All individual, regardless of their race, color, religion, sex, national origin, family status or handicap are guaranteed the right to rent any property they can afford. The federal laws that guarantee this right are commonly referred to as the "Fair Housing Laws". KOHNER PROPERTIES, Inc. maintains a policy of strict compliance with these Fair Housing Laws.

Applicants must be 18 years of age and must be able to demonstrate their ability to pay rent on time and to meet the requirements of occupancy. Generally, residents and/or Co-Signers are approved or denied based on five (5) areas; income, employment stability, rental references, credit history, criminal reports.

Income:
For market rate, unassisted properties the combined gross income for all named tenants on the lease must equal at least three (3) times the monthly rental amount.

For federally assisted communities, income limits are established by the Department of Housing and Urban Development and vary depending on location and family size.

Employment Stability:
Applicants for assisted properties must be employed; however, trust funds, social security, pension, retirement funds and disability may be considered a reliable source of income depending on the circumstances. Length and type of employment is an important economic consideration in the approval process. How likely is this employment to continue? How easy is it to verify the employment? The TYPE of employment many times is an indication of how long the applicant is likely to be employed and a further indication of the likely stability of the income stream.

Rental Reference/History:
Comments from former landlords are important selection criteria. This includes past rental history (including non- payment of rent) failure to cooperate with applicable recertification procedures, violations of house rules, violations of lease, history of disruptive behavior, housekeeping habits, terminations of assistance for fraud, previous evictions and convictions.

Other properties (including Section 42) are regulated by State Housing Agencies and restrict occupancy to individuals and families earning less than 50% to 60% of the areas median income adjusted for family size.

Credit History:
Before an application for occupancy is accepted, a credit inquiry is made. Applicants without credit history are not necessarily denied: however, without credit history, it is sometimes more difficult for applicants to demonstrate their ability to pay rent on time.

We carefully compare the information on the application to make sure that it matched the information on the Credit Report. If not, then why not? Credit Report selection criteria includes:

• References must show prompt payment
• Bankruptcy must be at least two (2) years prior, with newly established credit
• Lower ratings on school loans and medical references may be acceptable in certain situations with proper explanation
• Tenants with a history of unpaid judgments or liens are usually denied
• Applications with unexplained differences between the application and the Credit Report may be denied

• Income of all named tenants does not meet three (3) times the combined gross income
• Length and type of employment does not show stability
• No rental history
• No established credit history
• Unfavorable past performance in meeting financial obligations

A co-signer must be a United States citizen, must be employed a minimum of three (3) years on their current job and their gross income must equal at least five (5) times monthly rental amount and must comply with the same credit, rental and criminal history as the applicant to meet the lease obligations in the event of a default.

Criminal Reports:
An applicant will be denied if they have any of the following criminal related activity within the 10- year period prior to the applicant date:

• Any Felony conviction
• Any terrorism-related conviction
• Any drug-related conviction
• Any prostitution-related conviction
• Any sex-related conviction (NO TIME LIMIT)
• Any cruelty to animals-related conviction
• Any Misdemeanor conviction involving a crime against persons on property
• Any of the above related charges resulting in "Adjudication Withheld" and/or "Deferred Adjudication"
• Active status on probation or parole resulting from any of the above

Municipal Occupancy Codes:
All application is further subject to municipal occupancy restrictions. In other words, family size cannot exceed City or County occupancy maximums. The maximums number of occupants per apartment varies from municipality to municipality and depends on the square footage and number of bedrooms in the perspective unit.

If there are no published restrictions, occupancy is limited to one (1) person for studio or efficiency, two (2) persons for a one (1) bedroom, four (4) persons for a two (2) bedroom and five (5) persons for a three (3) bedroom unit.

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Revised 1/2008