New York City Council Passes Act to Limit Use of Criminal Background Checks on Tenants
On December 20, 2023, the New York City Council passed legislation called “The Fair Chance for Housing Act” (Int. No. 632-A) which will prohibit housing discrimination on the basis of criminal history by limiting background checks of tenants by landlords, real estate brokers, and other entities. A summary of the Act on the New York City Council Legislative Research Center states:
This bill would prohibit housing discrimination on the basis of criminal history, with limited exceptions. Landlords, owners, brokers and other covered entities may not consider criminal record until after determining a housing applicant’s other qualifications. Covered entities may consider registered sex offenses as well as misdemeanors and felonies for 3 and 5 years, respectively, after completion of a prison sentence. If an applicant is rejected because of this reviewable criminal history, the entity must provide a written explanation for why the rejection was due to a legitimate business interest. This bill would not apply where federal, state or local laws, including laws protecting victims of domestic violence, sex offenses or stalking, require or permit exclusion based on criminal history. This bill does not apply to two-family owner-occupied housing or rooms in owner-occupied housing. Covered entities would not be liable under other laws for complying with this law.
“The Fair Chance for Housing Act” (Int. No. 632-A) was approved by the New York City Council by a vote of 38 to eight. The Act was then sent by the Council to the desk of New York City Mayor Eric Adams for his signature of approval. If approved, this local law to amend the administrative code of the city of New York will take effect on January 1, 2025.
ClearStar is a leading global Human Resources technology company that specializes in background checks, drug testing, and occupational health screening. ClearStar offers tenant background screening services that help landlords protect rental properties and comply with local laws. For more information about solutions from ClearStar, please contact us.
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