MassHousing recently modified its Tenant Selection Plan to ensure fair and open access to waiting lists for affordable housing units that are in particularly high demand.
Project-based Section 8 units and other units with deep subsidies are often in the highest demand and generate the longest waiting lists. When demand is very high, property managers may close the waiting list once they have so many applicants that the wait "excessive" (typically a year or more).
When those waiting lists are re-opened to new applicants, they are typically opened on a first-come, first-served basis. Such a process can disfavor disabled applicants. The impact is magnified by short application periods and requirements that applications must be picked up and/or dropped off in person at the management office during business hours. These practices may violate federal fair housing requirements.
MassHousing's new Tenant Selection Plan provides for the following practices when opening closed waiting lists:
- A public notice announcing the reopening of the list, the application deadline and the selection process must be placed in area publications and as otherwise required in the development's Affirmative Fair Housing Marketing Plan.
- Applications must be available at wheelchair-accessible, public locations, including at least one that has night hours (such as a public library).
- Applicants may not be required to appear in person to receive or submit applications.
- Applications must be available online if practicable, and by mail, fax or email upon request.
- An extended application period is required.
- A lottery or other random selection process must be used to order applicants on waiting lists.
These practices are consistent with DHCD guidelines, and with a recent HUD notice clarifying the consistency of these equitable procedures with the occupancy handbook applicable to HUD-financed and HUD-subsidized multifamily developments.
The MassHousing notice sent to multifamily owners and management agents on June 1, 2015 includes a Modification to Tenant Selection Plan form that must be completed by owners and/or managers of existing developments financed by MassHousing. Other multifamily developments receiving project-based section 8 rental subsidy are also encouraged to implement similar changes.
MassHousing will offer a meeting and presentation later this summer to provide more information. Property managers should contact their MassHousing Asset Manager with any questions about the new Tenant Selection Plan or the process for re-opening a waiting list.