This bill establishes new guidelines for evaluating the creditworthiness of applicants seeking affordable housing in New Jersey, particularly for low- and moderate-income households. It addresses the challenges these households face due to the shortage of affordable housing and the negative impact of late or missed rent payments on credit scores. The legislation prohibits landlords from using credit scores or other risk assessments to evaluate applicants with tenant-based housing subsidies, except in cases where there have been multiple rent payment failures within the last three years. Furthermore, landlords are required to conduct individualized assessments of applicants' circumstances before denying rental applications based on creditworthiness, considering factors such as income, employment history, and payment history.

The bill also mandates that landlords provide written notices detailing the reasons for any adverse actions taken against applicants, ensuring transparency in the evaluation process. It establishes a rebuttable presumption of creditworthiness for applicants who can demonstrate an ability to pay rent and have a history of regular income. Additionally, landlords must submit annual reports to the Attorney General regarding housing applications and denials based on creditworthiness, disaggregated by race, ethnicity, sex, and disability status. Individuals who believe they have been discriminated against can file complaints with the Division on Civil Rights or in Superior Court, while the Attorney General is responsible for creating regulations to implement the bill.