Fair Chance in Housing Act

On June 18, 2021, New Jersey Governor Phil Murphy signed into law the “Fair Chance in Housing Act” which bars Landlords from asking prospective tenants about their criminal history on housing applications prior to making a conditional offer to rent.  However, a Landlord can ask on the initial rental application as to whether the person is a registered sex offender or was convicted of making meth in federally assisted housing.

Grounds for Withdrawing Conditional Offer

After a conditional offer is made, the Landlord may run a criminal background check and may withdraw the offer if the criminal background check reveals any of the following:

1. a conviction for murder, aggravated sexual assault, kidnapping, arson, human trafficking, sexual assault in violation of N.J.S.2C:14-2, causing or permitting a child to engage in a prohibited sexual act or in the simulation of such an act in violation of paragraph (3) of subsection b. of N.J.S.2C:24-4, or any crime that resulted in lifetime registration in a state sex offender registry;
2. a first degree indictable offense that was issued, or if the conviction resulted in a prison sentence that sentence concluded, within the six years immediately preceding the issuance of the conditional offer;
3. a second or third degree indictable offense that was issued, or if the conviction resulted in a prison sentence that sentence concluded, within the four years immediately preceding the issuance of the conditional offer; or
4. a fourth degree indictable offense that was issued, or if the conviction resulted in a prison sentence that sentence concluded, within one year immediately preceding the issuance of the conditional offer.

Factors to Consider in Withdrawing the Offer

If the background check reveals any of the foregoing, the Landlord may withdraw the offer so long as the withdrawal is necessary to fulfill a substantial, legitimate, and nondiscriminatory purpose.  Among others, the factors the Landlord should consider in weighing whether to withdraw the offer are the nature and severity of the offense, how old the person was when he or she committed the crime, how much time has passed, and whether the offense if it happened again, would harm the safety of the Landlord’s property or other tenants.

Notice of Reason for Withdrawal

If the Landlord withdraws the offer, the Landlord must give the applicant a written explanation that includes specific reasons for the withdrawal decision and the tenant-applicant can then appeal the denial by providing evidence to show ways in which he or she has rehabilitated, or may raise inaccuracies in the criminal record.

Landlord Protection from Civil Liability

While the Act is certainly pro-tenant, Landlords are not fully unprotected as the Act also includes immunity for Landlords from civil liability arising from the Landlord’s decision to rent to the prospective tenant with a criminal record or as a result of the Landlord’s decision not to run a criminal background check.

If you have questions about the Fair Chance in Housing Act, including penalties a Landlord may face for violating it, contact Jurista Law today.   Our general counsel services for business owners, including landlords, can guide you through compliance with this new law.