This bill establishes new guidelines for evaluating the creditworthiness of applicants seeking affordable housing in New Jersey, particularly targeting 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 of multiple rent payment failures within the last three years. Furthermore, it mandates individualized assessments of applicants' circumstances, considering factors such as income, employment history, and payment history, while establishing a rebuttable presumption of creditworthiness for those who can demonstrate an ability to pay rent.

Additionally, the bill requires landlords to provide written notices detailing the reasons for any adverse actions taken against applicants, ensuring transparency in the evaluation process. These notices must be available in multiple languages as needed. Landlords are also obligated to submit annual reports to the Attorney General regarding housing applications and denials based on creditworthiness, disaggregated by race, ethnicity, sex, and disability status. The bill allows individuals who feel aggrieved to file complaints with the Division on Civil Rights or in Superior Court, and it empowers the Director of the Division to prohibit landlords from renting out units while investigations are ongoing. The Attorney General, in consultation with the Commissioner of Community Affairs, is tasked with adopting regulations to implement the bill.