Can an owner refuse to process an interim reexamination if the resident is paying market rent?

The correct answer highlights the owner's obligation to process an interim reexamination regardless of whether the resident is paying market rent or not. In multifamily housing and particularly in subsidized housing programs, residents have the right to request an interim reexamination due to changes in their financial circumstances. This requirement ensures that residents' rental amounts accurately reflect their current financial situation, thus maintaining fairness and compliance with housing regulations.

When an interim reexamination is requested, it provides an opportunity for the owner or property management to reassess the resident's eligibility for housing assistance or determine if adjustments to rent are necessary. This process is in place to support residents who may be experiencing fluctuations in income, ensuring they are not overburdened by their rental payments.

The other potential choices did not correctly acknowledge the legal obligations tied to the reexamination process. Therefore, the essential understanding here is that regardless of the payment status, owners are mandated to process interim reexaminations to uphold residents' rights and regulatory standards.