Leasing License Practice Exam

Is the occupancy standard considered a federal law or a guideline?

1. Federal Law

2. State Law

3. Guideline

4. Local Ordinance

The correct answer is: Guideline

The occupancy standard is best understood as a guideline, rather than a federal law. The Department of Housing and Urban Development (HUD) has established guidelines for occupancy that aim to provide basic health and safety standards, primarily geared towards the prevention of overcrowding in rental properties. These guidelines suggest reasonable limits for the number of occupants that should reside in a dwelling based on the number of bedrooms and the overall square footage of the unit. Occupancy standards are often adopted by local jurisdictions and can vary considerably from one area to another, reflecting local needs and housing conditions. While these standards do serve as widely referenced guidelines to assist landlords and property managers in making occupancy decisions in a reasonable and legal manner, they do not have the force of law in the same way that federal laws do. Federal laws set strict requirements that must be followed, while guidelines like occupancy standards provide recommendations that can be adapted or interpreted at the state or local level. This makes the occupancy standard more flexible and context-dependent, underscoring its characterization as a guideline rather than a binding law.