HUD Handbook 7465.1 § 4-4

a.   POLICY

         (1)   When a PHA determines that:

               (a)   the applicant is eligible,

               (b)   the applicant meets the PHA's admission
                     standards, and

               (c)   the PHA has an appropriate size and type of
                     unit in its inventory,

               the PHA must notify the applicant promptly and
               indicate the approximate date that the family
               could be offered a unit to the extent that date
               can be estimated.

         (2)   When a PHA determines that:

               (a)   the applicant is ineligible,

               (b)   the applicant does not meet the PHA's
                     admission standards, or

               (c)   the PHA does not have an appropriate size and
                     type of unit in its inventory, the PHA must
                     notify the applicant promptly and state the
                     basis for the determination. If the
                     applicant requests it, the PHA must provide
                     an informal hearing within a reasonable
                     period of time after the applicant has been
                     notified.

         (3)   The grievance procedures for public housing
               tenants do not apply to PHA determinations
               affecting applicants.

    b.   DISCUSSION

         (1)   Since applicant eligibility and whether the PHA
               has the appropriate size and type of unit in its
               inventory can often be determined quickly while
               applicant evaluation can take some time, a PHA may
               want to have two notifications. The first could
               indicate that the applicant had been tentatively
               approved for admission pending a more complete
               evaluation, the second that the applicant had been
               fully approved. If a two-notification system is
               used, both notifications should indicate the
               approximate date that a unit could be offered.

         (2)   If administratively feasible, PHAs should inform

                  applicants of changes in their status during the
                  waiting period. A PHA must

inform applicants who have been approved for
                  admission if it later decides to reject their
                  application, and must give the reason for the
                  rejection.

            (3)   If the approximate date a unit could be offered
                  cannot be reasonably determined. the PHA should at
                  least advise the family of its relative position
                  on the waiting list (e.g., 16th place among 21
                  families needing a three-bedroom unit).

            (4)   The provision for an informal hearing for
                  unsuccessful applicants is not intended to impose
                  a burdensome-procedure on PHAs. It is simply
                  giving the applicant an opportunity to be heard by
                  a PHA official other than the person who made the
                  determination that the applicant could not be
                  admitted.

            (5)   PHAs should consider providing (but are not
                  required to provide) an informal hearing to
                  applicants who disagree with the position they
                  have been given on the waiting list, the size and
                  type of unit they will be offered, or other
                  factors affecting their application.

       c.   REFERENCES

            U.S. Housing Act of 1937, Section 6(c)(3)

            24 CFR 960.207