Revived Bill to Ban Tenant Background Checks in New York City Passes

Having a criminal record is often a significant barrier in life. For those trying to re-enter society, a record can close many doors. Even seemingly minor convictions can give pause to employers, landlords, and others. Though many think of how convictions create barriers to employment, they affect more than that. Housing opportunities can face a significant impact. For years, those impacts have been why the City Council has tried to ban tenant background checks in New York City.

Similar fair chance efforts have found success in the employment arena. For example, laws that ban the box keep criminal history questions off applications so employers can learn more about applicants before seeing their conviction history. Advocates say that such efforts create more fair opportunities. In some places, similar rules have been implemented for rental applications.

In 2021, New York City tried to end the practice altogether—but that bill failed. In 2023, further efforts finally found some success after a series of setbacks. Here’s what to know.

2021 Proposal Faced Strong Opposition from Landlords

Faced with a growing housing crisis within NYC, the City County proposed a draft bill in August 2020. This proposal would have ended tenant background checks for an expansive group of property managers. The affected individuals would include the owners and landlords of:

• Condominiums
• Apartment buildings
• Co-op structures
• Single or two-family homes

The bill would’ve effectively ended the long-standing practices around using background checks on rental applicants. At the time, the Mayor of New York, Bill de Blasio, even signaled his support for the bill. However, fierce opposition from landlords quickly turned into a firestorm of debate, and they made a strong showing at council meetings. Criticism from the Rent Stabilization Association also swayed opinions. Ultimately, the council tabled the measure without a final vote.

Back to the Drawing Board: A New Council, a New Bill

Despite the bill’s failure, a new City Council entered office in 2022 following elections. This group of councilors remained committed to reviving the bill. By August 2022, it was back on the table in its original form. Landlords and their advocates warned that lawmakers would need more flexibility this time. After months of debate, the new mayor, Eric Adams, said the bill should undergo adjustments. Except for some owner-occupied properties, the bill would still lead to a near-total ban on criminal history inquiries.

Debate proceeded amidst other business for over a year after the bill’s reintroduction. By December 2023, councilors had agreed to carve out additional exceptions. The new law would no longer be a widespread ban on using rental background checks. After some final debate and adjustment, the bill passed before the end of the year. It will begin in 2025, giving landlords time to adjust their procedures.

What the Law Says Now

Rather than being a widespread ban, the law now more closely aligns with some elements of the state’s fair chance laws. New York allows individuals to request the sealing or expungement of misdemeanor and some felony records after some time. The rental background check law aims to create a similar, small window for examining criminal records. Under the regulations, landlords could consider the following information:

• Misdemeanor records not older than three years. The timing begins upon the subject’s release from prison. If no jail term was served, the sentencing date counts as the beginning of the three years.
• Felony records not older than five years.
• Sex offender registry data and sex offense convictions without any time limit.

Owner-occupied one-family and two-family homes are also exempt from the law. Those landlords may continue to screen applicants as they always have.

Tenant Screening Regulations Continue to Expand

New York City is not alone in its effort to restrict and regulate tenant screening. Though the Council ultimately did not entirely ban tenant background checks in New York City, significant new restrictions will change the landscape further. Similar changes create complex regulatory environments nationwide.

For these reasons, backgroundchecks.com ended access to our services for tenant screening and related credit check purposes effective September 2024. Due to the rapidly expanding regulatory burden, we can no longer support a non-core market.