Tenant screening in New York City runs on a different set of rules than most owners grew up with, and getting the sequence wrong can turn a routine rental application into a discrimination claim. The city's Fair Chance for Housing Act, also known as Local Law 24, has been in effect since January 1, 2025, and it fundamentally changed when and how criminal history can factor into a housing decision. With the law now well past its first full year, this is a good moment for owners to confirm their screening process actually matches what the law requires.

The Core Rule: Screen Everything Else First

The law's central mechanic is sequencing. Housing providers may not consider an applicant's criminal record until after evaluating every other qualification and issuing a conditional offer of housing, according to a Holland & Knight summary of the law. That means income verification, credit history, references, and any other standard screening criteria have to happen first, and an applicant has to clear those hurdles before a criminal background check can even enter the picture. Landlords, property managers, brokers, and co-op or condo boards are all covered as "housing providers" under the law.

What Happens After a Conditional Offer

Even once an applicant reaches the conditional offer stage, the criminal history a housing provider can actually weigh is limited. Only certain convictions qualify for review at this stage, and if a provider decides to withdraw a conditional offer based on conviction history, written notice explaining the legitimate business reason for that decision is required, along with an explanation of how any information the applicant submitted was considered. Application forms, advertisements, and listing materials also can't include any direct or indirect references to criminal background requirements — that language needs to be stripped out entirely, not just deprioritized.

The Clean Slate Act Adds Another Layer

Screening got more complicated on top of the Fair Chance framework with the state's Clean Slate Act, which automatically seals eligible misdemeanor convictions three years after sentencing or release, and eligible felony convictions after eight years, with exceptions for registrable sex offenses and most Class A felonies. Once sealed, those records legally can't appear on a background check or be considered by a landlord. The state's Office of Court Administration has until November 2027 to finish sealing older, already-eligible records, which means some qualifying convictions may still show up on background checks today even though the underlying law says they shouldn't be considered going forward.

Building a Compliant Screening Process

For owners and managing agents, the practical steps are straightforward even if the legal detail is dense. Screening criteria and order of operations should be documented in writing, with income, credit, and reference checks completed and a conditional offer issued before any criminal background check is run. Application materials and listings should be reviewed to remove any criminal-history language. And any denial based on conviction history after a conditional offer needs a written, specific explanation tied to a legitimate business interest, not a generic policy statement. Screening policies that were set up before January 2025, or that haven't been reviewed since, are the ones most likely to be out of step with current law.

Dover Property Group helps owners build tenant screening processes that stay current with NYC and New York State law as it evolves. If your building's application and screening materials haven't been reviewed since the Fair Chance for Housing Act took effect, reach out to our team for a compliance check.

Sources: Holland & Knight · Cole Schotz

About the Author
Dover Property Group is a New York City property management firm working with building owners and tenants across all five boroughs. Our team tracks market conditions, compliance requirements, and neighborhood-level trends to help owners protect their assets and tenants navigate one of the most complex rental markets in the country.

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