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.
