October 25, 2024
At the start of 2025, New York City landlords, real estate brokers, and more must adapt to new screening requirements for potential tenants. New York adopted these requirements in the city’s Fair Chance for Housing Act in 2023.
The Fair Chance for Housing Act, or Local Law 24, will take effect on January 1, 2025. Local Law 24 will introduce significant changes for criminal record screening of potential tenants. Housing providers can expect limited ability when considering criminal history for leasing or sales decisions under this law. According to Local Law 24, housing providers can opt out of running a background check, shielding them from liability.
Should a provider choose to run a check, they must first consider all relevant elements. For example, they should review tenant history, pets, and credit information before considering the applicant’s criminal history. This process is when the housing provider would pre-qualify the potential tenant or buyer. After reviewing this information, they may offer a lease or accept a sales offer and then perform the background check.
Local Law 24 imposes significant limitations on this background check. One notable limit is the look-back period that housing providers may consider. For felony convictions, this is a five-year look-back period; for misdemeanor convictions, this is only three. This period begins either from the date of release or if there is no incarceration from the date of sentencing.
Housing providers must provide a copy of any information or records they received as a result of the background check to the potential tenant or buyer. Following this step, the tenant will have five business days to respond with any corrections or additional information. The housing provider cannot revoke an offer during this period.
Housing providers should understand that this process does not prevent them from rejecting applicants based on criminal history. Such rejections require them to provide a written statement explaining their reason. For example, it should state the criminal history’s relevance to a legitimate business interest. This statement must also include how they considered any information the potential tenant or buyer provided.
Furthermore, Local Law 24 also includes exemptions to its limitations. One example describes leasing a room in the same housing accommodations the housing provider or family member of the provider lives in. Similar exemptions concern apartments in buildings for two or smaller families where the owner or owner’s family also resides. Finally, any entity required to perform background checks or reject individuals based on specific criminal history may do so as long as they cite the appropriate law.
Disclaimer:
Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.