Over 750,000 people in the New York metropolitan area have a criminal record. That massive population means that the city is among the leaders in the United States for Fair Chance legislation. Advocates often point out that records create severe barriers to jobs and housing. A landlord using a tenant background check might deny many rehabilitated applicants with a criminal record.
For several years, New York City Councilors have looked for ways to expand access to housing in the city. These efforts aim to combat homelessness and recidivism. In 2022, the Council tried but failed to pass a new law creating a Fair Chance for NYC tenants. The law would restrict using a background check for real estate purposes. However, in 2023, the effort was revived—and ultimately passed.
In the original version of the law discussed by the Council, landlords would lose permission to use most criminal background checks. A sex offender registry check would be the primary tool available. Further vetting could only occur in multi-family homes or where federal law applied. The proposed changes brought out landlords, real estate brokers, and others in large groups. Protests occurred on the City Council’s steps as landlords demanded they retain the right to foster safe housing for all tenants.
From the pro-Fair Chance side of the argument, background checks unfairly restrict access to shelter—a fundamental human right. They maintain that the punitive effects of criminal records far outweigh the punishment handed down by the justice system. Such effects restrict access to housing and may drive individuals back to crime.
From a landlord’s perspective, restricting background checks limits their ability to choose tenants. They believe it creates an unsafe environment for other families. Landlords insist that they must be able to consider a subject’s history in-depth to make rental decisions.
Despite all the protests from both sides, the City Council ultimately amended the law and passed it late in December 2023.
As passed, the Fair Chance for Housing Act limits what a landlord may consider. Sex offender registry checks remain permissible, and federal law or state requirements for vetting still surpass this law. However, landlords must abide by a lookback period. They may only consider misdemeanors that are a maximum of three years old but cannot take into account any felony convictions older than five years.
If you deny someone housing based on their report, you must issue a written statement explaining why you made the decision. You must have a legitimate business reason to deny someone based on their criminal record. Owner-occupied properties housing two or more families remain exempt from these requirements. The law goes into effect January 1, 2025.
How this will affect landlords remains to be seen. The lookback periods may provide ample opportunity to evaluate the most pressing threats or high-risk individuals. As passed, the bill represents a roughly equal compromise between the two sides.
New York landlords will not have to abandon the tenant background check. Strong advocacy for those supplying housing helped spur the changes. However, if you rent properties in NYC, you should be ready to comply with the law by 2025. Lookback periods mean you can still exercise discretion and create a safe community. However, some councilors remain dedicated to eliminating those lookbacks. More changes could come before the law goes into effect, so stay aware.
It’s important to know that, effective September 2024, backgroundchecks.com cannot provide tenant screening services or credit report access for that purpose. Because this is not a core market for us, we cannot support its rapidly growing regulatory burdens.