NYC’s new fair housing law: key changes for boards

Starting January 1, 2025, NYC’s Fair Chance for Housing Act is set to shake up the way co-op and condo boards evaluate applicants. This landmark law aims to level the playing field by eliminating questions about criminal history in the housing application process. For boards, this means adapting policies while ensuring they continue to make informed, fair decisions about prospective residents.

What’s changing?

Under the new law, co-op and condo boards:

• Can no longer ask about criminal history in applications or interviews
• Must first assess candidates based on their qualifications before considering background checks
• Can only review criminal history within specific time limits:
  
  1. Misdemeanors: Up to 3 years back
  2. Felonies: Up to 5 years back
• Must provide applicants with five days to respond to any findings
• Must supply clear, business-related reasons for any rejections

What does this mean for your board?

While this law removes a commonly used screening tool, it does not take away your ability to vet applicants effectively. Instead, it shifts the focus to factors like financial stability, references, and other key indicators of a responsible resident. If your board decides to forego background checks entirely, it could actually reduce legal risks tied to discrimination claims.

Rather than seeing this as a hurdle, consider it an opportunity to modernize and improve your admissions process. A clear, criteria-driven approach can help protect your board from legal complications while promoting a more inclusive housing environment.

Next steps for your board

To stay compliant and maintain a smooth admissions process, here’s what your board should do next:

1. Review and update application forms to remove criminal history questions
2. Train interview committees to navigate the new requirements confidently and fairly
3. Decide whether to continue background checks under the revised limitations
4. Consult legal counsel to ensure your policies align with the law and protect your board from liability
5. Communicate policy updates clearly to current and prospective residents to maintain transparency

Navigating legal changes can feel overwhelming, but staying ahead of compliance ensures your building remains a desirable, well-managed place to live. By proactively updating your policies and training your board members, you can turn this shift into a positive step toward fairer and more effective governance.

‍