RINCON GARDENS TENANT SELECTION CRITERIA

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1 Rincon Gardens is a 200 unit apartment community located at 400 W. Rincon Avenue in Campbell. The property is under the Low Income Housing Tax Credit program with an overlay funding of Project Based Section 8 Voucher assistance. The property is managed by The John Stewart Company, is a third party Property Management company under contract with Rincon Gardens Associates in the capacity of management agent. The John Stewart Company does business in accordance with Fair Housing Amendment Acts (FHAA). The company does not discriminate against applicants or residents on the basis of race, color, creed, religion, sexual orientation, gender identity, national origin, age, familial status, disability or socioeconomic class. To ensure that all prospective residents are provided an equal opportunity to reside at Rincon Gardens all applicants undergo an evaluation process to meet our tenant selection criteria that includes a credit/eviction report, background criminal check, and five (5) years acceptable landlord references. Applicants must also meet established occupancy standards, and have income that does not exceed the applicable maximum area income limits. Age Requirement: Rincon Gardens is a property intended to provide housing for seniors. All new residents must meet the minimum age requirement of 55 years. Individuals that do not meet these criteria will not be eligible. OWNERSHIP INFORMATION: On September 16, 2008 ownership of Rincon Gardens was transferred from the Housing Authority of the County of Santa Clara to Rincon Garden Associates, L.P., a California Limited Partnership. Concurrent with that transfer of ownership Rincon Gardens is no longer a part of HUD s low income conventional public housing program, but instead is under the regulations of the Internal Revenue Service Code Section 42 Low Income Housing Tax Credit Program. Residents receive Project Based Vouchers through the Housing Authority of the County of Santa Clara. SECTION I: APPLYING FOR AN APARTMENT Applicants are referred from the Project Based Voucher wait list, managed by the Housing Programs Department (HPD) of the Housing Authority of the County of Santa Clara. All applicants from the Project Based Voucher Wait List must be age 55 years and older. If no applicant is in the unit 30 days after HPD has been informed of the vacancy, then the property management company may fill the unit with an applicant from the site based wait list. Establishing, opening and maintaining a site based wait list is subject to approval by the Housing Authority and requires submission of an affirmative marketing plan. Rental Application: Rental Applications must be completed in its entirety to be considered, including, a copy of a government issued picture identification for each By LMC -RESD Page 1 of 11

2 applicant and a copy of the Social Security card or ITIN for each applicant, and any other documents that may be required by the program. 1. What is Collected with Rental Application when being processed for Vacancy: Applicants pay $30 for each adult applicant in a form of only a money order or cashier s check. This fee is only collected when being processed for a current vacancy. Sign and date authorization to Release Information form for each applicant. Provide Three (3) current consecutive months worth of pay stubs for each applicant employed. Social Security award letter or any other source of income verification. Provide most current bank statement for each bank account for each applicant. And any other documents that may be required by the program. 2. Waiting List: Applicants are currently being referred from the Project Based Voucher wait list, managed by the Housing Programs Department of the Housing Authority of the County of Santa Clara. All applicants must be age 55 years and older. In the event that the property has a an approved site based waitlist, these applicants may be processed if no HPD referral has been approved by the property management company 30 days after HPD is informed of the vacancy. Eligibility will be assessed based on the information provided during the initial outreach of the waiting list as well as on the information provided on the rental application. When a unit becomes vacant it will be filled by the Project Based waiting list as mentioned above in the following manner: Upon notification of an impending vacancy, the Housing Programs Department staff will run a query of the next 150 eligible applicants on their Project-Based Voucher waiting list and refer the applicants to the onsite Community Manager. Please see age requirement mentioned above. In instances where the vacant unit is an accessible wheelchair modified unit, disabled residents requiring the modified unit features will be given preference, following the same age requirements and program restrictions. The on-site Community Manager will inform the individuals referred by the Housing Programs Department who are interested in renting at Rincon Gardens and will be processed by date and time stamped on the application. The Community Manager will process the first three (3) applicants for every one vacancy. Applicants will be given seven (7) calendar days to respond from the date Community Manager contacts applicant. Those By LMC -RESD Page 2 of 11

3 who do not respond within the seven (7) calendar days will be removed from the waiting list. Applicants will be given two opportunities to decline being processed for an apartment. By the third time the applicant is contacted, applicant must accept and apply for the apartment. If the applicant declines on the third time the applicant will be removed from the waiting list. If the on-site Community Manager has no qualified applicants after 30 days from the applicants referred by the Housing Authority, The John Stewart Company will have the right to self refer and select applicants using other marketing outreach methods. However, same restrictions and program requirements will be followed as described above. The on-site Community Manager will process applicant s information by using the tenant selection criteria described herein. 5. Transfer List: Apartment transfers are only approved when a household s size changes and they no longer meet the occupancy standards; either under or over housed, or under a reasonable accommodation to accommodate resident s disability. Persons with disabilities who require a modified apartment will be given preference for the modified apartment when it becomes available. All apartment transfers must be approved by the Regional Property Manager. SECTION II: : 1. Credit and Unlawful Detainer Action Reports: A credit and an Unlawful Detainer Action report will be requested on all adults listed on the application. A hard copy of the report will be requested and kept with the application on file. A copy of the credit and Unlawful Detainer Action report will be made available to the applicant upon request. The lack of credit history will not be a basis for denial. The Credit report will be obtained through National Tenant Network. An unsatisfactory credit history will disqualify an applicant from renting an apartment at Rincon Gardens. An unsatisfactory credit history is one that reflects past or current bad debts, late payments or unpaid bills, liens, judgments or bankruptcies (within the last 7 years). If an applicant is rejected for poor credit history, the applicant will be given the name, address and telephone number of the credit reporting agency that provided the credit information, as required by the FCRA. Rincon Garden s criteria are as follows: National Tenant Network will take into consideration several variables to determine an applicant s willingness and ability to pay their rent. The National By LMC -RESD Page 3 of 11

4 Tenant Network has been specifically developed to assess credit worthiness of applicants. Below are a few examples of the variables National Tenant Network will take into consideration. A combination of all the variables is what determines a satisfactory credit history and ability to make payments on debts. Income to Rent Ratio - measures the ability to handle rent payments (set per property). Income to Payment Ratio - measures the ability to handle indebtedness and ability to pay average monthly bills. Number of Recent Credit Inquires - measures desire for new credit & potential over extension. Average Age of Trade Lines measures performance since establishment of credit. Revolving Debt to Limit measures the ability to absorb cash flow difficulties. Percent of Bankcard Trades Relation to Total Trades measures applicants previous credit behavior. Total Trade Lines measures responsible use of credit. Percent Never Delinquent indicator of negative credit performance. Number of Major Derogatory Items flags serious credit issues. The following point system will be used: Accept: Based on above mentioned guidelines. Application will be approved if all other program eligibility requirements are met. Deny: Applicants with poor and/or deny credit ratings will be determined to be ineligible. However, applicants may be admitted if there are mitigating circumstances regarding the poor credit history and approval to accept an applicant with this rating is given by the management agent s Regional Manager and/or Director of Property Management. For example an exception may be considered if the applicant is attending Credit Counseling and has verification of Credit Counseling participation. Applicants who are denied will be mailed a Rental Application Determination letter. Applicants may appeal the rejection within seven (7) days of receipt of the notice in writing to discuss this determination by mail to: Rincon Gardens, 400 West Rincon Avenue, Campbell, CA The Unlawful Detainer Action Report will be processed through National Tenant Network. Applicants will be disqualified if they have been evicted from any prior residence. By LMC -RESD Page 4 of 11

5 2. Criminal Background Check: A criminal background check will be conducted on all adults in the household through National Tenant Network. National Tenant Network looks at criminal activity for the last 10 years. Anyone who has a felony conviction, or other criminal activity, to include, drug related activity, and/or misdemeanors considered a threat to the property or the residents will be denied tenancy. The applicant may be considered and accepted with past drug-related activity, if the applicant has completed drug rehabilitation and can provide verification of completion of rehabilitation from a professional agency. Applicants who are denied will be mailed a Rental Application Determination letter Applicants may appeal the rejection within seven (7) days of receipt of the notice in writing to discuss this determination by mail to: Rincon Gardens 400 West Rincon Avenue, Campbell CA National Tenant Network also performs a National Sex Offender, Terrorist, and Most Wanted search with every criminal state processed. Applicants will be disqualified if they have any of these categories on their record regardless of the date of the conviction. 3. Landlord References: All references provided by the applicant will be verified in writing. If attempt to collect it in writing is unsuccessful, telephone verifications may be substituted, but only after a thorough attempt to collect it in writing has been completed. 5 years residential history is required and all residential history will be verified. Unfavorable landlord references will be basis for denial of tenancy. 4. Initial and Continued Income Certification: Eligibility to reside at Rincon Gardens is based on information that applicant has provided to Management regarding household income and assets. Employment and/or other sources of income, including non-earned income must be verified by a third party to ensure the applicant meets income requirement. Once a household is accepted for tenancy the household will be required to recertify their income and assets at least once each year prior to their anniversary date of move-in. If resident fails to comply a notice of termination of tenancy will be issued to the resident. Note: Initial eligibility is a two part process due to the property s funding structure where residents living at Rincon Gardens under the Low Income Housing Tax Credit program (LIHTC) also receive a project based section 8 vouchers from the Housing Authority of the County of Santa Clara. Upon completion of processing applicant s eligibility for the tax credit program,applicants will be required to meet with a Housing Programs Department staff member of the Housing Authority of the County of Santa Clara. The Community Manager will provide to the Housing Programs By LMC -RESD Page 5 of 11

6 Department staff person a copy of the applicant s Tenant Income Certification form completed under the LIHTC program. The applicant during the interview with the Housing Programs Department staff member will sign required project based section 8 voucher forms. Upon approval, the Housing Programs Department Staff person will provide applicant the approved Rental Tenancy Assistance (RTA) packet to be used at Rincon Gardens. A move-in appointment will then be scheduled with the applicant. Once a household is accepted for tenancy the household will be required to recertify their income and assets at least once each year prior to their anniversary date of move-in. This requirement is for the purpose of the LIHTC program. Note: Under the project based section 8 voucher program interim recertifications will only be conducted depending on the resident s financial situation. Therefore, all residents will need to report changes in household income to determine if additional recertification is needed under the Project Based Section 8 Voucher program. The Housing Authority conducts additional compliance reporting such as income history through the Enterprise Income Verification system (E.I.V) and confirms immigration status. 5. Unit Inspections: Once a household is accepted for tenancy an inspection of the dwelling unit will be conducted at move-in and annually thereafter. Additional unit inspections may be required. All inspection dates will be notified in advance with at least a 24 hour notice. SECTION III: OCCUPANCY AND INCOME REQUIREMENTS: 1. Occupancy Standards: One Bedroom: Minimum 1 person, Maximum 3 persons Two Bedroom: Minimum 2 persons, Maximum 5 persons. The Housing Authority of the County of Santa Clara (HACSC) Housing Programs Department (HPD) has other occupancy requirements that may apply and which will be discussed with each household at the time of the intake interview. 2. Bedroom Size: When assigning an apartment, every household member, is to be counted for determining bedroom size. If a household indicates a preference for bedroom size for which they are not eligible because of their household size, the bedroom size for which they are eligible for will be offered, if available. By LMC -RESD Page 6 of 11

7 3. Income Requirements: The following maximum income limits apply and are subject to change: INCOME LIMITS (Effective 12/04/12) 50% of Median Income (Very Low) 1 Person 2 person 3 Person 4 Person 5 Person $37,150 $42,450 $47,750 $53,050 $57,300 The management staff at Rincon Gardens will be able to provide the most updated information at the time of the initial interview. 4. Rent Amounts/Security Deposit: The Low Income Housing Tax Credit Rents & Security Deposit for Rincon Gardens is as follows and is subject to change: One Bedroom $995 Security Deposit $995 Two Bedroom $1193 Security Deposit $1193 NOTE: The property is under the Low Income Housing Tax Credit program and rents are established as noted above. However, due to the funding structure of Rincon Gardens with a project based section 8 overlay, residents receive a project based section 8 voucher; therefore, rents are calculated based on 30% of resident s total adjusted gross income. Rents, therefore, vary depending on resident s income. SECTION IV: APPLICATION/INTERVIEW PROCESS 1. Taking Applications: For every one vacancy available, three applications will be processed. Names will be drawn from the waiting list and processed as described in Section I Procedures Governing Receipt of Application: The rental application constitutes the basic record of each household applying for admission to Rincon Gardens. Each applicant will be required to sign and date the rental application attesting to the accuracy of the data provided, and provide documentation as needed to verify the information supplied on the Rental By LMC -RESD Page 7 of 11

8 Application. The Rental Application should be completed in ink, indelible pencil, or typed. Corrections and/or changes are to be made by lining through the original entry and entering the correct information. Any corrections and/or changes must be initialed and dated by the applicant. 3. Application Interview: Applicants will be interviewed in person at Rincon Gardens. During the interview the Community Manager and/or other designee will do the following: Review, confirm, and update all information provided on the Rental Application. Collect the required signatures on third party verification forms, authorization to release information forms, and collect all other necessary documents to determine income eligibility. Explain to the applicant the program requirements, verification process, and the consequences for submitting false information, to include denial of tenancy, fines, and possible imprisonment. If the applicant declines the unit anytime after the interview the applicant will be removed from the waiting list. 4. Rental Application Determination Notice: Applicants who are disqualified for renting a dwelling unit at Rincon Gardens will be mailed a letter identifying the reason(s) for disqualification. Applicants may appeal within seven (7) calendar days of receipt of the notice in writing to discuss the determination. The appeal request should be submitted in writing and mailed to Rincon Gardens at 400 W. Rincon Avenue, Campbell, CA 95008, attention: Community Manager. Appeal Process: The Regional Property Manager will respond in writing within seven (7) calendar days of receiving the written appeal or meeting with the applicant. In the interest of minimizing vacancies, no unit will be held for an applicant once the Rental Application Determination Notice has been mailed. However, should the Regional Property Manager determine that the applicant is qualified for tenancy, or if another applicant has already been accepted for tenancy for the available unit before the review process has been completed, the applicant s name will be replaced in its original position on the Waiting List, without prejudice. 5. Additional Factors that may disqualify an applicant: Management reserves the right of disqualification to ensure agreeable and pleasant surroundings for all residents. An applicant can be disqualified if they display, or have displayed behaviors that contravene or would contravene the rules and regulations of the property. An applicant must complete/provide and return all the paperwork requested within the stated deadlines or will automatically be passed over for the next applicant in chronological order, unless the Regional Property Manager gives By LMC -RESD Page 8 of 11

9 the applicant an authorization, in writing, for an extension. Three (3) full business days, from the time the information is requested, will be given to the applicant to submit the information. If the applicant is passed over they will remain the next household in chronological order until they provide the information. After 10 calendar days from the initial request the applicant will be considered denied unless a written extension has been given by the Regional Property Manager. EXCEPTIONS: a) All exceptions to these policies and procedures must be approved by the Regional Property Manager, in writing, in order to be honored. Where errors are made by the on-site Manager administering these policies and procedures, the applicant s file will be submitted to the Regional Property Manager for disposition. b) The on-site Manager will submit all requests for exceptions to the Regional Property Manager, by facsimile, and a return response will be within seven (7) days. c) Any written response from the Regional Property Manager may be copied for the applicant. d) The most commonly approved exceptions are listed below: i) Any household or person with a bankruptcy ii) No credit may not be declared bad credit. If a household pays all bills in cash, and can demonstrate this fact, then no credit may be classified as good credit. e) Additional exceptions will be made as regulatory agreements may require. 6. Grievance and Appeals Procedure: Management has adopted a procedure in accordance with applicable state or federal Program Regulations for the resolution of disputes arising out of this Rental Agreement or Resident's occupancy of the premises. The procedure establishes Resident's right to a hearing on grievances related to Resident's occupancy and appeal of Management's decisions regarding Resident's occupancy, including notices of termination and eviction. Management has elected to determine that this grievance procedure shall not be applicable to any termination of tenancy or eviction that involves criminal or drug related activities. A copy of the Grievance and Appeals Procedure is available upon request. By LMC -RESD Page 9 of 11

10 SECTION V: ADDITIONAL INFORMATION 1. Non-Smoking Community: Rincon Gardens has been designated as a nonsmoking living environment. Resident and members of Resident s household shall not smoke anywhere in the apartment rented by Resident or the building where the Resident s dwelling is located or in any of the common areas or adjoining grounds of such building or other parts of the rental community, nor shall Resident permit any guests or visitors under the control of Resident to do so. Resident shall inform Resident s guests of the Non-Smoking policy. No- Smoking signs are posted at entrances and exits, common areas, hallways and in conspicuous places adjoining the grounds of the apartment community. Smoking is prohibited within 25 feet of the Apartment Community. 2. Management not a guarantor of non-smoking environment: Management s promotion of a non-smoking living environment and the efforts to designate the rental community as non-smoking do not make the Management or any of its managing agents the guarantor of Resident s health or of a non-smoking condition of the Resident s apartment and common areas. However, Management shall take reasonable steps to enforce the non-smoking terms of its leases and to make the community non-smoking. Management is not required to take steps in response to smoking unless Management is put on notice of the presence of tobacco smoke, via agent, personal knowledge, and/or written notice by a Resident. 3. Pet Policy: Rincon Gardens Pet Policy will allow a maximum of one (1) pets, per household with prior written authorization. A common household pet means a domesticated animal, such as a dog, cat, bird, rodent (including rabbit), fish or turtle that is traditionally kept in the home for pleasure. Exotic animals such as reptiles (except turtles) are not permitted. Any such pet must be appropriate to the size and nature of the apartment. Property Management may consider the temperament of a pet in determining the ability of the RESIDENT to comply with the pet rules. Service animals that provide assistance to the disabled are not pets and, therefore, not subject to this pet policy. If a member of resident s household requires the services of an assistive animal to provide them with equal access to housing, then they should contact Management to discuss the accommodation request. 4. Reasonable Accommodation/Fair Housing: Section 504 of the Rehabilitation Act of 1973 prohibits discrimination in all HUD subsidized or assisted housing programs solely on the basis of disability. This rule covers all persons associated with the programs including applicants, vendors, tenants, employees and prospective employees. Please inform our office should you require a Reasonable Accommodation By LMC -RESD Page 10 of 11

11 under Section 504. RINCON GARDENS 5. Accessibility: The common areas of the Rincon Gardens building are fully accessible. All 200 units have front door entrance accessibility, and 19 units are fully modified wheelchair accessible units. Prospective and current residents who require a reasonable accommodation due to a disability please contact the Community Manager. 6. Limited English Proficiency (LEP): Title VI of the Civil Rights Act of 1964 is the federal law that protects individuals from discrimination on the basis of their race, color, or national origin in programs that receive federal financial assistance. This includes assistance to individuals who are limited English proficient persons so they can effectively participate in, or benefit from, federally assisted programs. Rincon Gardens may provide to LEP persons language assistance in the following manner: Oral Interpretations, or Bilingual Staff, or Telephone Service Line Interpreter, or Written Translation Services, or Notices to Staff and Recipients of the availability of LEP services, or Referrals to Community Liaisons proficient in the language of LEP person. Please inform our office should you require assistance under the LEP guidance. However, applicants needing translation are encouraged to provide their own translator. If applicants provide their own translator the individual must be 18 years of age or older and may not be an employee of The John Stewart Company. 7. Disclaimer: The processing and acceptance of the Rental Application and its application fee does not constitute a guarantee of acceptance for housing at Rincon Gardens. All applicants must undergo and pass the tenant selection, program, and income selection criteria as described herein prior to acceptance. Acceptance or denial of tenancy will be communicated in writing. By LMC -RESD Page 11 of 11