When does HUD need to approve a project's Tenant Selection Plan (TSP)?

The requirement for HUD to approve a project’s Tenant Selection Plan (TSP) is particularly relevant when the owner implements a residency or homeless preference. This approval is essential because residency and homeless preferences can significantly impact the demographics and accessibility of housing to certain groups of people. Since these preferences affect how tenants are selected, they must comply with federal guidelines and policies that aim to ensure fair housing.

Approval by HUD in these circumstances helps guarantee that the policies in place do not inadvertently discriminate against any protected classes and align with the intent of federal housing laws, contributing to equitable access to housing opportunities. Therefore, when a project includes such preferences, it is necessary for HUD to review and approve the TSP to ensure compliance.

The other scenarios—adopting waiting list preferences or discretionary preferences—may require adherence to certain regulations but do not necessarily mandate HUD approval in the same way that residency or homeless preferences do. This distinction highlights the particular significance of ensuring that the most impactful tenant selection criteria receive federal oversight to uphold fair housing integrity.