Is it Really Fair?- Local Law 632-A “The Fair Chance for Housing Act”
In our August 2022 blog post, we wrote about a proposed bill that was before the New York City Council which would prohibit real estate managers and managing agents from obtaining or requesting criminal history records from a prospective tenant. In the days leading up to the pandemic, passage of the bill waned with no decision by the council. Fast forward to December 20, 2023, with the New York City real estate market once again thriving, the city council passed the bill into law. The legislation called “Fair Chance for Housing Act” Law 632-A prohibits housing discrimination based on criminal history, with limited exceptions. There was no historical precedent set by this bill which seems to emulate pieces of legislation passed in cities, such as Detroit, Michigan, and Oakland California. The proposed bill would provide New York City residents with past criminal convictions access to housing with the hope of alleviating some of the current homeless issues facing New York City. The purpose of this blog is exploring the exceptions to this local law and look at what screening options remain available to property owners and managers seeking to protect their investments and residential community at large.
Utilizing the services of experienced private investigators like Integrated Security Services keeps you within lawful reach of these important changes in the law.
The Exceptions
Prior to the passage of the bill, landlords were able to deny housing to someone with a past criminal record, making it harder for some people to successfully rebuild their lives and stay out of homeless shelters and possibly jail. The passage of Law 632-A would make it illegal for landlords, property managers and covered entities to use a criminal record as the sole reason for denying housing which establishes the first exception to Law 632-A. Under the new law housing denial can only be applied to a person convicted of a crime not simply arrested, charged, or indicted. Additionally, the law does not apply to privately held two-family residential properties, or housing managed by the NYC Housing Authority.
As typical with any new bill, there are many gray areas and interpretations that will have to be ironed out and, in some cases, litigated by the city council. However, as of now, landlords, brokers and other “covered” entities may not consider a criminal record until determining an applicant’s other qualifications, such as credit history, references, and income.
Other Facts
As of now Law 632-A pays close attention to those NYS repeat offenders, specifically those convicted of sex offenses and crimes associated with domestic violence. Covered entities may also consider out-of state registered sex offenders and certain sex crimes, as well as certain felonies and misdemeanors within 3 and 5 years after completion of a prison sentence.
It is clear that by passing this law, the city council was seeking a reasonable accommodation for residents and covered entities to feel protected against serial offenders. A perfect example of how this law could protect apartment dwellers and landlords was the arrest of Steven Hutcherson, aka Steven Esono on December 27, 2023 for the stabbing of two tourists in NY Grand Central Terminal. Prior to committing that crime, Mr. Hutcherson had been terrorizing his neighbors at a Bronx apartment building for years. Now 36 years old, Hutcherson’s criminal record dates back to his first arrest for robbery when he was 17. He has been arrested multiple times since then, for violent crimes, however without an in depth criminal records search it is unknown if Mr. Hutcherson was ever convicted of those crimes and/or served prison time which would allow a landlord to legally deny him housing.
While the law could have an impact on the current housing crisis, it also protects many marginalized individuals from fairly accessing affordable housing. Most property managers are experienced in assessing potential candidates for apartments and this law is just another risk management tool that when applied correctly should prevent discrimination and keep those assessments compliant with the law.
The investigative staff at Integrated Security Services are seasoned professionals who have conducted and reviewed countless risk assessment background checks. Over the past 25-years we have assisted clients, not limited to real estate and property management on how to interpret a database profile and patterns of behavior that are “red flag’ signals associated with the character and past performance of an individual. We have proprietary access to the New York State Office of the Court Administration, the official repository of all NYS criminal records, as well as nationwide access to criminal records.
As multi-state licensed private investigators, our proprietary databases are inclusive of detailed profile data that include, lien, bankruptcy and judgment history. We also recognize that with more transient individuals, it may also warrant access to resources outside the New York metropolitan area. Our wide area network of investigative resources stretches nationwide, and as needed across international territories.
Conclusion
As with all new laws, interpretation and compliance can be daunting, particularly when running a business which requires timely decision making. The staff at Integrated Security Services are here to address your questions, budgets and investigative needs. While we will not under any circumstances advise a client to disqualify a proposed tenant, employee hiring, or business transaction, our resources, intelligence gathering and experience interpreting data will point out red flags often not captured by generic hiring applications and online driven database searches. You can reach our investigative staff, 24/7 by contacting us at our toll-free number (888) 808-9119 or contacting us through our website at www.intesecurity.com.
