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As you work with families and individuals who apply to live at your site, you may give preference to certain categories of applicants. HUD says that it's okay to establish preferences, as long as you follow certain rules. HUD views the process of assigning preferences to applicants who meet certain criteria as a means of providing housing opportunities based on household circumstances. For example, you may give an admissions preference to “working households” or to households that reside within the municipality where your site is located.