Sonoma Square- LIHTC Tenant Selection Criteria

Sonoma Square Partners, LP D/B/A: Sonoma Square Apartments

5650 Muirfield Drive SW, Cedar Rapids, IA 52404

Application Fee: $35.00 per applicant 18 years of age and older (nonrefundable). This amount is required at the beginning of the application process.

Introduction

The Sonoma Square Partners, LP (doing business as the “Sonoma Square Apartments”) consists of one building with a total of 36 units. 32 units are income restricted at 60% AMI, 50% AMI, 40% AMI and 30% AMI, and the remaining 4 units are market rate.

Equal Opportunity Statement

No persons shall be denied the opportunity to apply for available housing if they have been deemed eligible. Sonoma Square Partners will not discriminate on the basis of Race, Creed, Familial status, National Origin, Disability, Religion, Gender Identity, Sexual orientation, Sex, Color, and Retaliation. Our Policies comply with Section 504, the Fair Housing Act, and Title VI of the Civil Rights Act.

Waiting List Procedures

Sonoma Square Apartments will have an open waiting list. Applications will be accepted from all those who are eligible. Each application shall reflect the date and time received and will be placed on a computerized list.

Units will be offered on a first-come, first-serve basis based upon the receipt date of the completed applications. Persons with disabilities will be given priority when leasing an accessible/hearing/vision-impaired unit. In order to comply with Section 8.27 of Section 504 of the Rehabilitation Act of 1973, property owners must lease units designed for persons with disabilities to occupants requiring the accessibility features of the unit.

The Application Process

All applications will be processed within thirty days after the date of the applicant’s initial interview or within five business days of receipt of all required documents, whichever is later (excluding weekends and designated federal holidays).

Eligibility Requirements

In order to be eligible for admission to Sonoma Square Apartments, an applicant must meet each of the requirements listed in this document. Prospective tenants whose application information indicates they do not meet these standards should expect to be declared ineligible for occupancy. Prior to touring an apartment, at least one head of household is required to present a photo identification card to management.

Completion of the Application

All applicants (including each adult household member) must complete the Application for Residency in full, which means that no blanks must be returned in the application form. Co-signers will not be accepted to fulfill any requirement on an applicant’s behalf with no exceptions.

Employment & Income Requirements

Each household must have earned or unearned income sources. Those with employment must have worked at their present employer (or immediately prior employer) for at least six months. Income received from SSI, SSI Disability, or any other continuous source may be included in calculating the minimum and maximum income guidelines.

• Maximum Income Limit: All units must be occupied by or held available for occupancy by individuals or families whose gross annual income does not exceed (as of the date of their initial occupancy of such units) the specific target Area Median Income limit (30%, 40%, 50%, or 60%) allocated to the unit, as adjusted for family size and determined by the Iowa Finance Authority.
• Minimum Income Limit: Applicant’s actual gross monthly income must be at least 75 times the rent charged for the unit. Tenants must demonstrate the ability and overall willingness to pay rent on time through earned/unearned income sources or cash reserves. Section 8 voucher program rental assistance will count toward this requirement.
  • Exception: Applicants receiving Section 8 vouchers, or another continuous government subsidy covering rental assistance, are only required to show a gross monthly income of at least 5 times the tenant-paid portion of the rent.

Certification of Income

Each applicant for a unit will certify his or her income and will be required to provide independent verification of his or her employment income. Such certification shall be on forms approved by the Iowa Finance Authority. Applicants must provide at least six consecutive, most recent paycheck stubs and three consecutive, most recent months’ complete bank statements. The most recent Federal Income Tax return or such other documents may be required for self-employment. Third-party verification from a financial institution is required for all checking, savings, or asset accounts.

Occupancy Standards

The following are the maximum number of persons that can occupy each specific unit based on our guidelines of 2 individuals per bedroom at move-in:

• 1 Bedroom: Maximum of 2 people [1]
• 2 Bedroom: Maximum of 4 people [1] Rental History & Landlord References

At least one year of prior rental history is required. Applicants must have lived in their previous residence for at least one year, unless the reason for the last move was a military transfer, a move required by their employer, or another verified good cause. Applicants must provide information to verify references from three most recent landlords, even if the landlord is a family friend or family member.

Each applicant must provide a satisfactory reference from their rental history, confirming that the applicant’s account at such previous apartment is current and verifying that the applicant has no record of disturbance of neighbors, destruction of property, very poor housekeeping, illegal drug use or addiction, violence, or other problems relative to the applicant’s ability or willingness to comply with the terms of the lease.

Credit Standards

A satisfactory credit check shall be required for all applicants. There may be no judgments against an applicant by a landlord or management company. We use an RV index score. Tenants will not be deemed ineligible solely for having no credit score.

We do not accept applicants who have had a bankruptcy filed within the last four years. An additional deposit will be required for applicants with bankruptcies that were filed beyond the four-year period. The total of the additional deposit and the initial rental deposit will equal two months’ rent for that unit.

Identification Requirements

Proper state-issued or government-issued identification is required prior to move-in. These include driver’s licenses, passports, social security cards, and other state-authorized forms of identification.

Procedures for Rejecting Ineligible Applicants

In accordance with IFA compliance guidelines, if an applicant is deemed ineligible for residency based on the screening criteria outlined in this TSP, management will formally reject the application using the following procedures:

1. Written Notification: Management will provide the applicant with a prompt, written notice of rejection within five

(5) business days of the determination. This notice will be sent via US Mail or electronic mail.

2. Stated Reason for Denial: The written rejection notice will clearly state the specific, factual reason(s) for the denial (e.g., income exceeding maximum limits, failure to meet minimum credit or landlord reference thresholds, or criminal background disqualification).
3. Right to Appeal: The notice will advise the applicant of their right to appeal the decision and request an informal meeting with management to dispute the findings or present mitigating circumstances.
4. Appeal Timeline: Applicants have fourteen (14) calendar days from the date of the rejection notice to submit a written request for an appeal meeting.
5. Review Process: If an appeal is requested, a management representative who was not involved in the initial decision to reject the application will conduct the A final written decision will be sent to the applicant within five (5) business days following the appeal meeting.
6. Record Retention: Management will retain the original application, the written rejection notice, all supporting verification documents, and a log of any appeal proceedings for a minimum of three (3) years or as required by IFA program regulations.

Unit Transfer Policy

Unit transfers within Sonoma Square Apartments will be evaluated and approved based on program compliance, medical necessity, and household size changes under the following guidelines:

1. Transfer Priorities: High Property Management prioritizes unit transfers in the following order:
   • Emergency Transfers: Accommodations required under the Violence Against Women Act (VAWA) or structural unit emergencies that render the apartment uninhabitable.
   • Reasonable Accommodations: Verified medical needs or physical disability requirements under Section 504/Fair Housing.

• Changes in Household Eligibility: Documented changes in household size that result in under-utilization or over-crowding according to the property’s Occupancy Standards.

2. LIHTC & HOME Program Rules for Transfers:
   • Same Building Transfers: Under Section 42 (LIHTC), a household may transfer to another unit within the same building regardless of the current income tier. The two units effectively “swap” status.
   • Different Building Transfers: (If applicable to future phases/structures) The household must re-qualify as a new move-in, meeting all current maximum income limits.
   • HOME Units: For designated HOME units, households transferring units must be fully re-certified to ensure the property continues to meet its floating or fixed High/Low HOME unit mix before a transfer can be finalized.
3. Good Standing Requirement: Except for emergency transfers or reasonable accommodations, tenants requesting a voluntary unit transfer must be in “good standing” (account balance must be paid in full, no lease violations on file, and a clean housekeeping history for the past 6 months).
4. Waiting List Placement: Approved transfer requests will be placed on the property’s internal transfer waitlist according to the date and time the written request and supporting documentation were received.

Eligibility of Students

Low-Income Housing Tax Credit (LIHTC / Section 42) Student Rules

Households consisting entirely of full-time students (whether traditional or technical school students) are not eligible for LIHTC units unless the household continually meets at least one of the five IRS Section 42 exceptions listed below.

A full-time student is defined as any individual of any age who:

• Attends an educational institution with facilities and a regular student body (including online-based learning).
• Attends all or parts of any 5 months out of the current calendar year (the months do not need to be consecutive).
• Is considered a full-time student by the school they attend, based on that institution’s definition of a full-time

Verification: Student status is verified at the initial application interview prior to move-in, and re-verified annually, using the IFA Student Status Certification form.

LIHTC Student Exceptions:

To maintain eligibility, an all-student household must continually document that they qualify under at least one of these exceptions:

1. Married and Filing Jointly: All adult members are married and entitled to file a joint federal tax return.

Verification: Copy of a joint tax return or a marriage certificate.

2. Single Parent Household: An adult member is a single parent with a minor child in the unit, the adult is not a tax dependent of any third party, and the children are not claimed as tax dependents by anyone other than a Verification: Copy of tax returns or a signed, legally binding affidavit.
3. Welfare Assistance: At least one household member receives welfare assistance under Temporary Assistance for Needy Families (TANF). Verification: Current TANF award letter.

4. Foster Care Alumni: At least one household member formerly received foster care assistance as a child or

Verification: Official foster paperwork from the placing welfare/human services agency.

5. Job Training Programs: At least one household member receives assistance under the Workforce Innovation and Opportunity Act (WIOA) (formerly the Job Training Partnership Act / JTPA) or a similar government-funded program. Verification: Certification from the program administrator confirming public funding and a mission statement similar to WIOA/JTPA.

HOME Program Student Rules

For units assisted with HOME funds, any student (whether full-time or part-time) who attends an institution of higher education must meet separate HUD eligibility rules. To be eligible, the student must meet at least one of the following criteria:

• Be a dependent of the household living with a
• Be over the age of
• Be a veteran of the United States Armed
• Be
• Be a parent with a dependent
• Be a disabled individual who was receiving Section 8 assistance prior to November 30, If the student does not meet one of the qualifiers above, they must be either:
• Independent from their parents (established by being of legal contract age, meeting HUD independent student criteria, and demonstrating financial independence), OR
• Have parents who are collectively income-eligible under the HOME program limits for their respective geographic

Criminal History and Other Rejection Criteria

A criminal background check will be conducted for each applicant over the age of 18. The following are guidelines for denial:

• Felony: Applicants with a felony conviction within the last 7 years will be ineligible for
• Violent Behavior: Includes evidence of acts of violence or of any other conduct that could constitute a danger or disruption of peace for neighbors.
• Rape, Prostitution or Sexual Deviation: Includes convictions for the offenses of rape, prostitution, indecent exposure, carnal abuse, impairing the morals of a minor, or similar crimes indicating sexual deviation.
• Sex Offender Registry: All applicants will be deemed ineligible if listed on any sex offender
• Drug-Related Activity: Applicants with any drug charges or convictions within the last 7 years will be ineligible for tenancy. This includes any evictions on record from drug use and possession, illegal manufacture or distribution of controlled or illegal substances, and related paraphernalia.
• Misdemeanors: Resulting from disruptive, dangerous, or repetitive criminal

• Operating While Intoxicated (OWI): Applicants with two or more OWI charges on record within the last 7 years will be ineligible for tenancy.
• Application Deficiencies: Insufficient, inaccurate, or false information provided on the
• Prior Tenancy Conduct: Records of disturbance to neighbors, destruction of property, non-compliance with previous rental agreements, or unresolved landlord evictions.
• Unsanitary Housekeeping: Includes creating any health or safety hazard through acts of neglect and causing or permitting any damage, misuse, or active pest infestation; depositing garbage improperly; or failing to maintain utilities, facilities, and appliances in a clean and safe condition.
• Availability: Unit was filled prior to the date that the completed application was

Low-Income Housing Tax Credit & HOME Program Requirements

The premises are to be operated in accordance with the requirements of the Low-Income Housing Tax Credit program under Section 42 of the Internal Revenue Code of 1986, as amended (“Section 42”) and the HOME Regulations of the Department of Housing and Urban Development (“HUD”). Tenant’s rights hereunder will be subject to the program requirements. Tenants will cooperate with all of the Landlord’s requirements related to compliance.

• Only the qualified tenants listed on the lease will be permitted to occupy the
• Tenants will be required to provide annual income and asset recertification Failure to provide accurate and timely income certification will constitute a material breach of the lease and will result in termination of tenancy with a 30-day notice.
• If, upon annual recertification, the tenant’s household income exceeds 140% of the applicable Program limit, the Landlord may increase the Tenant’s monthly rent amount to the maximum allowed under the market-rate or program threshold, in accordance with LIHTC Next Available Unit rules, following a 30-day written notification.
• The Tenant shall notify the Landlord immediately in writing if the household size changes, income increases, or if any tenant becomes a full-time student or begins receiving HUD assistance. The Landlord may elect not to renew the lease if a change in student status disqualifies the unit under program rules.
• Under Section 42 and HOME Regulations, annual unit inspections will be conducted by the governing agency (Iowa Finance Authority or designated representatives) to ensure compliance with uniform physical condition standards and building codes.

Violence Against Women Act (VAWA) Provisions

An applicant for or tenant of assisted housing under a covered housing program may not be denied admission to, be denied assistance under, terminated from participation in, or evicted from housing on the basis that the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, if the applicant or tenant otherwise qualifies for admission, assistance, participation, or occupancy.

Leases must be bifurcated when necessary, allowing eviction or termination of assistance for the perpetrator of a violent crime while retaining the victim. Remaining members of the household are given an opportunity to qualify for the housing they reside in. If they do not qualify without the perpetrator, they must be given a reasonable time to find alternative housing or establish eligibility under another covered housing program. A victim is not protected from eviction or termination based on independent lease violations or good cause unrelated to the domestic violence of which they are a victim.