"Can we shred this?" is a compliance question with real consequences in both directions: destroy too early and you can't defend a review or a lawsuit; keep everything forever and you're hoarding liability. Here's the framework.
The baseline rule
For HUD multifamily programs, tenant files must generally be retained for the term of tenancy plus three years after move-out. Certifications, verifications, leases, and notices all follow this baseline. During tenancy, the file must be complete and current at all times — retention isn't just about after they leave.
The stricter overlays
- EIV records carry their own retention rules — reports and related documentation kept for the required period, then destroyed (EIV data must not be kept longer than allowed, making EIV one of the few categories where over-retention is itself a violation)
- LIHTC properties must retain first-year files for a dramatically longer period — the first year of the credit period files must survive 21 years in most cases; subsequent years follow a 6-year rule
- Applications and rejections need retention long enough to defend fair housing claims — three years is the common standard
- Layered properties follow the longest applicable rule per document type
Destruction is a process, not a dumpster
Files contain SSNs, income data, and medical information. Compliant destruction means shredding or equivalent, documented, with confidentiality maintained through the process — including with third-party shredding vendors.
The audit test
Your retention policy should be written, your destruction should be logged, and you should be able to produce any in-retention file on request. A missing file during a MOR or fair housing investigation is treated as a compliance failure, not a filing accident.
Retention question on a specific document type? 59AI answers instantly with citations — $19.99/month.
FAQ
Do electronic files satisfy retention? Generally yes, when they're complete, legible, secure, and producible — scan quality and backup practices matter.
What about VAWA documentation? VAWA materials carry confidentiality obligations on top of retention — segregated storage and strict access limits apply for as long as you hold them.
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