THE LEGACY APARTMENTS RESIDENT SELECTION PLAN AND CRITERIA FOR LOW INCOME HOUSING TAX CREDIT UNITS ACC-ASSISTED UNITS Revised 4/21/2008

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1 THE LEGACY APARTMENTS RESIDENT SELECTION PLAN AND CRITERIA FOR LOW INCOME HOUSING TAX CREDIT UNITS ACC-ASSISTED UNITS Revised 4/21/2008 Applicants for admittance to Low Income Housing Tax Credit Units must qualify under the following eligibility factors. All eligibility factors must be met to become a resident. The factors are as follows: THE FOUR ELIGIBILITY CRITERIA 1. INCOME LIMITS are established by HUD and adjusted annually. The household s annual income may not exceed the applicable income limit for this location and for this family size at initial certification. The annual income figure, Item number 17 of the Resident Certification Form is compared to the income limits; Item number 19 of the Resident Certification Form to determine eligibility. 2. ONLY RESIDENCE. The unit must be the family s only residence. 3. SIZE REQUIREMENTS. To be eligible for occupancy, the family size must meet the following guidelines at initial occupancy: Number of Bedrooms Number of Persons Minimum Maximum * 4 *Exception may be made for one person for reasonable accommodation. 4. STUDENT STATUS. Even when a household qualifies under the income limits, a household still may not qualify due to the student status of the residents. When all the residents in the unit (over 18 years of age, head, co-head or spouse) are students, the household does not qualify. There are some exceptions, however, which may allow a household of entirely students to qualify. These exceptions are: Receiving assistance under Title IV of the Social Security Act (AFDC, TANF) Enrolled in a job training program receiving assistance under the Job Training Partnership Act or under other similar Federal, State, or Local laws - 1 -

2 Single parents and their children and such parents and children are not dependents of another individual Married and filing a joint tax return If a tenant no longer qualifies because of student status requirements for the apartment, Tenant agrees to move with a Thirty (30) day notice by Landlord as required under the Low Income Housing Tax Credit Program guidelines. 5. Social Security Cards/Numbers. The applicant must disclose the Social Security numbers of all household members by providing the Social Security Card. If a household member does not have a Social Security number, the applicant must sign a certification to the fact. 6. ACC-Assisted Units - Family must have eligible status with respect to citizenship or non-citizen immigration status as per HUD regulations. 7. All household members must be 62 years of age or over. ELIGIBLE APPLICANTS To be considered an eligible applicant, all eligibility criteria must be met. If all criteria have not been met, the applicant is ineligible and cannot be admitted. PROCESSING STEPS The development is to be rented and occupancy maintained on a first come, first served basis. Applications will be placed on a priority-calling list maintained by the management agent. Before processing the application, an application fee in the amount of $30.00 per adult (18 years of age and over) member of the household must be paid by certified check or money order. This fee will cover the cost of obtaining a credit report and criminal history report. (ACC-Assisted applicants are waived this application fee.) If the applicant is determined to be eligible for an apartment in accordance with the tenant selection criteria, an advance deposit by certified check or money order in the amount of at least Ninety-nine dollars ($99.00) will be required to hold the apartment. If the applicant decides not to enter into a lease agreement within (30) days, the deposit shall be forfeited. When the applicant signs the lease agreement, this deposit will be applied to the first months rent. RESIDENT SCREENING AND REJECTION CRITERIA The Legacy is an equal opportunity housing provider. We fully comply with the Federal Fair Housing Act. We do not discriminate against any person because of race, color, religion, sex, handicap, disability, familial status, or national origin. We also comply with all state and local fair housing laws

3 The resident selection procedure applies to all applicants, including all adults (18 years of age or older) in the applicant s family who are expected to reside in the household. Acceptable screening criteria include demonstrated ability to pay rent, history as a good resident, credit history, and criminal history. Income Applicant s income must be sufficient to support the monthly rental rate plus utilities. Gross income per month should be three times the monthly rental rate. Credit Report Credit reports will be obtained for all adult members of the household. Information shall be requested on the form provided by the area credit bureau. The absence of a credit file shall not adversely affect the applicant. Each applicant s report will be reviewed to determine the history of their payment practices including utilities, outstanding loans, judgements, repossession, foreclosures, etc. The uniform review and objective determination of credit history are not always possible; however, the following specifications will be used as a benchmark in reviewing credit reports: address will be checked with application place of employment will be checked with application credit history to be reviewed Procedure for Evaluating a Credit Report: For credit history, check number and amount of outstanding balances. After checking balances and to whom the applicant owes money, the evaluator will examine the manner of payment and historical status. The person evaluating the report must review the report with some subjectivity, taking into consideration the overall payment record as an indication of the probable expectation regarding rent payments, clarification, and consideration for charge-off accounts and bankruptcy. For the purposes of evaluation, credit history in good standing shall mean that all accounts are paid to date within the time frame established by credit grantors. Any deviation from this norm will be further reviewed and given proper consideration as to salary, debt constraints, and employment longevity. No prior landlord, property owner, or mortgagee nonpayment or other rental lease violation; No prior landlord, property owner, or mortgagee nonpayment or other rental lease violation; No history or pattern of substantial past due consumer debts within the last 18 months with balances older than six months; In the case of an applicant for admission to an Other LIHTC Unit (other than an applicant who will be assisted under the Project-Based Voucher Program), taking into account other financial obligations and subject to Section 2.5.g.2.(D) below, - 3 -

4 the monthly income of the applicant must not be less than 2.5 times the monthly rent amount, supported by verifiable income that has been in place for ninety days and expected to continue over the subsequent twelve months. Extraordinary events such as layoffs, job loss, divorce, and illness can cause credit problems. Credit files that reflect such problems will be considered if, at the time of application, there are no past due balances, and the applicant has re-established an as agreed credit history during the past twelve months. Occasionally there are credit disputes that affect credit history. When the dispute has been resolved and the credit record reflects such correction, we will review the history and make a determination. Criminal History In the interest of the safety and welfare of all residents, Management will conduct a criminal history check on all adult members (age 18 and older) of the applicant s family. All such persons will be required to sign appropriate consent forms to obtain the information. Consideration will be given to the facts of each person s criminal history, with the following guidelines applied consistently: Home Visit No record of conviction for manufacturing drugs within the last ten years; No record of conviction for distributing drugs within the last five years; No record of conviction for drug possession within last eighteen months; No record of a felony conviction for the last ten years for a crime against a person; No record of a felony conviction for the last ten years for a crime against property, or for concealed weapons possession; No record of conviction for murder, attempted murder, rape or attempted rape. Arrests If an applicant or member of an applicant s family has been arrested for a crime but has not yet been tried, the application will be suspended in its current position on the waiting list, pending the outcome of the legal proceedings. The application will be reconsidered, with the above guidelines applied, after such legal proceedings have been concluded. Satisfactory home visit to applicant's current home by representative of Agent. Home will be inspected, after notice of at least 48 hours, for cleanliness and evidence of acceptable living standard and personal conduct using a standard form for all visits included herein as Attachment 1. If the home visit is not possible because applicant lives outside the recognized metropolitan area, personal references will be checked in lieu of the home visit

5 Landlord Report References from present and previous landlords for a minimum of three (3) years prior to application will be obtained. An applicant may be rejected if this report documents failure to make rental payments or making habitually late payments, poor housekeeping habits or responsibility for disturbing the safety, security, and right to peaceful enjoyment of other residents. The absence of a landlord reference shall not adversely affect the applicant. Mitigating Circumstances In all instances where unfavorable information would cause an applicant family to fail to meet the screening criteria set forth above, best efforts will be made to obtain mitigating information from all available sources. Sources of information may include, but are not limited to, the applicant (by means of interview), landlord, employers, family social workers, parole officers, court records, drug treatment centers, clinics, physicians or police departments where warranted by particular circumstances and as allowable by law. Consideration will be given to the time, nature, and extent of the applicant's conduct (including any reasonable explanation therefore) and to factors which might indicate a reasonable probability of favorable future conduct or financial prospects. Mitigating factors to be considered include the following: (A) Negative credit information can be mitigated through third party verification, including but not limited to a creditor, of each item that (i) there has been a payment plan and a three month timely payment history on such plan; or (ii) the applicant has disputed such debt and can provide verification of such dispute. (B) Record of unsuitable rental history or behavior can be mitigated if applicant can show evidence of credit restoration or participation in a HUD certified credit counseling program. If the evidence relates to a change in medical condition, the Agent shall have the right to request further information or refer such information to persons qualified to evaluate such evidence. (C) Evidence of completion of rehabilitation or verification of current rehabilitation to mitigate history of one or more family members with drug or alcohol abuse. (D) In the case of an applicant for admission to an Other LIHTC Unit who will not be assisted under the Project-Based Voucher Program, income having less than the minimum ratio to rent prescribed by Section 2.5g.1(a)(iv) can be mitigated through third party verification of timely rent payment history of rent in an amount not less than the expected rent amount in the Property

6 3. Selection. The Agent will select for admission to any Unit in the Property, each applicant approved by the Agent under the foregoing screening criteria, after consideration of mitigating circumstances if necessary, subject to unit availability, in accordance with the applicable waiting list order and to final verification of income and other eligibility requirements described above. 4. Ineligibility An applicant shall be deemed ineligible for admission to a unit if (i) the applicant fails to meet applicable income or eligibility criteria, or (ii) the Agent determines that the applicant fails to meet the screening criteria set forth above, after consideration of mitigating circumstances. The Agent will promptly notify an ineligible applicant in writing of their ineligibility, stating the reason therefore and advising the applicant of his or her right to request a meeting, within fourteen (14) days, with a representative of the Agent other than the individual who made the initial determination. If the applicant requests such a meeting, the Agent will provide the applicant a final decision, in writing, within five (5) days following the applicant's meeting with the Agent. Signature Date Signature Date By signing I certify that I have read or been read to and understand the application criteria

Clocktower Lofts Rental Selection Criteria

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