Bill Summary – FastDemocracy

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                                                          Councilmember Trayon White

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                                             A    BILL

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            IN    THE    COUNCIL        OF    THE     DISTRICT       OF    COLUMBIA

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  To amend the Human Rights Act of 1977 to prohibit housing providers from inquiring the source

        of income and credit history of a prospective tenant; to require for housing providers to

        notify perspective tenants of specific information before collecting any application fee; to

         strengthen penalizations

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         BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

6   act may be cited as the "Fair Tenant Screening Act of 2019".

         Sec. 2. The Human Rights Act of 1977, effective December 13, 1977 (D.C. Law 2-38;

  D.C. Official Code  2-1401.01 et seq.), is amended as follows:

         (a) Section 102 (D.C. Official Code  2-1401.02) is amended as follows:

                 (1) Paragraph (I4A) is redesignated as paragraph (I4B)

                 (2) A new paragraph (I4A) is added to read as follows:

2                  "(14A) "Housing provider" shall have the same meaning as provided in section

  103(15) of the Rental Housing Act of 1985, effective July 17, 1985 (D.C. Law 6-10; D.C.

  Official Code  42-3501.03(15)).".

                 (3) A new paragraph {21 A) is added to read as follows:

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"(27A) "Rental unit" shall have the same meaning as provided in section 103(33)

of the Rental Housing Act of 1985, effective July 17, 1985 (D.C. Law 6-10; D.C. Official Code 

42-3501.03(33)).".

(b) A new section 225 is added to read as follows:

"Sec. 225. Written screening and admission criteria.

"(a) Prior to obtaining any information from or regarding a prospective tenant or

collecting any application fee in connection with the rental of a rental unit, a housing provider

shall provide the prospective tenant in writing, or by posting, the following information;

"(1) Specific information regarding the rental units available for rent from the

housing provider, including:

"(A) An estimate, made to the best of the housing provider's ability at that

time, of the approximate number of rental units of the type/bedroom size, and in the area or

specific property, sought by the prospective tenant that are, or within 30 days will be, available

to rent from that housing provider. The estimate shall include the approximate number of

applications previously accepted and remaining under consideration for those units. A good faith

error by a housing provider in making an estimate under this paragraph shall not constitute a

violation of this section;

"(B) The amount of rent and monthly fees the housing provider will

charge and the deposits the housing provider will require for rental of a rental unit. If charges for

water, heat, electricity, or amenities are not included in the rent, the housing provider also shall

disclose this fact to the prospective tenant;

"(C) The date by which the housing provider will provide the prospective

tenant with a response regarding his or her application to rent a rental unit, which shall require a

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reasonably prompt response; and

"(D) The process that the housing provider typically will follow in

screening the prospective tenant, including whether the housing provider uses a tenant screening

company, credit reports, public records, or criminal records, or contacts employers, housing

providers or other references.

"(E) The eligibility criteria that the housing provider will apply in

screening the prospective tenant, including the specific financial, employment, criminal, and

rental history criteria, used in deciding whether to rent or lease to the prospective tenant.

"(2) General information about sections 225, 226, 227,228 of this Act and the Fair

Criminal Record Screening for Housing Act of 2016, effective April 7, 2017 (D.C. Law 21-259;

D.C. Official Code  42-354.01 et seq.), including:

"(A) The prospective tenant's rights under each law, including how to file

a complaint pursuant to each law;

"(B) The prospective tenant's rights under section 226 to dispute the

accuracy of any information provided to the housing provider by a third party; and

"(C) The prospective tenant's rights under section 226 to provide a

statement and any supporting documentation of mitigating circumstances;

"(b) A housing provider shall not knowingly misrepresent to a prospective tenant

the current or future availability of a rental unit.

"(c) If a housing provider fails to conduct a screening of a prospective tenant for

any reason, the housing provider shall refund any application fee paid by the prospective tenant

within a reasonable time.".

(b) A new section 226 is added to read as follows:

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"Sec. 226. Notice of denial of application.

"(a) Not later than the response date provided to the prospective tenant pursuant to

section 225(a)(1)(C), the housing provider shall provide the tenant with a written response to his

or her application to rent a rental unit. If a lease is not offered, the following information also

shall be provided:

"(1) The specific grounds that led to the denial;

"(2) A copy of any information obtained from a third-party that formed a basis for

the denial;

"(3) A written itemized accounting of how the application fee was spent; and

"(4) A statement informing the prospective tenant of his or her right to dispute the

accuracy of any information upon which the housing provider relied in making its determination

and/or to request reconsideration in light of mitigating circumstances, as provided in subsection

(c) of this section.

"(b) Upon written notice of denial of application, a prospective tenant may provide within

48 hours after denial of application, and the housing provider reasonably shall consider, any

evidence that information relied upon by the housing provider was inaccurate or incorrectly

attributed to the prospective tenant or was based on screening criteria prohibited by District law.

"(c) Upon written notice of denial of application, a prospective tenant may provide within

48 hours after denial of application, and the housing provider reasonably shall consider, any

evidence of mitigating circumstances relating to the specific ground or grounds for denial. This

may include, but shall not be limited to, credible information that shows:

"(1) A history of on-time rental payments by the prospective tenant that otherwise

may not appear in a background check;

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"(2) That a prior eviction of the prospective tenant based on nonpayment of rent

was based, in part or solely, on rent not owed by the prospective tenant;

"(3) New or increased income of the prospective tenant that is reliable and

sufficient to cover rental costs;

"(4) Completion by the prospective tenant of an educational program that will

increase the prospective tenant's likelihood of receiving reliable and sufficient employment

i n c o m e ;

"(5) Letters of recommendation provided on behalf of the prospective tenant by

employers or former housing providers;

"(6) Changes in circumstances that would make prior lease violations by the

prospective tenant less likely to reoccur;

"(7) That an alleged lease violation by the prospective tenant was related to either

domestic violence or a disability or another prohibited screening category; or

8 " ( 8 ) A n y o t h e r r e l e v a n t i n f o r m a t i o n . " .

(c) A new section 227 is added to read as follows:

"Sec. 227. Prohibited screening criteria.

"(a) When evaluating a prospective tenant in cormection with an application to rent a

rental unit, a housing provider shall not inquire into or consider:

"(1) An action to recover possession from the prospective tenant, if the action:

"(A) Did not result in a judgment for possession in favor of the housing

provider;

"(B) Was filed 2 or more years before the prospective tenant submits the

application.

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"(2) Any allegation of breach of a residential lease by the prospective tenant if the

alleged breach:

"(A) Stemmed from an incident that took place 2 or more years before the

prospective tenant submits the application;

"(B) Was related to the prospective tenant's or a household member's

disability;

"(C) Stemmed from an incident related to domestic violence or from any

evidence that the prospective tenant is or has been the victim of domestic violence, including but

not limited to records of Civil or Criminal Protection Orders sought or obtained, or criminal

matters in which the tenant is a witness; or

"(D) Related to the prospective tenant or a household member being the

victim of a crime in the unit subject to the residential lease;

"(3) Any action initiated by the prospective tenant against a housing provider,

including but not limited to an action alleging failure to maintain a rental unit in compliance with

applicable laws governing housing conditions; or

"(4) Any factors not outlined in the eligibility criteria established by the housing

provider and provided to the prospective tenant pursuant to section 225(a)(1)(E).

"(b) If the prospective tenant is seeking to rent with the assistance of an income-based

subsidy, a housing provider shall not inquire into or consider:

"(1) Any prior rental history of the prospective tenant involving nonpayment or

late payment of rent, if the nonpayment or late payment of rent occurred prior to receipt of the

income-based subsidy;

"(2) Income levels or credit score; and

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"(3) Any credit issues that arose prior to the receipt of the income-based subsidy.

"(c) No housing provider shall charge a greater amount or additional fee to a prospective

tenant seeking to rent with the assistance of an income-based subsidy than it would charge to a

prospective tenant who does not have an income-based subsidy.

"(d) A housing provider shall not deny housing to a prospective tenant based on any of

the prohibited screening and admission criteria described herein.".

(d) A new subsection 228 is added to read as follows:

"Sec. 228. Background screening companies.

"(a) Any business entity providing tenant background screening services to a housing

provider in the District of Columbia shall appoint and continuously maintain a registered agent

for service of process.

"(b) A business entity shall make record of the appointment of a registered agent pursuant

to this section by filing a written statement with the Director of the Department of Housing and

Community Development ("Director").

"(c) The registered agent shall be an individual who is a resident of the District of

Columbia or an organization incorporated in the District of Columbia.

"(d) If the business entity changes its registered agent, or if the name, address, or any

other information about the agent changes after the business entity files a written statement with

the Director pursuant to subsection (b) of this section, the business entity shall, no later than 7

business days after the change, file a written statement notifying the Director of the change.

"(e) If the business entity fails to appoint or maintain a registered agent in the District, the

Mayor shall serve as the agent of the business entity upon whom any process, notice, or demand

against the business entity may be served. All matters served upon the Mayor pursuant to this

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section shall be handled in the same manner as matters served upon the Mayor pursuant to D.C.

Official Code  29-104.12(d).

"(f) Any business entity providing background screening services in the District in

violation of this section shall be subject to a penalty of $600 per violation."

"(g) Nothing in this section shall limit or restrict the type or amount of relief that an

individual may be otherwise entitled to under this act."

(e) Section 313(a)(1) (D.C. Official Code 2-1403.13(a)(1)) is amended by adding a new

subparagraph (E-2) to read as follows:

"(E-2) For a violation of section 225, 226, 227, or 228, in addition to the

penalties set forth in subparagraph (E-1) of this paragraph, the payment of civil penalties, half of

which shall be deposited in the General Fund and half of which shall be awarded to the

complainant, according to the following schedule:

"(i) For a housing provider that owns or leases 3 to 10 rental units,

a fine of up to $ 1,000;

8 8 " ( i i ) F o r a h o u s i n g p r o v i d e r t h a t o w n s o r l e a s e s 11 t o 1 9 r e n t a l

units, a fine of up to $2,500;

"(iii) For a housing provider that owns or leases 20 or more rental

units, a fine of up to $5,000; and

"(iv) For a business entity providing tenant background screening

services in the District, a fine of up to $ 1200.

Sec. 3. Fiscal impact statement.

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The Council adopts the fiscal impact statement in the committee report as the fiscal

impact statement required by section 4a of the General Legislative Procedures Act of 1975,

approved October 16, 2006 (120 Stat. 2038; D.C. Official Code  1-301.47a).

Sec. 4. Effective date.

This act shall take effect following approval by the Mayor (or in the event of veto by the

Mayor, action by the Council to override the veto), a 30-day period of congressional review as

provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December

24, 1973 (87 Stat. 813; D.C. Official Code  1-206.02(c)(1)), and publication in the District of

Columbia Register.

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