Marketing Handbook
Policies and Procedures for Resident Selection and Occupancy
August 2021
MARKETING HANDBOOK: CONTENTS
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Contents
1. Introduction ............................................................................................................... 5
1-1 What This Handbook Is ....................................................................................... 5
1-2 What This Handbook Is Not ................................................................................ 6
1-3 Systems And Definitions .................................................................................... 6
2. Timeline ...................................................................................................................... 7
2-1 Phases Of The Marketing Process ..................................................................... 7
2-2 Major Milestones In The Marketing Process For Advertised Lotteries ........... 8
3. Basic Sequence Of Activities – Advertised Rental And Homeownership
Lotteries ....................................................................................................................... 10
4. Outline Of Procedures ............................................................................................ 12
4-1 Pre-Marketing ..................................................................................................... 13
A. Inquiry List .................................................................................................... 13
B. Marketing Meeting ....................................................................................... 13
C. Marketing Plan ............................................................................................. 14
4.2 Marketing ............................................................................................................ 15
A. General Information ..................................................................................... 15
B. Outreach ....................................................................................................... 17
C. Advertisements ............................................................................................ 18
D. Project Site Marketing Sign ......................................................................... 20
E. Applications .................................................................................................. 20
4-3 The Lottery Process .......................................................................................... 21
A. Paper Application Collection ...................................................................... 21
B. Paper Application Entry .............................................................................. 21
C. Order Of Processing .................................................................................... 22
D. ... Reporting (For Projects Marketed Under The Original Housing Connect
Only) .................................................................................................................. 24
E. Remarketing ................................................................................................. 25
F. Priority Waiting Lists ................................................................................... 25
G. Record Keeping ........................................................................................... 26
4-4 Re-Rentals And Resales ................................................................................... 26
4-5 Applicant Evaluation And Resident Selection ................................................ 27
A. Ineligibility Policies ...................................................................................... 27
B. Processing Applicants ................................................................................ 28
C. Direct Document Submission For Paper Applicants And Applicants
Applying In The Original Housing Connect .................................................... 29
D. Direct Document Submission For Users Of The New Housing Connect 30
E. In-Person Appointments.............................................................................. 31
F. Agency Review ............................................................................................. 31
G. Appeals ......................................................................................................... 33
H. Complaints ................................................................................................... 34
MARKETING HANDBOOK: CONTENTS
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5. Detailed Selection Policies ..................................................................................... 35
5-1 Set-Asides And Preferences............................................................................. 36
A. Disability Set-Asides ................................................................................... 36
B. Community Preference ................................................................................ 37
C. Municipal Employee Preference ................................................................. 37
D. Residency Preference For New York City Residents ................................ 38
E. Additional Set-Asides And Preferences ..................................................... 38
F. Set-Asides And Preferences At Re-Rental ................................................. 38
G. Homeless Referrals ..................................................................................... 38
H. Referrals ....................................................................................................... 39
5-2 Qualification As A Household .......................................................................... 39
A. Definitions .................................................................................................... 39
5-3 Changes To An Application .............................................................................. 40
A. In The New Housing Connect ..................................................................... 40
B. In The Original Housing Connect ............................................................... 41
C. Proof Of Extenuating Circumstances ........................................................ 42
5-4 Income Eligibility ............................................................................................... 43
A. Income Eligibility At Admission ................................................................. 43
B. Employment Income .................................................................................... 44
C. Self-Employment Income ............................................................................ 48
D. Combination Income ................................................................................... 50
E. Income Received For Less Than One Year ................................................ 51
F. Income From Other Sources ....................................................................... 52
G. Sporadic Or Non-Recurring Income ........................................................... 52
H. Asset Certification ....................................................................................... 52
I. Clarifying Bank Deposits .............................................................................. 53
5-5 Continuing Need ................................................................................................ 54
A. Asset Limits .................................................................................................. 54
B. Property Ownership ..................................................................................... 55
C. Primary Residence ....................................................................................... 56
D. Gifts And Down Payments .......................................................................... 56
E. Other Restrictions ........................................................................................ 56
5-6 Background Checks And Other Factors ......................................................... 57
A. Student Status (Irs Program Units) ............................................................ 57
B. Disability Verification .................................................................................. 57
C. Immigration Status/Credit History .............................................................. 57
D. Criminal Background Checks ..................................................................... 58
E. Discovery Of False Information .................................................................. 58
F. Rental History And Credit Checks: Rentals ............................................... 58
G. Credit Findings: All Applicants .................................................................. 60
H. Credit Issues And Appeal Process ............................................................. 62
I. Credit Checks: Homeownership .................................................................. 62
J. Violence Against Women Act (Vawa) ......................................................... 62
5-7 Occupancy Guidelines And Unit Distribution ................................................. 63
A. Occupancy Guidelines ................................................................................ 63
B. Unit Distribution ........................................................................................... 64
MARKETING HANDBOOK: CONTENTS
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C. Rent Levels And Income Standards ........................................................... 64
5-8 Other ................................................................................................................... 67
A. Incorporation Of “Fair Housing Laws”....................................................... 67
B. Amendments ................................................................................................ 67
C. Inspections ................................................................................................... 67
D. Brokers ......................................................................................................... 67
E. Annual Unit Inspection Form ...................................................................... 67
F. Household Student Status Affidavit At Recertification ............................. 67
6. Submissions And Ongoing Reporting Requirements .......................................... 68
7. Attachments ............................................................................................................ 69
MARKETING HANDBOOK, SECTION 1: INTRODUCTION
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1. Introduction
1-1 What This Handbook Is
A. This handbook (the “Marketing Handbook”) contains the policies, procedures, and
requirements for marketing and selection of residents for developments
(“Projects”) assisted by the New York City Department of Housing Preservation
and Development (“HPD”) and the New York City Housing Development
Corporation (“HDC”) (together, the “Agencies”).
B. Developers, owners, and sponsors of Projects (“Developers”), as well as other
agents or entities responsible for the marketing and resident selection for Projects
(“Marketing Agents”) must comply with the Marketing Handbook’s policies,
procedures, and requirements. Marketing Agents may include in-house
departments of the Developer, subsidiaries, or affiliates of the Developer, or third-
party marketing, leasing, managing, monitoring, or administering agents.
Marketing Agents must be prequalified through an applicable request for
qualifications issued by the Agency and must also be approved by the Agency to
market each individual project, prior to marketing such project, regardless of
whether they are part of the Developer’s organization or a third party.
C. Compliance with the Marketing Handbook will be monitored by either HPD or HDC
(whichever is applicable for a particular project is referred to herein as the
“Agency”), depending on the project.
D. The primary objective of the marketing, rental, and sales efforts is to ensure that
the process is fair and provides equal opportunity to all applicants, regardless of
race, color, religion/creed, gender, sexual orientation, gender identity or
expression, national origin, age, disability, military service/veteran status,
immigration status, lawful occupation, lawful source of income, marital or
partnership status, pregnancy, presence of children, or status as a victim of
domestic violence, sexual violence, or stalking. In addition, the process should
affirmatively further fair housing by promoting racial, ethnic, income, and
geographic diversity among residents and within the neighborhood, and by
providing applicants with mobility, vision, or hearing disabilities that require
accessible/adaptable units priority for those units.
MARKETING HANDBOOK, SECTION 1: INTRODUCTION
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1-2 What this Handbook Is Not
A. The Marketing Handbook is not a comprehensive compliance manual. Developers
and Marketing Agents must ensure that their employees are fully trained in all
facets of the program and all aspects of the specific occupancy requirements of
each Project. Maintaining compliance is the responsibility of the Developer and
Marketing Agent.
B. This handbook also does not contain specific occupancy requirements for
individual Projects. Each Developer and Marketing Agent must refer to its Project’s
Regulatory Agreement and other applicable regulations and regulatory documents
for income, rent, and other occupancy restrictions.
C. The Developer or Marketing Agent should consult with the Agency if any questions
or concerns arise with respect to the policies, procedures, and requirements set
forth in the Marketing Handbook.
D. Actual marketing and resident selection will be conducted in accordance with a
marketing plan, submitted by the Marketing Agent for each project (“Marketing
Plan”). The Marketing Plan and all pre-marketing activities must comply with the
Marketing Handbook and other Project requirements and must be approved by the
Agency before marketing can begin.
1-3 Systems and Definitions
This handbook includes policies and procedures effective July 1, 2020, at the launch of a
new version of the NYC Housing Connect online application system (the “New Housing
Connect”). As of July 1, 2020, lotteries and newly available housing opportunities will be
marketed through the New Housing Connect.
Projects continued to open for applications in the original (2013) version of NYC Housing
Connect (the “Original Housing Connect”) through June 30, 2020; those projects will
complete such lotteries and lease-up processes within the Original Housing Connect.
NOTE: After the Original Housing Connect lottery process is complete, subsequent
available units must be marketed through the New Housing Connect.
Requirements in this handbook may differ slightly based on the version of NYC Housing
Connect used. If there are provisions of this handbook that are applicable to both the Old
Housing Connect and the New Housing Connect, the system is referred to as “Housing
Connect.”
The Agencies reserve the right to make additional changes to the handbook.
MARKETING HANDBOOK, SECTION 2: TIMELINE
2-1: Phases of the Marketing Process
2-2: Major Milestones in the Marketing Process
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2. Timeline
2-1 Phases of the Marketing Process
Note: Timelines are approximate and may vary by project.
MARKETING HANDBOOK, SECTION 2: TIMELINE
2-2: Major Milestones in the Marketing Process
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2-2 Major Milestones in the Marketing Process for Advertised
Lotteries
Activity
Timeline
Prior to the marketing process:
From the start of construction until
commencement of the marketing
period
At the beginning of the marketing process and afterwards:
Typically, seven months prior to
anticipated occupancy (or approximately
70% construction completion for projects
requiring C of O)
Prior to commencement of the marketing
period
Represents commencement of the
marketing period: at least 60 days prior to
application deadline date for standard
marketing; may be shorter for modified
marketing
At commencement of the marketing
period
At commencement of the marketing
period
At commencement of and throughout the
marketing period
Two weeks before or after the lottery
MARKETING HANDBOOK, SECTION 2: TIMELINE
2-2: Major Milestones in the Marketing Process
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*NYC Housing Connect (or “Housing Connect”) is the online application system for
HPD/HDC-assisted affordable housing. Some Programs or Projects may not be
advertised on Housing Connect, but through other channels as determined by the
Agency.
Two weeks after the beginning of the
application period and two weeks before
the application deadline
Seven to ten business days after
application deadline
Approximately one week after entry of
paper applications into Housing Connect
After verification of eligibility from Agency
and receipt of TCO
After verification of eligibility from
Agency, approval for private mortgage,
and receipt of TCO
MARKETING HANDBOOK, SECTION 3: BASIC SEQUENCE OF ACTIVITIES
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3. Basic Sequence of Activities –
Advertised Rental and Homeownership
Lotteries
A. The following activities take place before the Project is approved for
advertising:
1. Developer submits a Notice of Intent to Begin Marketing (“Notice of Intent”
or “NOI”) and Marketing Agent Approval Request Form to Agency. (see
Section 4-1.B).
2. Developer, Marketing Agent and Agency hold the Marketing Meeting (see
Section 4-1.B).
3. Marketing Agent begins pre-marketing tasks in Housing Connect (see
Section 4-1.C).
4. Agency and Marketing Agent establish PO Box or caller service box (see
Section 4-2.E.2).
B. The following activities take place after the pre-marketing process is
complete:
5. Marketing Agent erects marketing sign on Project construction site:
enlarged Project advertisement on outdoor-durable material, in multiple
languages (see Section 4-2.D).
6. Agency publishes advertisement on Housing Connect and, when
applicable, Agency website.
7. Marketing Agent publishes advertisements in newspapers and other media
outlets and provides Agency with all copies of actual newspaper
advertisements (See Section 4-2.C).
8. Marketing Agent sends copies of the approved advertisement to interested
applicants on inquiry list (see Section 4-1.A).
9. Marketing Agent sends community contact letters (see Section 4-2.B.3).
10. Agency sends elected official letters (Standard Marketing, as defined in
Section 4-2.A.3, only) (see Section 4-2.B.2).
11. Marketing Agent processes requests for paper applications as received
(see Section 4-2.E).
12. Marketing Agent holds informational seminars at local facilities, such as
community board(s) and/or local organizations (required for
homeownership only).
13. Marketing Agent and Agency schedule paper application pickup and entry
(see Section 4-3.A). Agency accompanies Marketing Agent to pick up paper
applications from Post Office and oversees entry of paper application
information into Housing Connect, which Marketing Agent staffs (see
Sections 4.3 A and B).
MARKETING HANDBOOK, SECTION 3: BASIC SEQUENCE OF ACTIVITIES
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14. Lottery log is generated by the Housing Connect system (see Section 4-
3.C).
15. Marketing Agent attends compliance meeting with Agency (see Section 4-
2.A.7).
16. Marketing Agent conducts Applicant Evaluation and Resident Selection
(see Section 4-5).
17. Marketing Agent submits applicant files to Agency for review (see Section
4-3.C).
18. Marketing Agent submits initial move-in certification to Agency, if required
by Agency (see Attachment W, Owner Certification of Initial Move-in Date).
19. If needed, the Marketing Agent requests written approval from Agency to
commence remarketing (see Section 4-3.E).
20. If the project was marketed under the Original Housing Connect, at 100
percent occupancy, Marketing Agent submits final log with disposition
comments, statistical report, and initial rent roll to the Agency.
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
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4. Outline of Procedures
4-1. Pre-Marketing
4-2. Marketing
4-3. The Lottery Process
4-4. Re-Rentals and Resales
4-5. Applicant Evaluation and Resident Selection
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
4-1: Pre-Marketing
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4-1 Pre-Marketing
A. INQUIRY LIST
1. Commencing at the start of construction, the Developer must maintain a list
of people who, before the deadline date for requests for applications, have
inquired about renting or purchasing a unit. The inquiry list must include the
following information:
a. Name and contact information of those who submitted an inquiry
b. How the inquiry was received, e.g. via phone, email, walk-in, or mail
(the Developer may select the procedure for accepting inquiries)
2. The Marketing Agent must provide a copy of the inquiry list, as well as an
outline of the Developer’s inquiry list procedures and the date at which they
were implemented, to the Agency as set forth in Section 4-1.C.2 in the pre-
marketing process
B. MARKETING MEETING
1. The Developer must submit a Notice of Intent through Housing Connect or
by submitting Attachment A-1) to the Agency to initiate the marketing
process, propose a Marketing Agent for the Project, and schedule a
Marketing Meeting. This typically happens at approximately seven months
prior to anticipated occupancy, but timing may vary based on project type.
2. The Agency may ask that projects requiring a Certificate of Occupancy also
reach 70 percent construction completion before advertising may
commence.
3. The Notice of Intent must identify the Marketing Agent the Developer
intends to use or retain to perform marketing and initial lease-up or sales.
The Marketing Agent will be the primary contact in the New Housing
Connect. At this time, the Developer must also propose any separate entity,
if known, the Developer intends to use or retain for ongoing resident
selection for re-rental units or resales. For example, a Developer may retain
a third-party marketing company to conduct a new Project’s initial lease-up
or sales, but when the Project is fully occupied, the Developer may assign
a property management company the responsibility of overseeing re-rentals
or resales.
4. With the Notice of Intent, the Developer must submit a summary of the
experience and expertise of the Marketing Agent (see Attachment A-2,
Marketing Agent Approval Request Form). If the entity responsible for
ongoing re-rentals or resales is expected to be different than the initial
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
4-1: Pre-Marketing
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Marketing Agent, then the Developer must submit another version of
Attachment A-2 for that entity.
5. In considering approval of a Marketing Agent, the Agency takes into
consideration factors including, but not limited to:
a. Prior experience marketing affordable projects through the Agency’s
Housing Connect lottery system;
b. Current workload of Housing Connect lotteries;
c. Staffing and organizational capacity of the Marketing Agent;
d. Demonstrated performance on past and current lottery projects,
including but not limited to:
i. Proper processing of applicants;
ii. Proper management of the lottery log;
iii. Proper determination of applicants’ eligibility, including
accurate income calculations, proper application of the
Continuing Need criteria and resident selection standards
from the Marketing Handbook;
iv. Timely and complete submission of applicant files to the
Agency for review; and
v. Timely, accurate, and complete submission of the statistical
report, and final log, as well as the certified rent roll upon full
lease up for rentals and executed contract for sales.
6. After Agency approval of the Marketing Agent, the Developer, the Marketing
Agent, and the Agency will hold a Marketing Meeting to review the policies,
procedures, and requirements for marketing, applicant evaluation and resident
selection, occupancy, ongoing re-rental leasing, and resales, as well as any
related documents and reports.
C. MARKETING PLAN
1. At the time of, or immediately following, the Marketing Meeting, the
Marketing Agent must complete a series of pre-marketing tasks in the New
Housing Connect that outline procedures to be followed in the pre-
marketing, marketing, applicant evaluation, resident selection, re-rental,
and resale phases of the Project (“Marketing Plan”). See Section 3 of this
handbook, “Basic Sequence of Activities.”
2. In the New Housing Connect, tasks are assigned to the Marketing Agent
with prompts to submit documentation and complete the Marketing Plan.
The pre-marketing tasks include, but are not limited to, the following and
are subject to Agency approval:
a. Unit registration: Number and type of units (if this description does
not match the original underwriting and unit distribution described in
the Regulatory Agreement, then the Marketing Agent must bring the
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
4-1: Pre-Marketing
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discrepancy to the Agency’s attention in writing);
b. Initial rents or selling prices to be charged;
c. Minimum and maximum income range for each type of unit;
d. (Marketing Agents should contact the Agency if they are unsure of
the program’s income or rent limits);
e. Approved Marketing Agent and, if applicable, managing or other re-
rental/resale agent;
f. Dates of construction start and completion, advertising start, and
application deadline date;
g. Inquiry list maintained since beginning of construction;
h. Marketing sign to be erected on site premises during advertising;
i. Set-asides and preferences;
j. Listing of amenities and, if applicable, proposed fees;
k. Resident selection and rejection criteria;
l. Estimate of groups least likely to apply;
m. Audience demographics for advertisements in different publications;
n. Community groups to be contacted;
o. Standards for accessibility, privacy/confidentiality, and data security
in relation to applicant eligibility appointments and review processes;
p. Language access plan (see Attachments C-1 and C-2);
q. An outline of the management plan for ongoing operations (see
Outline for Management Plan, Attachment E); and
r. Methods for future marketing activities.
4.2 Marketing
A. GENERAL INFORMATION
1. The official marketing period, during which a Project is advertised and
people may submit applications, typically should begin at least six months
prior to the anticipated occupancy of the first unit.
2. In the New Housing Connect, a Mini-Lottery is a non-advertised lottery
process (“Mini-Lottery”). Applicants have the option when creating their
Housing Connect accounts to express their interest in being contacted for
re-rental or resale units. Mini-lotteries produce a batch of applicants whose
household information and housing choices match the requirements of the
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
4-2: Marketing
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available unit.
3. Standard vs. Modified Marketing - Rentals
a. The requirements for the marketing process may differ based on the
type of project and number of affordable units being marketed. All
standard and modified marketing requirements are subject to the
Agency’s discretion.
b. “Standard marketing” (20 or more available units, except as
otherwise approved by HPD or HDC) has a 60-day advertising
period. Standard marketing for rental units requires a lottery through
the NYC Housing Connect online application system, advertising in
newspapers, and publicity targeted to people with disabilities and
those least likely to apply.
c. “Modified marketing” may have a shorter advertising period or may
be permitted to use the mini-lottery process as approved by HPD or
HDC. Depending on the number of vacant units and the timeline by
which the units will be ready for occupancy, the Agency will
determine whether an advertised lottery through the Housing
Connect system is required.
d. Both standard and modified marketing processes begin with the
Developer’s submission to the Agency of the Notice of Intent to Begin
Marketing and Marketing Agent Approval Request, typically seven
months before anticipated occupancy, or 70 percent construction
completion for projects requiring a Certificate of Occupancy (C of O).
See Attachments A-1 and A-2.
4. Advertising – Homeownership (Coops, Condos, and Small Homes)
a. The advertising period for projects of one to six homeownership units is
30 days. For projects of seven or more homeownership units, the
advertising period is 60 days.
b. All homeownership advertisements must indicate that the housing is for
first-time homebuyers only.
5. The opening of the lottery for applications on Housing Connect, the
publication of advertisements on Housing Connect and Agency websites as
well as in print and in other media, and other outreach efforts commence
the official marketing period.
6. The Developer and Marketing Agent must ensure that the Project is always
in compliance with the provisions of the Project’s Regulatory Agreement.
The Developer and Marketing Agent must be aware of their obligation to
obtain, verify, and provide the Agency, on an ongoing basis, with all required
information. The Developer and Marketing Agent must fully familiarize
themselves with the provisions of the Project’s Regulatory Agreement.
7. The Agencies require a Compliance Meeting to be held within
approximately two weeks of the lottery date. The Agency may recommend
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
4-2: Marketing
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that this take place either before or after the lottery date.
B. OUTREACH
1. Marketing aims to achieve the broadest practical citywide representation in
its outreach efforts. The Marketing Agent’s outreach efforts are an essential
element in the development of a diverse pool of applicants and residents.
The Agency requires the use of community and citywide civic organizations
as part of the marketing effort.
2. Elected Official and Community Board Letters: At the commencement of
standard marketing, the Agency submits letters to the Community Board
and elected officials affiliated with the district in which the development is
located.
3. Community Outreach – Rental and Homeownership:
a. The Marketing Agent must conduct outreach to citywide and targeted
audiences in order to ensure all groups are informed. For both
standard and modified marketing, the Marketing Agent must provide
methods of community contact and describe these methods as part
of the marketing plan (e.g. Commercial Media and Publicity Plan,
Community Contact Groups).
b. The Marketing Agent must send community outreach letters
simultaneous with the opening of the lottery on Housing Connect and
publication of the advertisement. See Community Contact Letters,
Attachment D.
c. The Marketing Agent must initiate contact with organizations serving
people with mobility, hearing, and vision disabilities, and the local
Community Board.
d. Homeownership Information Sessions: Certain homeownership
programs require the Marketing Agent to offer two information
sessions to the public during the application period. The Agency will
provide guidance on the content of the informational sessions, but all
must include:
i. information on how to approve tenants in two-family homes;
and
ii. that all homeownership lotteries are for first-time homebuyers
only. This means no member of the applicant household may
currently own or ever have purchased a home in the past.
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
4-2: Marketing
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The pre-marketing information submitted to the agency must include
outreach plans, including, but not limited to:
✓ The intended outreach time schedules and types of materials to be distributed;
✓ Specific organizations and institutions (e.g., Community Board, private and not-
for-profit organizations, citywide, ethnic, and local newspapers, senior centers,
labor unions, government agencies), and their respective roles in the marketing
process;
✓ Specific efforts to reach people with mobility, hearing, and vision disabilities;
✓ Specific efforts to reach groups that are likely to be underrepresented in the
applicant pool;
✓ For homeownership projects, the dates and locations of the homeownership
information sessions.
C. ADVERTISEMENTS
1. The Agency will post the approved advertisement and open the lottery on
the Housing Connect website. For standard marketing, the date of the first
published advertisement must coincide with the date of the advertisement
posted on the Housing Connect website.
2. Advertisements in print publications and other media for “standard
marketing” (rentals) and homeownership projects of seven or more
affordable units ONLY:
a. Advertisements must appear at least 60 days prior to the application
deadline date. See Attachments F-1, F-2, and F-3.
b. The Marketing Agent must begin marketing by placing an
advertisement in accordance with the following:
i. The New Housing Connect will generate an advertisement
based on information submitted to the agency in the
Marketing Plan. No changes to the format will be permitted
without the prior written approval of the Agency.
ii. The advertisement must be approved by the Agency prior to
publication. Advertisement draft approvals are required from
multiple parties, in addition to the Agency, depending on the
number of vested parties involved in the project. The
Marketing Agent must allow enough time to receive each of
these approvals. See Routing Slip of Advertisement
Approvals, Attachment F-4.
iii. After obtaining Agency approval, and simultaneously with the
posting of the advertisement on Housing Connect, the
Marketing Agent is responsible for placing the advertisement
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
4-2: Marketing
Page 19 of 70
in newspapers and media outlets.
iv. The advertisement must be advertised in at least three
newspapers, including:
- One citywide daily newspaper with a circulation of at
least 200,000;
- One ethnic-based newspaper with a circulation of at
least 10,000. In addition to choosing a citywide
publication that is generally read by all ethnic groups,
the ethnic publication chosen must be one that serves
the minority group(s) least likely to apply for this
housing (included in Marketing Plan Summary Sheet,
Attachment B); and
- One local newspaper.
v. If the ethnic-based or local newspapers are printed in a
language other than English, the advertisement must also
appear in the language of those publications. The Agency will
provide translated versions of the advertisement in select
languages. If the language of the newspaper is not included
in the Agency’s translated versions, the Marketing Agent is
responsible for having the advertisement translated.
vi. The newspaper advertisement is to run at least three days in
each publication with at least one day falling on a weekend
(one ad placement in a weekly publication meets both the
three-day and weekend requirements). The initial publication
must be at least 60 days prior to the application deadline. The
Marketing Agent must run the additional two advertisements
within two weeks of the initial publication. Any delays must be
reported to the Agency.
vii. The Marketing Agent must provide the Agency with a copy of
all tear sheets immediately after the advertisements run (see
Evidence of Affordable Fair Housing Marketing, Attachment
F-5).
viii. The Marketing Agent must target advertising to people who
may be eligible for the units set aside for people with mobility,
vision, and hearing disabilities, by contacting organizations
who have established communications channels with those
populations.
ix. The Marketing Agent must ensure that at least one
organization or media outlet serving people with mobility,
visual, and hearing disabilities places the advertisement in
any publications or public spaces.
MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES
4-2: Marketing
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✓ The Marketing Plan must list the name(s) of the publications and the
proposed dates of the advertisement’s publication schedule.
D. PROJECT SITE MARKETING SIGN
1. The Developer or Marketing Agent must display on the Project site and in
public view a legible marketing sign that is a version of the Project
advertisement in multiple languages. See Attachment F-6, Project Site
Marketing Sign for instructions and layout options. The full sign must be at
least 28” tall, with advertisements enlarged proportionally.
2. The sign must be laminated and durable in outdoor conditions.
3. The sign must be displayed upon commencement of the marketing period
and remain until the conclusion of the marketing effort.
E. APPLICATIONS
1. The Agency will provide, in English and additional required languages,
populated templates for the paper application and response notices to
applicants. Any changes to the application, cover letter, or response notices
must receive prior approval from the Agency. (See sample applications with
cover letters, Attachments G-1 and G-2. See also templates for
communication with applicants, Attachments H-1A through H-8).
2. The application must include a statement that the Developer and the
Developer’s family members, employees, agents, and employees of agents
are prohibited from seeking or obtaining an affordable unit in the Project at
any time, regardless of their position with the firm (please see Section 4-
5.A.5 for a detailed list of the parties to which this applies). The cover letter
must reiterate program guidelines and highlight the post office box to which
applications may be returned. The format and translations in required
languages will be provided by the Agency.
a. The post office box or caller service box used for receipt of paper
applications must be one governed by the United States Postal
Service (i.e., not a privately-owned business such as “Mailboxes
Etcetera,” etc.) and must be located within New York City limits (i.e.,
New York, Bronx, Kings, Queens or Richmond Counties). The
location must be pre-approved by the Agency. The Agency will
accompany the Marketing Agent to the designated post office on the
day of the opening to purchase and open the PO Box or caller service
box.
3. During the advertising period, the Marketing Agent may receive requests
from the public for the following:
a. Paper applications in English; and/or
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b. Advertisements with paper applications in select other required
languages (the “application package”).
Upon receipt of such a request, the Marketing Agent must mail the relevant
application or application package immediately. The Marketing Agent must
also keep a record of applications and application packages requested and
mailed, in each language, including English.
4-3 The Lottery Process
A. PAPER APPLICATION COLLECTION
1. On a date mutually agreed to by the Marketing Agent and Agency, Agency
staff and the Marketing Agent will meet at the applicable post office for the
opening of the PO Box or caller service box and the gathering of paper
applications. This generally happens seven to ten business days following
the application deadline to allow for the receipt of paper applications.
2. The Marketing Agent will, in the presence of at least one Agency monitor,
transport the paper applications to the location where Marketing Agent staff
will enter all applications postmarked or date-stamped by the application
deadline into Housing Connect (see Section 4-3.B, “Paper Application
Entry”).
3. The Marketing Agent must identify the paper application entry site and
provide the transportation to that site from the post office or caller service
box.
B. PAPER APPLICATION ENTRY
1. For all rental projects, and homeownership projects of seven or more units,
all paper applications must be opened and entered into the Housing
Connect system.
2. Based on anticipated response volume, the Agency will recommend a
minimum number of staff to be provided by the Marketing Agent for the full
day(s) of the paper application entry. The Agency generally recommends
that there be 10 to 15 staff members per day during paper application entry,
but it may adjust this recommendation based on the volume of paper
applications received. Additional people made available will minimize the
number of days required to enter all applications received.
3. Marketing Agent staff will enter information from each paper application into
the Housing Connect system in order to assign application identification
numbers. Paper and online applications all receive unique identification
numbers prior to and separate from randomization and assignment of lottery
log numbers. The paper application entry site must have a sufficient number
of computers with internet access to accommodate the number of staff
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members present and Agency monitors. Marketing Agent staff must be
made familiar with the application entry process and freed from any other
duties or distractions on the day of the paper application entry. Agency
monitors will be present strictly to observe the opening of applications and
completion of the paper entry; they will be unable to assist in the actual
opening and entry as not to divert their attention from their oversight
responsibilities.
4. If more than one day is required for the paper application entry, the
Marketing Agent must provide a locker or footlocker that can accommodate
a standard combination lock, to secure the applications until entry resumes.
The Agency will provide the lock with a combination known only to Agency
staff. The Marketing Agent will store this locker or footlocker in a location
approved by the Agency monitor. Subsequent days of opening and logging
must also occur under Agency supervision.
5. The Marketing Agent must ensure that all paper and digital applications and
applicant personal information are stored securely and kept on file fot at
least six year, or longer if the project is subject to additional retention
requirements.
a. For projects marketed in the New Housing Connect, the Marketing
Agent has the option of scanning the paper application and
associating it with the entry into Housing Connect for future
reference.
6. Once all paper applications have been entered, Housing Connect randomizes
both online and paper applications.
C. ORDER OF PROCESSING
1. The first batches of applications that the Marketing Agent processes must
be batches for approved set-aside categories or preferences. For more
information on processing of preferences, see Section 5-1, “Set-Asides and
Preferences.”
2. Batches of set-aside and preference applicants, when applicable, must be
generated in the following order:
a. People with disabilities (five percent mobility; two percent
vision/hearing)
b. Community Board residents
c. New York City municipal employees (paid by the City of New York)
3. Applications containing content entered by the applicant in a language other
than English must be translated before the Marketing Agent makes any
determination of apparent eligibility. The Marketing Agent is responsible for
arranging professional translation services.
4. When confirming the eligibility of applicants in each set-aside and
preference category, eligible New York City residents must be submitted to
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the Agency for review (“processed”) before non-residents. If there are
insufficient New York City residents to meet the set-aside or preference
requirement, the Marketing Agent must then process non-residents to fulfill
it. Note: After initial lease-up or sales, the New York City resident preference
no longer applies.
5. After identifying applicants in the Community Board, municipal employee,
and other preference categories (if applicable), applicants in the general
pool who reside in New York City must be reviewed for eligibility and
processed before non-residents.
6. Subject to Agency approval, set-aside and preference applicants may be
processed simultaneously with non-preference applicants. The submission
of non-preference applicants may begin prior to achieving all set-asides or
preferences, so long as there remain a sufficient number of units to fulfill the
preferences and so long as non-preference applicants are not processed
for units that are intended for applicants eligible for set-asides.
7. If the Marketing Agent is unable to fulfill any set-aside or preference
categories, it must contact the Agency for further instructions.
8. The Marketing Agent must offer units only to applicants who meet eligibility
requirements, and only in log number order according to the batch in which
they appear (after first processing applicants for set-asides and
preferences), for whom units of appropriate size are available.
9. When the applicant’s household and income are verified at signing of the
Tenant Income Certification (Attachment L-3) the Marketing Agent must
make the applicant aware of all available unit types for which they are
eligible and offer to the applicant the opportunity to select the unit type.
10. Applications should be processed for submission to the Agency in batches
to prevent initiating the eligibility review process on many more applicants
than there will be units available. Even within those batches, attention must
be given to remaining available units based on bedroom sizes and (for
mixed-income buildings) income levels. If the Marketing Agent has
questions about appropriate batch size, it should consult the Agency.
11. If no unit of appropriate size is available to an eligible applicant when the
applicant’s log number is reached:
a. Applicants who applied online in the New Housing Connect may be set
as “pending” until an appropriate unit becomes available or until lease-
up has been completed. These applicants will not receive a notice but
will see their updated status in the New Housing Connect.
b. Applicants who applied on paper or in the Original Housing Connect in
this situation must be sent a No Unit Available Notice (Attachment H-8).
12. Notwithstanding Section 4-4.G, “Appeals,” in the rare circumstance that a
successful appeal does not result in the applicant being assigned a unit at
the end of initial lease-up or sales, the applicant is to be placed on the
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Project’s Priority waiting list (see Section 4-3.F). The Marketing Agent must
send each such applicant a Waiting List Notice, Attachment H-6.
13. An applicant to whom a unit has been offered must be given five business
days to respond to the offer, and a reasonable specific amount of time for a
lease signing, before the Marketing Agent can proceed to offer a unit to the
next eligible applicant on the log.
14. Depending on the number of applications received, lease-up or sales may
be completed before all applicants on the log have been processed or
contacted.
D. REPORTING (For projects marketed under the Original Housing Connect
only)
1. The Marketing Agent must provide, on at least a bi-weekly basis during
the resident selection process, a lottery log update to the Agency for
review, indicating each applicant’s “selection status” – their status after
eligibility review (for example, approved for unit, rejected for being over-
income, applicant withdrew from lottery, etc.). This is to ensure that
applicants are being processed in the proper order. The Marketing Agent
may not submit to the Agency an applicant file when there are applicants
with lower log numbers whose statuses have not been updated.
2. The Agency will not waive any preferences and/or set-asides until the
updated log is received and reviewed.
3. The Marketing Agent must notify all applicants processed of their selection
status by regular mail or email, as designated by the applicant, as soon as
a determination has been made. A copy of the notification must be attached
to the application and kept on file.
4. The Marketing Agent will provide the Agency with a copy of the completed
log, indicating the final selection status of each applicant and reason for
rejection. This final log must also be accompanied by a Statistical Report
that includes, but is not limited to, the following:
a. Number of applications in each set-aside or preference category, in
the general pool, and in each required language:
i. Approved
ii. Moved in
iii. Waitlisted
iv. Rejected
b. Of those rejected, number rejected because of:
i. Being over income;
ii. Being under income;
iii. Falling between the income ranges; if applicable;
iv. Credit reasons;
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v. Criminal history;
vi. Household composition;
vii. Failure to submit requested additional documentation;
viii. Submitting multiple applications;
ix. Household being comprised of full-time student(s) and not
meeting any of the exceptions (in applicable programs);
x. Household size; and
xi. No-shows (including the no-show dates).
c. Number terminated as per applicant’s request (applicant
withdrew/cancelled application);
E. REMARKETING
1. If the Agency determines that the lottery will be exhausted before filling all
affordable units, the Marketing Agent must provide the Agency with the list of
units that are not yet assigned to or leased by a qualified applicant from the
lottery so that homeless referrals may be initiated for all or a portion of the
remaining unleased units. The Agent must allocate additional affordable units
for homeless placements amounting to the lesser of: 15% of the total number
of units in the project or the number of remaining unleased affordable units.
These units are in addition to any homeless placements that the building is
required to provide by the terms of any government financing or tax benefit.
2. In accordance with Section 4-3.E.3, the Agency may approve the remarketing
of any unfilled affordable units not designated for homeless placements
pursuant to 4-3.E.1. The Marketing Agent is required to complete a Notice of
Remarketing document (see Attachment K, Notice of Remarketing) to request
written approval.
3. Under remarketing, the Marketing Agent must conduct robust outreach to
attract applicants and, with Agency approval, may also utilize other methods to
identify applicants outside of the lottery process. Such methods may include
additional advertising, signage on the building to attract walk-ins, or the use of
brokers. Proposed strategies should be detailed in the submitted Attachment
K.
4. Unless a waiver is requested and approved, applicants to the remarketed units
must meet all eligibility requirements applicable to initial lottery applicants.
F. PRIORITY WAITING LISTS
1. Applicants that are rejected and successfully appeal, and for whom no
available units remain, will be placed on the “Priority Waiting List” for the
development and must be processed for the next available vacant unit
meeting their household size and income requirements.
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G. RECORD KEEPING
1. The Marketing Agent must retain Lottery logs, Project applications and
supporting documentation (digitized or paper versions) as a record for at
least six years or longer if the Project is subject to additional retention
requirements. The Marketing Agent is responsible for complying with the
retention policies of all applicable programs and maintaining applicants’
private information in a secure and confidential manner.
2. Developers, owners and sponsors of Projects (“Developers”), as well
as their agents responsible for the marketing and resident selection
for Projects (collectively “Marketing Agents”) must maintain records
in accordance with the NYC Housing Connect Terms and Conditions
of Use for Developers and Marketing Agents, including the NYC
Privacy Policy, NYC Terms of Use, HDC Privacy Policy, and the HDC
Terms of Use. The NYC Housing Connect Terms and Conditions of
Use for Developers and Marketing Agents can be viewed at:
https://www1.nyc.gov/site/hpd/about/terms-and-conditions-
developers-agents.page. In addition, Marketing Agents must not share
any applicant information including but not limited to Lottery logs,
Project applications and supporting documentation with any third
party without the written approval of the Agency unless otherwise
required by law.
4-4 Re-Rentals and Resales
Certain projects are required to go through Re-rentals and Resales after initial
lease up or initial sale. Marketing Agents
1
will use the Mini-Lottery process in Housing
Connect or alternate remarketing procedures as approved by the appropriate Agency
(HPD or HDC) to fill future affordable unit vacancies upon turnover. This is known as the
“Re-rentals and Resales” process. Units are subject to Re-rentals and Resales
according to the following:
i. an HPD regulatory agreement or similar instrument requiring the
use of Housing Connect and/or specifying compliance with the
Marketing Handbook upon turnover
ii. an HDC regulatory agreement or similar instrument
iii. developer opt-in to use Housing Connect, as approved by the
Agency
iv. Section 51-04(c) of Title 28 of the Rules of the City of New York
1
See definition of Marketing Agent in Section 1-1.B
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v. Section 41-02(c)(1) of Title 28 of the Rules of the City of New York
Re-rental and Resale applicants will be processed according to the protocol outlined in
Section 4-5, “Applicant Evaluation and Resident Selection” where applicable.
4-5 Applicant Evaluation and Resident Selection
The Marketing Agent will have primary responsibility for applicant evaluation and resident
selection. The Marketing Agent must select all prospective residents from the batches of
applications generated in Housing Connect. (See Section 4-3.C, “Order of Processing,”
or Section 5-1, “Set-Asides and Preferences.”)
A. INELIGIBILITY POLICIES
1. An applicant shall not be rejected for any reason that is not consistent with
the rejection criteria approved in the pre-marketing process and Agency
selection policies (see Section 5, “Detailed Selection Policies”). The
rejection criteria must be applied fairly and equitably to all applicants. No
application will be found ineligible prior to entering the lottery. Every
application received via Housing Connect and every paper application
postmarked or date-stamped prior to and including the application deadline
date will be assigned a unique log number.
2. Multiple applications
a. A “multiple application” is defined as the appearance of any single
person across two or more applications for any given project, where
the applications differ in the number or composition of household
members present.
b. In the case that multiple applications are received for any single
person, all applications for that applicant must be found ineligible.
3. Duplicate applications
a. A “duplicate application” is defined as the appearance of any single
person across two or more applications for any given project, where
the same household members are present and all other information
is the same.
b. Upon receipt of duplicate applications, the Marketing Agent will not
find the applicant ineligible, but will consider only the application with
the highest log number (lowest chance of being selected).
4. Applicants to rental projects may not be found ineligible or be rejected solely
on the basis that the applicant receives Section 8 assistance or other
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qualifying government rental subsidy.
5. The Developer and the Developer’s family members, employees,
agents, and employees of agents are prohibited from seeking or
obtaining an affordable unit in the Project at any time, regardless of
their position with the firm. This applies to the following parties:
a. Any person holding an equity interest in the developer or any agent
of the Developer;
b. Any director, officer, member or employee of the Developer or of any
agent of the developer;
c. The spouse of any such person;
d. Any of their respective siblings, parents, grandparents, children, or
grandchildren; or
e. Their respective spouses.
6. Employees of HDC are prohibited from seeking a unit in any project in which
HDC is involved.
7. Employees of HPD may not seek units in buildings that have been involved
in HPD programs or projects in the last three years if the employee either
(i) works in the division which administers such HPD program or project, (ii)
works in the Marketing Unit, (iii) is or was involved in decisions concerning
such HPD program or project, or (iv) seeks, obtains, or purchases the
housing through a process that is different in any way from the process
through which members of the general public seek, obtain, or purchase
such housing. Any HPD employee who is invited to confirm their eligibility
for a lottery project must consult with the agency's Office of Legal Affairs to
determine whether the City Charter, HPD policies or orders, or any other
law or rule regarding conflicts of interest prohibits such employee from
leasing or purchasing the apartment or home. The employee will be
required to submit a statement from HPD that receiving such unit does not
present a conflict of interest.
✓ The Marketing Plan must specify criteria to be used for resident
selection and rejection.
B. PROCESSING APPLICANTS
1. As the Marketing Agent processes applications, applicants must be notified
via Housing Connect or regular mail.
Apparently ineligible applicants who applied in the Original Housing
Connect or on paper in the New Housing Connect must be sent an
ineligibility notice (Attachment H-2). Applicants who apply in the New
Housing Connect will have their status automatically updated in the system
and no ineligibility notice is generated or required.
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2. Marketing Agents have two options for the method of collecting
documentation from apparently eligible applicants, depending on which
system the project was marketed under
a. If the Project was marketed under the Original Housing Connect,
applicants must be given the option of how to submit documents,
with at least one electronic submission option and at least one in-
person option (see Section 4-5.C below).
b. If the Project was marketed under the New Housing Connect,
applicants who applied online must be offered the opportunity to
submit documents outside of the system in addition to the default
online option. Applicants who applied on paper must be offered
regular mail and/or in-person options for providing documents.
3. Additional or missing documents must be requested in writing and the
applicant must be given at least five business days to provide the
documents using any of the means described above in Section 4-5.B.2).
4. All physical locations where applicants may go in person (e.g., for document
drop-off, eligibility appointment, or to sign a lease or other documents) must
be accessible to applicants with disabilities and be within New York City
limits, that is, in New York, Bronx, Kings, Queens, or Richmond Counties.
C. DIRECT DOCUMENT SUBMISSION FOR PAPER APPLICANTS AND
APPLICANTS APPLYING IN THE ORIGINAL HOUSING CONNECT
1. The Marketing Agent will send a notice to each paper applicant to submit
supporting documentation, using the applicant’s preferred method of
contact (email or regular mail) and in the applicant’s preferred language.
Contact method and language preferences are indicated on the application.
The notice alerts applicants of their apparent eligibility and requests that
they submit documentation to the Marketing Agent to review. Notice will
include:
a. List of required documents for applicant to submit
b. Ways in which the applicant can submit the documents to the
Marketing Agent. Agents must provide at least one electronic option
(e.g. email address) and one in-person option (e.g. address and
office hours for which applicants can drop off documents);
c. That applicants who have indicated they have mobility, vision, or
hearing disabilities are required to submit third party verification of
their need for the set-aside unit using the form, Certification of
Eligibility for Disability Set-Aside Unit, Attachment I-2, completed by
the applicant and a medical professional. The Marketing Agent will
attach the form to the eligibility notice and indicate that it must be
completed and submitted along with the other documents; and
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d. Request to respond within reasonable amount of time (but not less
than ten business days from the sent date or postmark of the
notice).
i. Applicants who do not respond within the first five days shall be
sent a second and final eligibility notice, reminding the applicant
of their deadline date.
ii. If the applicant does not respond within the allotted timeframe,
the Marketing Agent may send a rejection notice.
2. Upon receipt of the applicant’s documentation, the Marketing Agent must
provide confirmation to the applicant that the documentation was received.
Then, the Marketing Agent will review the submitted documentation for
eligibility.
3. If the review of income and household documentation reveals that the
applicant is not eligible, the Marketing Agent will send a rejection notice,
Attachment H-4.
D. DIRECT DOCUMENT SUBMISSION FOR USERS OF THE NEW HOUSING
CONNECT
1. The Marketing Agent will send a notification to each applicant to submit
supporting documentation in the applicant’s preferred language. The
notification alerts applicants of their apparent eligibility and requests that
they submit documentation to the Marketing Agent to review. The
notification will include:
a. List of required documents for applicant to submit based on the
information from their application;
b. Ways in which the applicant can submit the documents to the
Marketing Agent. Agents must provide at least one option for
document submission outside of the New Housing Connect system;
c. The applicants who have indicated they have mobility, vision, or
hearing disabilities are required to submit third party verification of
their need for the set-aside unit using the form, Certification of
Eligibility for Disability Set-Aside Unit, Attachment I-2, completed by
the applicant and a medical professional. The form will be included
with the eligibility notice and indicate that it must be completed and
submitted along with the other documents; and
d. Request to respond within reasonable amount of time (but not less
than ten business days from the sent date or postmark of the
notice).
i. Applicants who do not respond within the first five days shall be
sent a second and final eligibility notice, reminding the applicant
of their deadline date.
ii. If the applicant does not respond within the allotted timeframe,
the Marketing Agent may send a rejection notice.
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2. If the review of income and household documentation reveals that the
applicant is not eligible, the Marketing Agent will send a rejection notice,
Attachment H-4
E. IN-PERSON APPOINTMENTS
1. Should the Marketing Agent schedule an in-person appointment with an
applicant, the Agent is responsible for maintaining standards during
applicant eligibility appointments, including but not limited to the following:
a. Space must be accessible and clearly marked for people with
disabilities;
b. Staff must be trained in HUD income calculations and the content of
HUD Handbook 4350.3: Occupancy Requirements of Subsidized
Multifamily Housing Programs (available at hud.gov), and fair
housing, language access procedures, and Agency marketing
requirements;
c. Instructions for staff and applicants on how to access language
interpretation and translation services must be on display;
d. Applicants must be provided quality language interpretation services
free of cost (including American Sign Language);
e. Appointments must be available outside of typical work hours (i.e.,
evening/weekend appointments);
f. Marketing Agents must ensure that applicants are seen at their
scheduled appointment time;
g. Appointments must be conducted in private, where applicants’
personal information is not visible or audible to anyone other than
themselves and the reviewer; and
h. Paper and digital applicant information must be stored in a secure
and private place.
✓ The Marketing Plan must specify how the applicant eligibility
appointment standards above will be achieved
F. AGENCY REVIEW
1. No resident may be moved into the building, and no lease or contract
may be signed, until the Agency has received and completed its
review of the applicant file and notified the Marketing Agent in writing
that such applicant may move forward. This is true both during initial
lease-up or sales and thereafter. Concurrent reviews by other involved
agencies may also be required.
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2. The Marketing Agent may not collect funds from prospective residents
(e.g., security deposits, rents, etc.) until Agency review has
completed.
3. HPD and HDC may perform independent reviews of applicant income
eligibility as an additional means of ensuring compliance with the
Regulatory Agreement and any statutory requirements of the affordable
housing or financing program. Agency verification of program eligibility is
based on applicant information initially reviewed by the Marketing Agent.
4. Upon request, Marketing Agents must provide any applicant or tenant
records or other related records to the New York City of Department of
Investigation (DOI) for its review and inspection.
5. Tenant Income Certification for IRS program units (Low-Income Housing
Tax Credits (LIHTC) or tax-exempt bonds):
a. Reviews are conducted under HPD’s and HDC’s role as LIHTC
monitoring agencies; however, these reviews alone are not
verification of tax credit compliance. Upon the Marketing Agent’s
annual tax credit certification review (as required by IRS monitoring
rules), the compliance unit in the respective Agency will review files
in their entirety to monitor compliance.
b. The Marketing Agent must submit Tenant Income Certification
(“TIC”) and verifications to the Agency along with the Applicant
Information Form (“AIF”) to enable a review of the Marketing Agent’s
computation of eligibility. The Marketing Agent must inform
applicants that they will not be allowed to occupy a unit until the
Agency has reviewed their Tenant Income Certification. The
Marketing Agent will be notified in writing once the file review has
been completed. See TIC Submission Cover Notice, Attachment L-
2; TIC form, Attachment L-3; and AIF, Attachment M.
c. If the applicant file is complete as described above, and the
information contained therein raises no additional issues, Agency
review timetable is three to five business days from receipt of the file.
However, if the file is incomplete, or if its contents present issues that
require special review either internally or with the City’s Department
of Investigation (“DOI”), the review process will take as long as
necessary to (a) acquire the missing or additional paperwork from
the Marketing Agent or (b) to complete an additional review with DOI.
On a case-by-case basis, if such process extends past ten business
days without a resolution, the Agency may grant the Marketing Agent
permission to place such applicant on hold and proceed with other
applications while such special reviews are being completed.
Although an added step, these procedures will ensure both the
integrity of the Agency’s programs and protect the Developer from
the potential regulatory defaults for non-compliance that can result
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from admitting applicants who are not truly eligible.
6. Tenant lease and related documents:
a. Immediately prior to signing the lease, the statement in the Pre-lease
Acknowledgement and Certification must be reviewed with, and
signed by, all adult household members (see Pre-lease
Acknowledgement and Certification, Attachment N-1). This
statement warns against violating the primary residence rule, as well
as provides a final confirmation as to the veracity of all information
the applicants submitted throughout the process.
b. The Marketing Agent must use a lease that complies with the Rent
Stabilization Law and regulations.
c. For rental Projects financed by HDC, owners must execute an HDC
lease rider, which outlines the unique aspects of the program and
how it differs from standard rent stabilization (such as the prohibition
on sublets). See Rider to Standard Rent Stabilization Lease for Low-
Income, Attachment O, or see Rider to Standard Rent Stabilization
Lease for Middle-Income, Attachment P.
d. At the time of lease-signing for IRS program units, the applicant must
complete a Reaffirmation of Income. The Marketing Agent must
confirm that all income documents comply with the 120-day rule. See
Reaffirmation of Income, Attachment Q. The Marketing Plan must
include a copy of the lease package for review.
7. HPD and HDC allow Marketing Agents and Developers to use an electronic
signing process for leases and other documents, as applicable.
G. APPEALS
1. Applicants are given the opportunity to submit a written appeal to the
Marketing Agent to dispute a rejection notice. Applicants who applied in the
Original Housing Connect or on paper are also given the opportunity to
submit a written appeal to the Marketing Agent to dispute an ineligibility
notice, no unit available notice, or low priority notice as they do not have the
opportunity to update an application prior to processing. The applicant’s
place on the log is maintained while the appeal is under review.
2. Upon receipt of an appeal, the appeal and application must be reviewed by
a supervisor, and this reviewer may not be the same person as the initial
reviewer. Any questions during appeal review should be directed to the
Agency.
3. If the Marketing Agent finds the application still to be ineligible after the
appeal review, the appeal rejection notice must provide specific and
detailed reasons why an applicant cannot be approved, according to the
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template provided by the Agency See Appeal Rejection Notice, Attachment
H-7.
H. COMPLAINTS
1. The appeal rejection notice will contain information for the applicant on how
to contact the appropriate Agency (HPD or HDC) if the applicant has a
complaint.
2. If the applicant’s complaint concerns the rejection of their appeal, the
applicant must submit their complaint to the Agency within five business
days of the appeal rejection notice’s postmark or sent date to initiate a
review. Such a complaint must include a written explanation of why the
applicant believes the appeal was rejected in error and documentation to
support the explanation.
3. The Agency may require that the Marketing Agent hold a unit depending on
the circumstances of the case and if units are available.
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5. Detailed Selection Policies
5-1. Set-Asides and Preferences
5-2. Qualification as a Household
5-3. Changes To An Application While An Applicant Is In
Process For A Unit
5-4. Income Eligibility
5-5. Continuing Need
5-6. Background Checks and Other Factors
5-7. Occupancy Guidelines and Unit Distribution
5-8. Rent Levels and Income Standards
5-9. Other
MARKETING HANDBOOK, SECTION 5: DETAILED SELECTION POLICIES
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5-1 Set-Asides and Preferences
A. DISABILITY SET-ASIDES
1. All City-assisted projects must comply with the accessibility requirements of
Section 504 of the Rehabilitation Act of 1973. Section 504 requires that, for
projects involving the new construction of housing containing five or more
dwelling units and for projects involving the substantial alteration of housing
containing 15 or more dwelling units, a minimum of five percent of units in
the Project must be accessible and set aside for households with a person
with a mobility disability (“Mobility Disability Set-Aside Units”). An additional
minimum of two percent of units must be set aside for households with a
person with a hearing or vision disability (“Hearing/Vision Disability Set-
Aside Units”). See the HPD Design Guidelines for more information,
available at nyc.gov/hpd.
2. Marketing Agents must make the Mobility Disability Set-Aside Units (five
percent of units in the Project or one unit, whichever is greater) available
first to any applicants with mobility disabilities.
3. Marketing Agents must make the Hearing/Vision Set-Aside Units (two
percent of units in the Project or one unit, whichever is greater) available
first to any applicants with hearing and/or vision disabilities.
4. When processing applicants for disability set-asides, New York City
residents must be processed before non-residents. If there are insufficient
New York City residents to meet the set-aside requirement, the Marketing
Agent may then process non-residents to fulfill the set-aside requirement.
5. At the time community letters are sent out, the Marketing Agent must notify
the Mayor’s Office for People with Disabilities of the Project in writing (with
a copy to the Agency):
Mayor’s Office for People with Disabilities
100 Gold Street, 2nd Floor
New York, NY 10038
Tel (212) 788-2830
Fax (212) 341-9843
TTY (212) 788-2838
Email: [email protected]
6. If the disability set-aside requirement is not fulfilled from applicants in the
lottery, the Marketing Agent must notify the Agency indicating how many
units could not be filled through the lottery.
a. For projects marketed in the Original Housing Connect, the log must
demonstrate that all applicants noted as having a mobility or
visual/hearing disability that have been reached have been
contacted and their status should be noted in the log.
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b. For projects marketed in the New Housing Connect, all applicants on
the disability set-aside batch(es) must have a final disposition
indicating they have been processed.
c. After review, the Agency may require the remaining units to be
remarketed.
B. COMMUNITY PREFERENCE
1. As instructed by the Agency prior to the marketing effort, the Marketing
Agent may be required during initial lease-up or sales to give an occupancy
preference for a percentage of the units to applicants who, at the time of
application and processing, are residents of the Community District in which
the building is located (“Community Preference Units”). Applicants with
community resident status must meet all other eligibility requirements of the
Project.
2. When the community preference is fully achieved, any remaining
community applicants will be processed in the same order as other
applicants. If, after all applications have been processed, the community
preference cannot be filled, the Marketing Agent must notify the Agency
indicating how much of the preference has been achieved.
a. For projects marketed in the Original Housing Connect, the log must
demonstrate that all applicants with the community preference have
been contacted and their status should be noted in the log.
b. For projects marketed in the New Housing Connect, all applicants on
the community preference batch(es) must have a final disposition
indicating they have been processed. After review, the Agency may
waive the remainder of this preference and authorize the Marketing
Agent to proceed with the remainder of the log sequentially.
C. MUNICIPAL EMPLOYEE PREFERENCE
1. The Marketing Agent must give an occupancy preference for five percent of
the units (or one unit, whichever is greater) to municipal employees of the
City of New York (“Municipal Employee Preference Units”). At least one
household member must be a municipal employee for an applicant to be
eligible for this preference. A general list of New York City agencies is
available at nyc.gov for reference, but to be eligible for this preference, the
applicant must be paid by the City of New York. (Note: HDC employees are
not eligible for this preference. Employees of HPD are only eligible if they
can provide a statement from HPD that receiving such unit does not violate
any applicable law, rule, or policy.)
2. When processing applicants for the municipal employee preference, New
York City residents must be processed before non-residents. If there are
insufficient New York City residents to meet the municipal employee
preference, the Marketing Agent may then process non-resident municipal
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employees of the City of New York.
D. RESIDENCY PREFERENCE FOR NEW YORK CITY RESIDENTS
After fulfilling the disability set-asides and Community Board, municipal employee,
and any remaining preference requirements, applicants in the general pool who
reside in New York City must be processed before non-New York City residents.
E. ADDITIONAL SET-ASIDES AND PREFERENCES
There may be additional preferences and set-asides tied to certain government
programs or funding sources. However, they are subject to the same resident
selection criteria and application process and must be approved by the Agency.
✓ The Marketing Plan and Project advertisement must reflect all set-asides and
preferences.
F. SET-ASIDES AND PREFERENCES AT RE-RENTAL
Upon re-rental of initially advertised units, units that are set aside for people with
disabilities must remain set aside for people with those disabilities. Preferences are
only applicable to initial lotteries unless otherwise stipulated in a Project’s regulatory
agreement.
G. HOMELESS REFERRALS
1. The Agency may require that all or a portion of the Mobility Disability Set-
Aside Units and Hearing/Vision Disability Set-Aside Units, the Community
Preference Units, the Municipal Employee Preference Units and/or units
associated with any other additional preference and set-aside then existing,
be set aside as housing for households then residing in shelter and referred
by the City, provided that such homeless applicants meet the requirements
of the applicable preference or set-aside and any other applicable program
eligibility criteria. This requirement may apply to initial rentals and/or re-
rentals.
2. The Agency may also amend these policies and procedures for individual
Projects (for initial rentals or re-rentals from a waiting list) to authorize the
owner to give a preference or set-aside for referrals of household or persons
then residing in shelter and referred by the City, provided that such
homeless applicants meet any applicable program eligibility criteria (i.e.,
have incomes at or below the maximum allowable income for eligibility).
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H. REFERRALS
The Agency may refer to the Marketing Agent potential applicants who are being
relocated or displaced due to a governmental action. The Marketing Agent, if directed
by the Agency, must first offer units to these referrals. Their applications must be
processed according to program selection criteria for eligibility and the Agency must
complete its review before any referred applicant may be offered a lease.
5-2 Qualification as a Household
A. DEFINITIONS
For the purposes of applying to City-assisted affordable housing, the following
terms shall have the meanings set forth below:
"Adult" shall mean a person at or above the age of 18 years.
"AMI" shall mean the area median income for the primary metropolitan statistical
area as determined by the United States Department of Housing and Urban
Development or its successors ("HUD") from time to time for a family of four, as
adjusted for family size. “80 percent of AMI” shall mean 160 percent of the income
levels as modified by household size for the New York metropolitan statistical area
for 50 percent of median income families (a.k.a. as “very low-income families”) as
determined from time to time by HUD under Section 3(b) (2) of the United States
Housing Act of 1937 (or, if such program is terminated, under such program as
was in effect immediately before such termination).
"Dependent" shall mean a Minor who is the lawful dependent of an Adult in the
Household, as indicated by (i) a court order or other binding document establishing
that such Adult is the legal guardian of, or is otherwise responsible for the custody
and care of, such Minor, (ii) school records identifying such Adult as such Minor’s
legal guardian; (iii) written verification from a government agency, or a social
service provider under contract to a government agency, confirming the placement
of the Minor in the custody and care of such Adult, or (iv) federal or state income
tax returns in which such Adult claims such Minor as a dependent.
"Guardian" shall mean an adult who is legally responsible for a Dependent.
"Immediate Family Member" shall mean, with respect to any person, (i) his or her
grandparent, parent or Guardian, child or Dependent (who meets the definition of
“Dependent” set forth above), grandchild, sibling, spouse, or domestic partner, and
(ii) any of their respective grandparents, parents or Guardians, children or
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Dependents, grandchildren, siblings, spouses, or domestic partners.
"Extended Family Member" shall mean, with respect to any person, (i) his or her
Immediate Family Member, and (ii) his or her aunt, uncle, or first cousin, or any
of their respective Immediate Family Members.
"Household" at admission shall mean (i) a single person, or (ii) two or more
persons who:
a. are Immediate Family Members;
b. are Extended Family Members who need to live together in order to
support one another with respect to finances, child care, eldercare,
medical care, or other extenuating family circumstance, as indicated
by self-certifications explaining the family circumstances and needs;
or
c. are financially interdependent, as indicated by (i) current leases or
utility records demonstrating a shared address, or (ii) documentation,
such as bank accounts, demonstrating shared assets.
"Minor" shall mean a person under the age of 18 years.
If an applicant states that the applicant and their spouse or significant other are
separated and there is otherwise evidence of interdependence, then the Marketing
Agent must require the applicant to provide proof of a legal or legitimate
separation. See Section 5-3.C, “Proof of Extenuating Circumstances” for
documentation required.
5-3 Changes to an Application While Applicant is in Process for
a Unit
Because eligibility for these programs is based on household size and income, special care must
be taken to ensure that any changes to income or household composition reported after an initial
eligibility determination has been made is not an attempt by the applicant to induce eligibility.
A. IN THE NEW HOUSING CONNECT
Applicants have the ability to update their Housing Connect profile at any time to
reflect their current circumstances. Applicants are evaluated based on the
information in their profile when their log number appears on a batch, at which time
a “snapshot” of their profile is taken and used as the application for that lottery.
Once a snapshot is taken, information cannot be changed, and an initial eligibility
determination is made.
1. Changes to Income While in Process for a Unit
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a. In the case that an applicant reports a change in income after
eligibility has been confirmed, and such change impacts their
eligibility for the unit for which they are in process, the Marketing
Agent will only continue processing the application if the change is
due to a circumstance that is outside of the applicant’s control that
can be documented through a third-party source. If the Marketing
Agent has questions regarding changes to income after the snapshot
has been taken, it must contact the Agency.
b. If the change in income is determined to be outside of the applicant’s
control (through documentation from a third-party source), the
application will be re-evaluated to determine whether the applicant
qualifies for other unit types. If the change cannot be documented
through a third-party source, the application will be rejected.
2. Changes to Household Composition While in Process for a Unit
a. After the application snapshot is taken, changes to household
composition that impacts an applicant’s eligibility for the unit for
which they are in process will result in the application being rejected,
unless the change is due to an Extenuating Circumstance
(“Extenuating Circumstance(s)”) including, but not limited to, the
following:
i. Death of a member of the household
ii. Birth in the household
iii. Separation or divorce
iv. Court order of custody
v. Domestic violence
b. Similarly, in the case that an applicant appeals a rejection citing a
change in household composition, the Marketing Agent must only
continue processing the application if such change is due to an
Extenuating Circumstance.
B. IN THE ORIGINAL HOUSING CONNECT
1. Changes to Income While Applicant is in Process for a Unit
a. In the case that there are changes to an applicant’s source(s) of
income since the application was submitted, the applicant must
provide, at the time of document submission or in an appeal of an
ineligibility notice, documentation supporting such changes.
Documentation requirements vary depending on the income source.
For specifics, see section 5-4, “Income Eligibility,” and where
applicable, the HUD Occupancy Handbook 4350.3.
b. If the applicant cannot provide supporting documentation for such
changes, the application will be rejected.
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c. In the case that an applicant’s income changes after document
submission and a determination of eligibility has been made, and
such change impacts their eligibility for the unit for which they are in
process, the Marketing Agent will only continue processing the
application if the change is due to a change in income that is outside
of the applicant’s control that can be documented through a third
party source. If the Marketing Agent has questions regarding
changes to income after document submission, it must contact the
Agency.
d. If the change in income is determined to be outside of the applicant’s
control through a third-party source, the application will be re-
evaluated to determine whether the applicant qualifies for other unit
types.
2. Changes to Household Composition While Applicant is in Process for a Unit
a. Changes to household composition prior to document submission
are acceptable, provided that the change does not affect the
applicant’s qualification as a household or their ability to meet the
household size requirements for available units within the project.
(See Section 5-3 “Qualification of a Household.”)
b. In the case that an applicant appeals an ineligibility notice citing a
change in household composition, and such change would make
them apparently eligible for an available unit, the Marketing Agent
must send a Document Request Notice, Attachment H-1A.
c. After document submission and after eligibility is determined,
changes to household composition that are not due to an
Extenuating Circumstance will result in the application being
rejected. The Marketing Agent must send them a Rejection Notice,
Attachment H-4.
C. PROOF OF EXTENUATING CIRCUMSTANCES
1. The Marketing Agent will require the applicant to provide, at the time of
appeal, documents to support any changes in household composition. A
notarized statement alone is not sufficient documentation of an extenuating
circumstance, except when permissible in subsections 2 and 3 below.
Common examples of documentation for extenuating circumstances
include but are not limited to: birth or death certificates, hospital records,
divorce records, and court records.
2. Legal or legitimate separation
a. Examples of proof of a legal separation would be either (i) a duly
executed and acknowledged separation agreement filed with the
county clerk where either spouse lives, or (ii) a judgment of
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separation granted by the New York Supreme Court, or (iii) proof of
Divorce filing evidencing that a Summons and Complaint and an
Affidavit of Service have been filed, or (iv) legal documentation, such
as tax returns or other government-issued documentation,
establishing one partner’s absence from the household for at least
six months prior to date of eligibility appointment and a notarized
affidavit from the applicant representing that they are separated and
have no intention of reuniting.
b. If legal proof of separation or divorce is not available to the applicant,
they must provide an explanation for the lack of legal proof as well
as documentation supporting such separation or divorce.
3. Domestic violence
a. When an applicant provides domestic violence as the reason for
changes to income or household composition after document
submission, and such changes affect eligibility, the Marketing Agent
must follow the Agencies’ appeal review processes under the
Violence Against Women Act (“VAWA”) (see Section 5-6.J and
Attachment Z, VAWA Marketing Guidance)
5-4 Income Eligibility
A. INCOME ELIGIBILITY AT ADMISSION
1. Income eligibility at admission is determined in the same way as it is
determined under the federal Section 8 program except where the Agency
specifies that additional requirements or restrictions apply.* The Marketing
Agent must refer to the latest Code of Federal Regulations (24 CFR Part 5)
and obtain a current copy of the HUD Handbook 4350.3 (Chapter 5), which
respectively state and explain these requirements. The HUD handbook is
available to print or view at hud.gov. In addition, the Marketing Agent must
require its marketing staff to attend an industry training where these
requirements are reviewed in detail.
2. Generally, the Marketing Agent must use current circumstances to
anticipate income. Projected annual income is calculated by annualizing
current income documents. Gross income, before any expenses or
deductions, is used to determine income eligibility, with the exception of
self-employment income (see Section 5-4.C, “Self-Employment Income”).
*Unlike the federal Section 8 program, income calculations for these programs are not
made for the purposes of determining or adjusting rents, but only for determining eligibility
at admission.
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B. EMPLOYMENT INCOME
1. The Marketing Agent must require all adult household members reporting
employment income to provide all of the following:
a. The most recent year’s complete federal and state tax returns,
including all W-2’s and 1099’s. The highest income reflected on the
most recent W-2 or tax return will be “the tax return income.”
b. Four to six most recent consecutive pay stubs. Income must be
calculated by both (i) projecting the year-to-date, and (ii) averaging
the pay stubs. The higher of these two amounts (i or ii) will be “the
pay stub income.”
i. To best illustrate variations in hours worked, no fewer than the
four most recent consecutive pay stubs must be used to calculate
pay stub income, and six pay stubs is preferable. The Marketing
Agent must establish in the Marketing Plan the initial number of
pay stubs they will request from applicants. Regardless of
whether four or six pay stubs are requested, applicants may be
asked to provide additional pay stubs to help confirm patterns or
variations.
ii. If there is evidence that the pay rate has increased or decreased
over the course of the paystubs provided, the Marketing Agent
must use the amount reflective of current circumstances, rather
than an average.
Example 1: Tax Return vs. W2 Income
Through a benefit program offered by her employer, Angelina Medina
purchases a monthly transit pass with pre-tax dollars. Ms. Medina’s W2
reflects the pre-tax income that she spends on the transit pass, while her tax
return does not.
The Agent should use the W2 income in the annual income calculation
because it reflects her gross earnings.
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c. Third Party Verification directly from the employer.
i. The Marketing Agent must send an employment verification form
(see Attachment I-3 for a sample) directly to the applicant’s
employer, with instructions for the employer to return it directly to
the Marketing Agent. Envelopes, email, or fax confirmations must
be maintained to document that the information was obtained via
direct third-party procedures, and not transmitted through the
applicant.
ii. This form will request current salary, year-to-date income,
information about bonuses, overtime, etc., and anticipated
increases. The highest amount calculated based on this
information will be “the third-party income.”
iii. An applicant cannot be penalized for the lack of response from
his/her employer in completing and returning the verification.
However, the Marketing Agent must provide evidence of at least
three attempts, within a period of time deemed reasonable by the
Agency, to obtain such third-party employment verification.
iv. For units that are not part of an IRS program, employer
verification is not required when an applicant provides tax returns
and pay stubs from the same employer.
Example 2: When Averaging Pay Stubs is Unreliable
Aidan Reynolds is paid bi-weekly and provides his six most recent pay stubs at his
eligibility appointment:
Pay Date
Amount
1. 03/02
$951.20
2. 03/16
$951.20
3. 03/30
$1,205.88
4. 04/13
$1,205.88
5. 04/27
$1,205.88
6. 05/11
$1,205.88
An average of the six payments is $1,120.99. However, the change in pay-rate
beginning at his 3/30 paystub suggests that Mr. Reynolds may have received a raise.
The Marketing Agent explores further to determine if his income has increased
permanently by requesting a clarification from his employer.
In response to the agent’s request for income verification, Mr. Reynolds’ employer
confirms that his new bi-weekly rate is $1,205.88. The Agent must use this amount in
projecting the annual income, rather than the average, because the raise most
accurately reflects current circumstances.
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v. The Marketing Agent must also obtain Third Party Verification of
Termination directly from previous employers who are listed on
the application and/or most recent year’s tax return.
2. Comparison and Determination
a. Based on the three employment income verification sources above,
the Marketing Agent must compare the tax return income, the pay
stub income, and the third-party income. The highest of these
amounts will be the employment income for the household member.
b. Unless a compelling argument can be made as to why an applicant’s
income decreased, the highest income of the sources must be used.
Some exceptions include a decrease in income due to retirement or
disability, or a change in employment.
c. If the results of the different calculation methods described above
have significant discrepancies that impact eligibility, the Marketing
Agent must conduct further review to determine whether the highest
calculation is also the most accurate. Marketing Agents may request
additional documentation from applicants or third-party sources to
Example 3: Change in Employment with Tax Returns
Monique Lograsso applied to a 130% AMI unit at Highland Gardens indicating she
worked for Company A. When she is contacted for an appointment, she informs the
agent that she now works for Company B.
She can provide 6 paystubs from Company B and her most recent tax returns which
contain her W2 from Company B.
Employer verification from Company B is not needed for Ms. Lograsso because she
has both paystubs and W2s from Company B, and the unit she is in process for is
not part of an IRS program. A self-affidavit from Ms. Lograsso indicating she no
longer works for Company A is sufficient to process the file.
Example 4: Change in Employment without Tax Returns
David Goldberg applied to a 130% AMI unit at Highland Gardens indicating he
worked for Company X. When he is contacted for an appointment, he informs the
agent that he now works for Company Y.
He can provide 6 paystubs from Company Y and his most recent tax returns, but his
taxes contain his W2 from Company X.
Employer verification from Company Y is needed. The Agent should also attempt
to get third-party verification of termination directly from Company X. However, if it is
not possible to obtain, a self-affidavit from Mr. Goldberg indicating he no longer
works for Company X is sufficient to process the file.
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perform this additional review.
d. If an applicant qualifies for a tax filing exemption under the Internal
Revenue Code (see “Publication 501” on irs.gov), they must
complete Attachment R-6, Affidavit of Non-filing of Income Tax
Return.
3. Tax Release Request Forms
a. If a tax return provided by the applicant appears to have potentially
been altered or a file is otherwise suspicious, the Marketing Agent
should request a transcript from the IRS. For third parties such as
Marketing Agents to receive a tax transcript, they must first register
to become an Income Verification Express Service (IVES) participant
with the IRS. The IRS website (irs.gov) provides instructions for IVES
registration.
b. As an alternative to participating in the IVES program, Marketing
Agents may collect one copy of the 4506-T completed by the
applicant; if the Marketing Agent or the Agency deem that a transcript
is needed, the applicant will need to request it and submit the original
transcript.
c. The applicant must complete an IRS Form 4506 – Request for a
Copy of Tax Return – with DOI contact information listed on line 5, in
cases where DOI needs to request a copy of a tax return. The
Example 5: Factoring in a One-time Bonus
While determining income for an applicant, Joseph Brown, the Agent notices that the paystub
average is significantly higher than the year-to-date and tax returns. Upon closer review, the
Agent discovers that Mr. Brown was awarded a performance bonus of $2,000 in one of the six
paystubs provided. Mr. Brown is paid bi-weekly.
In order to accurately project income, the Agent must average the paystub amounts excluding
the bonus. The bonus is then added to the projection of Mr. Brown’s annual income:
1. [6 Paystubs – Bonus] / 6 = Paystub Average
(Gross income from 6 paystubs, minus bonus, divided by 6)
2. Paystub Average x 26 = Projected Annual Income
(Paystub Average from step 1, multiplied by 26 pay periods)
3. Projected Annual Income + Bonus = Total
Note: Agents should confirm the frequency and amount of the applicant’s bonus(es) with the
employer directly through the Employer Verification.
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applicant must also complete a New York State DTF-505 Form —
Authorization for Release of Photocopies of Tax Returns and/or Tax
Information. See IRS and State Forms, Attachments R-1 through R-
4.
C. SELF-EMPLOYMENT INCOME
Because self-employment income is more difficult to document via third party than
traditional employment income, and is subject to more variables and potential
manipulation, special care must be given in the review of such income. The
Marketing Agent must require that all adult household members reporting self-
employment income provide documentation described below in order to establish
as reliable and accurate a projection of income as possible.
1. Self-employment income with documented two-year history
a. Documentation. Applicants who have reported self-employment
income in the same line of work for at least the two previous years
must provide:
i. Tax returns for the last two years. (If after the current year’s filing
deadline, the applicant must provide the most recent year due to
be filed by the preceding deadline unless they provide
documentation of an IRS extension filing.) The Marketing Agent
must evaluate the net income from both Schedule Cs by
calculating the average to be used as the “historical self-
employment income.” The Marketing Agent must also compare
the historical average to the applicant’s most recent tax return. If
the tax return is higher, that amount should be used as historical
income.
ii. An estimate of current year’s net self-employment earnings
certified in: (i) a letter from a licensed accountant or tax preparer,
or (ii) a notarized self-statement.
b. Evaluation and Determination. The projected and historical incomes
are compared, and the higher amount is generally what is used as
income for the purposes of income eligibility. If there is a significant
discrepancy between the historical income and the projected
income, the Marketing Agent must request additional documentation
from the applicant or third-party sources.
i. The projected self-employment income must be evaluated by the
Marketing Agent in an effort to identify any patterns that may
logically result in a conclusion that the current or next year’s
income will increase or decrease.
ii. If the projection is higher and in line with the progression of the
historical self-employment income, the projected amount should
be used as income.
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iii. If the projection is lower than the historical self-employment
income, there must be an apparent pattern or trend to support
utilizing a lower amount as income.
iv. If no pattern or trend is present, the higher amount from the
historical self-employment income must be used.
v. If a self-employed applicant is not compliant with tax filing
requirements, the applicant will not be eligible for an affordable
unit (unless the applicant qualifies for a filing exemption (see 5-
4.B(2)(D), above). The City will not make available its limited
housing resources to applicants with income that is required to
be reported, but is not being reported, to governmental tax
authorities.
2. Self-employment income without documented two-year history
a. Documentation. Applicants who are not able to provide filed self-
employment tax returns from the two previous years must provide:
i. Tax returns from at least the previous year, even if the income
was not from self-employment.
ii. An estimate of current year’s net self-employment earnings
certified in: (i) a letter from a licensed accountant or tax preparer,
or (ii) a notarized self-statement.
iii. All third-party documentation supporting the estimate so that the
Agent may make a reasonable attempt to establish the
applicant’s self-employment income and determine eligibility. See
Attachment I-4 for examples of self-employment records.
b. Evaluation and Determination. The Agent must use the provided
third-party documentation to make a reasonable attempt to calculate
the applicant’s gross earnings and expenses to establish the
applicant’s net self-employment income and determine eligibility. If
an applicant cannot provide sufficient documentation to support their
estimate of self-employment income, they may be disqualified.
Example of IRS Form 1040 for Self-Employed Applicants
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D. COMBINATION INCOME
1. An applicant may have a combination of wages and self-employment
income. Such applicants may also have sporadic unemployment income.
Their income should be evaluated similarly to the instructions outlined in the
Example 6: Successfully Calculating Self-Employment for Less Than Two
Years
Emily Oswald began driving a taxi five months ago. Ms. Oswald is able to provide a
letter from her accountant and transaction receipts for the rides she has completed in
the past five months. She also provides copies of her monthly car insurance bill. The
Agent can use these documents to project the next twelve months of self-
employment income for Ms. Oswald:
5 months gross earnings / 5 months = Average monthly earnings
Average monthly earnings x 12 = Projected gross receipts
Monthly car insurance charge x 12 = Projected gross expenses
Gross receipts – Gross expenses = Projected net income
The projected net income calculated by the Agent is in line with the accountant’s
projection, and therefore the Agent may use this amount to proceed with determining
Ms. Oswald’s eligibility.
Example 7: Unsuccessfully Calculating Self-Employment for Less Than Two
Years
Victoria Fernandez began working as a swim instructor at a local beach in June and
comes to her eligibility appointment in September, providing three months of
invoices, bank deposits, notarized letters and cancelled checks from her clients. With
this information, Ms. Fernandez projects she will make $24,000 over the next twelve
months.
The Agent reviews the submitted documentation and determines the applicant
earned $6,000 in the past three months. However, the nature of Ms. Fernandez’s
work does not allow for her to work outside of the summer months. The Agent cannot
use these documents to annualize Ms. Fernandez’s income and therefore must only
use the $6,000 earned amount when determining eligibility.
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self-employment section above; however, the evaluation will include both
W2 wages and self-employment income.
2. For applicants with “combination income,” the most recent two years of tax
returns should be reviewed and evaluated.
E. INCOME RECEIVED FOR LESS THAN ONE YEAR
1. When calculating income that may not last for a full year, the Marketing
Agent must use current and recent income information to anticipate or
project income for the 12-month period following initial certification. If
information is available regarding changes that are expected to occur during
this 12-month period, the income calculation is adjusted, as described in the
examples below, to reflect such expected changes.
a. Example 1: If a household member is expected to receive an
increase in salary within the 12 months after initial certification,
income is annualized by adding the number of pay periods at the
current salary to the number of pay periods at the increased salary
to arrive at projected income for the 12-month period following initial
certification.
b. Example 2: If a household member is receiving unemployment
benefits that will end during the following 12 months, income is
annualized by calculating the amount s/he would receive if the
benefit were to continue at the same rate for the remainder of the 12-
month period. The unemployment benefit is expected to bridge a
temporary gap in employment as the recipient actively searches for
work, and it is expected that the household member will earn income
after termination of the unemployment benefits. Because it is not
possible to predict whether his or her wages will immediately match
their pre-unemployment levels, annualizing the benefit rate provides
a reasonable projection of income as a person searches for
employment and re-enters the workforce.
c. Example 3: If an applicant is claiming unemployment benefits for one
or more periods during the year due to layoffs or furloughs with an
expected return to work date, or if they have a mix of employment
income and unemployment benefits throughout the year, income
Example of IRS Form 1040 for Applicants with “Combination Income”:
MARKETING HANDBOOK, SECTION 5: DETAILED SELECTION POLICIES
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from unemployment would be calculated by projecting the number of
weeks per year that they receive benefits. Third-party documentation
such as employer verifications or tax returns establishing the
duration of the layoff is required to accurately project the total amount
of unemployment income to be received.
2. Note: Any household member over 18 years old who is unemployed must
complete an Unemployment Affidavit. See Unemployment Affidavit,
Attachment I-1.
F. INCOME FROM OTHER SOURCES
1. GI Bill income
Consistent with the income calculation methods in the HUD Occupancy
Handbook 4350.3, student financial assistance (grants, scholarships,
educational entitlements, work study programs, and financial aid packages)
is not included in the income calculation. However, when an applicant
receives GI Bill payments, the Marketing Agent must exclude only the
amount paid directly to the educational institution; prorated payments
to the veteran to cover housing and living expenses are included in
the income calculation.
2. Income earned from the applicant’s current residence is not included in the
income calculation if that source of income is not permitted in the affordable
unit. For example, income from using space in the applicant’s current
residence as a source of rental income or for subleasing would not be
included.
3. Child support income
a. Income from court-ordered child support should be supported with
an official statement showing activity and amounts.
b. Income from non-court-ordered child support may be documented
with a self-statement of frequency and amount, by either or both the
payer and recipient.
G. SPORADIC OR NON-RECURRING INCOME
Certain forms of income that are sporadic and non-recurring are not considered
when calculating maximum household income as they are considered temporary
in nature. Examples of sporadic or non-recurring income include one-time gifts or
lump-sum inheritance payments. All sources of income must be disclosed, but
such non-recurring income may be excluded from the income calculation.
H. ASSET CERTIFICATION
1. The Marketing Agent must require that all adult members of the applicant
household complete a certification of assets, which must be signed and
notarized. A sample of such a certification is provided in Asset Certification,
MARKETING HANDBOOK, SECTION 5: DETAILED SELECTION POLICIES
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Attachment T. This form must identify both the specific assets and the actual
income earned from the assets (such as the interest rate for a bank savings
account). IRS rules for Tax Credit compliance allow that this self-
certification is the only documentation required if the total value of an
applicant’s assets is less than $5,000 and the asset information on the
certification form and housing application are consistent. Income generated
from the asset is added to employment and other income. However, it is a
common misconception that this IRS rule is intended to exclude income
from assets if the total value is under $5,000. The income from assets must
still be counted, but if it is under $5,000 no further verification beyond the
self-certification is required. The self-certification must still disclose the
specific assets and the income from said assets. Accordingly, vague
certifications that merely certify that an applicant has less than $5,000 in
assets are not acceptable.
2. With the exception of Projects financed with tax-exempt bonds, the
Marketing Agent is not required to submit supporting asset verification
documents to the Agency as part of the review process when assets are
below $5,000. However, the Marketing Agent must still collect and review
such documents, as bank statements may reveal unreported income.
3. If the total value of assets equals or exceeds $5,000, if the Project’s
financing includes tax-exempt bonds, and/or if there is an unexplained
difference between the assets noted on the application and those
subsequently note on the certification, the Marketing Agent must obtain and
submit complete asset verification documents. Refer to HUD Occupancy
Handbook 4350.3 for guidance regarding the appropriate documents to be
obtained based on the type of assets being verified. As required under tax
credit rules for all verification, documents must be current within 120 days
of the tenant income certification (TIC) effective date (which is ultimately the
move-in date). When over $5,000 total, the actual earned income from the
asset is compared to the imputed value (.06 percent of the total) and the
higher of these amounts is added to the household income.
Note: The calculation of imputed value is dictated by the current HUD passbook
savings rate. The rate in effect as of 2015 was 0.06 percent. Marketing Agents
should refer to hud.gov for updates to the passbook savings rate.
I. CLARIFYING BANK DEPOSITS
1. The Marketing Agent must review bank statements to determine if there are
unreported sources of income reflected in the applicant’s bank statements.
For applicants who use payment apps to receive and hold income separate
from a traditional bank account, “bank statements” may include records of
transactions in a banking app (e.g., Venmo, Cash app).
2. Consistent, recurring, determinable, and/or regular deposits in an
applicant’s bank account must be questioned by the Marketing Agent and
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5-4: Income Eligibility
5-5: Continuing Need
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clarified by the applicant.
3. As per HUD, temporary, nonrecurring, and/or sporadic deposits are
excluded from income calculations. (See HUD Occupancy Handbook
4350.3, Exhibit 5-1, Income Inclusions and Exclusions).
5-5 Continuing Need
Eligibility is also dependent on whether the applicant can demonstrate a
“continuing need” for housing assistance. Any City-assisted housing development
aims to serve individuals and families with a true, continuing need for housing
assistance and not those with other financial resources available. In determining
“continuing need” for these programs, the criteria in this section must be satisfied,
or the applicant is not eligible.
Note: HPD and HDC’s property ownership, asset limit, and primary residence
policies differ from, or are required in addition to, those included in the HUD
Occupancy Handbook 4350.3.
A. ASSET LIMITS
1. Note: For purposes of these requirements, real property includes shares of
stock in a cooperative housing corporation and ownership includes any type
of direct or indirect ownership interest (including partial ownership).
2. The value of household assets may not exceed the asset limit for the unit
to which the applicant is applying. The definition of household assets, as it
pertains to real property, deviates from the definition of assets in the HUD
Example 8: When to Clarify Bank Deposits
Tony Pell submitted his 6 checking statements to the Marketing Agent along with the
rest of his documentation. The Agent notices Mr. Pell receives a $200 Venmo
deposit one or two times per month over the course of the 6 bank statements.
Likewise, in his May bank statement, he had a $50 cash deposit from an ATM and a
$85 deposit from Paypal.
The Agent must contact Mr. Pell and ask him to clarify, in writing, the source of the
Venmo deposits in his checking account because this consistent, recurring deposit
may be an unreported income source.
The Agent does not need to clarify the cash deposit nor the PayPal deposit because
they are sporadic and do not impact eligibility.
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5-5: Continuing Need
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Handbook 4350.3.
3. The entire market value of any interest in real property is subject to the asset
limit; for other capital investments, only the applicant’s equity in the
investment is subject to the asset limit.
4. Balances in specifically designated retirement funds and college savings
accounts are not subject to the asset limit, but are counted toward overall
assets and income from assets.
5. Developers and Marketing Agents should refer to HUD 4350.3 Exhibit 5.2
for the definition of all other assets not listed in this section.
6. Asset Limit for Applicants of Rental Units
a. For a rental affordable unit, the value of the applicant’s household
assets may not exceed the amount of the current HUD income limit
for a four-person household for the AMI limit applicable to such unit.
b. For example, if the 60 percent HUD income limit for a four-person
household is $55,000, a household of any size applying for a 60
percent AMI unit is not eligible if its total household assets exceed
$55,000. If the 80 percent limit is $72,000, a household applying for
an 80 percent AMI unit may not have more than $72,000 in assets.
7. Asset Limit for Applicants of Homeownership Units
For a homeownership affordable unit, the value of the applicant’s household
assets may not exceed the current four-person HUD income limit for 175
percent AMI, plus a pre-determined percentage of minimum required down
payment.
B. PROPERTY OWNERSHIP
1. Asset Calculation
If an applicant owns any real property, the market value of that real property is
included in the calculation of household assets and is subject to the asset limit
(see Section 5-5.A, “Asset Limits”).
2. Income Calculation
If an applicant owns any real property, the actual or potential rental income from
that real property is included in the income calculation.
3. Prohibition – Rental Affordable Unit
For a rental affordable unit, no member of the applicant’s household may own
any residential real property in, or within a 100-mile radius of, New York City.
4. Prohibition – Homeownership Affordable Unit
For a homeownership affordable unit, no member of the applicant’s household
may own, or have previously purchased, any interest in residential
real property.
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5-6: Background Checks and Other Factors
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C. PRIMARY RESIDENCE
1. If approved for an affordable housing unit, the applicant must surrender any
unit where applicant is then currently residing. Each member of the
applicant’s household who leases rental residential real property must
terminate the lease for and surrender possession of such rental property on
or before the move-in date for a rental affordable unit or the date of purchase
for a homeownership affordable unit.
2. For a homeownership affordable unit, the applicant must agree to
continuously occupy the affordable housing unit as his or her sole primary
residence, residing there no less than 270 days per year, with the exception
of days spent on active military duty or subleasing (where permitted by the
project’s regulatory documents).
3. For a rental affordable unit, the applicant must agree to the requirements in
5-5.D(2) except where preempted by other laws.
D. GIFTS AND DOWN PAYMENTS
For homeownership affordable units, no more than half of the down payment
amount may come to the applicant as a gift. The applicant can demonstrate this
by providing bank statements from the three months prior to closing that show at
least half of the down payment amount in the applicant’s account.
E. OTHER RESTRICTIONS
1. If a unit is also subject to statutory restrictions, such as Inclusionary Housing
in the New York City Zoning Resolution, additional rules may apply to
property ownership, asset limit, and primary residence policies. The
Marketing Agent must consult the Project’s regulatory requirements for
details. If a unit is also subject to another governmental subsidy, such as
State Tax Credits, that program’s governing agency should be consulted
regarding any additional or different income and asset requirements.
2. If, after processing the entire lottery log, a development is experiencing
difficulty in leasing or selling the remaining units or subsequent re-rentals or
resales, HPD/HDC may modify the Continuing Need policies to ensure that
available affordable units are occupied in a timely manner.
✓ All asset limit, property ownership, and occupancy requirements must be
disclosed in the Marketing Plan and approved by the Agency.
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5-6: Background Checks and Other Factors
Page 57 of 70
5-6 Background Checks and Other Factors
A. STUDENT STATUS (IRS PROGRAM UNITS)
1. The Marketing Agent must require that all adult members of the applicant
household complete a Student Status Affidavit, which must be signed and
notarized. Samples of such certifications are included in this manual. See
Student Status Affidavit, Attachment J.
2. The Student Rule for IRS program units prohibits low-income units in these
programs from being occupied exclusively by full-time students (for Low-
Income Housing Tax Credits and tax-exempt bonds, the IRS defines a
“student” as a full-time student during five calendar months of the calendar
year at an educational institution, other than a correspondence school, with
regular faculty and students), unless the household qualifies for an
exception under the IRS code. See Tenant Income Certification (TIC),
Attachment L-3, for exceptions.
B. DISABILITY VERIFICATION
Units set aside for people with mobility, vision, or hearing disabilities must only be
offered to applicant households who require the accessibility features of the
accessible or adaptable unit. Any applicant who has indicated that they require an
accessible or adaptable unit must provide verification from a medical professional
that at least one household member has a disability that requires residence in an
accessible unit. See Certification of Eligibility for Disability Set-Aside Unit,
Attachment I-2.
C. IMMIGRATION STATUS/CREDIT HISTORY
1. Immigration status is not a condition of eligibility for any City-assisted
Project. Immigration status may not be questioned in any manner on the
application, during the eligibility appointment, or at any other time during the
applicant review process. Projects assisted with non-City funds may be
subject to different requirements related to immigration status.
2. The Marketing Agent may reject an applicant for failure to provide a Social
Security Number or an Individual Tax Identification Number (ITIN) when the
Marketing Agent needs such information to check credit history, history, if
the applicant does not choose to provide evidence of complete monthly rent
payments for the preceding 12-month period in lieu of a credit check, per
Section 5-6.F.2 below.
3. All applicants must be able to provide verifiable proof of legal income;
inability to provide documentation to verify income and credit is a basis for
rejection, not immigration status.
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5-6: Background Checks and Other Factors
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D. CRIMINAL BACKGROUND CHECKS
1. The Marketing Agent may obtain a criminal background check for any member
of the applicant household 18 years or older. The Agent must state in the
Marketing Plan whether or not they will conduct criminal background checks
and apply it consistently across applicant households.
2. Attachment AA-1 provides guidance to housing providers about how to assess
justice-involved applicants for New York City-funded and/or-assisted housing
2
in a way that is consistent with applicable Federal, State, and City anti-
discrimination laws, regulations, and policies. These provisions include, without
limitation: the Fair Housing Act (42 U.S.C. 3601 et seq), NYS Executive Law §
290 et seq, and NYC Administrative Code § 8-101, and their respective
associated regulations and guidance, including “Guidance on Application of
Fair Housing Act Standards to the use of Criminal Records by Providers of
Housing and Real Estate-Related Transactions” dated April 4, 2016, from
HUD’s Office of General Counsel. 
3. Along with this guide, housing providers must use the accompanying
worksheet, Attachment AA-2, to make an eligibility determination for justice-
involved applicants. In cases where the Marketing Agent is required to
request information from the applicant to complete the worksheet, the Agent
must use Attachment AA-3, which provides the applicant with an opportunity to
review and explain any conviction record to the housing provider before any
decision regarding eligibility is made.
4. Neither the worksheet nor the guidance is or is intended to be a comprehensive
guide to Fair Housing requirements. Developers and Marketing Agents are
responsible for ensuring that their employees are fully trained in and comply
with all applicable Fair Housing requirements.
5. HPD or HDC must find an applicant ineligible for a prior conviction of fraud in
connection to any governmental housing program within the past three years.
E. DISCOVERY OF FALSE INFORMATION
1. Submitting false or knowingly incomplete information to induce eligibility is
grounds for rejection and may also lead to further investigation and,
potentially, criminal prosecution.
2. Even before a file is submitted to the Agency, there are times when the
Marketing Agent may independently detect applicants who have falsified
2
For the purposes of Attachments AA-1, AA-2, AA-3, and AA-4, when the term New York City-funded and/or -
assisted housing is used it refers to HDC-funded and/or -assisted housing, as well as New York City-funded and/or -
assisted housing
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information. For example, the tax transcripts may differ from the provided
returns, or provided pay stubs or other documents may be detected as
having been tampered with. In all such cases, this fraud (or potential fraud)
must be reported. Even if it is detected early and does not result in the
applicant receiving a unit, the attempt of fraud itself must be reported. The
Marketing Agent must report such findings to the Agency or, if they prefer,
directly to DOI.
3. Authorization to Release Information Form
The Marketing Agent must require each adult household member to execute a
copy of the Rent Payment History or Credit Review & Authorization to Release
Information Form, Attachment R-5.
F. RENTAL HISTORY AND CREDIT CHECKS: RENTALS
1. The following policies are the most stringent criteria permitted for evaluating
rental and credit history. The Marketing Agent may implement less stringent
policies, which must be described in the Marketing Plan and approved by
the Agency. Selection criteria must be applied consistently to all applicants.
This applies to:
•
Evidence of Rent Payments
•
Credit Checks and Fees
•
Credit Score
•
Bankruptcy
•
Delinquencies, Collections, Money Judgments, and Liens
Note: Use of information regarding landlord-tenant actions is no longer permitted
in tenant selection. Please refer to Section 227-f of the New York State Real
Property Law.
2. Applicants may choose to provide evidence of complete monthly rent
payments for the preceding 12-month period in lieu of a credit check. If the
applicant choosing this option currently resides in a City homeless shelter,
they may provide evidence of rent payments for the 12-month period
preceding their entry into shelter.
3. After the Marketing Agent has determined that the applicant is otherwise
eligible for an available affordable unit, the Agent must provide the applicant
Attachment R-5 (Rent Payment History or Credit Review & Authorization to
Release Information) in which to indicate their decision to provide evidence
of rent payments or proceed with a credit review.
4. The applicant must be given no fewer than five business days from the date
the Marketing Agent provides Attachment R-5 to submit the completed form
and, if applicable, documentation supporting rent payment history to the
Marketing Agent. Attachment H-1C, Document List, provides applicants
with information on these options at the time they are invited to submit initial
documents for eligibility review or schedule an eligibility appointment.
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5. Evidence of Rent Payments
a. Applicants who opt to submit evidence of monthly rent payments
must provide proof of the monthly rental amount they were required
to pay for the preceding 12 months (in accordance with Section 5-6
F.2) AND any of the following as evidence of monthly rent payments:
i. Formal rent receipts
ii. Evidence of monthly withdrawals, payments, or transfers e.g., bank
statements
iii. Money order receipts or copies
iv. Canceled checks
v. Landlord’s written record of rent payment, i.e., rent ledger
vi. Other evidence subject to agency approval
b. If the applicant provides evidence of monthly rent payments (in
accordance with Section 5-6.F.2), the Marketing Agent will process
the application without running a credit check.
c. If the rent payment information that the applicant provides is
incomplete or of unclear validity, the Marketing Agent must request
the applicant’s written consent to either (i) contact the
owner/manager(s) of applicant’s residence(s) in the preceding 12
months (in accordance with Section 5-6.F.2) to request a ledger; or
(ii) run a credit check as described below in Credit Checks and Fees.
6. Credit Checks and Fees
Note: Please refer to Section 238-a(1)(b) of the New York State Real Property
Law.
a. Credit and background check fees may only be collected in
when (a) an applicant appears to be otherwise eligible and (b) it
is clear that a unit will be available if the applicant is approved.
b. If the applicant provides for review a copy of a credit check
conducted within the past 30 days, the Marketing Agent may not run
a credit check or charge a credit check fee.
c. When a credit check must be run, the Marketing Agent may charge
the actual fees for background checks and credit checks or $20 per
application, whichever is less.
d. The Marketing Agent must provide the applicant with a copy of the
background or credit check and the receipt or invoice from the entity
that conducted the check; after which the applicant may be charged
a fee.
e. No credit/background check fees may be charged to homeless
applicants referred directly by the city.
f. If the Marketing Agent wishes to conduct a credit/background check
prior to eligibility determination, they may do so provided (i) that the
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applicant consents, (ii) that the applicant knows that consenting to
the early credit and/or background check is optional with no
consequences to declining, and (iii) that the Marketing Agent
subsidizes the up-front cost of the check. (If the applicant
subsequently accepts and signs a lease for the unit, the Marketing
Agent may collect the fee at that time.)
G. CREDIT FINDINGS: ALL APPLICANTS
The Marketing Agent may only reject for the one of the reasons stated below.
1. Bankruptcy: Marketing Agents may only use past bankruptcy as grounds
for rejection if the bankruptcy was filed or executed upon within the 12
months prior to the date of the credit report.
2. Delinquencies, Collections, Money Judgments, and Liens:
a. The Marketing Agent may only reject applicants with open or
unsatisfied delinquencies, collections, money judgments, and liens
exceeding $5,000 in total.
b. Inclusions and exclusions:
−
Included in total: Money judgments, liens, and accounts on
the credit report that are either over 120 days delinquent as of
the date of the credit report or have been transferred to a
collections agency and are currently being pursued for
collection.
−
Excluded from total: Delinquencies, collections, money
judgments, and liens due to medical or student loan debt.
3. Settled and Satisfied Accounts
The following policies apply to delinquencies, collections, money judgments, and
liens revealed in the credit check with a total exceeding $5,000. Totals $5,000 and
below shall not be grounds for rejection.
a. Satisfied and settled accounts that have been paid in full or as
agreed, prior to the date of the rejection notice, are not grounds for
rejection.
b. Settled accounts in repayment are not grounds for rejection,
provided the applicant can show proof of being up-to-date on
payments toward the settlement.
c. If an applicant is not up-to-date on repayment of their settled account,
the pre-settlement delinquency counts towards the $5,000 threshold.
d. Balances reflected on charged off accounts should not be counted
towards the $5,000 threshold; a charged-off account indicates the
balance has been transferred to a third-party agency and will either
be reflected elsewhere on the credit report or, if paid off, should not
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be counted as a delinquent balance.
e. If the applicant has settled an account but the credit report does not
yet reflect this, the applicant must provide the Marketing Agent proof
of payment and, if applicable, a copy of the settlement agreement
with the creditor. Payment or settlement agreement must have
occurred prior to the date of the rejection notice.
4. Prohibited information and criteria
a. Use of the following information and criteria is not permitted in rental
resident selection:
i. Debt to income ratios
ii. Housing Court history
iii. Lack of credit history or rental history
iv. Guarantors or co-signers
v. Home visits, photos/videos, or other representations of the
applicant’s living situation
vi. Personal references
vii. Outreach to current or previous landlords, neighbors, or others
associated with the applicant’s living situation (except when
requested by the applicant).
H. CREDIT ISSUES AND APPEAL PROCESS
1. If an applicant was rejected for failing to meet credit history criteria, the
applicant must be reinstated into the selection process if they provide
evidence within the 10-day appeal period that the negative finding was
resolved prior to the date of the rejection notice.
2. If an applicant was rejected for failing to meet credit criteria, the rejection
notice must specify the relevant negative finding and the standard it failed.
3. Marketing Agents must comply with the Fair Credit Reporting Act and all
other applicable laws when issuing a rejection for reasons of credit.
I. CREDIT CHECKS: HOMEOWNERSHIP
1. Because the primary purpose of a credit and background review in the
homeownership application process is to determine applicants’ eligibility for
an outside mortgage, Marketing Agents may use different criteria than those
required for rentals.
2. The Marketing Plan must include a detailed set of proposed minimum
criteria, supported by examples of at least three sets of mortgage eligibility
criteria from outside lenders from whom applicants may seek a mortgage.
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3. Use of the following information and criteria is not permitted in
homeownership resident selection:
a. Housing Court history
b. Guarantors or co-signers
c. Home visits, photos/videos, or other representations of the applicant’s
living situation
d. Personal references
e. Outreach to current or previous landlords, neighbors, or others
associated with the applicant’s living situation (except when requested
by the applicant).
4. All fees to be charged to applicants for credit and background checks must
be included in the Marketing plan and approved by the Agency.
J. VIOLENCE AGAINST WOMEN ACT (VAWA)
In an effort to ensure any applicant who has been a victim of domestic violence,
dating violence, sexual assault, or stalking (further summarized as “domestic
violence”) is not denied from an HPD/HDC financed project based on an adverse
factor that is a direct result of the fact that the applicant is or has been a victim,
HPD/HDC requires the following protocol to be incorporated into the marketing
process:
1. VAWA Notice of Rights must be included with the following decision notices
sent by the Marketing Agent to the applicant:
i. Attachment H-2: Ineligibility Notice (when applicable)
ii. Attachment H-4: Rejection Notice
2. If an applicant otherwise qualifies for the unit and claims during the eligibility
review process or submits an appeal in response to an ineligibility or
rejection letter indicating that the applicant has been a victim of domestic
violence, the claim or appeal must be reviewed following the VAWA
Marketing Guidance (Attachment Z).
3. If the Marketing Agent determines the applicant remains ineligible after the
review, the Marketing Agent must provide the file and written decision to the
Agency prior to the issuance of a final rejection notice (Attachment H-7).
4. If the Marketing Agent cannot come to a determination in a reasonable time
frame, the Agencies should be consulted for guidance.
5-7 Occupancy Guidelines and Unit Distribution
A. OCCUPANCY GUIDELINES
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5-7: Occupancy Guidelines and Unit Distribution
Page 64 of 70
1. The occupancy criteria established must be consistent with federal, state
and local laws and with the HPD and HDC occupancy guidelines, as noted
on the following chart:
ALL UNITS (RENTAL AND HOMEOWNERSHIP)
Unit Size
Number of People
Studio
1 - 2
1 Bedroom
1 - 3
2 Bedroom
2 - 5
3 Bedroom
3 - 7
4 Bedroom
4 - 9
a. HUD has provided some guidance for establishing these criteria in
the HUD Handbook 4350.3, Chapter 3, and Paragraph 3-23. This
guidance states in part that, generally, a two person per bedroom
standard is acceptable. However, it makes the following important
distinction: “Owners must avoid making social judgments on a
family’s sleeping arrangement. For example, it is not for the owner to
determine whether a young child can share a bedroom with a
parent.” If a family (i) qualifies as a household as defined in this
Marketing Handbook and (ii) qualifies by both number of persons and
income for more than one unit size, then the family chooses the unit
size.
b. The only additional exceptions would be certain programs, which
may have statutorily imposed occupancy standards, or when the
occupancy standards cannot be implemented due to local Housing
Maintenance Code restrictions.
✓ The Marketing Plan must clearly outline the Marketing Agent’s occupancy
criteria and associated statutory requirements.
B. UNIT DISTRIBUTION
See Apartment Distribution Chart, Attachment U.
1. The allocation of units (total number and number for each unit size) must
match the information in the Agency Regulatory Agreement.
2. For mixed-income buildings, please also note the following requirements
pertaining to the distribution of units, for mixed-income developments
only:
MARKETING HANDBOOK, SECTION 5: DETAILED SELECTION POLICIES
5-7: Occupancy Guidelines and Unit Distribution
Page 65 of 70
a. As soon as any of the units in the development are available for
occupancy, at least 10 percent of those units must be occupied, or
made continuously available for occupancy, by low-income
households.
b. The Marketing Agent is not to segregate or physically isolate the low-
income units from those units not occupied by low-income tenants.
Low-income tenants must be reasonably dispersed throughout the
development.
c. The Marketing Agent must also ensure that the percentage required
by the Agency of each unit type (i.e. studio, one-bedroom, two-
bedroom units) is low-income.
d. Distribution of all affordable units must be approved by the Agency.
C. RENT LEVELS AND INCOME STANDARDS
1. Rents:
a. The Developer must establish the rents in accordance with the
Agency regulatory documents and programmatic requirements.
2. Maximum Income Levels:
a. The Agency will provide tenant income eligibility levels as modified
by household size.
3. Minimum Income Levels
a. The Agency will provide minimum income eligibility levels based on
35 percent of the gross annual rent for the unit.
b. The Developer may not establish minimum income levels for
applicants with tenant-based Section 8 and other qualifying rental
subsidies. Such applicants must be accepted provided they meet all
other eligibility criteria outlined in the Marketing Plan. If questions
arise, the Agency will advise the Developer on the use of minimum
income limits for forms of rental subsidy other than Section 8.
4. For Low Income Housing Tax Credit Compliance
a. Mixed-income projects participating in the Low Income Housing Tax
Credit program must elect designation as either “deep rent skewed”
or “non-deep rent skewed” when they are originally placed in service.
b. Deep Rent Skewed Properties. Properties that are designated as
deep rent skewed must meet the following:
i. At least 15 percent of all the low-income units occupied by
tenants with incomes that are 40 percent AMI or less and rents
are restricted.
ii. If a tenant’s income increases to over 170 percent of the then-
MARKETING HANDBOOK, SECTION 5: DETAILED SELECTION POLICIES
5-7: Occupancy Guidelines and Unit Distribution
Page 66 of 70
current income limit for the unit occupied by such tenant, the
unit may continue to be deemed a low-income unit provided
the Marketing Agent rents the next available low-income unit
at the property to a family with an income equal to or below
40 percent of AMI at a restricted rent. As long as one
resident’s income is more than 170 percent of the income limit
for the unit, the Marketing Agent must rent all available tax
credit units to residents with income no greater than 40% of
AMI.
iii. When the Marketing Agent of a property that deep rent skews
submits a re-rental file for Agency review, then the Marketing
Agent must submit a Certification for Deep Rent Skewed
Projects, Attachment V-1, along with the file.
c. Mixed-Income / “Non-Deep Rent Skewed” Properties
i. A Mixed-Income building is a building that includes market-
rate units. For buildings that are Mixed-Income and have tax
credits, if the Marketing Agent discovers that the income of a
tenant in a tax credit unit exceeds 140 percent of the then-
current income limit, the unit may continue to be deemed a
low-income unit if the Marketing Agent rents the next available
unit of comparable or smaller size in the same building to a
tax credit-eligible household at a restricted rent. If the next
available unit is smaller than the tax credit unit that exceeds
140 percent of the then-current income limit, the Marketing
Agent may have to rent more than one comparable or smaller
size unit in the same building to tax-credit eligible households
until the actual applicable fraction is at least equal to the first
year’s applicable fraction. This rule also applies to projects
financed solely with tax-exempt bonds, although the rule is
implemented on a project level rather than a building level.
ii. When the Marketing Agent of a Mixed-Income building
submits a re-rental file for Agency review, then the Marketing
Agent must submit a Certification for Mixed-Income,
Attachment V-2, along with the file.
MARKETING HANDBOOK, SECTION 5: DETAILED SELECTION POLICIES
5-8: Other
Page 67 of 70
5-8 Other
A. Incorporation of “Fair Housing Laws”
Federal, State and local laws, orders and regulations prohibiting housing
discrimination (“Fair Housing Laws”) are hereby explicitly incorporated in this
Marketing Handbook. The Developer and Marketing Agent(s) must comply with all
Fair Housing Laws. Any violation thereof will be a violation of this Marketing
Handbook and the Marketing Plan.
B. Amendments
The Agency reserves the right to amend any provision of this Marketing Handbook.
C. Inspections
The Agency reserves the right to conduct periodic inspections and spot-checks of
the Developer and Marketing Agent’s records, including but not limited to: lottery
logs, applicant files, marketing budgets, and procedures.
D. Brokers
The Broker/Third Party Certification forms, Attachments S-1 and S-2, are to be
completed and submitted to the Agency with all applicant files that are not from the
original lottery. The Broker/Third Party Certification form is intended for re-rental
vacancies not filled through Housing Connect and does not need to be submitted
for an applicant from the initial lottery or from a mini-lottery in the New Housing
Connect.
E. Annual Unit Inspection Form
This form must be executed by approved residents and the owner and placed in
the tenant’s file. This file must be kept at the management office. See Unit
Inspection Form, Attachment X.
F. Household Student Status Affidavit at Recertification
For units financed with Low Income Housing Tax Credits (LIHTC) or tax-exempt
bonds, Household Student Status Affidavit at Recertification, Attachment J, must
be used during the Annual Recertification process.
MARKETING HANDBOOK, SECTION 6: SUBMISSIONS AND ONGOING REPORTING REQUIREMENTS
Page 68 of 70
6. Submissions and Ongoing Reporting
Requirements
A. The Agencies require submission or completion of the following items
during the pre-marketing, marketing, and resident selection periods:
1. Marketing Plan (to include all required information as described herein). See
Section 4-1, C
2. Applicant Information Forms (AIF) and Tenant Income Certifications (TIC)
completed by applicants and the Marketing Agent. See Attachments M and
L1 – L3.
3. In addition to Tenant Income Certifications, the Marketing Agent must submit
to the Agency all documentation verifying income eligibility and family size.
These certifications and verification documents, along with the Tenant Income
Certification Submission Cover Letter, must be immediately forwarded to
Agency for review prior to the anticipated dates of acceptance of the tenant
and the signing of the lease.
4. The form of lease and all riders for Agency review. Additionally, the Pre-lease
Acknowledgement and Certification and, for HDC Projects, the HDC Lease
Riders are to be used with all units. See Attachments N, O and P.
5. Owner certification indicating the move-in date for the first tenant to occupy
the development. (Once the Marketing Agent has submitted this form for the
“first tenant who occupies a unit in the Project,” it does not have to be used
thereafter.) See Owner Certification of Initial Move-in Date, Attachment W.
6. After the initial lease-up or sales of all the units in the project, certain
obligations pertain to the project. In particular, the Marketing Agent must
submit the current rent roll on a regular basis, as determined by the Agency.
See Unit Vacancy Report Instructions and Report, Attachments Y-1 and Y-2.
B. For vacancies subsequent to initial project occupancy, the required Tenant Income
Certifications and supporting documents must be transmitted for Agency review
prior to the signing of the lease.
C. The Marketing Agent must inform applicants that they will not be allowed to
occupy a unit until the Agency has completed its review of their Tenant
Income Certification (TIC) and supporting documentation.
MARKETING HANDBOOK, SECTION 7: ATTACHMENTS
Page 69 of 70
7. Attachments
A-1
Notice of Intent to Begin Marketing
A-2
Marketing Agent Approval Request Form
B
Marketing Plan Summary (if applicable)
C-1
Language Access Plan
C-2
Guide to Language Access for Marketing
D
Community Contact Letters
E
Outline for Management Plan
F-1
Advertisement Instructions (if applicable)
F-2
Advertisement (if applicable)
F-3
Homeownership Advertisement
F-4
Routing Slip of Advertisement Approvals
F-5
Evidence of AFHM
F-6
Project Site Marketing Sign
G-1
Application (if applicable)
H-1A
Document Request Notice
H-1B
Document Submission Confirmation Notice
H-1C
Document List
H-2
Ineligibility Notice (if applicable)
H-3
Approval Notice
H-4
Rejection Notice
H-5
Low Priority Notice
H-6
Priority Waiting List Notice
H-7
Appeal Rejection Notice
H-8
No Unit Available Notice (if applicable)
I-1
Certification of Unemployment / Zero Income
I-2
Certification of Disability for Set-aside Unit
I-3
Sample Employment Verification Form
I-4
Guidance for Documenting Self-Employment
J
Student Status Affidavit
K
Notice of Remarketing
L-1
Checklist for Income Certification
MARKETING HANDBOOK, SECTION 7: ATTACHMENTS
Page 70 of 70
L-2
TIC Submission Cover Letter
L-3
Tenant Income Certification (TIC)
M
Applicant Information Form (AIF)
N-1
Pre-lease Acknowledgement and Certification
N-2
Primary Residency Affidavit - Rentals
N-3
Primary Residency Affidavit - Homeownership
O
HDC Rider to Standard Rent Stabilization Lease
(Low-Income)
P
HDC Rider to Standard Rent Stabilization Lease
(Middle-Income)
Q
Reaffirmation of Income
R-2
IRS Form 4506-T (Applicant)
R-3
IRS 4506 (DOI/HDC) & (DOI/HPD)
R-4
NYS DTF-505 Form (DOI/HDC) & (DOI/HPD)
R-5
Rent Payment History or Credit Review &
Authorization to Release Information Form
R-6
Affidavit of Non-filing of Income Tax
S-1
Broker/Third Party Certification (<165% AMI)
S-2
Broker/Third Party Certification (>165% AMI)
T
Asset Certification
U
Apartment Distribution Chart
V-1
Certification for Deep Rent Skewed Projects (HDC)
V-2
Certification for Mixed Income / “Non-Deep Rent
Skewed” Projects (HDC)
W
Owner Certification of Initial Move-In Date
X
Unit Inspection Form
Y-1
Unit Vacancy Report Instructions
Y-2
Unit Vacancy Report
Z
VAWA Marketing Guidance
AA-1
Justice Involvement Guidance
AA-2
Justice Involvement Worksheet
AA-3
Justice Involvement Notice
AA-4
List of Applicable NYS Penal Codes