RESIDENT SELECTION CRITERIA FOR ACCESSIBLE SPACE, INC.

FAIR HOUSING AND EQUAL OPPORTUNITY

Accessible Space, Inc. (ASI) operates in accordance with federal, state and local fair housing and civil rights laws.

SECTION A: DETERMINATION OF ELIGIBILITY

1. To be eligible for admission and Section 8, Section 811 assistance subsidy, an applicant must meet the following requirements:
   
   • The applicant must qualify under the very-low income and eligibility guidelines* established by the U.S. Department of Housing and Urban Development (HUD) and must qualify as a person with a physical handicap and/or traumatic brain injury.
   The household may be composed of one or more physically handicap or disabled persons who are related or one or more such persons living with someone essential to their care or well being. (See section C for Definition of Live-In Aide)
   
   HANDICAP/DISABLED: A person with a handicap or disability is anyone who is handicap or disabled having a physical impairment and/or traumatic brain injury which:
   
   • Is expected to be of a long, continued and indefinite duration.
   • Substantially impedes his or her ability to live independently based on "Major life activities" meaning functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working.
   • Is of such a nature that such ability could be improved by more suitable housing conditions.
2. To be eligible for admission and Section 8, Section 202 assistance subsidy, an applicant must meet the following requirements:
   
   • The applicant must qualify under the very-low income and eligibility guidelines* established by the U.S. Department of Housing and Urban Development (HUD) and must contain at least one person who is age 62 or older at time of initial occupancy.
3. Verification of eligibility of students who are head or co-head of a household
   
   • The individual must be of legal contract age under state law
   • The individual must have established a household separate from parents or legal guardians for at least one year prior to application or occupancy or the individual meets the U.S. Department of Education's definition of an independent student.
     
     *Current income limits will be verified by ASI marketing specialist or Property Manager at the time of application.
   • The individual must not be claimed as a dependent by parents or legal guardians Pursuant to IRS regulation.
   • The individual must obtain a certification of the amount of financial assistance that will be provided by parents, guardians or others signed by the individual providing the support. This certification is required even if no assistance will be provided. The financial assistance provided by persons not living in the unit is part of annual income that must be verified to determine eligibility and at annual recertification to determine rent.
4. Unit must be the applicant's only residence.
5. Applicant must be willing to pay the rent and have the ability to abide by the lease.
6. In addition to income and household qualifications the following factors shall also apply:
   The applicant must be able to demonstrate that his/her conduct in present or prior housing has been such that the admission to the project would not adversely affect the health, safety, or welfare of other residents, or the physical environment, or the financial stability of the project.
   
   • A two year favorable history of payments for rightful obligation including rent and utilities.
   • A history of good housekeeping habits.
   • A history of cooperation with management regarding house rules and regulations; abiding by lease terms; and care of property.
   • A non-criminal record relating to physical violence of persons or property or any other criminal acts which would adversely affect the health, safety or welfare of other residents.
   • The ability to abide by the terms of the lease in conjunction with available supportive services or otherwise, to maintain both their person and apartment in a manner which is not detrimental to either their safety or personal well being or to the safety and well-being of other residents.
   • Lack of problems involving chemical/drug dependency, which would otherwise adversely effect the well being or safety of the applicant, other residents and/or property.
7. Determination that there is "reasonable cause to believe that a household member's abuse or pattern of abuse of alcohol interferes with the health, safety or right to peaceful enjoyment of the premises by other residents".
8. Lack of cooperation in completing or providing application information for determining eligibility may result in suspension of application.
9. A letter will be provided immediately of the determination notifying persons determined to be ineligible and the reason(s) application was determined to be ineligible. The applicant will be given the opportunity to appeal management's decision in writing within fourteen (14) days to discuss the reasons for non-selection with the manager of the property; also see B2, Page 8.
   
   

SECTION B: PROCEDURES FOR ACCEPTING APPLICATIONS AND SCREENING APPLICANTS

Anyone who wishes to be admitted to ASI must complete a written application. The application must contain enough information to enable management to:

1. Tentatively determine the family's eligibility based on:
   
   • family size
   • household characteristics - such as elderly, disabled/handicapped;
   • estimated anticipated annual income; and
   • assets now owned;
   • Whether any family member has disposed of assets for less than fair market value during the previous two years;
   • Application being signed and dated
   • All applicants for assistance will be required to submit evidence of citizenship or eligible immigration status at the time of application
   • Verification of social security numbers for all household members is required. If no social security number has been assigned to a particular household member, the applicant must provide proof that the applicant has applied for a social security number and/or sign a certification stating that no social security number has been assigned.
2. Determine the appropriate unit size (the names of all persons who would be living in the unit, their dates of birth and relationship of family members).
   
   • ASI guidelines state two persons per bedroom
   • Separate bedrooms will be allowed for:
     
     • Persons of different generations
     • Persons of the opposite sex (other than spouses)
     • A live-in aide approved by HUD who cares for a member of the assisted family who is elderly or disabled
3. Screen applicant by checking with the previous landlords and obtaining credit information.
   
   • Applicant will be asked whether the family's assistance or tenancy in a subsidized housing program has ever been terminated for fraud, nonpayment of rent, or failure to cooperate with re-certification procedures.
     
   • If applicant does not have previous rental history, the applicant will be asked to provide non-family personal references.
4. Assess the effectiveness of the marketing strategy outlined in the Affirmative Fair Housing Marketing Plan (race and ethnicity of the head of household and how the applicant learned about the development).

SECTION C: LIVE-IN AIDE DEFINITION

A Live-in Aide is a person who resides with a person who is elderly or has a handicap and who:

• Is determined essential to the care and well being of the person; and
• Is not obligated for the support of the person; and
• Would not be living in the unit except to provide the necessary supportive services.
• Live-In Aide's income is EXCLUDED from the household's annual income.
• Live-In Aides will be screened for criminal and rental history.

A relative may be a Live-In Aide, (not spouse) but must meet all the requirements listed above.

A Live-In Aide may not qualify for continued occupancy as a remaining family member.

SECTION D: WAITING LIST AND WAITING LIST MANAGEMENT

When an application is received, the application will be date and time stamped to ensure that applicants are granted units in chronological order based on the date received, regardless of the manner in which it was received (U.S. Mail, Facsimile, Internet, etc.). The applicant will then be matched based on their household characteristics with an available unit. Please note that single persons may not occupy a two-bedroom unit or be placed on the two-bedroom waiting list unless the person has a disability that needs the larger unit as a reasonable accommodation or an elderly person who has a verifiable need for a larger unit.

Upon receipt, the application will be reviewed and a preliminary eligibility determination will be made. If the household qualifies and there is a unit available and no waiting list, the applicant will be notified to be interviewed and begin processing. If after the preliminary eligibility screening, the applicant does not qualify for the unit, the applicant will be notified in writing the denial of the application and the reason for the denial.

If the preliminary screening indicates that an applicant is eligible for tenancy and there are no appropriate sized units available or there is a waiting list for the property the applicant will be placed on the waiting list. The applicant will be sent a letter by U.S. Mail confirming the receipt of the application and verification that they have been placed on the waiting list for their requested property or properties. The applicant will again be notified when a suitable unit becomes available.

Every year the applicant will receive a letter from Accessible Space, Inc. that will request updated information including their current mailing address and current phone number. This letter also serves to confirm that they are still interested in being on the waiting list for the property or properties. Please note that if the form is not mailed back to Accessible Space, Inc. it will be assumed that the applicant is no longer interested in living at the property and the applicant will be removed from the waiting list.

Once the applicant's name comes up on the waiting list, the applicant will be notified via the U.S. Mail and followed up with a phone call. Please note that if the applicant does not respond to the letter or return phone calls within 14 days, it will be assumed that they are no longer interested in the property and they will be removed from the waiting list. When the applicant responds to the unit availability letter and call, the applicant will be interviewed for the available unit. If the applicant is still interested in moving in, the applicant will be mailed a packet of paperwork to be filled out and returned to Accessible Space, Inc. to begin the full screening for approval. Once the packet is mailed out, the applicant will have 14 days to return the packet. If the packet is not returned within the 14 days, the applicant will be denied the unit and removed from the waiting list. Please note that when an applicant is notified of an available unit, the applicant can choose to be moved to the bottom of the waiting list if they are not prepared to move at that time.

SELECTION OF RESIDENTS

1. Each applicant shall be assigned his/her appropriate place in sequence based upon the date and time his/her application is received for the suitable size of unit regardless of method application obtained (U.S. Mail, Internet, Facsimile, hand delivered, etc.)
   
   Each of the foregoing preference or priority factors will be treated as equal to the others
2. SECTION 811: Next to any person with a handicap or physical disability for a handicap accessible unit;
   
   • First, to current occupants of another unit having a handicap requiring the accessibility features of the vacant unit or if no such occupant exists, then
   • Second, to an eligible qualified applicant on the waiting list having a handicap or physical disability requiring the accessibility features of the vacant unit; and
   • Lastly, to other eligible persons in compliance with the Affirmative Fair Housing Marketing Plan.
3. SECTION 202: Next to any person is at least 62 or older at the time of initial occupancy; First, to current occupants of another unit having a handicap requiring the accessibility features of the vacant unit or if no such occupant exists, then
   
   Second, to an eligible qualified applicant on the waiting list having a handicap or physical disability requiring the accessibility features of the vacant unit; and
   
   Lastly, to other eligible persons in compliance with the Affirmative Fair Housing Marketing Plan.
4. It is ASI Policy to leave waiting lists for all properties OPEN unless the number of approved applicants exceeds twice the number of units in the property. Should the waiting list close; all perspective applicants will be notified in writing of the close date. The same applicants will be notified of the date the list reopens.

SECTION E: PERMITTED SCREENING CRITERIA

Upon receipt of a completed application management will screen the applicant, considering the following factors:

Information about the conduct of the applicant in present and prior housing will be sought. If the applicant has no prior rental history or a landlord reference cannot be obtained by management, information from non-family personal references will be sought. Selection as a Tenant may be denied based on information about behaviors that would adversely affect the health, safety or welfare of other residents, or the physical environment or financial stability of the project.

SCREENING INFORMATION WILL INCLUDE:

1. Demonstrated ability to pay rent on time;
2. Comments from the Former Landlords (endorsement from at least two is preferred);
3. Comments from non-family personal references (endorsement from at least two is preferred, if the applicant has no previous rental history or landlord references cannot be obtained by management);
4. Credit references. Credit checks may be useful when no rent history is available. However, lack of a credit history, as opposed to a poor credit history, is not sufficient justification to reject an applicant; and
5. Criminal activity, including, but no limited to; property destruction or use, manufacturing or distribution of controlled substance, etc.
6. National Sex Offender Registry Check
7. FBI Terrorism Watch List Search

PLEASE NOTE: A criminal background check will be completed for every applicant and two to five year's rental history will be obtained. If applicant does not have rental history, non-family personal references will be obtained.

SECTION F: PROHIBITED SCREENING CRITERIA

The following factors must not be used when screening an applicant:

1. Physical examinations: Owners may not routinely require physical examinations as a condition of admission.
2. Meals and Other Services: Owners must not require tenants to participate in a meals program or establish other mandatory charges for services without the prior consent of HUD.
3. Donations or contributions: Owners must not require a donation, contribution or membership fee as a condition of admission.
4. Section 504 of the Rehabilitation Act of 1973 prohibits discrimination on the basis of disability in any program or activity receiving federal financial assistance from HUD.
5. The Fair Housing Act prohibits discrimination in housing and housing related transactions based on race, color, religion, sex, national origin, disability and familial status. It applies to housing, regardless of the presence of federal financial assistance.
6. Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color or national origin in any program or activity receiving federal financial assistance from HUD.

If management determines a person or family is eligible and is otherwise acceptable, and a unit is available, management will assign the family a unit appropriate size in accordance with the General Occupancy Standards.

If no suitable unit is available, management will place the family on an approved waiting list for ASI and notify the family of approximately when a suitable unit will become available. If the waiting list is so long that the applicant would not be likely to be admitted for the next 12 months, management may advise the applicant that no additional applications are being accepted for that reason.

SECTION G: APPLICATION INTERVIEW AND PROCESSING OF APPLICATION

Application Interview

An application interview will be conducted to obtain other family income and composition information needed to certify eligibility and compute the tenant's rent. When an appropriate unit becomes available, management must conduct an orientation with the applicant regarding Section 8, Section 811 or Section 202 procedures and obtain current information about the family's circumstances.

During the application interview, management must:

1. Confirm and update all information provided on the application. If the applicant is determined ineligible the owner must comply with the proper procedures for rejection.
2. Explain program requirements, verification procedures, and penalties for false information. The penalties include eviction, loss of assistance, fines up to $10,000 and imprisonment up to five years.
3. Obtain other family income and composition information needed to clarify eligibility and compute the tenant's share of the rent.
4. Review the financial information on the application and specifically ask the applicant whether any member of the household receives the types of income, such as social security, employment, county or other government agency cash assistance or assets as listed on the application. This income and asset information is listed in Part A Exhibit 3-1 and paragraph 3-1 of the HUD Handbook 4350.3.
5. Ask the head of household, spouse, and household members age 18 and over to sign the release of information consent portion of any verification request used for them.

Processing of Application

Based on the information provided by the applicant during the application interview, management will make a determination based on program requirements whether or not the applicant is eligible. If the applicant is eligible for the program, management will mail, fax or email all required third party verification forms based on the information provided on the original application and the application interview. The applicant will be required to sign and provide verification addresses on all HUD and Accessible Space, Inc. required release and verification forms before management will continue the processing of the application. When the third party verification forms are mailed, faxed or emailed to the applicant, the applicant will then have 14 days to complete and return them. If the forms are not received back within the 14 days, the applicant will be denied and management will move on to the next applicant.

Once management receives all of the completed HUD releases and third party verification forms, management will make attempts to verify the information provided. Management will make three (3) attempts to obtain verification of assets, income and HUD allowed expenses. If after three (3) attempts management cannot verify the information with the third party, management may ask the applicant for appropriate back-up, such as bank statements, pay stubs or pharmacy print outs to confirm and verify the information they have provided.

SECTION 811 ONLY: Management will make five (5) attempts to verify that the applicant has a program qualifying disability based on the U.S. Department of Housing and Urban Development's (HUD) definition with the applicant's medical doctor. If management cannot verify with the applicant's medical doctor that they have a qualifying disability or the applicant's medical doctor indicates the applicant does not have a qualifying disability, the applicant will be denied.

After all required information is received from the third party verifications, management will run a trial lease and HUD-50059 to determine and calculate the applicant's portion of rent. Once management completes this trial, the applicant will receive a phone call from management with the results of the application process. The applicant will be notified if they have been accepted or denied, what their rent portion will be, the unit assignment and will discuss and determine a move-in date. This information will also be provided in a written confirmation letter from management that will be sent via U.S. mail.

SECTION H: REJECTING APPLICANTS

1. Applicants may be rejected if:
   
   • They are ineligible, see page five.
   • Household characteristics are not appropriate for the type of units available (e.g., a unit equipped for the handicap);
   • Family size is not appropriate for the size of units that are available (see Section C, number 2, page 3);
   • Any household member has been evicted from a federally assisted site for drug-related activity.
   • Any person convicted of methamphetamine production in assisted housing and is permanently prohibited from public housing.
   • Any person has been convicted of felony criminal activity.
   • Any household member is currently engaging in illegal drug use.
   • Management determines there is "reasonable cause to believe that a household member's abuse or pattern of abuse of alcohol interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents".
   • Any household containing a member(s) who was evicted in the last three years from federally assisted housing for drug-related criminal activity will not be admitted. NOTE: The owner may, but is not required to, consider the two exceptions mentioned in the HUD Occupancy Handbook to this provision;
   • Any household member is subject to lifetime registration requirement under a state sex offender registration program.
   • Any household is engaging in, or has engaged in:*
     
     • Drug related criminal activity;
     • Violent criminal activity; or
     • Other criminal activity that would threaten the health, safety, or right to peaceful enjoyment of the premises by other residents, or of the sites employees, contractors, or agents
   • Refusing to cooperate fully in all aspects of the application process or supplying false information will be grounds for rejection.
   • Applicant does not meet the project's Resident Selection Criteria.
2. If management does not place an applicant on the waiting list or immediately process the applicant for admission/ or waiting list, management must promptly notify the applicant in writing if the rejection and explain in the notice:
   
   • The reason for the rejection; and
   • That the applicant has 14 days to respond in writing or to request a meeting to discuss the rejection.
3. Any meeting with the applicant or review of the applicant's written request will be completed by the manager of the property or, if necessary, a member of management's staff who was not involved in making the initial decision to reject the applicant.
4. If the applicant appeals the rejection, the property manager or other management staff member assigned to the appeal, must give the applicant a written final decision within 5 days of the response or meeting.
5. Management must keep the following materials on file for at least three years: application; initial rejection notice; any applicant reply; owner's final response; and all interview and verified information on which management based the rejection.

SECTION I: WHO IS INELIGIBLE

An applicant is considered ineligible if:

1. The household's annual income is greater than the applicant income limit.
2. SECTION 811: The applicant is a single person who does NOT have a handicap, disability or is at least 18 years old or does not have HUD written approval under Section 811 requirements.
3. SECTION 202: The applicant is a single person who is not age 62 or older at the time of initial occupancy or does not have HUD written approval under Section 202 requirements.

SECTION J: ADMITTING INELIGIBLES

1. Management may not admit income ineligible families.

SECTION K: LIMITATIONS ON ADMISSION OF INELIGIBLES

1. Admit all available eligible applicants, unless there is good cause for denying them assistance.
2. Take all reasonable steps to attract eligible families, including using marketing efforts likely to attract eligible applicants.
3. Place in the files of any ineligible tenants who are admitted a written certification that the steps required in (1) and (2) above have been completed.

SECTION L: SCHEDULE OF GROSS RENTS:

1. If a family is eligible for occupancy, their monthly rent shall be determined according to current HUD guidelines for the applicable subsidy program.
2. REEXAMINATION: Reexamination of family income, composition and the extent of unusual expenses incurred by the family shall be made by ASI staff annually and appropriate redetermination shall be made as to the amount of family contribution and the amount of housing assistance payment, all in accordance with schedule and criteria established by HUD.
3. Existing Residents: A criminal background check MAY be completed at time of recertification with the written consent from the resident.
4. Once rent is established, such rental rate shall remain in effect until the next annual reexamination or until circumstances occur, that warrants a special rent and income review. If any of the following circumstances occur, rent and income will be reviewed and rent adjusted in accordance with the approved Schedule of Rents.
   
   • When the tenant reports a change in household characteristics i.e.; household composition, increase in income/allowance or decrease in income.
   • When required by changes in HUD regulations.
5. Ineligible and over-income families: If, at the time of reexamination or a special income and rent review, the amount payable by the family toward the gross rent equals the Gross Rent for the unit they occupy, their eligibility for assistance shall be terminated. The applicant shall be notified in writing of such ineligibility and the reason(s) thereof. This termination shall not affect the family's other rights under their lease nor shall such termination preclude resumption of payments as a result of subsequent changes in income or rents or other relevant circumstances during the term of the lease.
6. Verification of Applicant's Statements and income:
   
   • Applicants must furnish proof of their statements when required by ASI management staff.
   • Certification by applicants will normally be considered sufficient verification of family composition. Certification is provided by the applicant's signature on the Application for Occupancy or Annual Recertification Questionnaire.
   • All earned and unearned income and assets shall be verified at the time of admission or annual reexamination through employers, county or other government agencies, W-2 forms, check stubs, or other means to assure accuracy.
   • All determinations shall be fully documented in the files.
   • Unit Transfer Policies:
     
     • A unit transfer because of family size;
     • A new unit because of changes in family composition;
     • A unit transfer for a medical reason certified by a doctor; or
     • A unit transfer based on the need for an accessible unit.

SECTION M: INCOME TARGETING

The income-targeting requirement guarantees a share of available public housing to the lowest income applicants. At least 40 percent of the new admissions to public housing in a fiscal year must be "extremely low income" (ELI) families (with annual incomes at or below 30 percent of the area median income). For the Section 8 Housing Choice Voucher program the minimum admission target for ELI families is 75 percent in a fiscal year.

SECTION N: REASONABLE ACCOMODATIONS

A "reasonable accommodation" is a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary to afford persons with a disability an equal opportunity to use and enjoy a dwelling, including public and common use spaces. An accommodation may also be a structural change to a common area or a dwelling that is needed by a person with a disability.

To show that a requested accommodation may be necessary, there must be an identifiable relationship between the requested accommodation and the individuals' disability. An accommodation will not be considered reasonable if it constitutes a fundamental alteration of the provider's program, or constitutes an undue financial and administrative hardship.

SECTION O: GRIEVANCE PROCEDURE

If a prospective resident disagrees with an ASI selection, they may meet with management within fourteen (14) days receipt of the rejection letter. Two people must be present to act on a given grievance. The applicant may be represented by a confident of their choosing in which case ASI legal counsel may be present at ASI discretion.

SECTION P: AFFIRMATIVE FAIR HOUSING MARKETING PLAN

ASI will use an affirmative plan to attract applicants of all eligible groups without regard to race, color, religion, sex, handicap, familial status, or national origin. The equal opportunity logotype will be used in all publications.