Frequently Asked Questions

• Can I get an rental application online?

  Yes. Please call or email the manager at the property you are interested in and they can either email you a copy or fax you a copy. 

• What is the rental application process?

  Once an application is received, the Manager requests the Credit and Criminal Reports from Resident Data and also calls for Landlord references.  After these reports are received and approved, the Manager verifies all Incomes and Assets (and Expenses at HUD and Rural Development properties) and confirms that the household qualifies under the income limits and other standards required for that specific location.  The applicants are contacted and a meeting is scheduled to complete the leasing paperwork and provide the keys.

• Is your application good for all your properties?

  Yes. The application needs to be returned to the property in which you are interested in.

• Where can I get an application for rental assistance at your HUD communities in Sioux Falls?

  You have a couple of options.  We have applications that anyone can pick up during normal business hours.  Applications can be picked up at 1818 East 3rd Street, which is our Heritage Apartments.  The applications are located near the offices on the 1st floor – lower level. You will find them down that hallway filed in a bin.   Or you can call 334-1605 to have an application mailed to you.

• Do you run background checks on everyone that wants to live at a Costello property?

  Yes, we run credit and criminal reports on all prospective residents, age 18 and over. We also request landlord references and/or personal references. 

• What if I haven’t rented anywhere and don’t have a landlord reference?

  An applicant is not denied because there are no landlord references. 

• What affordable housing programs do you work with?

  All of our properties are subsidized by one of four programs and possibly a combination of these programs. Under all four programs, your income must be under 80% of the medium income for the area, and it can go as low as requiring your income be under 40% of the median income, to be eligible to live in some units. HUD Section 8 and Rural Development are similar programs where the resident pays rent of 30% of their adjusted income. The Tax Credit and HOME programs do not use a rent assistance subsidy, so the rent for a unit is whatever has been approved by the appropriate monitoring agency. These rents are lower than the conventional market because of tax credit incentives or reduced interest rate loans the property has received.

• How is my rent calculated at a property that has rental assistance?

  Your rent at both Section 8 properties and Rural Development properties with rental assistance is figured the same. Your annual gross income and any income from assets is added together. If you qualify for any medical (over 3% of gross income) or child care deductions, those are subtracted from your gross income to get adjusted gross income. Adjusted gross income is divided by 12 months and multiplied by 30% to get the tenant share of rent.
  

• Are pets allowed?

  By law, pets are allowed at all properties that are designated as elderly. Some of our other properties also allow pets, usually with some restrictions as to type and size. Each property on our website will state whether pets are allowed or not. Service animals are allowed with proper verification from your medical provider.

• What is the difference between a pet and an assistance animal?

  A “pet” is an animal that the individual or family chooses to have live with them.  An “assistance animal” is an animal that lives with an individual or family and provides a service for a person with disabilities so that all may fully enjoy the living space.
  We cannot collect a deposit for an assistance animal and we must allow an accommodation for an assistance animal if properly requested and verified with your medical provider. Whether the animal is a pet or an assistance animal you must make sure the rules and regulations for the property are followed. This includes, but is not limited to, having to pay for damages caused by the animal, picking up your animal’s waste and respecting the quiet enjoyment right of the other residents.

• What schools are nearby?

  Please refer to the fact page for each property to see what school district services each location.
  

• What is the difference between a Section 8 voucher and Section 8 rental assistance at your properties?

  A Section 8 voucher stays with a person when they move from property to property. Our project-based subsidy stays with the property when the person moves and is then available for the next person who moves into the property.

• What is the difference between “Income-Based” and “Income Guide-lined”?

  “Income-Based” describes rent that is a percentage of your income. For example, if you earn $100 per month your rent would be approximately $30 per month and we’d request the rest of the rent from the government.  “Income Guidelines” are maximum income limits to qualify to rent an apartment. The income maximum often referred to as the “income limit,” can be different for each property and is updated annually by the federal government.

• Why don’t full-time students qualify for Tax Credit?

  Full-time students are considered transient by the federal government and housing is established, or built, for non-transient individuals and families.  However, there are some types of full-time students that do qualify at Tax Credit properties including having minors in the household, married students filing joint income tax returns, students receiving TANF, students that are part of a federal or state job training program, and students who used to be part of a foster care program.
  

• Do I have to shovel snow or cut grass?

  Snow removal and lawn care is provided by the property. However, to keep costs down, we may request each resident to remove snow from their own sidewalk leading to the properties main sidewalk.

• What is a Utility Allowance?

  At some properties, the resident is required to have a utility, like electricity, in their own name and pay for the service in addition to rent.  In these cases, we estimate what the average monthly cost is for that utility and keep it in mind when determining the total cost for renting one of our apartments or townhomes.  This allowance is used to ensure that the rent plus utilities do not exceed the maximum limit set by the federal government.

• What do you look for on my Credit Report?

  The “Resident Selection Criteria” is available to print and includes all items we look for in the “Applicant Screening Criteria” section starting at the bottom of page 4.  Basically we are looking for consistent payments on credit accounts including property rentals, utility accounts, child support, etc.

• What do you look for on my Criminal Report?

  The “Resident Selection Criteria” is available to print and includes all items we look for in the “Applicant Screening Criteria” section starting at the bottom of page 4.  Basically we look for a lack of criminal activity especially pertaining to drugs, violence and other behaviors that might disrupt the quiet enjoyment of the neighborhood.

• Why are the rents different for the same unit type?

  Before some properties were built, the developers agreed to offer housing to a range of income levels.  In order to accomplish this they selected several units within the property to have lower income limits and, in turn, lower rents.  These units are provided with all the same amenities and quality craftsmanship as the other units and are not distinguishable from their neighbors in any way.

• What is Tax Credit?

  Tax Credit is a governmental program established and maintained by the U.S. Internal Revenue Service to provide a funding source for developers building lower income rental communities.  The rents are established and monitored so they don’t exceed federal rental limits.
  

• What is Rural Development?

  Rural Development is a governmental program established and maintained by the US Dept of Agriculture to provide housing in non-metropolitan areas at rents affordable by the persons living in those areas.  Many Rural Development properties also provide rental assistance, called “subsidy”, to those living at that particular location so the rent is calculated as a percentage of the household’s monthly combined income.

• How long does it take to get subsidy if no subsidy is available and I need subsidy?

  The state Rural Development offices coordinate the assignment of unused subsidy. It can take anywhere from 1 month to 6 months to get subsidy allocated to a property and applicant that need it.