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How to Apply for Affordable Housing

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1. Credit and Background Check
2. Waiting List
3. Income Eligibility
4. Rent Limits
5. Housing Choice Voucher

Credit and Background Check

The number one issue that landlords are concerned about when screening applicants for housing is their credit and background history. For the most part, their decision to rent or not to rent will be based upon the type and quality of information received. This is no different for owners of affordable housing projects. Traditionally, owners use some or all of the following screening criteria to determine if an applicant qualifies for housing.

• Information on a credit profile
• Rental history and/or eviction
• Present rental information
• Previous rental information
• Banking information
• Source of income
• Length of time on the job
• Monthly income and rent to income ratio
• Criminal background check

The credit reporting agencies most likely contacted are:

www.creditreport.com

Please be aware that under the California Consumer Credit Reporting Agencies Act, applicants may receive a copy of the information contained in their credit file and may dispute the accuracy and completeness of that information. To receive a copy the applicant should contact the credit bureau in writing within sixty (60) days of the date of receiving the information. The copy of the credit report is free.

If the applicant has questions or needs information relating to evictions or negative rental references they can call:

Tenant Guarantors
P.O. Box 2737
Granite Bay, CA 95746
(916) 791-3686

Waiting List

Most of the affordable housing projects have a waiting list. A wait list is a list of pre-qualified individuals that have applied for housing, however there are no vacancies. The owners must follow tenant selection procedures when maintaining the wait lists.

Specifically, the owners must:

1. Select tenants from a written waiting list in the chronological (date and time) of their application.
2. Give prompt written notification to any rejected applicant of the grounds for rejection.

If the wait list is extremely long, it may appear that the applicant has a minimal chance of obtaining housing. However, many times people on the list move and leave no forwarding address, or have found other housing. Therefore, it is advisable that applicants apply for the list and make sure that they can be contacted when a vacancy occurs. Some important factors to be aware of regarding wait list procedures are as follows:

1. When you call a project to inquire about housing most of the time you will be talking to a property manager, resident manager or a leasing agent. When you inquire about housing the majority of time they will say there are no vacancies (in 2007 there was an 8% vacancy rate in the Agency's affordable housing projects). If they state there are no vacancies, then your line of questioning should be as follows:

• Can I apply for your wait list?
• How many people will be ahead of me on the list?
• Can you give me an average time-period based on your turnover history?
• Do you have a wait list by bedroom sizes?

2. Owners are required to update their waiting lists at least annually. This process involves the owners sending notices to the applicants on the list requesting them to return the notice if the applicants wish to remain on the list. Some owners use a telephone call to complete this process. If tenants do not return the notices or respond to the call, they are dropped from list.
3. In order to apply for the list, some owners may take a complete application (including credit check) and pre-qualify the applicant, while other owners may have the applicant complete only a preliminary questionnaire and put them on the list based on that information. Keep in mind that if this information changes or is later found inaccurate, it may affect the applicant's chances of obtaining housing.

If the manager responds by saying the list is closed ask, "when will it be open?" If they cannot give you a time frame or quote an extreme number of people on the list, do not be discouraged. Remember, owners must update or purge their wait list at least annually.

Income Eligibility

All of the tenants residing in the Agency's affordable housing units must meet certain income limit requirements. These requirements specify the maximum amount of annual income the applicant can earn to qualify for the rent restricted unit. The requirements vary depending on the loan program and the regulated targeted income level.

The three primary income categories are Very-low, Low, and Moderate income. Each income category is based on the median income levels established by the Department of Housing and Urban Development (HUD). At times, you may see the income categories referred to based on the actual median income level. For example, 0-50% of the median is very-low; 51-60% of the median is low; and, 61-80% of the median is moderate income.

Remember, for each income category the median income level represents the maximum annual income that a household can earn in order to qualify for affordable housing. Table A below shows each income level by category and per number of family members.

• Income limits are effective as of February 13, 2008 and will be revised February 13, 2009

Owners are required to verify the annual incomes of all applicants prior to move-in. All household members 18 years of age or older must submit income verification documents that clearly specify the rate of pay, the number of hours worked per week, and how often paid. Applicants may also be asked to provide pay-stubs, tax returns, Social Security print outs, or public assistance payment notices. In all instances, the income verification documents must be dated within 90-days of the move-in date. It is very important to remember that the annual income calculations are based on the gross income, instead of the net (after-tax) income. In addition, all over-time, bonuses, tips, and income generated from assets are also included in the income calculation. Household members 18 years of age or older that state they do not have any income, are required to sign a "Statement of No Income" form.

It is also important to note that on an annual basis tenants are required to re-submit income verification documents to recertify their low-income status. If a tenant's income has increased so that it no longer meets the income guidelines, the tenant may stay in the unit but the rental rate will be adjusted to a market rent.

Rent Limits

As with the median income limits, HUD also provides Sacramento County with the affordable rents. The affordable rents are published around March of each year. Affordable Housing rents should not be confused with the published Fair Market Rents, which are used to determine rent subsidies for Section 8 voucher and certificate holders.

At times, there are slight variations in the maximum rent amounts between projects depending on the source of funds used to finance the apartment complex; however, for the most part they are consistent. A general rule that has been established throughout government subsidized affordable housing programs is that if there are multiple government funding sources in a housing project, the most restrictive rent rule will apply towards the low-income housing units.

A tenant's rent is based on their income level and the category under which it falls (very-low, low or moderate). For instance, a very-low income tenant will pay a 50% or very-low rent rate, while a moderate income tenant will pay a 80% or moderate rent rate. Situations can occur where there are no vacancies in the very-low income units, but there are vacancies in the low-income units. When this occurs, the applicant may move into the low-income unit and apply for the very-low income wait list. Remember that an applicant can qualify for any income category as long as they do not exceed the maximum income amounts. Table B below lists the general rent limits for the Agency's affordable housing projects. These rents are not project specific because utility allowances vary for each project.

TABLE B

2008 SHRA AFFORDABLE HOUSING RENT LIMITS

(as of February 13, 2008)

Maximum Rents less Utility Allowance (varies per project)

Very-Low Rents (50% of the median)

Note: Gross Rent - Utility Allowance = Net Rent

Low Rents (60% of the median)

Note: Gross Rent - Utility Allowance = Net Rent

Moderate Income Rents (110% of median)

Note: Gross Rent - Utility Allowance = Net Rent

As long as the rents do not exceed the maximum, property managers may implement a rent increase with a 30-day notice. However, if you have a lease the rent may not be raised during the lease period.

It is very important to note, in order to qualify to apply for housing most owners and property management companies require that the applicant has an income that is 2 to 3 times the amount of the contract rent.

NOTE: The specific rent rates for each project are provided in the Project Listing section of this site.

Housing Choice Voucher

All projects funded with Agency loans must accept Section 8 voucher or certificate holders. The owner has the right to refuse a certificate or voucher holder only on the basis that the applicant does not meet the tenant screening criteria.