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Files on households can take up a lot of space. After a few years, you may be tempted to throw out some of these files, which contain documents relating to former and current households as well as to applicants who were rejected or withdrew their applications. If you're not careful, you might throw out documents that could help you thwart lawsuits or documents HUD needs to look over for management reviews and audits to ensure that you're complying with HUD rules.