HUD Publishes New Guidance for Landlords Regarding Use of Background Checks

Recently the US Department of Housing and Urban Development (HUD) published guidance for landlords meant to address best practices in their use of criminal background checks when screening tenants.

The purpose of the guidance is to eliminate disparate impact on a group of people because of their race or national origin. In general, HUD suggests to landlords that they must consider any criminal convictions of a prospective tenant on an individualized basis with a focus on the nature, severity, and how much time has passed since conviction.

The housing provider must prove that the policy for excluding any housing applicant is justified, meaning there is a substantial, legitimate, nondiscriminatory interest of the housing provider. It is a better strategy for the housing provider to focus on certain types of offenses that are barred, and then show how the criminal conduct prohibited is a risk to safety and/or property. In addition, landlords are prohibited from using arrest records when making housing decisions.

Landlords will not be held liable under The Fair Housing Act for excluding individuals who have convictions for illegal manufacture or distribution of a controlled substance.

Office of General Guidance on Application of Fair Housing Act Standards to the Use of Criminal Records by Providers of Housing and Real Estate-Related Transactions.

Learn more about the tenant screening products and services offered by IntelliCorp.

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