For NYC Co-ops & Condos: Fair Chance for Housing Act Effective January 1

We urge our clients to consider new legislation which profoundly impacts admissions practices in community associations in New York City. The legislation, popularly known as the "Fair Chance for Housing Act," becomes effective on January 1, 2025. The provision primarily applies to cooperative boards as they are directly involved in interviewing candidates for admission to the community. However, it also applies to those condominium and HOA boards which use applications and interviews as part of the Right of First Refusal process.

As of January 1, 2025:

• Boards in New York City must change any existing written admissions application or must omit from any newly created application forms any printed or digital text which alludes to any inquiry into a candidate’s criminal history.
• Boards must refrain in any interview from inquiring into a candidate’s criminal history.
• If the Board thereafter opts to perform a background check, there are restrictions on which aspects of a candidate’s criminal history may be considered. Any conviction as a registered sex offender may be considered. Any other felony conviction where fewer than five years have passed from the date of the candidate’s release from incarceration, or from sentencing if no incarceration has occurred, may be considered. Any misdemeanor conviction where fewer than three years have passed from the candidate’s release from incarceration, or from sentencing if no incarceration has occurred, may be considered
• If the Board proceeds with its background check, the candidate needs to be informed of the search, be provided with a copy of the report, and needs to be given a five-day notice period to rebut or explain any content.
• If the Board decides to reject based upon the content of a background check it must (a) provide reasons; (b) show how its rationale for the rejection is related to the legitimate business interests of the community; and (c) show how the information submitted in support of the candidate’s application was considered in the decision.
• The ordinance relieves boards of liability to their owners for malfeasance if they elect to forfeit the background check in light of these restrictions and criminal harm ultimately befalls the community.

We strongly urge Boards to consult with counsel before deciding to reject a candidate based upon the content of a criminal background report, and to seek counsel’s assistance in preparing the requisite written statement accompanying the rejection.

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For more information on condominium and cooperative law matters, please contact:

Bruce A. Cholst at +1 212 592 1621 or [email protected]
Andrew B. Freedland at +1 212 592 1623 or [email protected]

© 2024 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.