What is a Tenant Selection Plan?
A Tenant Selection Plan (TSP) is a formal, written document that details the specific policies and procedures a housing provider or Public Housing Authority (PHA) uses to select tenants for housing units.
The Core Purpose
It serves as a transparent guideline to ensure that every applicant is judged by the same criteria, promoting fairness and compliance with the law. A Tenant Selection Plan serves multiple critical functions in the housing selection process. At its foundation, it ensures fairness and equal opportunity by maintaining consistency with federal non-discrimination laws. Every applicant is evaluated using the same criteria, regardless of race, religion, color, national origin, sex, familial status, or disability.
Beyond promoting fairness, a TSP standardizes the entire selection process, from accepting applications to screening tenants and placing them in units. This standardization serves as a landlord’s or PHA’s primary defense against claims of housing discrimination, demonstrating clear adherence to HUD regulations and Fair Housing laws. For state agencies and PHAs, the plan also helps reduce barriers to access by outlining clear, non-prohibitive criteria that create equitable and accessible housing opportunities.
The Role of HUD and Public Housing Authorities (PHAs)
The Tenant Selection Plan is a concept driven by the U.S. Department of Housing and Urban Development (HUD). Understanding the relationship between HUD and local housing authorities is essential to grasping how these plans function in practice. HUD establishes the overarching rules and requirements that all TSPs for federally-funded housing must follow. These comprehensive guidelines are specifically designed to help applicants in need receive assistance through HUD housing funds while ensuring consistency and fairness across all federally-funded housing programs.
How Public Housing Authorities (PHAs) Implement TSPs
PHAs are the local bodies responsible for developing and managing their own TSPs within their jurisdictions. While each PHA creates its own written policies tailored to local needs, these policies must remain consistent with HUD regulations and federal law. PHAs bear full responsibility for maintaining their TSP and following it for all tenant selections, ensuring that local implementation aligns with federal standards.
Key Components of a Tenant Selection Plan Checklist
A comprehensive TSP outlines several critical areas of evaluation that determine applicant eligibility. The following components are essential requirements established by HUD to ensure fair and consistent tenant selection.
1. Income Requirements
Applicants must demonstrate that their annual income does not exceed the income limits set by HUD for their specific geographic area, typically calculated using the Area Median Income (AMI). A significant portion of vacancies, often 40% or more, may be reserved for extremely low-income families, generally defined as those with incomes not exceeding 30% of the AMI. All applicants must submit verifiable proof of all income sources as part of the application process.
2. Tenant Screening Criteria
This component represents a major part of the TSP and details the background checks conducted on all applicants. The screening process must be applied consistently and fairly to avoid disparate impact or discriminatory practices. Key screening areas include:
- Rental and tenancy history, including records of lease violations or evictions
- Background checks, which may include criminal history reviews
- Personal interviews and home visits for all adult applicants (18 years and older)
3. Occupancy Policies
Occupancy policies determine eligibility based on household size and unit type, ensuring appropriate matching between families and available units. The plan establishes specific household size standards, such as setting minimum and maximum occupancy limits for each unit size (for example, a two-bedroom unit may require at least two occupants and allow no more than five).
Under Fair Housing rules, reasonable accommodations must be made for households with members who have physical disabilities. These families may be eligible to apply for larger or more accessible units to meet their specific needs.
4. Project-Specific Requirements and Preferences
A TSP can include preferences for certain applicants to meet the needs of the community or the specific goals of a housing project. Some projects are designed to serve specific populations, such as the elderly or people with disabilities, and the TSP will clearly reflect these target populations and preferences. The plan also considers the unique needs of the local community when allocating units to ensure housing resources align with community priorities.
5. General Application Requirements
Every applicant must meet basic eligibility requirements before being considered for housing. These fundamental requirements ensure proper documentation and legal compliance:
- Proof of identity and legal status, including citizenship or eligible immigration status
- Valid Social Security Number (SSN) for all applicants
- Age verification confirming the primary applicant is of legal age
- Signatures from all household members over 18 years old on the application
Federal Guidelines vs. State-Level Plans
While HUD provides the federal framework for Tenant Selection Plans, individual states or housing finance agencies may have their own specific requirements that build upon HUD’s baseline rules. This layered approach allows states to address unique local housing challenges while maintaining compliance with federal standards.
Example: Minnesota Housing’s TSP Guidelines
Minnesota Housing requires TSPs for projects receiving certain state funding and provides detailed guidance that goes beyond federal minimums. Their guidelines make an important distinction between mandatory requirements that all applicable properties must follow and recommended best practices. These best practices are suggestions aimed at further reducing barriers to housing. While not strictly required, they are strongly encouraged to promote greater housing accessibility and equity.
Conclusion: A Framework for Fair and Lawful Housing
A Tenant Selection Plan is the essential operational document that translates the principles of Fair Housing into a practical, step-by-step process. By clearly defining criteria for income verification, screening procedures, and occupancy standards, a TSP ensures that housing providers operate in full compliance with the law. This structured approach provides equitable access to housing for all eligible applicants while protecting both tenants and housing providers through transparent, consistent policies.
Looking to learn more? Our Fair Housing Specialist Training Course covers the essentials and beyond in an online format.