HUD Handbook 7465.1 § 4-1

a.      POLICY

            (1)   PHAs must evaluate each applicant to determine
                  whether the applicant would be reasonably expected
                  to have a detrimental effect on the other tenants
                  or on the project environment. The PHA must deny
                  admission to any applicant whose habits and
                  practices may be expected to have a detrimental
                  effect on other tenants or on the project
                  environment.

            (2)   The PHA must make an informed judgment about the
                  applicant's suitability as a tenant and must
                  assure that selection among otherwise eligible
                  applicants is objective and reasonable. This
                  includes:

                  (a)   examining the applicant's history of meeting
                        financial obligations, especially rent.

                  (b)   determining whether the applicant has a
                        history of:

                        o   disturbing the neighbors;

                        o   destroying property;

                        o   living or housekeeping habits which
                            could adversely affect the health,
                            safety, or welfare of other tenants; or

                        o   criminal activity, especially involving
                            violence.

            (3)   The PHA may also deny admission to applicants who:

                  (a)   currently owe rent or other amounts to the PHA
                        in connection with the public housing or
                        Section 8 programs. (But see discussion
                        section, item 6.)

                  (b)   have committed fraud in connection with any
                        Federal housing assistance program.

(4)   PHAs may not require that:

                  (a)   applicants have a minimum income;

                  (b)   applicants work;

                  (c)   applicants participate in a job training
                        program; or that

                  (d)   those who are eligible for various welfare or
                        benefit programs apply for and receive those
                        benefits (although the PHA may encourage them
                        to apply).

            (5)   PHAs must consider only information that is
                  reasonably related to the individual's attributes
                  - not what might be attributed to a particular
                  group or class.

                  (a)   Federal law prohibits discrimination based on
                        race color, creed, religion, national origin,
                        sex, age, or handicap.

                  (b)   The PHA may not exclude applicants because
                        they:

                        o   have children;

                        o   have children born out of wedlock;

                        o   are on welfare; or

                        o   are students.

            (6)   The PHA may not charge the applicant for the costs
                  involved in the evaluation. In particular, the
                  PHA may not charge for processing the application
                  or for doing a credit check.

       b.   DISCUSSION

            (1)   A thorough evaluation of applicants is one of the
                  PHA's most important jobs. It is essential in
                  maintaining well-managed projects.

            (2)   If an evaluation of a particular applicant turns
                  up something detrimental, the PHA may need to do a
                  more complete investigation of that applicant.

(3)   Some acceptable forms of applicant evaluation are:

               (a)   interviewing the applicant;

               (b)   checking with a current or previous landlord;

               (c)   contacting employers;

               (d)   getting information from social workers,
                     police departments, or parole officers;

               (e)   doing a credit check; and

               (f)   making a home visit.

         (4)   A home visit can be especially useful in assessing
               living and housekeeping habits. However, PHAs
               should be sensitive to differences in lifestyles
               and focus on identifying behavior that would pose
               a health hazard or be destructive to property or a
               nuisance to other tenants.

         (5)   PHAs with long waiting lists may prefer to do an
               initial assessment of a family's suitability at
               the time of application, but wait to do a more
               complete evaluation until shortly before
               admission. By doing this the PHA avoids the time
               and expense involved in evaluating applicants who
               will drop from the waiting list before their names
               can be reached. However, in deciding whether to
               delay a thorough evaluation, PHAs should bear in
               mind the applicant's interest in knowing as soon
               as possible whether he or she is likely to be
               admitted.

         (6)   As an alternative to denying admission to an
               applicant who owes the PHA money, the PHA may
               offer the applicant the opportunity to enter into
               an agreement to pay the amount owed. This could
               involve setting up a specific timetable and
               incorporating that timetable into the lease.

         (7)   Lack of a credit history (as opposed to a poor
               credit history) is not sufficient justification to
               reject an applicant.

         (8)   PHAs may deny admission if there is an indication
               that the use of alcohol or drugs would likely
               result in conduct that would adversely affect the
               project environment.

         (9)   PHAs may not deny admission based solely on an
               association between the applicant and a person who
               will not reside in the unit.

(10) PHAs may consider an applicant's arrest record,
                 but should be careful about making a determination
                 based solely on an arrest record if no convictions
                 followed.

            (11) A criminal record should not automatically exclude
                 an applicant from consideration. The PHA should
                 determine whether the person would be a suitable
                 tenant.

            (12) The same standards of tenant suitability that the
                 PHA uses for applicants should be used in
                 evaluating a person who is joining a family
                 already in occupancy. The PHA should determine
                 that the person meets its standards prior to
                 adding the person's name to the family's lease.

       c.   REFERENCES

            24 CFR 960.204, 960.205

            Federal civil rights laws listed in paragraph 1-3(c)