Compliance Reminder: NYC Fair Chance Housing Act

The NYC Fair Chance for Housing Act (Local Law 24), in effect since January 1, 2025, imposes strict limits on when and how criminal history can factor into housing decisions. This law covers landlords, property managers, co-op and condo boards, brokers, agents, and others involved in selling, renting, or leasing housing accommodations.

Key Requirements:

  • No preconditional screening: A housing provider may not advertise exclusions for applicants with criminal histories, alter lease terms, or run background checks before issuing a conditional offer to rent or purchase housing.
  • Limited criminal history review: After a conditional offer is made to a housing applicant (for which a Fair Chance Housing Notice is required to be provided), only the following “reviewable criminal histories” may be considered:
    • Convictions requiring sex offender registry (regardless of date)
    • Misdemeanor convictions whose release or sentencing occurred within the last 3 years
    • Felony convictions whose release or sentencing occurred within the last 5 years
  • Mandatory process before denying a housing applicant: If a housing provider intends to revoke its offer based on an applicant’s criminal history, such housing provider must:
    1. Provide the applicant with all records reviewed (even those not relied upon);
    2. Allow 5 business days to dispute inaccuracies or submit mitigating information;
    3. Conduct an individualized assessment, considering all applicant-submitted information; and,
    4. Deliver a written explanation detailing why the criminal history relates to the housing provider’s legitimate business interest and how the applicant’s information was considered.
  • Liability concerns: If a housing provider receives an applicant’s criminal history beyond what’s allowed, there is a rebuttable presumption that it relied on such improper information. Furthermore, noncompliance by a housing provider can result in civil penalties, and violations by third-party screening vendors hired by the housing provider can be attributable to such housing provider in assessing such civil penalties, too.

Recommended Actions:

  • Review and update screening policies to reflect the conditional offer trigger and “reviewable” history limits.
  • Train staff, boards, and agents on these new requirements.
  • Ensure that third-party background check vendors only gather and provide permissible information.
  • Document every step of the process to support individualized.

Why This Matters

The law does not prohibit criminal background checks; it regulates how and when they may be used and the necessary procedural safeguards that must follow. That ensures fairness while striking a balance with legitimate safety concerns.

KMWB continues to assist landlords, property owners, and boards in navigating these requirements and reducing legal exposure. If your current screening policies have not been reviewed since the law took effect, now is the time. Contact our office to ensure your practices are compliant and your properties are protected.

Media Contacts:

Valerie Shutack
Kucker Marino Winiarsky & Bittens, LLP
(212) 869-5030
vshutack@kuckermarino.com