NYC FAIR CHANCE FOR HOUSING ACT

From an email from the firm of Schwartz Sladkus Reich Greenberg Atlas LLP:

"The New York City Council recently enacted Local Law 24 of 2024 – The Fair Chance for Housing Act (the “Act”) - which makes it unlawful for an owner of real estate in New York City to refuse to rent, lease, to withhold approval for a sale or lease or otherwise to deny or withhold a housing accommodation to an individual based upon such individual’s criminal history other than in limited instances described in the Act. The purpose of the Act is to prevent housing discrimination against individuals who were previously convicted of a crime and the individuals who choose to live with them. The Act limits when a property owner may obtain a criminal background search on a prospective purchaser or tenant and what the search may be used for. The Act affects decisions made by cooperative and condominium boards (each of which are considered to be housing providers) and it goes into effect on January 1, 2025.

The Act prohibits a housing provider from conducting a criminal background search (or question an applicant about his or her criminal background) during the initial sale or leasing application process. It is only after the housing provider has completed its application review and made a preliminary decision on the application that the housing provider may conduct a limited scope criminal background search. We suggest that our clients memorialize, in writing, each step of the application review process and that they maintain these written records.

The scope of the permissible background search includes the following (which the Act refers to as “reviewable criminal history”):

• Convictions requiring registration with a sex offense registry

• Felony convictions that are no more than 5 years from the date of the individual’s release from incarceration or sentencing (if there was no incarceration)

• Misdemeanor convictions that are no more than 3 years from the date of the individual’s release from incarceration or sentencing (if there was no incarceration)

In making their decisions regarding housing applications, housing providers may not consider:

• Convictions that have been sealed, expunged or pardoned

• Pending cases

• Matters that have been dismissed

• Felony convictions that are more than 5 years from the date of the individual’s release from incarceration or sentencing (if there was no incarceration)

• Misdemeanor convictions that are more than 3 years from the date of the individual’s release from incarceration or sentencing (if there was no incarceration)

When ordering a criminal background search, in connection with an application for housing, the housing provider must take reasonable measures to ensure that the search is conducted in a manner consistent with the requirements of the Act. Any such order should be made in writing and direct that the search be performed in accordance with the Act.

A housing provider must provide the applicant with a copy of any criminal background search that it has relied upon for making an adverse decision on an application, and must allow the applicant at least five (5) days to review the search, identify any errors in it, or provide mitigating information.

If after providing the applicant with the information required by the Act and reviewing any related information provided by the applicant, the housing provider still wishes to deny the application, the housing provider must provide the applicant with a written statement specifying the documents that the housing provider relied upon in order to make its decision and an explanation as to how the decision advances a “legitimate business interest” of the housing provider.

It is important to note that the Act does not prohibit a housing provider from searching (or having searched) any sexual offense registry or considering convictions, of any vintage, for crimes against persons or property on the premises of the housing accommodation or acts that would adversely affect the health, safety of residents of the property."