Marketing HandbookPolicies and Procedures for Resident Selection and OccupancyAugust 2021

MARKETING HANDBOOK: CONTENTSContents1. Introduction . 51-1 What This Handbook Is . 51-2 What This Handbook Is Not . 61-3 Systems And Definitions . 62. Timeline. 72-1 Phases Of The Marketing Process . 72-2 Major Milestones In The Marketing Process For Advertised Lotteries . 83. Basic Sequence Of Activities – Advertised Rental And HomeownershipLotteries . 104. Outline Of Procedures . 124-1 Pre-Marketing. 13A. Inquiry List. 13B. Marketing Meeting . 13C. Marketing Plan . 144.2 Marketing . 15A. General Information . 15B. Outreach . 17C. Advertisements . 18D. Project Site Marketing Sign. 20E. Applications. 204-3 The Lottery Process . 21A. Paper Application Collection . 21B. Paper Application Entry . 21C. Order Of Processing . 22D. . Reporting (For Projects Marketed Under The Original Housing ConnectOnly) . 24E. Remarketing . 25F. Priority Waiting Lists . 25G. Record Keeping . 264-4 Re-Rentals And Resales . 264-5 Applicant Evaluation And Resident Selection . 27A. Ineligibility Policies . 27B. Processing Applicants . 28C. Direct Document Submission For Paper Applicants And ApplicantsApplying In The Original Housing Connect. 29D. Direct Document Submission For Users Of The New Housing Connect 30E. In-Person Appointments. 31F. Agency Review . 31G. Appeals . 33H. Complaints . 34Page 2 of 70

MARKETING HANDBOOK: CONTENTS5. Detailed Selection Policies . 355-1 Set-Asides And Preferences. 36A. Disability Set-Asides . 36B. Community Preference . 37C. Municipal Employee Preference . 37D. Residency Preference For New York City Residents . 38E. Additional Set-Asides And Preferences . 38F. Set-Asides And Preferences At Re-Rental . 38G. Homeless Referrals . 38H. Referrals . 395-2 Qualification As A Household . 39A. Definitions . 395-3 Changes To An Application . 40A. In The New Housing Connect . 40B. In The Original Housing Connect . 41C. Proof Of Extenuating Circumstances . 425-4 Income Eligibility . 43A. Income Eligibility At Admission . 43B. Employment Income . 44C. Self-Employment Income . 48D. Combination Income . 50E. Income Received For Less Than One Year . 51F. Income From Other Sources . 52G. Sporadic Or Non-Recurring Income . 52H. Asset Certification . 52I. Clarifying Bank Deposits . 535-5 Continuing Need . 54A. Asset Limits. 54B. Property Ownership . 55C. Primary Residence . 56D. Gifts And Down Payments . 56E. Other Restrictions . 565-6 Background Checks And Other Factors . 57A. Student Status (Irs Program Units) . 57B. Disability Verification . 57C. Immigration Status/Credit History . 57D. Criminal Background Checks . 58E. Discovery Of False Information . 58F. Rental History And Credit Checks: Rentals . 58G. Credit Findings: All Applicants . 60H. Credit Issues And Appeal Process . 62I. Credit Checks: Homeownership . 62J. Violence Against Women Act (Vawa) . 625-7 Occupancy Guidelines And Unit Distribution . 63A. Occupancy Guidelines . 63B. Unit Distribution . 64Page 3 of 70

MARKETING HANDBOOK: CONTENTSC. Rent Levels And Income Standards . 645-8 Other . 67A. Incorporation Of “Fair Housing Laws”. 67B. Amendments . 67C. Inspections . 67D. Brokers . 67E. Annual Unit Inspection Form . 67F. Household Student Status Affidavit At Recertification . 676. Submissions And Ongoing Reporting Requirements. 687. Attachments . 69Page 4 of 70

MARKETING HANDBOOK, SECTION 1: INTRODUCTION1. Introduction1-1 What This Handbook IsA. This handbook (the “Marketing Handbook”) contains the policies, procedures, andrequirements for marketing and selection of residents for developments(“Projects”) assisted by the New York City Department of Housing Preservationand Development (“HPD”) and the New York City Housing DevelopmentCorporation (“HDC”) (together, the “Agencies”).B. Developers, owners, and sponsors of Projects (“Developers”), as well as otheragents 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-housedepartments of the Developer, subsidiaries, or affiliates of the Developer, or thirdparty marketing, leasing, managing, monitoring, or administering agents.Marketing Agents must be prequalified through an applicable request forqualifications issued by the Agency and must also be approved by the Agency tomarket each individual project, prior to marketing such project, regardless ofwhether 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 thatthe process is fair and provides equal opportunity to all applicants, regardless ofrace, color, religion/creed, gender, sexual orientation, gender identity orexpression, national origin, age, disability, military service/veteran status,immigration status, lawful occupation, lawful source of income, marital orpartnership status, pregnancy, presence of children, or status as a victim ofdomestic violence, sexual violence, or stalking. In addition, the process shouldaffirmatively further fair housing by promoting racial, ethnic, income, andgeographic diversity among residents and within the neighborhood, and byproviding applicants with mobility, vision, or hearing disabilities that requireaccessible/adaptable units priority for those units.Page 5 of 70

MARKETING HANDBOOK, SECTION 1: INTRODUCTION1-2 What this Handbook Is NotA. The Marketing Handbook is not a comprehensive compliance manual. Developersand Marketing Agents must ensure that their employees are fully trained in allfacets of the program and all aspects of the specific occupancy requirements ofeach Project. Maintaining compliance is the responsibility of the Developer andMarketing Agent.B. This handbook also does not contain specific occupancy requirements forindividual Projects. Each Developer and Marketing Agent must refer to its Project’sRegulatory Agreement and other applicable regulations and regulatory documentsfor income, rent, and other occupancy restrictions.C. The Developer or Marketing Agent should consult with the Agency if any questionsor concerns arise with respect to the policies, procedures, and requirements setforth in the Marketing Handbook.D. Actual marketing and resident selection will be conducted in accordance with amarketing plan, submitted by the Marketing Agent for each project (“MarketingPlan”). The Marketing Plan and all pre-marketing activities must comply with theMarketing Handbook and other Project requirements and must be approved by theAgency before marketing can begin.1-3Systems and DefinitionsThis handbook includes policies and procedures effective July 1, 2020, at the launch of anew version of the NYC Housing Connect online application system (the “New HousingConnect”). As of July 1, 2020, lotteries and newly available housing opportunities will bemarketed through the New Housing Connect.Projects continued to open for applications in the original (2013) version of NYC HousingConnect (the “Original Housing Connect”) through June 30, 2020; those projects willcomplete such lotteries and lease-up processes within the Original Housing Connect.NOTE: After the Original Housing Connect lottery process is complete, subsequentavailable units must be marketed through the New Housing Connect.Requirements in this handbook may differ slightly based on the version of NYC HousingConnect used. If there are provisions of this handbook that are applicable to both the OldHousing Connect and the New Housing Connect, the system is referred to as “HousingConnect.”The Agencies reserve the right to make additional changes to the handbook.Page 6 of 70

MARKETING HANDBOOK, SECTION 2: TIMELINE2-1: Phases of the Marketing Process2-2: Major Milestones in the Marketing Process2. Timeline2-1 Phases of the Marketing ProcessNote: Timelines are approximate and may vary by project.Page 7 of 70

MARKETING HANDBOOK, SECTION 2: TIMELINE2-2: Major Milestones in the Marketing Process2-2 Major Milestones in the Marketing Process for AdvertisedLotteriesActivityTimelinePrior to the marketing process:From the start of construction untilcommencement of the marketingperiodDeveloper maintains inquiry list ofinterested potential applicantsProposed Marketing Agent is reviewed andapproved to conduct the lottery and initiallease-up.At the beginning of the marketing process and afterwards:1. Developer submits Notice of Intent (asdefined in Section 3.A);Typically, seven months prior to2. Marketing Meeting held with Agency. anticipated occupancy (or approximatelyMarketing Agent is assigned tasks in 70% construction completion for projectsHousing Connect to complete the requiring C of O)Marketing Plan3. PO Box / caller service box establishedfor receipt of paper applicationsPrior to commencement of the marketingperiodRepresents commencement of the4. MarketingPlanapproved,marketing period: at least 60 days prior toadvertisements posted on Housingapplication deadline date for standardConnect* and Agency websites; printmarketing; may be shorter for modifiedadvertisements placedmarketing5. Community contact letters mailedAt commencement of the marketingperiod6. Marketing sign posted on project site(design is project ad in multiplelanguages, at least 28” tall)At commencement of the marketingperiod7. Advertisements sent to inquiry list;requestsforpaperapplicationsprocessed as receivedAt commencement of and throughout themarketing period8. Compliance meeting held with AgencyTwo weeks before or after the lotteryPage 8 of 70

MARKETING HANDBOOK, SECTION 2: TIMELINE2-2: Major Milestones in the Marketing ProcessTwo weeks after the beginning of the9. For homeownership projects, first-timeapplication period and two weeks beforehomebuyer seminars conductedthe application deadline10. Paper applications retrieved at PostOffice or caller service box and enteredinto Housing ConnectSeven to ten business days afterapplication deadline11. Lottery log is available for download fromHousing Connect for processing, andresident selection process commencesApproximately one week after entry ofpaper applications into Housing Connect12. Rentals: Lease is offered to eligibleapplicant and occupancy beginsAfter verification of eligibility from Agencyand receipt of TCO13. Homeownership: End loan closing, or After verification of eligibility frompurchase of co-op shares, and Agency, approval for private mortgage,occupancy beginsand receipt of TCO*NYC Housing Connect (or “Housing Connect”) is the online application system forHPD/HDC-assisted affordable housing. Some Programs or Projects may not beadvertised on Housing Connect, but through other channels as determined by theAgency.Page 9 of 70

MARKETING HANDBOOK, SECTION 3: BASIC SEQUENCE OF ACTIVITIES3. Basic Sequence of Activities –Advertised Rental and HomeownershipLotteriesA. The following activities take place before the Project is approved foradvertising:1. Developer submits a Notice of Intent to Begin Marketing (“Notice of Intent”or “NOI”) and Marketing Agent Approval Request Form to Agency. (seeSection 4-1.B).2. Developer, Marketing Agent and Agency hold the Marketing Meeting (seeSection 4-1.B).3. Marketing Agent begins pre-marketing tasks in Housing Connect (seeSection 4-1.C).4. Agency and Marketing Agent establish PO Box or caller service box (seeSection 4-2.E.2).B. The following activities take place after the pre-marketing process iscomplete:5. Marketing Agent erects marketing sign on Project construction site:enlarged Project advertisement on outdoor-durable material, in multiplelanguages (see Section 4-2.D).6. Agency publishes advertisement on Housing Connect and, whenapplicable, Agency website.7. Marketing Agent publishes advertisements in newspapers and other mediaoutlets and provides Agency with all copies of actual newspaperadvertisements (See Section 4-2.C).8. Marketing Agent sends copies of the approved advertisement to interestedapplicants 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 inSection 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 ascommunity board(s) and/or local organizations (required forhomeownership only).13. Marketing Agent and Agency schedule paper application pickup and entry(see Section 4-3.A). Agency accompanies Marketing Agent to pick up paperapplications from Post Office and oversees entry of paper applicationinformation into Housing Connect, which Marketing Agent staffs (seeSections 4.3 A and B).Page 10 of 70

MARKETING HANDBOOK, SECTION 3: BASIC SEQUENCE OF ACTIVITIES14. Lottery log is generated by the Housing Connect system (see Section 43.C).15. Marketing Agent attends compliance meeting with Agency (see Section 42.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 Section4-3.C).18. Marketing Agent submits initial move-in certification to Agency, if requiredby Agency (see Attachment W, Owner Certification of Initial Move-in Date).19. If needed, the Marketing Agent requests written approval from Agency tocommence remarketing (see Section 4-3.E).20. If the project was marketed under the Original Housing Connect, at 100percent occupancy, Marketing Agent submits final log with dispositioncomments, statistical report, and initial rent roll to the Agency.Page 11 of 70

MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES4. Outline of Procedures4-1. Pre-Marketing4-2. Marketing4-3. The Lottery Process4-4. Re-Rentals and Resales4-5. Applicant Evaluation and Resident SelectionPage 12 of 70

MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES4-1: Pre-Marketing4-1 Pre-MarketingA. INQUIRY LIST1.2.Commencing at the start of construction, the Developer must maintain a listof people who, before the deadline date for requests for applications, haveinquired about renting or purchasing a unit. The inquiry list must include thefollowing information:a.Name and contact information of those who submitted an inquiryb.How the inquiry was received, e.g. via phone, email, walk-in, or mail(the Developer may select the procedure for accepting inquiries)The Marketing Agent must provide a copy of the inquiry list, as well as anoutline of the Developer’s inquiry list procedures and the date at which theywere implemented, to the Agency as set forth in Section 4-1.C.2 in the premarketing processB. MARKETING MEETING1.The Developer must submit a Notice of Intent through Housing Connect orby submitting Attachment A-1) to the Agency to initiate the marketingprocess, propose a Marketing Agent for the Project, and schedule aMarketing Meeting. This typically happens at approximately seven monthsprior to anticipated occupancy, but timing may vary based on project type.2.The Agency may ask that projects requiring a Certificate of Occupancy alsoreach 70 percent construction completion before advertising maycommence.3.The Notice of Intent must identify the Marketing Agent the Developerintends to use or retain to perform marketing and initial lease-up or sales.The Marketing Agent will be the primary contact in the New HousingConnect. At this time, the Developer must also propose any separate entity,if known, the Developer intends to use or retain for ongoing residentselection for re-rental units or resales. For example, a Developer may retaina third-party marketing company to conduct a new Project’s initial lease-upor sales, but when the Project is fully occupied, the Developer may assigna property management company the responsibility of overseeing re-rentalsor resales.4.With the Notice of Intent, the Developer must submit a summary of theexperience and expertise of the Marketing Agent (see Attachment A-2,Marketing Agent Approval Request Form). If the entity responsible forongoing re-rentals or resales is expected to be different than the initialPage 13 of 70

MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES4-1: Pre-MarketingMarketing Agent, then the Developer must submit another version ofAttachment A-2 for that entity.5.In considering approval of a Marketing Agent, the Agency takes intoconsideration factors including, but not limited to:a.b.c.d.6.Prior experience marketing affordable projects through the Agency’sHousing Connect lottery system;Current workload of Housing Connect lotteries;Staffing and organizational capacity of the Marketing Agent;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, includingaccurate income calculations, proper application of theContinuing Need criteria and resident selection standardsfrom the Marketing Handbook;iv.Timely and complete submission of applicant files to theAgency for review; andv.Timely, accurate, and complete submission of the statisticalreport, and final log, as well as the certified rent roll upon fulllease up for rentals and executed contract for sales.After Agency approval of the Marketing Agent, the Developer, the MarketingAgent, and the Agency will hold a Marketing Meeting to review the policies,procedures, and requirements for marketing, applicant evaluation and residentselection, occupancy, ongoing re-rental leasing, and resales, as well as anyrelated documents and reports.C. MARKETING PLAN1.At the time of, or immediately following, the Marketing Meeting, theMarketing Agent must complete a series of pre-marketing tasks in the NewHousing Connect that outline procedures to be followed in the premarketing, marketing, applicant evaluation, resident selection, re-rental,and resale phases of the Project (“Marketing Plan”). See Section 3 of thishandbook, “Basic Sequence of Activities.”2.In the New Housing Connect, tasks are assigned to the Marketing Agentwith prompts to submit documentation and complete the Marketing Plan.The pre-marketing tasks include, but are not limited to, the following andare subject to Agency approval:a.Unit registration: Number and type of units (if this description doesnot match the original underwriting and unit distribution described inthe Regulatory Agreement, then the Marketing Agent must bring thePage 14 of 70

MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES4-1: Pre-Marketingdiscrepancy to the Agency’s attention in writing);4.2b.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 ofthe program’s income or rent limits);e.Approved Marketing Agent and, if applicable, managing or other rerental/resale agent;f.Dates of construction start and completion, advertising start, andapplication 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 securityin 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 (seeOutline for Management Plan, Attachment E); andr.Methods for future marketing activities.MarketingA. GENERAL INFORMATION1.The official marketing period, during which a Project is advertised andpeople may submit applications, typically should begin at least six monthsprior to the anticipated occupancy of the first unit.2.In the New Housing Connect, a Mini-Lottery is a non-advertised lotteryprocess (“Mini-Lottery”). Applicants have the option when creating theirHousing Connect accounts to express their interest in being contacted forre-rental or resale units. Mini-lotteries produce a batch of applicants whosehousehold information and housing choices match the requirements of thePage 15 of 70

MARKETING HANDBOOK, SECTION 4: OUTLINE OF PROCEDURES4-2: Marketingavailable unit.3.4.Standard vs. Modified Marketing - Rentalsa.The requirements for the marketing process may differ based on thetype of project and number of affordable units being marketed. Allstandard and modified marketing requirements are subject to theAgency’s discretion.b.“Standard marketing” (20 or more available units, except asotherwise approved by HPD or HDC) has a 60-day advertisingperiod. Standard marketing for rental units requires a lottery throughthe NYC Housing Connect online application system, advertising innewspapers, and publicity targeted to people with disabilities andthose least likely to apply.c.“Modified marketing” may have a shorter advertising period or maybe permitted to use the mini-lottery process as approved by HPD orHDC. Depending on the number of vacant units and the timeline bywhich the units will be ready for occupancy, the Agency willdetermine whether an advertised lottery through the HousingConnect system is required.d.Both standard and modified marketing processes begin with theDeveloper’s submission to the Agency of the Notice of Intent to BeginMarketing and Marketing Agent Approval Request, typically sevenmonths before anticipated occupancy, or 70 percent constructioncompletion for projects requiring a Certificate of Occupancy (C of O).See Attachments A-1 and A-2.Advertising – Homeownership (Coops, Condos, and Small Homes)a. The advertising period for projects of one to six homeownership units is30 days. For projects of seven or more homeownership units, theadvertising period is 60 days.b. All homeownership advertisements must indicate that the housing is forfirst-time homebuyers only.5.The opening of the lottery for applications on Housing Connect, thepublication of advertisements on Housing Connect and Agency websites aswell as in print and in other media, and other outreach efforts commencethe official marketing period.6.The Developer and Marketing Agent must ensure that the Project is alwaysin compliance with the provisions of the Project’s Regulatory Agreement.The Developer and Marketing Agent must be aware of their obligation toobtain, ver

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