From what I understand, that is what they do. Source: I was waitlisted 2 years ago and that's what they told me. Personally, I think it's a pretty wishy-washy answer because that is a ridiculous waste of time and resources . They probably have an internal waitlist that they just don't want to divulge.
For those curious, I obviously didn't end up getting off the waitlist. I don't think I ever received an official letter of decline from them. I remember asking during the next cycle of application what I could do to improve my application. Lady I spoke with told me that if it had been her on the committee, she would have admitted me because she didn't see anything glaringly deficient in my application and it was solid. She advised that it often came down to who was on the admission council that year because professors or whoever tend to be subtly biased towards those with similar research interest as them. I ended up applying again and just rewrote a stronger personal statement......and got rejected. So...... ¯\_(ツ)_/¯
I got waitlisted for NPSIA last year and was told the same thing - that they re-evaluate before each round of offers. I gave up expecting an offer of admission around May. I actually didn't end up receiving the official email declining admission until....October...when I had already started my new application.
I have not received an email indicating my status so far this year. My application is on "Recommended for Admission". I emailed Tabbatha today to get time frames. I thought it was odd that first round offers had gone out but no one has received any word on if their application was declined or put on hold. If I remember correctly, I received my email informing me my application was put on hold the same day or the day after the first round of offers went out last year.
I'm planning on applying to do a second degree if it doest work out this year because my main problem is that my grades a very solid until my last year/semester which is what most MA programs look at for admissions since they consider the last 2 years. I had all A/B+, a couple of B's, and one C+ until then. Then brilliant me decided to stay an extra year and take some "GPA boosters" and completely bombed them due to combination of stress from my personal life and just a general burn out.
Anyway, all in all, I'd rather hear back from NPSIA sooner rather than later.