Bill Summary – FastDemocracy

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 Councilmember Brianne K. Nadeau                               Councilmember Trayon White, Sr.

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 Councilmember Vincent C. Gray

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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 into the

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

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

       strengthen penalties.

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

 act may be cited as the Fair Tenant Screening Act of 2021.

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

                 (2A) Background screening report means any report or other document that is

 used or expected to be used in whole or in part for the purpose of serving as a factor in

 establishing a persons eligibility for a rental unit, but not limited to a report that compiles,

 conveys, or interprets a prospective tenants commercial records, financial records, credit

 history, court records, criminal records, employment history, or rental history..

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

                (2B) Background screening company means a third-party vendor that creates,

 offers, or provides background screening services, including a background screening report, in

 exchange for compensation.. (3) Paragraph (14A) is redesignated as paragraph (14B)

                (4) A new paragraph (14A) is added to read as follows:

                (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))..

                (5) Paragraph (27A) is redesignated as paragraph (27B)

                (5) A new paragraph (27A) is added to read as follows:

                (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) Section 224 is amended as follows:

                (1) Subsection (a) is amended by striking the phrase Nothing in this chapter and

 inserting the phrase Nothing in this chapter except 221(a)(5) in its place.

                (2) Subsection (c) is amended by striking the phrase Nothing in this chapter and

 inserting the phrase Nothing in this chapter except 221(a)(5) in its place.

                (3) Subsection (c)(1) is further amended by striking the phrase prior to the sale

        and inserting the phrase prior to the sale; or.

        (c) 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 the following information in writing:

                (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 providers 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. If no units

 of the type sought by the prospective tenant are available, the housing provider shall disclose 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 six (6) months will be, available to rent,

 provided that the housing provider has a good faith basis to believe that the unit(s) will be

 available within six months. 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 response shall

 be reasonably prompt and no later than three business days after receipt of the prospective

 tenants application; and

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

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

  screening company, the name of the company and service(s) used to obtain a background

  screening report, whether the housing provider will consider credit reports, public records, court

  records, or criminal records, and whether it 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, and 229 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 tenants rights under each law, including how to file

  a complaint pursuant to each law;

                         (B) The prospective tenants rights under section 226 to dispute the

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

                        (C) The prospective tenants rights under section 226 to provide a

 statement and any supporting documentation of mitigating circumstances;

                        (D) The prospective tenants right to receive a copy of any background

 screening report prepared as a result of the application for the rental unit; and

                        (E) The prospective tenants right to receive a refund for any unused

 application fees.

                 (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..

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

         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) of this Act, the housing provider shall provide the tenant with a written

 response to his or her application to rent a rental unit.

         (b) If the application of the prospective tenant is denied, the written response shall

 include--

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

                 (2) a copy of any information obtained from a third party for the purpose of

 establishing the applicants eligibility, or otherwise deciding whether, to rent the unit to the

 applicant;

                 (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

 as provided in subsection (c) of this section and/or to request reconsideration in light of

 mitigating circumstances, as provided in subsection (d) of this section.

         (c) Right to Obtain Background Screening Report.

                 (1) A background screening company providing a background screening report on

                      a rental applicant may not prohibit a user of the report from disclosing the

                      contents of the report to the rental applicant.

        (d) Right to Dispute Accuracy of Third Party Information.

                (1)      Upon written notice of denial of an application to rent a rental unit, a

 prospective tenant may provide within 72 hours after the denial, 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.

                (2)      The housing provider shall consider and respond in writing to evidence

 provided pursuant to this subsection within 72 hours of the provision of this evidence.

        (e) Right to Request Reconsideration in Light of Mitigating Circumstances.

                (1) Upon written notice of denial of an application to rent a rental unit, a

 prospective tenant may provide within 72 hours after denial of the application any evidence of

 mitigating circumstances relating to the grounds for denial to establish whether the applicant

 shows a readiness to satisfy the obligations of tenancy.

                (2) The housing provider shall consider and respond to evidence provided

 pursuant to this subsection within 72 hours of the provision of this evidence.

                (3) The housing provider shall offer to rent to the prospective tenant the next

 available rental unit if the evidence of mitigating circumstances would demonstrate to a

 reasonable person the qualifications and ability of the prospective tenant to satisfy the

 obligations of tenancy.

                (4) Evidence of mitigating circumstances may include, but shall not be limited to

 credible information showing:

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

 may not appear in a background check;

                 (B) that a prior eviction of the prospective tenant based on nonpayment of rent

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

                 (C) new or increased income of the prospective tenant that is reliable and

 sufficient to cover rental costs;

                 (D) completion by the prospective tenant of an educational program that will

 increase the prospective tenants likelihood of receiving reliable and sufficient employment

 income;

                 (E) letters of recommendation provided on behalf of the prospective tenant by

 employers or former housing providers;

                 (F) changes in circumstances that would make prior lease violations by the

 prospective tenant less likely to reoccur;

                 (G) that an alleged lease violation by the prospective tenant was related to

 domestic violence, as defined in D.C. Official Code  4-551(1), including any basis protected

 under the Violence Against Women Act, a disability, or another protected trait;

                 (H) that an alleged lease violation by the prospective tenant was related to the

 abuse, financial exploitation, and/or negligence of a vulnerable adult or elderly person, as

 provided in Chapter 9A of Title 22 of the D.C. Official Code (D.C. Official Code  22-931-22-

 938); or

                 (I) the factors set forth in the Fair Criminal Record Screening for Housing Act of

 2016, effective April 7, 2017 (D.C. Law 21-259; D.C. Official Code  42-3541.01 et seq.); or

                 (J) Any other relevant information..

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

         Sec. 227. Prohibited screening and admission criteria.

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

 rental unit, a housing provider or background screening company 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; or

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

 application;

                (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 tenants or a household members

 disability;

                        (C) stemmed from an incident related to domestic violence, sexual

 assault, stalking, or dating violence, or from any evidence that the prospective tenant is or has

 been the victim of domestic violence, sexual assault, stalking, or dating 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;

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

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

        (b) If a housing provider considers any allegation of a breach of a residential lease, the

 housing provider must allow the applicant to provide information that one or more of the

 circumstances in subsection 227(a)(2) applies. If the housing provider receives such information,

 the housing provider shall not consider the alleged breach of lease.

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

 subsidy, a housing provider or background screening company 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 (other than whether or not the level is below a threshold as

 required by local or federal law), credit score, or lack of credit score; and

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

        (d) If the prospective tenant is seeking to rent without the assistance of an income-based

 subsidy, a housing provider shall not deny the prospective tenant housing based solely on the fact

 that the prospective tenant does not have a credit score.

        (e) A housing provider shall not deny the prospective tenant housing based solely on a

 prospective tenants credit score, although information within a credit or consumer report

 directly relevant to whether the applicant shows a readiness to satisfy the obligations of tenancy

 can be relied upon by a housing provider.

        (f) No housing provider shall charge a greater amount for rent 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.

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

 the prohibited screening and admission criteria described herein..

        (e) A new section 228 is added to read as follows:

        A housing provider must process applications in the order in which they were received,

 and shall offer the rental accommodation to the first prospective tenant who meets the selection

 criteria disclosed to the tenant pursuant to section 225.

        (f) A new section 229 is added to read as follows:

        Sec. 229. Background screening companies.

        (a) Any background screening company 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) Any background screening company shall make a 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 background screening company changes its registered agent, or if the name,

 address, or any other information about the agent changes after the background screening

 company files a written statement with the Director pursuant to subsection (b) of this section, the

 background screening company shall, no later than 7 business days after the change, file a

 written statement notifying the Director of the change.

        (e) If the background screening company fails to appoint or maintain a registered agent

 in the District, or if the background screening companys registered agent in the District cannot

 with reasonable diligence be found, the Mayor shall serve as the agent of the background

 screening company upon whom any process, notice, or demand against the business entity may

 be served. All matters served upon the Mayor pursuant to this 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) A background screening company shall not make any background screening report

 containing, conveying, interpreting, or incorporating into a score or recommendation, any o