On April 10, 2024, the U.S. Department of Housing and Urban Development (HUD) issued a notice of a proposed rule in the Federal Register called “Reducing Barriers to HUD-Assisted Housing” to change how criminal records may be considered in deciding to prohibit individuals from residing in HUD-assisted housing. Comments are due no later than June 10, 2024.
This proposed rule would “revise existing regulations that govern admission for applicants with criminal records or a history of involvement with the criminal justice system and eviction or termination of assistance of persons on the basis of illegal drug use, drug-related criminal activity, or other criminal activity,” according to a summary of the rule.
“The proposed revisions would require that prior to any discretionary denial or termination for criminal activity, PHAs [Public Housing Agencies] and assisted housing owners take into consideration multiple sources of information, including but not limited to the recency and relevance of prior criminal activity,” the summary of the rule continued.
“They are intended to minimize unnecessary exclusions from these programs while allowing providers to maintain the health, safety, and peaceful enjoyment of their residents, their staffs, and their communities. The proposed rule is intended to both clarify existing PHA and owner obligations and reduce the risk of violation of nondiscrimination laws.”
In March 2024, HUD – along with the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and the Department of Justice (DOJ) – issued new joint guidance titled “Tenant Background Checks and Your Rights” to help renters navigate the tenant screening process, according to a Consumer Alert from the FTC.
“Are you looking for a new place to live or about to renew your lease? If so, you may want to know that a landlord, property manager, or other housing provider may ask a tenant background check company — also called a tenant screening company — to put together a report about you and other members of your household,” the guidance explained.
“The new publication tells you how tenant background checks work, what kinds of background information a landlord might receive about you, how to respond if you think that information is wrong, and your rights under federal laws — including laws related to tenant background checks and those that outlaw discrimination,” the FTC Consumer Alert stated.
“Tenant background checks are usually compiled by tenant background check companies that put together a report on you and the people you live with. The tenant background check report — sometimes called a resident or tenant screening report — may have information about whether you pay your bills, if you’ve been evicted or have a criminal record, and more.”
ClearStar is a global Human Resources technology company that specializes in background checks, drug testing, and occupational health screening. ClearStar also offers a variety of tenant screening services that help protect rental properties and comply with applicable laws and guidance. For more information about ClearStar, please contact us.
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Thomas Ahearn - Digital Content Editor
Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources technology company specializing in background checks, drug testing, and occupational health screening. He writes about a variety of topics in the background screening industry including Artificial Intelligence (AI), "Ban the Box," class action lawsuits, credit reports, criminal records, drug testing, Equal Employment Opportunity Commission (EEOC), Fair Credit Reporting Act (FCRA), identity theft, privacy, social media screening, and workplace violence.
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