HUD Handbook 7465.1 § 5-7
SELECTING APPLICANTS FROM THE WAITING LIST (HUD Public Housing Occupancy Handbook 7465.1)
HUD guidance — not codified law
In Force
Verified 9/25/2026 · Next check 10/2/2026
effective 9/25/2026FederalPublic HousingOperative Text
HUD Handbook 7465.1 § 5-7
a. POLICY
(1) In filling an actual or expected vacancy, the PHA
must offer the dwelling to an applicant needing
that size and type of unit in that type of
project, with the PHA making the offer in
sequence, until someone accepts it, in the order
of the applicants' priority, based on the PHA's
tenant selection preferences and the date and time
of application.
(2) The PHA must adopt procedures which will limit the
duration of a vacancy due to turnover to the
minimum amount of time necessary.
(3) Each PHA must follow its tenant selection plan,
which has been duly adopted and approved by HUD,
and which describes whether an applicant is
permitted one offer or up to three offers before
dropping to the bottom of the waiting list.
(4) Unless otherwise approved by HUD, the number of
offers an applicant can be given must be according
to one of the following two plans:
(a) A 1 offer plan, (Plan A)
This plan is not based on the distribution of
vacancies in the PHA's projects.
The applicant is offered a suitable unit. If
the applicant refuses it, the applicant's
name goes to the bottom of the waiting list.
(b) A 2-3 offer plan, (Plan B)
This plan is based on the distribution of
vacancies in the PHA's projects.
The PHA determines how many locations within
its jurisdiction have available units of
suitable size and type in the appropriate
type of project. If a suitable unit is
available in:
o 3 or more locations, the applicant must
be offered a suitable unit in the
location with the highest number of
vacancies. If the offer is rejected,
the applicant must be offered a suitable
unit in the location with the second
highest number of vacancies. If that
offer is rejected, the applicant
must be offered a suitable unit in the
location with the third highest number
of vacancies. If that offer is
rejected, the applicant's name must be
put at the bottom of the waiting list.
o 2 locations, the applicant must be
offered a suitable unit in the location
with the higher number of vacancies. If
the offer is rejected, the applicant
must be offered a suitable unit at the
other location. If that offer is
rejected, the applicant's name must be
moved to the bottom of the waiting list.
o 1 location, the applicant must be
offered a suitable unit in that
location. If the offer is rejected, the
applicant must be offered the next
suitable unit that becomes available,
whether it is at the same location as
the first offer or at another location.
If the applicant rejects the second
offer, the applicant's name must be put
at the bottom of the waiting list.
(5) Under any tenant selection plan, the PHA must
maintain a record of the units offered, including
location, date, and circumstances of each offer,
and each rejection or acceptance. The PHA must
note the reason for any rejection.
b. DISCUSSION
(1) Only under a tenant selection plan not based on
the distribution of vacancies is an app7icant
given only one offer before the applicant's name
goes to the bottom of the waiting list.
(2) If a PHA adopts a tenant selection plan that is
based on the distribution of vacancies, the PHA
must offer-an applicant at least two suitable
units before putting the applicant's name on the
bottom of the waiting list. However, the first
offer must be rejected before the second offer can
be made. If there is only one suitable unit
available and the offer is rejected, the applicant
maintains the same position on the waiting list
until another suitable unit is offered.
(3) Since the availability of units of a particular
size and type will usually vary within a PHA, a PHA
which has adopted a plan based on the distribution
of vacancies may have to make three offers to some
applicants but only two offers to others.
(4) A PHA may determine that "the bottom of the
waiting list" means denying the applicant the
benefit of all the PHA's tenant selection
preferences, including any preference based on
income range, for a specific period of time, and
establishing a new date and time of application
based on when the final offer of a suitable unit
was rejected. This would prevent the applicant
from quickly recycling to the top of the waiting
list.
(5) An applicant who asked to be removed from the
waiting list after rejecting all the PHA's offers
could reapply to the same PHA, but could be denied
the benefit of all of that PHA's tenant selection
preferences, including any preference based on
income range, for a specific period of time.
(6) For purposes of this discussion, an applicant
would not be considered to have been offered a
unit if:
(a) the unit is not of the proper size and type
and the applicant would be able to reside
there only temporarily (e.g., a specially
designed unit that is awaiting a handicapped
applicant needing such a unit.)
(b) the unit contains lead-based paint, and
accepting the offer could result in
subjecting the applicant's children under
seven years of age to lead-based paint
poisoning.
(c) the applicant is unable to move at the time
of the offer and presents clear evidence
which substantiates this to the PHA's
satisfaction. Examples:
o a doctor verifies that the applicant has
just underdone major surgery and needs a
period to recuperate;
o a court verifies that the applicant is
serving on a jury which has been
sequestered.
(d) accepting the offer would result in undue
hardship to the applicant not related to
consideration of race, color, national
origin, or language, such as making
employment or day care facilities
inaccessible, and the applicant presents
clear evidence which substantiates this to
the PHA's satisfaction.
(7) A "location" (site) is not always the same as a
project.
(a) A location may have more than one project.
HUD defines a site as any common geographic
area undivided by natural or manmade barriers
(such as rivers, highways, railroads or other
major obstructions) that block or impede
normal pedestrian traffic.
(b) Individual dwelling units in a scattered site
project may be grouped and identified as one
location if they are within a block of each
other.
(8) The "highest number of vacancies" means:
(a) vacancies in units of all sizes and types,
not just the size and type the applicant
needs. For example, if Location A has 5
vacancies, one of which is suitable to the
applicant, and Location B has 3 vacancies,
all of which are suitable to the applicant, a
PHA with a plan that requires the offers to
come from the location with the highest
number of vacancies would have to offer the
applicant the unit in Location A first.
(b) the actual number of vacancies, not the
number of vacancies as a percentage of all
units in that location. For example, if
Location X has 100 units, 15 of which are
vacant, and Location Y has 20 units, 10 of
which are vacant, a PHA which has a tenant
selection plan based on the distribution of
vacancies would have to offer the applicant
the unit in Location X first.
c. HUD RESPONSIBILITY
The Assistant Secretary for Fair Housing and Equal
Opportunity must approve any change in a tenant
selection plan which, in design or effect, is not
racially neutral. This would include approving any
change from a I offer plan to a 2-3 offer plan, or
vice-versa, which is related to complying with Title VI
of the 1964 Civil Rights Act.
d. REFERENCES
Title VI of the Civil Rights Act of 1964
24 CFR 1.4(b)(2)(ii)
24 CFR 960-203Source: Legislative text reproduced verbatim
Effective Timeline
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Sep 25, 2026
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Related Rules
§ 960.101
§ 960.101 Applicability.
§ 960.102
§ 960.102 Definitions.
§ 960.103
§ 960.103 Equal opportunity requirements and protection for victims of domestic violence, dating violence, sexual assault, or stalking.