistent in the use of credit reporting
                                   services.

        C.       Screening for Rental History

                 1.       The most common method for assessing rental history is to ask for
                          comments from the applicant’s current and former landlords. When
                          collecting information from landlords, it is important to collect objective
                          information. Figure 4-7 provides examples of objective questions that are
                          appropriate to ask. It also includes examples of inappropriate or
                          subjective questions that should not be asked.

                 2.       Information that an owner may learn from a landlord that may be grounds
                          for rejecting an applicant includes:

                          a.       Failure to cooperate with recertification procedures;

                          b.       Violations of house rules;

c.       Violations of the lease;

                      Figure 4-7: Questions for Current and Former Landlords

                                          Objective/Acceptable Questions

          Was the tenant ever late with a rent payment? If yes, when and how many times was the
           tenant late?

          Did other lease violations occur? If so, what were they? How frequently did each of the other
           lease violations occur?

          Was the tenant ever cited for disturbing behavior? How often?

          Did the tenant violate house rules? What rules were violated, and how many times did
           violations occur?

          Was the tenant evicted?

                                             Inappropriate Questions

          Did the tenant’s boyfriend/girlfriend visit often?

          Did the tenant make lots of complaints to the owner?

          What is the tenant’s reputation?

d.       History of disruptive behavior;

                          e.       Poor housekeeping practices;

                          f.       Previous evictions for lease violations;

                          g.       Termination of assistance for fraud; or

                          h.       Conviction for the illegal manufacture, distribution, or use of
                                   controlled substances.

                 3.       Owners may want to consider relying more heavily on former landlord
                          references than on current landlord references. A current landlord may
                          be tempted to provide a good reference for a bad tenant so that the
                          tenant will voluntarily leave his/her property. Former landlords do not
                          have this reason to provide misleading information, and, therefore, may
                          provide more accurate references.

D.       Screening for Housekeeping

                 1.       Poor housekeeping habits might be described as those that create an
                          unsafe or unhealthy environment, e.g., an uncontrolled accumulation of
                          trash, which has led to roach infestation or poses a health danger to other
                          residents.

                 2.       If visiting an applicant's current home is part of the owner’s screening
                          practices, the owner must visit the homes of all applicants unless the
                          owner has established a geographic radius within which home visits are
                          made (see paragraph 4-7 E.5).

                 3.       If an applicant is living with someone else, and the housekeeping is out of
                          control of the applicant, the owner must not deny admission to the
                          applicant. The owner should evaluate only the living quarters over which
                          the applicant has control.

        E.       Screening for Drug Abuse and Other Criminal Activity

                 1.       HUD requires that owners develop tenant selection plans that contain
                          prohibitions against the admission of applicants who are engaging or
                          have engaged in drug abuse or criminal activity. The specific
                          requirements for developing the plan are found in paragraph 4-7 C.

                 2.       Owners must require every adult member of an applicant household to
                          sign a consent form allowing all relevant criminal information to be
                          released.

                 3.        Owners are not required to conduct a background check on applicants
                          applying for an unassisted unit or tenants living in an unassisted unit in a
                          project-based property. Owners may conduct background checks on
                          applicants for unassisted units if they wish.

                 4.       In order to meet the screening requirements, owners may need to obtain
                          access to criminal records. Owners may choose from several sources to
                          obtain the screening information:

                          a.       *An owner may use the local Public Housing Authority (PHA) to
                                   conduct the appropriate check of an applicant's criminal conviction
                                   history and to check if the applicant or any members of the
                                   applicant’s household are subject to a State lifetime sex offender
                                   registration and to make the screening determination.*

                          b.       The owner may use alternative sources, including private credit
                                   and screening services, to check available databases storing
                                   criminal history.

                 5.       *If the owner selects a PHA to obtain criminal conviction records, the PHA
                          will use the criminal records and State sex offender registration record(s)
                          received from the law enforcement agency along with the owner’s
                          screening criteria to determine, on behalf of the owner, the suitability of

the applicant for tenancy. If the owner uses the PHA to conduct the
                          criminal background check, procedures to be used include:*

                          a.       Owners may request that the PHA in the jurisdiction of the
                                   property obtain criminal conviction records *and State sex
                                   offender registration record(s)* for screening purposes. The
                                   request must include a copy of the signed consent form(s) and the
                                   project standards for prohibiting admission.

                          b.       The PHA, upon receipt of the owner’s request, will request
                                   criminal conviction records *and State sex offender registration
                                   record(s)* from the law enforcement agency.

                          c.       The law enforcement agency must promptly release a certified
                                   copy of the record. National Crime Information Center (NCIC)
                                   records are provided in accordance with NCIC procedures.

                          d.       The PHA must determine whether criminal action by a household
                                   member, as shown by the conviction records *and State sex
                                   offender registration records*, may be a basis for screening out
                                   the applicant and notify the owner making the request.

                          e.       The PHA may charge the owner a reasonable fee for processing
                                   requests and may also require the owner to reimburse the PHA
                                   fees charged by law enforcement agencies.

                          f.       The PHA is required to maintain the criminal records *and State
                                   sex offender records* in a confidential manner and may not
                                   disclose the contents to the owner.

                          g.       *Owners must retain documentation in the tenant file showing the
                                   date, type and results of the criminal background check, including
                                   the State lifetime sex offender registration check, performed by
                                   the PHA.*

                 6.       The owner may deny admission to an applicant using his/her standard for
                          admission screening if the criminal background check indicates the
                          applicant provided false information. *The owner must deny admission if
                          the State sex offender registration record indicates the applicant provided
                          false information.* If the determination is made by either the PHA or
                          owner to deny admission to the applicant, the entity making the
                          determination must:

                          a.       Notify the applicant of the proposed denial of admission.

                          b.       Provide the subject of the record and the applicant with a copy of
                                   the information the action is based upon.

                          c.       Provide the applicant with an opportunity to dispute the accuracy
                                   and relevance of the information obtained from any law
                                   enforcement agency.

7.       If the owner uses alternative sources to screen for criminal activities, the
                          owner may consider the following when identifying potential information
                          sources:

                          a.       Obtain information from each city, county, and/or state where the
                                   applicant was a resident;

                          b.       Attempt to obtain information that includes an applicant's arrest
                                   record, in addition to the conviction record *and State sex offender
                                   registration record*; and

                          c.       Establish guidelines for "reasonable cause to believe" when
                                   screening for illegal drug use and abuse of alcohol that interferes
                                   with other residents’ health, safety, and right to peaceful
                                   enjoyment of the property.