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Understanding NYC’s Fair Chance Housing Law (2025): What It Means for Landlords and Tenants

 

    New York City’s housing laws continue to evolve to promote fairness, transparency, and equal opportunity in one of the nation’s most competitive real estate markets. The Fair Chance for Housing Act (Local Law 24 of 2024), effective January 1, 2025, marks a significant step in that progression.

 

    This law prohibits most forms of discrimination based on criminal history in housing applications, extending its protections to rentals, co-ops, condominiums, and property sales across all five boroughs.

 

    The reform arrives alongside other major 2025 housing developments, most notably the NYC Broker Fee Ban under the FARE Act, which aims to redefine how broker fees are allocated between landlords and tenants. Together, these measures reflect the City’s ongoing effort to make housing practices more equitable and accountable.

 

    By establishing a consistent framework for when and how criminal background checks may be used, the Fair Chance for Housing Act balances second-chance access to housing with reasonable safeguards for property owners and housing providers.

 

What Is the NYC Fair Chance for Housing Act?

    The Fair Chance Housing Law makes it unlawful for most housing providers, including landlords, property managers, real estate brokers, and co-op or condo boards, to reject applicants because of a criminal record.

 

Who Is Exempt

• Owner-occupied buildings with two or fewer residential units
• Owner-occupied room rentals (e.g., sublets in a primary residence)

 

Core Prohibitions

• Advertising restrictions: No phrases such as “No felons,” “Background check required,” or similar discouraging statements.

 

• Unequal terms: You can’t charge higher deposits or require co-signers solely due to a criminal record.

 

• Non-reviewable records: Providers cannot consider:
  • Arrests that didn’t lead to conviction
  • Sealed or expunged records
  • Juvenile or youthful-offender adjudications
  • Misdemeanors over 3 years old
  • Felonies over 5 years old
  • Any record where the person isn’t required to register as a sex offender

 

• Reviewable records: covered housing providers are permitted to consider the following convictions, provided all aspects of the Fair Chance Law notice and timeframe requirements are followed:
  • Convictions that require registration on a sex offense registry at the time of the background check, regardless of when they took place.
  • Felony convictions where the actual release date OR sentencing date (if no jail time) was within the last 5 years and
  • Misdemeanor convictions where the actual release date OR sentencing date (if no jail time) was within the last 3 years.

 

Landlord Compliance: The “Fair Chance Process” Step-by-Step

    Running a background check is optional, but if you choose to do it, you must follow a legally defined procedure. Landlords are immune from civil liability if they skip background checks or rent to someone with a record.

 

The Required Fair Chance Process

 

1. Initial Screening – Review non-criminal criteria (income, credit, references).
2. Conditional Offer – Make a written offer of tenancy or sale before any criminal inquiry.
3. Notice of Rights – Provide the official Fair Chance Housing Notice of Rights.
4. Criminal Check – Obtain report after the conditional offer.
5. Disclosure & Response Window
   • Share all criminal-record information received.
   • Identify what you’re relying on.
   • Give the applicant at least 5 business days to respond or present evidence of rehabilitation.
6. Final Decision
   • If withdrawing the offer, issue a written explanation citing a legitimate, non-discriminatory reason.
   • Hold the unit during this process to avoid discriminatory denials.

 

    Penalties: Up to $250,000 in civil fines for willful violations, plus compensatory damages and NYC Commission enforcement.

Tenant Rights Under the Fair Chance for Housing Law

    Tenants and buyers now have the right to:

 

• Receive a conditional offer before any background check
• Be informed in writing of any criminal information reviewed
• Have five business days to dispute errors or present mitigating evidence
• File complaints with the NYC Commission on Human Rights for retaliation or discrimination

 

    This process ensures housing decisions are individualized and evidence-based, not blanket rejections.

 

FAQs About NYC’s Fair Chance for Housing Act

What does the law prohibit?
Discrimination based on most criminal histories and any pre-offer criminal inquiries.

 

When can landlords run background checks?
Only after issuing a conditional offer and following the Fair Chance Process.

 

What are the penalties for violations?
Up to $250,000 for willful non-compliance plus potential damages.

 

Does it apply to co-ops and condos?
Yes, boards reviewing purchasers or subtenants are fully covered.

 

Where can tenants file complaints?
At the NYC Commission on Human Rights website or by calling 311.

 

Final Thoughts: Compliance Is Good Business

    The NYC Fair Chance for Housing Act redefines how landlords, brokers, and boards evaluate applicants. It reinforces NYC’s commitment to equitable housing while protecting landlords who comply with transparent procedures.

 

    If you’re a landlord, co-op board, or property manager, now is the time to:

 

• Review your application forms.
• Update screening workflows.
• Train your leasing staff or managing agents.

 

 

This post is for informational purposes only and does not constitute legal advice or create an attorney–client relationship.