Pelican Management's (d/b/a Goldfarb Properties) Lease Application Policy and Procedure

Table of Contents

  1. General Application Process Overview
  2. Application Policy for Applicants Without a Housing Voucher
  3. Application Policy for Applicants With a Housing Voucher
  4. Rental Agent Code of Conduct

 

I. General Application Process Overview

 

Available apartments are posted on the company website (www.goldfarbproperties.com). If an individual is interested in applying for an available apartment listed on the company’s website, they should  register and complete an online application.  To be considered for an apartment the applicant must complete the online application, pay the application fee, and submit all necessary documentation to support it; including a copy of the applicant’s brokerage agreement if they are represented by a real estate broker in connection with their application.  It is the responsibility of the applicant to timely provide sufficient documentation to process their application.  The leasing agent will request missing documentation via email on two (2) separate occasions. If the applicant fails to provide the missing documentation within 10 days of the leasing agent’s first request, the  application will be cancelled for failure to provide missing documentation.  Therefore, applicants should only commence the application process when all documents are available and ready for submission. Any applicant that has a disability, and requires assistance completing the online application, may request assistance and will be given a reasonable accommodation.

The leasing agent’s role in the application process is to respond to applicant questions, gather and organize the required documentation and confirm which apartment the applicant would like to be considered for.  All applications submitted to the credit department are reviewed on a first-come, first-served basis and all apartments are rented to the first approved applicant that executes a lease.  If multiple applicants apply for the same apartment and the apartment is rented before the credit department completes its review of a completed application, or if an applicant is already approved but the apartment they selected has already been rented, the applicant will be asked to choose an alternative apartment on our company’s website for consideration within 10 days of the date on which the applicant is advised that the apartment they are applying for is no longer available. Inventory changes often, so prospective renters are encouraged to check the website regularly to find current availability.

Approved applicants must identify an available apartment of interest and execute a lease within 60 days of receiving notice of approval, otherwise the application will be cancelled. Please be aware that an approved applicant’s failure to timely sign a lease will result in the offer to lease being withdrawn and the apartment offered to the next approved applicant.

II. Application Policy for Applicants Without a Housing Voucher

 

Upon completion of the online application and payment of an application fee, our system will automatically run a credit report.    Our internal credit review process will occur upon completion of the online application, payment of the application fee, and submission of all supporting documentation.    All submitted documentation will be reviewed in accordance with the following:

  1. Credit History. Credit will be reviewed for all applications on an individualized basis.   Generally, applicants with a credit score of 650 or better will be approved if the income criteria is met. The credit department will review an applicant’s credit report to determine their ability to pay the rent.  Acceptable credit is generally defined as no negative accounts, including recent delinquencies, balances charged to loss, repossessions, bankruptcies, collection accounts and accounts placed for collection with an agency. For all applicants, including those with a credit score of less than 650, the credit department will review all deficiencies and determine if the score is the result of an isolated issue that is unlikely to reoccur, thereby causing an unreasonable adverse impact on the applicant’s credit score.

  2. Criminal History. Upon conditional approval, we will run a criminal background check in accordance with the NYC Fair Chance Housing Act or the NJ Fair Chance in Housing Act, depending on where the apartment is located. Applicants must have acceptable criminal history in accordance with HUD guidelines.  Applicants are encouraged to review HUD policy statement at: https://hcr.ny.gov/system/files/documents/2022/08/feho-policy-updates-training-2022-external_8.18.2022.pdf

    1. NYC Fair Chance Housing Law: Applicants to units located within New York City will also have their criminal history reviewed in accordance with the New York City Fair Chance Housing Act.
    2. NJ Fair Chance in Housing Act (FCHA): Applicants to units located within New Jersey will also have their criminal history reviewed in accordance with the New Jersey Fair Chance in Housing Act (https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/know-the-law/fair-chance-in-housing-act/).
  3. Income:
    1. We will consider all sources of income including but not limited to the following:
      • Wages
      • Investment Income
      • Disability Benefits Income
      • Alimony and Child Support
      • Social Security Income
      • Supplemental Income
    2. Proof of Income: In order to complete the application process, applicants must upload verifiable documentation of all its sources of income. All submitted documentation will be reviewed for accuracy and authenticity.  Acceptable proof of income includes but is not limited to:
      • Four (4) most recent paystubs
      • If beginning of year – a final paystub from previous year
      • Most recent W2 or 1099
      • Social Security Benefits letters with benefit start dates.
      • Three (3) most recent bank statements

  4. Debt Service and Expenses.:
    1. An applicant’s Gross Annual Income must be at least 43 times the monthly rent.
      • For example, a $1000 per month apartment would require an annual gross income of at least $43,000 – individual or combined.

    2. The credit department will calculate all monthly debt service and monthly expenses from the documents submitted and a review of the applicant’s credit report, including for example, taxes, credit card debt service and expense, utilities, mobile phones, medical expense, home and auto loans, rent, child support, alimony, wage garnishments, and student loans debt service. 

  5. Rent-to-Net Income Ratio. Net Income = Gross Income minus Debt Service and Expenses. The Rent to Net Income Ratio must be no greater than forty (40%) percent. In the event the Rent to Net Income Ratio is above 40%, the application will be further reviewed to see if this deficiency can be offset with significant savings, significant assets, or a qualified guarantor.
  6. Employment Status. If employment income is required to satisfy the Rent to Net Income Ratio, then applicants must have been employed at least 3 months in current position. 
  7. Guarantors. Guarantors are not required for any applications, but applicants may submit a guarantor to make up for a shortage of income to qualify for an apartment.  However, guarantors must meet our Net Income Guidelines and be financially capable of paying all of their expenses and the entire rent if the applicant were unable to do so. 
  8. Savings. Significant savings will also be considered to offset any deficiencies in income or credit. 
  9. Due Upon Lease Execution. Confirmation that first month’s rent and security deposit will be tendered at lease execution.
  10. Rent Concessions. Any rent concession offers will be advertised on the company’s website and only available to new move-ins for immediate occupancy.

III. Application Policy for Applicants With a Housing Voucher

 

Upon completion of the online application and payment of an application fee, our system automatically runs a credit report. Our internal credit review process will occur upon completion of the online application, payment of the application fee, and submission of all supporting documentation.    

The online application will ask all applicants if they are applying with a housing voucher.  If “yes” is selected, then all submitted documentation will be reviewed in accordance with the following:

  1. Step One: Voucher Verification:
    1. Housing Voucher Eligibility Letters: All applicants applying with housing vouchers must provide proof that they have been authorized to receive such housing voucher by providing a letter from the issuing agency stating the applicant’s name and the apartment size(s) and maximum rent for which the housing voucher is eligible. Depending on the issuing agency, this letter may have different titles – for example, it could be called a “Voucher Eligibility Letter” or “Potential Eligibility for a Rental Assistance Supplement”. 
    2. Housing Voucher - Expiration Date: Each housing voucher has a specific date through which they are valid. Upon receipt of a housing voucher, the leasing agent will confirm that the housing voucher has not expired.  If an applicant does not produce an unexpired housing voucher, the applicant will be asked to provide one. 
    3. Housing Voucher - Rent Limit: An applicant’s housing voucher must be sufficient to cover the rent for the apartment the applicant is applying for. The maximum rent for which a particular housing voucher is eligible is equal to the stated housing voucher limit less the issuing agency’s utility allowances for the building where the apartment is located.  In other words, the applicable utility allowance(s) reduces the housing voucher’s maximum rent limit.
      • Section 8 and CityFHEPS Note: Section 8 and CityFHEPS vouchers permit voucher holders to pay up to 40% of their income towards rent. Applicants should notify the leasing agent if the applicant wishes to pay up to 40% of their income towards rent to make up any difference between the voucher limit and the apartment rent.

  2. Step Two: Income Determination.
    1. For partial vouchers and full vouchers there is no minimum income multiplier. However, proof of income (or no income) is necessary for us to verify the Tenant’s portion of the rent, if any. 
    2. Income: We will consider all sources of income during the application process, including, but not limited to, the following:
      • Wages
      • Investment Income
      • Disability Benefits Income
      • Alimony and Child Support
      • Social Security Income
      • Supplemental Income
      • Budget Letters
      • Shopping Letters
    3. Proof of Income: Applicants must upload verifiable documentation of all of sources of income for review. Acceptable proof of income includes, but is not limited to, the following:
      • Four (4) most recent paystubs
      • If beginning of year – a final paystub from previous year
      • Most recent W2 or 1099
      • Social Security Benefits letters with benefit start dates.
      • Three (3) most recent bank statements
    4. No Income Determination: Some voucher applicants have no income. In these cases, applicants must submit a Budget Letter/Calculator from the issuing agency as proof that there are no additional sources of income.  The Budget Letter/Calculator must indicate that the applicant has no other source of income and that the voucher will cover 100% of the rent.

  3. Step Three: Verification of Additional Documents, Credit and Criminal History
    1. Credit History: Credit will be reviewed for all applications in which an applicant would be responsible for any portion of the rent. The Credit Department will review each  applicant’s credit report to determine their ability to pay their portion of the rent, on a case-by-case basis, which may involve requesting additional information and/or documentation not initially requested by a leasing agent during Step One and Step Two.  Acceptable credit is generally defined as no negative accounts, including recent delinquencies, balances charged to loss, repossessions, bankruptcies, collection accounts and accounts placed for collection with a collection agency. If an applicant has a known, or perceived disability, the Credit Department will engage in a cooperative dialogue with the applicant to determine if the cause of the unacceptable credit score is the result of an isolated incident beyond the control of the applicant and not likely to reoccur in the future, in order to determine if an exception to the credit requirement is warranted. 
    2. Criminal History: Upon conditional approval, we will run a criminal background check in accordance with the NYC Fair Chance Housing Act or New Jersey Fair Chance in Housing Act, depending where the apartment is located. Applicants must have acceptable criminal history in accordance with HUD guidelines. Applicants are encouraged to review HUD policy statement at: https://hcr.ny.gov/system/files/documents/2022/08/feho-policy-updates-training-2022-external_8.18.2022.pdf
  4. General Information
    1. Due Upon Lease Execution: Please note that the first month’s rent and security deposit must be tendered at lease execution.
      • The security deposit can be in the form of a security voucher.
    2. Rent Concessions: Any rent concession offers will be advertised on company website and are only available to new move-ins for immediate occupancy.
    3. Guarantors: Guarantors are not required for any applications.

 

IV. Rental Agent Code of Conduct

 

Rental Agents are prohibited from engaging in conversations with anyone except the applicant or the applicant’s legal guardian or housing counselor. Before communicating with an applicant’s legal guardian or housing counselor, Rental Agents should first obtain confirmation of the representative’s relationship to the applicant and obtain the applicant’s consent to discuss the application. If the applicant is represented by a broker, then the applicant must have provided a copy of their brokerage agreement with their application and must additionally provide the Rental Agent with written authorization to communicate with the specified broker on the applicant’s behalf.

If a leasing agent is unable to answer an applicant’s question, the leasing agent should instruct the applicant to submit their question via email or in writing to make their request clear. All written questions should be forwarded to the of Leasing Director from the rental agent(s). Applicants should not contact the Credit Department or Leasing Director directly.

Rental Agents shall take no action because of actual or perceived race, color, creed, religion, family status, age, national origin, immigration or citizenship status, gender (including gender identity), sexual orientation, disability, marital status, partnership status, military service, status as a victim of domestic violence or status as victim of domestic of sex offenses or stalking, lawful occupation, lawful source of Income (including housing voucher and subsidies) or any other legally recognized protected basis under federal, state or local laws, that has the effect of making housing unavailable to persons protected under these laws.

It is important to understand that any action you take because of race, color, religion, sex or gender, familial status, national origin, disability, marital status, domestic partnership status, age, sexual orientation, alienage or citizenship status, lawful occupation, source of income, or military status, that has the effect of making housing unavailable to such persons protected under these laws constitutes a violation of federal, state, and/or local laws and may have legal consequences against the company and you individually.

Applicants with disabilities may be entitled to a reasonable accommodation under the terms of the Americans with Disabilities Act, Federal Fair Housing Act and certain state or local laws including but not limited to New York State Human Rights Law, New Jersey Law Against Discrimination and New York City Human Rights Law, Virginia Fair Housing Law, regulations or ordinances. If an applicant with a disability informs the Rental Agent that they need assistance completing any forms or otherwise participating in the application process because of their disabilities, the Rental Agent should inform their supervisor of the request. 

It is the policy and practice of Pelican not to engage in or assist the efforts of others to engage in housing discrimination. Consistent with that policy, we remind you that the anti-discrimination laws of the United States, State of New York, State of New Jersey and City of New York, and State of Virginia are quite specific in the area of housing, and in conformance with those laws, you must not engage in any of the following conduct:

  1. Refuse to show, rent, negotiate for the rental of, or otherwise make unavailable or deny, apartments to any person on the basis of their membership to a protected class, including the following: age, immigration or citizenship status, color, disability, gender (including sexual harassment), gender identity, marital status and partnership status, national origin, pregnancy and lactation accommodations, race, religion or creed, height and weight, sexual orientation, status as a veteran or active military service member, criminal record, lawful occupation, lawful source of income, the presence of children, and status as a victim of domestic violence, stalking, or sex offenses (each a “protected class”);
  2. Discriminate against any person in the terms, conditions or privileges of rental or in the provision of services or facilities;
  3. Make any verbal or written statement or inquiry with respect to the rental of apartments that indicates any preference, limitation or discrimination concerning a protected class, or any statement indicating an intention to make any such preference, limitation or discrimination, including inquiring about a membership to protected class  making statements regarding the protected classification of residents in apartments buildings or neighborhoods;
  4. Represent to any person because of their membership to a protected class, any apartment is not available for inspection or rental when such apartment is in fact available;
  5. Discriminate against any person in offering individual apartment units or in assigning persons to such units because of their membership to a protected class;
  6. Enter into an agreement that imposes any restriction upon persons to whom rental housing may be shown or rented because of on the basis of being a member of a protected class;
  7. Direct or steer any individual away from or toward a particular building, neighborhood or vacancy because of their membership to a protected class;
  8. Coerce, intimidate, threaten or interfere with any person who is either a prospective tenant or current tenant or anyone assisting either a prospective tenant or current tenant to exercise or enjoy the rights guaranteed by the Federal Fair Housing Act or local laws including but not limited to New York State Human Rights Law, New Jersey Law Against Discrimination and New York City Human Rights Law, Virginia Fair Housing Law, regulations, ordinances and state and local fair housing laws.