N.Y. Comp. Codes R. & Regs. tit. 9, § 1727-1.3 – Processing of applications.

(a) Intra-project transfers shall be given priority for available apartments over other waiting list applicants. Notwithstanding the foregoing, one of every four available apartments shall be set aside and offered to an applicant on the outside waiting list.
(b) Housing companies must establish a written transfer policy. This policy should state whether or not lateral transfers, i.e., intra-project transfers between apartments with the same bedroom size, are permitted, and, if so, under what circumstances, and should state that the following criteria must be met for all transfers:
1. (1) tenant must be occupying current apartment in accordance with requirements of this Chapter;
2. (2) tenant must meet the occupancy standards for the apartment size requested at the time of application and of apartment availability, or the transfer must improve a condition of overcrowding or underutilization;
3. (3) all costs related to the transfer, including but not limited to any rent loss, must be borne by the tenant;
4. (4) all transfers are subject to division prior approval; and
5. (5) the resultant residual apartment may be offered to any applicant in accordance with established procedures.
(c) Applications, on a form approved by the division, shall be available in the housing development's rental or management office.
1. (1) Applicants shall return the completed application, together with a nonrefundable processing fee, payable to the housing company, in an amount not to exceed $75.
2. (2) At the time of application, the housing company shall advise the applicant of eligibility criteria for occupancy and of the procedure followed in processing applications, and shall furnish as a minimum the following:
  1. (i) print-out of the AWL application summary screen showing pertinent application information and the number assigned or a copy of the application time, date-stamped, and numbered;
  2. (ii) statement that applicant is obligated and responsible to advise the housing company in writing of any change of address or family composition within 30 days of such occurrence, and the housing company is obligated to correct its records to reflect such change; and
  3. (iii) for housing developments which contain apartments specifically designed for the mobility-impaired, a request for any information concerning a mobility-impairment of applicant or member of applicant's family which would allow for a priority hereunder.
3. (3) Upon receipt, information on each admission and transfer application is to be time and date-stamped consecutively and recorded in order of receipt in the AWL or issued an application number and entered in a permanently bound book, in which will be recorded in separate columns, in ink, the application number, date received, the applicant's name and address, family composition, family income, apartment size and priority. The housing company shall annotate the application information to reflect the: credit check status, eligibility, address updates, apartment offerings, refusals, acceptance, basis for inadmission, if any, and cancellation. Upon request of the division, the housing company shall furnish to the division a copy of this book or any portion thereof.
(d) Upon the availability of an apartment, prospective applicants in numbers sufficient to fill the expected vacancy shall be notified of such availability in the order of their applications. Such notification may be by telephone but must be confirmed by mail. A copy of all notification letters shall be retained by the housing company. This letter shall include:
1. (1) the current numerical position of applicant for the size of apartment being offered;
2. (2) the date of anticipated availability;
3. (3) the family composition and income limitations applicable to the listed apartments; and
4. (4) a request for submission of proof of income and credit check fee.
(e) Applicants shall be advised that failure to respond within 10 business days from the date of the notification letter will result in the presumption that they are no longer interested in the apartment and that they will be removed from the list. The notice shall also state that acceptance of the application by the housing company is contingent upon approval by the division.
(f) Eligible applicants shall be given one right of refusal of an apartment without prejudice to their standing on the waiting list. Eligible applicants shall promptly communicate in writing the nature of any circumstance special and unique that would cause undue hardship to an otherwise eligible applicant by accepting a particular apartment. The concurrence or approval of the commissioner upon a finding of a special and unique circumstance shall have the effect of preserving the applicant's first right of refusal. A second refusal shall result in their removal from the waiting list.
(g) Upon receipt of the credit check fee the housing company will obtain a credit report from a recognized agency for each applicant determined as being eligible.
(h) Housing companies shall establish separate written criteria, policies and procedures for screening applicants for both admission and transfer. Such criteria, policies and procedures shall be made available for review to all applicants for apartments and to the division upon request.
(i) A housing company may establish a minimum rent-to-income ratio as part of its credit worthiness criteria. Such criteria shall not be less than 30 percent of gross income for rent for families or less than 33 ⅓ percent of gross income for rent for senior citizens. Applicants for whom the projected rent would exceed any such rent-to-income ratio shall nonetheless be given the opportunity to demonstrate their ability to pay the rent or carrying charge. Acceptable evidence of their ability to pay shall include, but not be limited to, a history of paying an equivalent rent in a timely manner.
(j) Applicants whose eligibility has been confirmed after review will be called in for the apartment in the order as herein established and within the categories set forth in this Subpart.
(k) Applicants found ineligible after review shall be so notified by mail and given the basis for the determination of ineligibility. Such applicant shall be removed from the waiting list. Any such applicant shall be advised that he or she may challenge the determination of ineligibility by contacting the division within 14 days of receipt of this notification. A copy of this notice and the application will be filed alphabetically by surname in the ineligible file and retained by the housing company for a period of five years. However, nothing contained herein shall apply to applicants who are ineligible because of excess income for the apartment offered but who would be eligible for an apartment of the same bedroom size having higher income limits.
(l) Upon the acceptance of an apartment and prior to occupancy, the housing company shall submit the eligible application with the prescribed form to the division for approval, noting the application number and any priority, together with income verification, credit reports, copies of the notification of availability and the response thereto, and any other supporting documentation necessary to establish eligibility. Possession of the apartment may not be given prior to division approval.
(m) Where the waiting list for apartments has routinely been of a 12-month or shorter duration, a housing company may apply to the division for exemption from prior approval of each admission, transfer, and succession applications prior to possession of the apartment. The housing company must otherwise:
1. (1) continue to follow all other provisions of this Subpart including, but not limited to, the other provisions of this section on processing of applications; and
2. (2) submit a quarterly tenant selection activity report to the division, on such form as the division may require, within 30 days of the end of each quarter, providing information on all admission, transfer, and succession applications processed during that quarter along with a current copy of this transfer and admission waiting lists for all apartment sizes.
(n) Applications disapproved by the division will be returned to the housing company, which will notify the applicant by mail that applicant does not meet eligibility requirements, the specific reason for such determination, and the right of appeal as provided in subdivision (k) of this section. A copy of the notice and the application will be filed alphabetically by surname in the ineligible file and retained by the housing company for five years.
(o) Approved applicants will be called in for the signing of necessary documents and paying of down payment or security deposit.
(p) Ineligible files will be maintained so as to be readily available for review by division representatives.