Landlords would be prohibited from checking credit ratingscredit report to choose whether to lease to prospective renters under a brand-new bill being introduced in the City Council.
Councilman Mark Levine’s legislation would likewise bar a variety of other elements that owners frequently utilize to choose occupants– including medical debt, customer financial obligation judgments, and debts that have been sent to collection firmsdebt collection agency.
Owners might still run in-depth credit reports and use other information on them, including history of insolvency, foreclosure, delinquencies on existing debt, and how much total debt a tenant owes, to make their choice.
“We do not want individuals who have actually had harddifficult times economically to be blockedshut out of the real estate market. If that occurs they’re going to end up in homeless shelters” said Levine (D-Manhattan).
“We don’t want people to wind up in real estate they cannot pay for,” he said. “However we likewise desire to make certain people who had some hard luck however are able to pay aren’t precluded from housing.”
Frank Ricci of the Rent Stabilization Association, which works with property managers, blasted the proposal.
“It’s a ludicrous concept,” he said. “An owner has to have some capability to screen an occupant’s ability to pay the rent.”
He stated renting to people who wind up deep in defaults would end up harming other occupants because small property managers would not have the ability to afford repairs.