NYC has clarified that it is illegal to discriminate in housing against applicants / occupants with criminal histories by way of Local Law 24, also known as the Fair Chance in Housing Act 2025, effective January 1, 2025. 

That said, it was already impliedly the law everywhere throughout the US as we previously explained here. 

Regardless, the new NYC law explicitly prohibits property owners, managers, & brokers from:

• Refusing to rent, sell, and/or lease housing accommodations based solely on criminal history, except under specific circumstances outlined in the law.
• Performing criminal background checks outside the law's defined parameters, including searching records and/or asking applicants about their criminal history without proper notice & justification.
• Using criminal history to set terms or conditions that disadvantage individuals with such backgrounds.

Into the weeds, there is nuance in the NYC Local Law because it differentiates between “reviewable” and “non-reviewable” criminal history where sealed convictions, youthful offender adjudications, and certain federal or out-of-state offenses cannot be used to deny housing, but convictions for serious offenses (e.g., recent felony convictions) may be reviewed through a detailed and exposure riddled process, including providing notice and conducting an individualized assessment. The process requires: 

• Making a conditional offer to the applicant.
• Notifying the applicant in writing of any intended criminal background check.
• Allowing the applicant to provide mitigating information if adverse action is contemplated.

Plus, a landlord must demonstrate a legitimate business interest tied to the decision if they'd like to deny on criminal history. 

That all said, the main takeaway is that housing applicants / occupants with criminal histories are going to be filing housing discrimination complaints starting in 2025. If you are a property owner, manager, or real estate broker, expect to get served by the NYC Commission on Human Rights if you plan to make any housing decisions based on an applicant's / occupant's criminal history. Plus, there are big numbers that you can lose including the "victim's" attorneys' fees if they sue you with a private attorney. Take this very seriously & immediately stop screening based on criminal history today. 

On November 20, 2024, the Honorable Angel Kelley of the United States District Court of Massachusetts issued a Final Approval Order for a $2.275 million settlement involving SafeRent Solutions, LLC ("SafeRent"). In the lawsuit, it was alleged that SafeRent's tenant-screening algorithm was used to evaluate rental applicants where it disproportionately disadvantaged housing voucher recipients, particularly Black and Hispanic applicants. 

Under the settlement, SafeRent committed to:

• No longer use unvalidated scoring models for applicants with housing vouchers unless validated by organizations like the National Fair Housing Alliance.
• Educate landlords on the differences between its scoring models and the implications for housing voucher applicants.

In addition, SafeRent will pay $1.175 million into a settlement fund for affected applicants and $1.1 million for attorneys’ fees. Moreover, landlords using SafeRent’s screening products must certify whether applicants are housing voucher recipients. If certification isn’t provided, tenant-screening scores will be excluded.

For those using tenant-screening services, this case highlights the risks of relying on AI-driven tools without thoroughly understanding or auditing the impact of these tools. Algorithms that inadvertently reinforce biases, whether based on income, race, or other protected characteristics, could lead to significant legal and financial liabilities under the Fair Housing Act and state and local anti-discrimination laws.

Landlords and PropTech should conduct regular audits by trusted third-party validators to avoid discrimination as technology rapidly emerges in this field.

Landlords and PropTech should take this case as motivation to review your screening process, including:

• Do your tools account for biases in their data or design?
• Are they validated for compliance with anti-discrimination laws?
• Are you confident they don’t inadvertently exclude protected groups?

As SafeRent’s case demonstrates, the stakes are high. It’s not just about avoiding lawsuits, it’s about ensuring equitable access to housing and fostering trust in the rental process. Invest in a third-party audit of the AI tools you use, update your policies, and ensure your practices align with Federal, State, and Local fair housing laws. 

Real estate discrimination must be fought any time you’re buying, selling, or renting any type of housing or commercial property. Real estate discrimination involves unfair treatment because of your source of income, disability, race, religion, sex, gender, and many other protected classes. Because discrimination in the housing market can be attributed to so many factors, it’s crucial for buyers, sellers, and renters to be familiar with their rights. Learn more about real estate discrimination through our answers to your most frequently asked questions below.

If you are a real estate broker or salesperson charged with discrimination, contact Lieb at Law to learn how we can defend you with our team of real estate discrimination lawyers.

Is real estate discrimination illegal?

Yes. Discrimination in real estate is illegal throughout the United States. In some states, like New York, there are even greater protections, rights, and damages available to victims of housing discrimination. You are entitled to compensation whether you were discriminated against by a seller, landlord, tenant co-op, condo, HOA, lender, real estate broker, salesperson, or property manager.

Does real estate discrimination only apply to housing?

No. Real estate discrimination laws apply to both housing and places of public accommodation. Examples include shopping centers, professional offices, retail stores, recreational facilities, service centers, and educational institutions.

Can I sue for housing discrimination?

Yes. Not only is it possible to sue for real estate discrimination, but Lieb at Law, P.C. has helped countless individuals recover compensatory damages and punitive damages for the emotional distress inflicted by this unlawful act. If you or a loved one were discriminated against because of your protected status or class, it is critical to work with an experienced attorney who will fight to ensure that you receive the compensation you deserve.

What qualifies as discrimination?

Discrimination is classified as unfair treatment to an individual because of their protected status or class. These statuses/classes vary throughout the United States, but may include race, ethnic background, visible traits (hair texture, hairstyle, donning of religious garments or items), color, national origin, citizenship status, alienage status, immigration status, lawful source of income (subsidy recipient status), occupation, religion, creed, marital status, partnership status, sex, gender, sexual orientation, gender identity or expression (transgender status), domestic violence victim status, stalking victim status, sex offense victim status, familial status, pregnancy, presence of children, handicap (disability), age, military status, uniformed service, veteran status, first responder status, arrest record, and sealed conviction record.

Can a real estate / housing provider change the terms of a lease or contract based on my protected class?

No. The law prevents real estate / housing providers from changing the terms, conditions, privileges, and/or availability of property based on your protected class status. It requires real estate brokers / salespersons to give you written disclosures that advise you of your rights. It prevents you from being treated differently from others where only the terms of your offer matter, not who you are.

Are handicapped individuals entitled to housing accommodations?

Yes. If you are handicapped or disabled, you are entitled to receive reasonable accommodations and reasonable modifications to allow you to equally use and enjoy the property. Your actual diagnosis does not need to be revealed and can remain confidential if you seek an accommodation or modification. In addition, the cost of the accommodation cannot be charged to you. In places like New York City, the cost of modifications cannot be charged to you either.

What are common examples of disability cases concerning housing discrimination?

The most common handicap and disability cases that we see involve service animals or emotional support animals in no pet properties. Other types of cases include parking issues, egress ramps for mobility impairments, and additional failure-to-accommodate cases. When it comes to accommodating the rights of handicapped and disabled individuals, providing access is essential.

Can I be discriminated against based on my source of income?

Whether you receive subsidies, like Section 8 (Housing Choice Vouchers), or are unemployed and receive child support, disability, spousal support, or have a trust fund, your source of income cannot impact your housing choices. The law protects you from offensive signage, improper applications, and/or wrongful questionnaires if they inquire about your employment status, request your W-2, or solicit a letter of employment. Where you get your rent money is your business and yours alone.

Can I be retaliated against if I proceed with a discrimination lawsuit?

Don't be afraid to speak-up. If you are advancing a fair housing and/or anti-discrimination right, you are protected from retaliation. Even if it is ultimately found that you were not discriminated against, you can be compensated for facing unlawful coercion, intimidation, threats, or other types of interference with your anti-discrimination rights. It also applies if you are an ally who is aiding and/or encouraging someone else to exercise their rights to be free from discrimination.

What happens if I win my housing discrimination case?

As the victim, you can recover compensatory damages, punitive damages, and your attorneys’ fees. The perpetrator can lose their license (if applicable), be required to take trainings, be made to pay fines, and be ordered to stop their offensive behavior. Working with a top discrimination attorney affords you the best possible chance at a successful outcome to your case. If you or a loved one has been treated unfairly and is in need of legal assistance, contact Lieb at Law today.

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HUD announced new proposed fair housing rules on February 9, 2023 in the federal register. 

To remind you, fair housing rules are anti-discrimination laws for our nation's housing renters, purchers, and occupants. 

This rule is about Affirmatively Furthering Fair Housing, which requires fair housing analysis for local communities, states, and public housing agencies and requires them to set ambitious goals to address fair housing issues in their communities.

In summary, the proposed rule creates new levels of accountability and scrutiny on local communities and housing agencies. However, the big issue is that the rule requires program participants to set fair housing goals, but it fails to advise what that means and we are sure, in today's society, it means diametrically opposed concepts to different groups.

The comment period is open until April 10, 2023 - you can comment at the Federal eRulemaking Portal at www.regulations.gov.