This bill aims to protect low- and moderate-income households, referred to as affordable housing applicants, from the negative impacts of hard credit inquiries during the rental application process. It prohibits landlords from conducting hard credit inquiries on these applicants, allowing only soft credit inquiries, which do not affect credit scores. Violations of this provision will result in penalties, starting at $100 for the first offense and increasing for subsequent violations within a year. Additionally, the bill mandates that consumer reporting agencies treat multiple hard inquiries for rental applications within a month as a single inquiry to mitigate the impact on an individual's credit report.

Furthermore, the bill requires the Director of the Division of Housing and Community Resources in the Department of Community Affairs to provide information on its website regarding the new requirements, including tenant rights and the implications of hard and soft credit inquiries. This initiative is designed to enhance transparency and support for both landlords and prospective tenants in understanding the credit evaluation process related to affordable housing applications. The act will take effect six months after its enactment.