“Tenant Blacklist” Reporting Companies Would Be Regulated by New York City Council Legislation
Fair and Complete Tenant Screening Reports Would Protect Renters Who Have Been in Court from Being Targeted by Landlords and Refused Apartments
New York, NY – Tenant screening companies which create so called “tenant blacklists” would be regulated to ensure they provide fair and complete information, including court records that show when tenants were in the right. This added level of scrutiny will lessen the number of prospective tenants who in many cases are repeatedly denied a place to live merely because they were involved in a housing court case. This legislation is authored by Council Members Ben Kallos, introduced with Public Advocate Leticia James and Manhattan Borough President Gale Brewer, with support from Assembly Member Daniel O’Donnell and State Senator Liz Krueger.
Hundreds of thousands of New Yorkers named in housing court cases every year are reported to be on “tenant blacklists.” These “blacklists” are created by screening reports sold by companies along with credit reports and are often used to deny applications to renters. Tenant screening companies who provide a list of those named in housing court cases without any indication of the particulars or outcome of the case include: CoreLogic SafeRent, TransUnion Rental Screening Solution, On-Site, and ALM. This legislation would license these companies and require them to provide the necessary details of housing court cases such as the outcome and who initiated the proceedings in order to protect tenants who were in the right from being “blacklisted,” a frightening prospect for anyone looking for an apartment in an already tough renters market.
The legislation requires anyone who assembles or evaluates screening reports which contain court histories to register and obtain a license from the Department of Consumer Affairs (DCA) and requires the following:
- Each housing court case mentioned must contain the names of all parties involved, the claims alleged, the current status or outcome of the case, and which party initiated the case;
- Tenant screening companies will have to state the defenses asserted by the tenant and the specific outcome of the case, including any rent abatement awarded.
- The Department of Consumers Affairs is tasked with enforcement with civil penalties of $500 per report inaccurate report and fines for non-compliance up to $5,000.
- Anyone who believes they have been harmed by an inaccurate screening report could bring their own case in court.
“No one should face discrimination for having exercised their constitutional right to seek justice in the courts. Tenant screening companies have a responsibility to tell the truth, the whole truth, and nothing but truth about house court cases,” said Council Member Ben Kallos. “We can't have a legal system where someone can be vindicated in housing court against a bad landlord and then repeatedly denied a place to live. Tenant blacklists degrade housing court and create a system where even if you win, you lose.”
