As of v968, we are going to be allowing players to create regular goblin and kobold characters without submitting an application.
To do this, create a character using the halfling base race, and put "Goblin" or "Kobold" in the subrace field.
To maintain setting consistency, only evil-aligned goblins and kobolds can be created in this fashion. Non-evil goblins and kobolds will still require applications.
Remember that membership in an established group (such as Shadow Tribe) still requires an application.
This is an experiment! If everything goes well, we will adopt this no-app policy toward goblins and kobolds permanently.
NOTE: Playing a monstrous character like a goblin or a kobold is a survival challenge! Other characters may definitely legitimately kill your character just for being a monster. Goblins and kobolds won't be afforded the protection of the city's laws. They will be looked upon with contempt and disgust by commoners and adventurers alike. In certain areas of the city, they may be killed on sight. None of this is new, but it's important to remember that by choosing to play a goblin or a kobold, you accept everything above. No complaints if you get squashed by a kobold-hating gnome!
On a related note, if you are going to be sneaking around Upper Sanctuary as a regular goblin or kobold, you must let a DM know so that the Watch patrols can properly react to your presence. The Watch NPCs in Upper/In Between will pretty much react to any goblin by attacking, so you should have DM confirmation if you intend on taking a character up there.